Anterra Energy Inc.
TSX VENTURE : AE.A

Anterra Energy Inc.

August 26, 2015 16:05 ET

Anterra Energy Announces Second Quarter 2015 Financial and Operating Results

CALGARY, ALBERTA--(Marketwired - Aug. 26, 2015) - Anterra Energy Inc. ("Anterra" or the "Company") (TSX VENTURE:AE.A) is pleased to announce its financial and operating results for the three and six months ended June 30, 2015. Selected information presented below, should be read in conjunction with the Company's unaudited financial statements and related management's discussion and analysis filed with the Canadian regulatory authorities and available on SEDAR at www.sedar.com and on the Company's website at www.anterraenergy.com.

OPERATIONS

  • Continuing low crude oil prices experienced during the first half of 2015 had a major negative impact on the Company's overall 2015 performance. Production revenue, excluding the impact of risk management commodity contracts, for the six months ended June 30, 2015 decreased 54% to $5.3 million, from $11.4 million for same period in 2014, primarily as a result of a 47% reduction in realized average commodity prices. For the first half of 2015, realized commodity prices averaged $49.94 per boe compared to $90.15 per boe during the first half of 2014.

  • The Company's midstream operations, primarily at Breton, continued to generate strong revenue and cash flow. First half 2015 midstream revenue of $1.85 million was virtually the same as revenue for the comparable period in 2014. However, due to lower operating costs, funds generated by midstream operations (determined as revenues less direct operating expenses), increased 20% to $1.15 million for the first half of 2015 as compared to $0.96 million for the first half of 2014.

  • Production for the six months ended June 30, 2015 averaged 581 boe per day, a decrease of 17% compared to 697 boe per day for the first half of 2014. As a result of quality adjustments, blending charges and trucking costs, production from the Company's Two Creek property became uneconomical at the current low prices and was shut-in at the beginning of March, 2015.

  • During the second quarter of 2015 insurance claims totaling $2.4 million relating to spill clean-up and remediation costs incurred and expensed in 2014 and 2015, were approved by the Company's insurer and the Company recorded a net cost recovery of $1.5 million for the six months ended June 30, 2015.

  • In addition to the contribution from midstream activities and the recovery of spill clean-up and remediation costs, overall Company operations were positively impacted by risk management contracts which resulted in a realized gain of $743,829 during the six months ended June 30. 2015.

Summary of Financial and Operating Results
Three months ended June 30 Six months ended June 30
2015 2014 2015 2014
Financial (unaudited)
Oil and gas sales $2,801,108 $5,655,261 $5,249,120 $11,370,921
Midstream revenue 856,179 957,861 1,850,617 1,850,700
Funds flow from operations(1) 727,017 1,105,934 877,991 2,498,497
Per share basic & diluted 0.001 0.002 0.002 0.005
Realized risk management gain 248,049 - 743,829 -
Net income (loss) 830,857 (132,433 ) (11,517 ) 35,226
Per share basic & diluted 0.002 (0.001 ) (0.001 ) 0.001
Capital Expenditures (71,633 ) 896,057 77,184 1,641,598
Net debt(1) 22,822,260 17,198,433 22,822,260 17,198,433
Net debt to annualized funds flow(1) 13.0 : 1 3.4 : 1 13.0 : 1 3.4 : 1
Property, plant and equipment 64,466,774 71,695,944 64,466,774 71,695,944
Exploration and evaluation assets 386,667 386,667 386,667 386,667
Shareholders' equity 17,621,282 33,721,603 17,621,282 33,721,603
Operating
Average production
Light and medium crude oil, bbls/d 421 585 472 598
Natural gas, mcf/d 280 397 310 441
NGLs, bbls/d 72 27 57 26
Boe/d 540 679 581 697
% Oil and NGLs 91 % 90 % 91 % 90 %
Average realized price
Light and medium crude oil, $/bbl 66.02 100.13 56.09 98.18
Natural gas, $/mcf 2.80 5.06 2.99 5.75
NGLs, $/bbl 30.31 56.01 27.75 62.83
Oil and gas field netback(1)$/ boe
Oil and gas sales 57.02 91.55 49.94 90.15
Realized risk management gain 5.05 - 7.08 -
Royalties 5.76 23.59 6.54 21.61
Operating and transportation expense 37.17 44.49 38.91 42.68
Field netback 19.15 23.47 11.57 25.86
Midstream net operating revenue 507,529 471,807 1,153,097 963,088
(1) Funds flow from operations, net debt, net debt to annualized funds flow, and field netback are non GAAP measures. See Reader Advisories.

About Anterra Energy Inc.

Anterra is an independent oil focused junior exploration and production company with operating in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol "AE.A". Additional information is available on the Company's website at www.anterraenergy.com.

Reader Advisories

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this News Release.

Non-IFRS Measures

This news release makes reference to terms commonly used in the petroleum and natural gas industry including funds from operations, net debt, net debt to annualized funds flow and netback. Such terms do not have a standard meaning as prescribed by International Financial Reporting Standards ("IFRS") and therefore may not be comparable with the determination of similar measures for other entities. These measures are identified as non-GAAP measures and are used by management to analyze operating performance and leverage. These measures should not be considered an alternative to, or more meaningful, than cash flow from/used in operating activities or net income (loss) as determined in accordance with IFRS.

Forward-Looking Information

Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are usually identified by the words "believe", "anticipate", "expect", "plan", "estimate", "target", "continue", "could", "intend", "may", "potential", "predict", "should", "will", "objective", "project", "forecast", "goal", "guidance", "outlook", "effort", "seeks", "schedule" or expressions of a similar nature suggesting future outcome or statements regarding an outlook. In particular, forward-looking statements include:

Forward-looking statements are not guarantees of future performance and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the assumptions, plans, initiatives or expectations upon which they are based will occur. In addition, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such factors include, among others: general economic and business conditions; the price of and demand for oil and natural gas and their effect on the economics of oil and gas exploration; fluctuations in currency and interest rates and their effect on projected profitability of the Company's operations; the ability of the Company to implement its business strategy, including exploration and development plans; the impact of competition and in particular the ability of the Company to maintain its land position in a competitive leasing environment; the availability and cost of seismic, drilling, completions and other equipment; the Company's ability to secure adequate transportation and markets for any oil or gas discovered; drilling and operating hazards and other difficulties inherent in the exploration for and production and sale of oil and natural gas; the availability and cost of financing; the success of any exploration and development undertaken; actions by governmental authorities; and, changes in government regulations and the expenditures required to comply with them (including, but not limited to, the changes in taxes or the royalty or other share of production taken by governmental authorities). Should one or more of these risks or uncertainties materialize, or should any of the Company's assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company's course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this News Release are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change

BOE Presentation

Production volumes and reserves are commonly expressed on a barrel of oil equivalent ("boe") basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of gas equal to one barrel of oil, based on an energy equivalency at the burner tip and does not represent a value equivalency at the wellhead. Used in isolation, barrels of oil equivalent may be misleading.

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