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2016-02-26

BLACKPEARL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 FINANCIAL AND OPERATING RESULTS AND YEAR-END RESERVES AND RESOURCES

BlackPearl Resources Inc.
Bokslutskommuniké

BLACKPEARL ANNOUNCES FOURTH QUARTER AND FULL YEAR 2015 FINANCIAL AND OPERATING
RESULTS AND YEAR-END RESERVES AND RESOURCES

CALGARY, ALBERTA – BlackPearl Resources Inc. (“we”, “our”, “us”, “BlackPearl”
or the “Company”) (TSX: PXX) (NASDAQ OMX Stockholm: PXXS) is pleased to
announce its financial and operating results for the three and twelve months
ended December 31, 2015 as well as the results of its 2015 year-end oil and gas
reserves and resources evaluations.

Highlights and accomplishments included:

-- Q4 2015 oil and gas production was 9,521 boe/day, a 27% increase from the
third quarter. The increase reflects the successful production start-up of
our Onion Lake thermal project. For the full year, production averaged
8,330 boe/day in 2015.

-- We achieved positive results from our cost reduction strategy in 2015.
Operating costs, on a boe basis, were 21% lower in 2015 compared to 2014.

-- Q4 2015 revenue was $23 million and funds flow from operations (a non-GAAP
measure) was $11 million, down from Q4 2014 as a result of lower oil
prices. For the year, oil and gas revenue was $96 million and funds flow
from operations was $49 million.

-- Capital expenditures in 2015 were $69 million, a decrease from $235 million
in 2014.Capital expenditures were reduced in 2015 due to completion of the
Onion Lake thermal facilities in the first half of the year and our desire
to maintain financial flexibility in this challenging oil price
environment.

-- At Onion Lake, we completed construction of phase one of the Onion Lake
thermal project in the spring and we commenced commercial production at the
beginning of the fourth quarter this year. The project is currently
producing approximately 4,500 barrels of oil per day and we are continuing
to optimize the project and expect to reach design production capacity of
6,000 barrels of oil per day by mid-2016. The project was completed on time
and on budget, with capital costs of approximately $225 million.

-- At Blackrod, we continue to achieve positive results from the SAGD pilot.
In Q4, the second well pair produced an average of 562 bbls/day and for the
full year the well produced 500 bbls/day with an average steam oil ratio of
2.75. Cumulatively, the well has produced in excess of 280,000 barrels of
oil. These successful results strengthens our confidence that we have the
technical information to move towards commercial development. The
regulatory review for our 80,000 bbls/day commercial development
application, which was filed in 2012, is on-going.

-- At Mooney, no new activities were initiated in 2015 as our primary focus
was to achieve operating cost savings in the field. Field operating costs
decreased over 40% in 2015 compared to 2014.

-- Sproule Unconventional Limited (“Sproule”), our independent reserves
evaluator, assigned proved plus probable reserves of 294 million barrels of
oil equivalent to our properties in their 2015
year-end evaluation. Proved developed producing reserves increased 127% as
a result of the reclassification of the reserves assigned to the first
phase of the Onion Lake thermal project from undeveloped to producing.

-- Risked contingent resources (best estimate) for our three core properties
totaled 494 million barrels of oil equivalent.

John Festival, President of BlackPearl, commenting on activities indicated that
“although 2015 was a challenging year for the oil and gas sector we still made
significant progress in the development of our properties. This included
successfully building, commissioning and commencing production of our first
commercial thermal project at Onion Lake. Additionally, in 2015, we continued
to receive positive results from our SAGD pilot at Blackrod; results that will
set us up for commercial development of this large resource when economic
conditions permit. We are managing in this low price environment by reducing
our costs and limiting capital expenditures to maintain a strong financial
position.”

Financial and Operating Highlights

--------------------------------------------------------------------------------
Three months Twelve months
ended ended
December 31, December 31,
2015 2014 2015 2014
--------------------------------------------------------------------------------

Daily sales volumes
Oil (bbls/d) 8,785 8,567 7,434 8,492
Bitumen (bbls/d) (1) 562 523 541 380
Combined (bbls/d) 9,347 9,090 7,975 8,872
Natural gas (mcf/d) 1,047 3,294 2,130 2,492
Combined (boe/d) (2) 9,521 9,639 8,330 9,287

Product pricing ($)
Crude oil - per bbl 27.65 59.34 35.00 72.47
Natural gas - per mcf 2.91 3.39 2.72 4.12
Combined - per boe (2) 27.45 57.00 34.14 70.24
Realized gains on risk management 12.54 6.97 13.20 0.58
contracts – per boe
($000s, except where noted)

Oil and natural gas revenue – gross 22,630 47,798 96,271 228,345

Net income (loss) for the period (31,172) 16,254 (46,793) 26,825
Per share, basic ($) (0.09) 0.05 (0.14) 0.08
Per share, diluted ($) (0.09) 0.05 (0.14) 0.08

Funds flow from operations (3) 10,898 19,716 48,962 89,723

Capital expenditures 1,665 57,700 68,508 235,366

Working capital deficiency (surplus), end (11,063) 18,237 (11,063) 18,237
of period
Long term debt 88,000 29,000 88,000 29,000
-------------------------------------
Net Debt (4) 76,937 47,237 76,937 47,237
-------------------------------------
-------------------------------------

Shares outstanding, end of period (000s) 335,638 335,638 335,638 335,638
--------------------------------------------------------------------------------

(1) Includes production from the Blackrod SAGD pilot. All sales and expenses
from the Blackrod SAGD pilot are being recorded as an adjustment to the
capitalized costs of the project until the technical feasibility and commercial
viability of the project is established.

(2) Boe is based on a conversion ratio of 6 mcf of natural gas to 1 bbl of
oil. Boe 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 is not intended to represent a value
equivalency at the wellhead.

(3) Funds flow from operations is a non-GAAP measure (as defined herein) that
represents cash flow from operating activities before decommissioning costs
incurred and changes in non-cash working capital related to operations. Funds
flow from operations does not have standardized meanings prescribed by Canadian
generally accepted accounting principles (“GAAP”) and therefore may not be
comparable to similar measures used by other companies. Management uses this
non-GAAP measurement for its own performance measures and to provide its
shareholders and investors with a measurement of the Company’s efficiency and
its ability to fund a portion of its growth expenditures.

(4) Net debt is a non-GAAP measure

FOURTH QUARTER 2015 ACTIVITIES

Activities in the fourth quarter of 2015 continued to be impacted by lower oil
prices. Oil and gas revenues were $22.6 million in the fourth quarter of 2015,
53% lower compared to the same quarter of 2014. The decrease in revenues is
primarily attributable to a decrease in our average realized crude oil sales
price in Q4 2015. WTI oil prices averaged US$42.18 per barrel in Q4 2015
compared to US$73.15 per barrel in Q4 2014. Lower WTI oil prices combined with
comparable heavy oil differentials and a weaker Canadian dollar relative to the
US dollar resulted in our wellhead price averaging $27.65 per barrel in the
fourth quarter of 2015 compared with $59.34 per barrel in the fourth quarter of
2014.

BlackPearl sold an average of 9,521 boe/day during the fourth quarter of 2015
compared with 9,639 boe/day during the fourth quarter of 2014. Production in
the fourth quarter of 2015 increased significantly from the first three
quarters of the year (7,930 boe/day) as a result of first commercial
production from our Onion Lake thermal project. During the fourth quarter the
thermal project produced 3,010 barrels of oil per day.

Production costs were $14.6 million or $17.77 per boe in the fourth quarter of
2015 compared to $21.1million or $25.12 per boe in the fourth quarter of 2014.
The decrease in production costs in 2015 is primarily due to on-going field
optimization efforts in a low price environment, which included reduced well
maintenance work, shutting in some of our high cost production, not re-starting
wells that required servicing and lower chemical costs related to our ASP flood
at Mooney. General and administrative expenses were $1.8 million in the fourth
quarter of 2015 compared to $1.9 million in the fourth quarter of 2014.

Funds flow from operations in the fourth quarter of 2015 was $10.9 million
compared to $19.7 million in the fourth quarter of 2014. The decrease reflects
lower revenues in Q4 2015. Net loss in the fourth quarter of 2015 was $31.2
million compared to net income of $16.3 million in the fourth quarter of 2014.
The net loss in Q4 2015 included a non-cash impairment write-down of $33.0
million related to our Mooney area assets. The write-down is attributable to
the current low oil price environment. The net loss in Q4 2015 also includes
realized gains on risk management contracts (oil price hedging contracts) of
$10.3 million.

Capital expenditures were limited in the fourth quarter of 2015 due to low oil
prices. Capital spending was $1.7 million during the quarter compared with
$57.7 million in Q4 2014.

Production

BlackPearl’s Q4 2015 oil and gas sales volumes were 9,521 boe per day, a 27%
increase over production during the third quarter. The increase in fourth
quarter production is attributable to initial production from the star-up of
our Onion Lake thermal project.

Three months ended Twelve months ended
December 31, December 31, ...

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