Pine Cliff Energy Ltd.

Pine Cliff Energy Ltd.

November 18, 2011 17:35 ET

Pine Cliff Energy Announces Third Quarter 2011 Results

CALGARY, ALBERTA--(Marketwire - Nov. 18, 2011) -


Pine Cliff Energy Ltd. (TSX VENTURE:PNE) (Pine Cliff or the Company) is pleased to announce its operating and financial results for the third quarter ended September 30, 2011. The related unaudited condensed consolidated financial statements and notes, as well as management's discussion and analysis, are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at and on Pine Cliff's website at


As at and for the periods ended Three months Nine months

Sept. 30, 2011
Sept. 30, 2010
Restated (1
) Sept. 30, 2011 Sept. 30, 2010 Restated (1 )
Revenue Oil and Gas sales 220,398 323,641 702,145 1,082,829
Cash Flow (Deficiency) from Operations 120,109 (547 ) 336,936 179,893
Per share Basic and Diluted 0.00 (0.00 ) 0.01 0.00
Net (Loss) earnings (74,182 ) 616,139 (160,358 ) 249,863
Per share Basic and Diluted (0.00 ) 0.01 (0.00 ) 0.01
Capital Expenditures 13,223 63,106 22,320 1,242,017
Total Assets 2,503,803 3,095,983
Working Capital 487,693 394,482
Shareholders' Equity 2,304,841 3,466,507
Cash Flow from Operations 120,109 243,335 336,936 573,998
Per share Basic and Diluted 0.00 0.01 0.01 0.01
Net Loss (74,182 ) (121,705 ) (160,358 ) (183,101 )
Per share Basic and Diluted (0.00 ) (0.00 ) (0.00 ) (0.00 )
Capital Expenditures 13,223 40,549 22,320 1,138,678
Crude Oil and NGLs – Barrels per day 1 1 1 2
– Average price ($ per barrel) 80.45 66.90 81.87 78.05
Natural Gas – MCF per day 594 908 622 912
– average price ($ per MCF) 3.91 3.79 4.02 4.14
Total Barrels of Oil Equivalent Per Day (BOE) (3) 100 153 105 154
  1. The comparative highlights have been restated with the adoption of International Financial Reporting Standards.
  2. Continuing operations excludes the results of operations from the South American assets which have been designated as discontinued operations. The South American assets were sold on September 24, 2010.
  3. Barrels of oil equivalent (BOE) are calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.
  • Senior management and the Board of Directors have implemented a strategic review process with the intent of redirecting Pine Cliff's corporate strategy. The key focus will be to substantially increase the Company's asset base in the Western Canadian Sedimentary Basin to provide new opportunities to increase shareholder value.
  • There are various options being analyzed and the Company has made significant progress in regard to its review. The Board and management anticipate that the review will soon be completed and at that time detailed information will be provided to shareholders.
  • In the third quarter of 2010, Pine Cliff began to take steps to move toward this Canadian-based strategy with the disposition of its South American Operations which significantly reduced future operating and capital costs. The Company received shares in a public company from the disposition that were valued at $230,646 as at September 30, 2011. The Company now has modest positive cash flow from continuing operations as well as a positive working capital position of $487,693.
  • Pine Cliff's current production comes from non-operated properties in the Sundance area in northwest Alberta but the Company does not presently have a large enough land position to make it a significant core area.
  • During the second quarter, four wells (0.6 net, 15 percent working interest in each well) were licensed in the area on Company interest lands and drilled by the operator in the third quarter of 2011. However, due to low natural gas prices resulting in marginal economics, the Company elected not to participate in any of these wells.
  • This prolonged and weak natural gas price environment has led to a significant number of junior exploration and production (E&P) companies trading with distressed valuations. With uncomfortable levels of debt and limited access to the credit markets for many of these E&Ps, Pine Cliff anticipates increased levels of corporate and asset divestitures in the marketplace.
  • Management will continue to actively assess all available acquisitions and is well-positioned to be able to capitalize quickly on any identified opportunities. Future activities will be financed from present working capital, debt (of which the Company current has none) or by equity issues.
  • The Board of Directors and management recognize that progress in refocusing its strategy has been somewhat protracted. The Company wishes to thank its dedicated shareholders for its patience and support as Pine Cliff endeavors to reposition itself as a growth oriented, Canadian based junior E&P.

Cautionary Statement

This summarized news release should not be considered a suitable source of information for readers who are unfamiliar with Pine Cliff and should not be considered in any way as a substitute for reading the full report.

For the full report, please go to


Certain statements contained in this MD&A include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this MD&A includes, but is not limited to: expected cash provided by continuing operations; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: the risks of foreign operations; foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived therefrom. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The forward-looking information contained herein is expressly qualified by this cautionary statement.

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

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