Border Petroleum Corp.

August 30, 2012 07:30 ET

Border Announces Quarterly Financials and Provides Operations Update

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2012) - Border Petroleum Corp. ("Border" or the "Corporation") (TSX VENTURE:BOR) today announced its financial results for its first quarter ended June 30, 2012. The unaudited condensed consolidated interim financial statements and management's discussion & analysis ("MD&A") were filed on SEDAR on August 29, 2012 and can be viewed at


Certain selected financial and operational information for the quarter ended June 30, 2012 is set out below and should be read in conjunction with the Corporation's audited consolidated financial statements and related MD&A. The following table provides a summary of key financial results.

A summary of financial and operating results for the three months ended June 30, 2012 and 2011 are outlined in the following table:

2012 2011
Petroleum and natural gas revenues $ 851,155 $ 242,216
Funds flow from operations $ (673,858 ) $ (355,039 )
per share - basic and diluted $ (0.00 ) $ (0.01 )
Net loss $ (1,397,344 ) $ (446,248 )
per share - basic and diluted $ (0.01 ) $ (0.01 )
Capital expenditures $ 1,764,153 $ 3,470,600
Weighted average shares outstanding
basic and diluted 224,537,953 70,586,293
Oil and liquids (bbls/d) 105 25
Natural gas (mcf/d) 833 27
Oil equivalent (boe/d) 244 29
Sales price per unit
Oil and liquids ($/bbl) 72.37 101.78
Natural gas ($/mcf) 2.10 4.22
Oil equivalent ($/boe) 38.36 90.24
Reserves (Proved plus probable)
Oil and liquids (mbbls) 1,810 704
Natural gas (mmcf) 2,447 31
Oil equivalent (mboe) 2,218 709


In spite of heavy rainfall in April and May that caused operational, production and testing delays, Border's first two Slave Point horizontal wells at Red Earth were brought on production in the first quarter ended June 30, 2012. That production contributed to a total increase of 741% in the average daily rate for the quarter to 244 boe compared to the same period last year.

As reported on July 16, 2012, the peak thirty days of production from the first two short horizontal wells averaged 102 bopd ("30 day IP"). Furthermore, based on field reports, the sixty days of initial production from the wells averaged 78 bopd ("60 day IP").

Based on the results of the first two horizontal wells which achieved an average 30 day IP of 10 bopd per frac, Border has commenced licensing four new long horizontal wells (over 1,000 metre legs) on its 18,720 acre permit on the Loon River Cree Nation (the "Loon Permit"). Border plans to drill its first initial long leg well incorporating approximately 20 frac stages this fall. The Loon Permit provides Border the opportunity to drill up to approximately 120 potential long leg horizontal wells (based on quarter section spacing) targeting 38.9 MMbbls of Best Estimate Contingent Resource, as evaluated by Sproule Associates Ltd. and disclosed in greater detail in Border's July 16, 2012 press release.

Forward-Looking Statements

The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Border. Although Border believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Border can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Border's disclosure documents on the SEDAR website at

The forward-looking statements contained in this document are made as of the date hereof and Border undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.


BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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 release.

Contact Information

  • Border Petroleum Corp.
    Kelly Kimbley
    President & CEO
    (403) 538-8450
    (403) 444-5042 (FAX)