Click here to close now.

Welcome!

.NET Authors: Carmen Gonzalez, Elizabeth White, Liz McMillan, Greg O'Connor, Jason Bloomberg

News Feed Item

Celtic Reports Financial and Operating Results for the Three and Nine Months Ended September 30, 2012 and Provides an Operations Update

CALGARY, ALBERTA -- (Marketwire) -- 11/09/12 -- Celtic Exploration Ltd. (TSX:CLT) ("Celtic" or the "Company") has released its financial and operating results for the three and nine months ended September 30, 2012. Summary of results are as follows:


                             Three months ended           Nine months ended 
                                  September 30,               September 30, 
----------------------------------------------------------------------------
(CA$ thousands,                                                             
 unless otherwise                                                           
 indicated)              2012       2011 Change       2012      2011 Change 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Revenue, before                                                             
 royalties and                                                              
 financial                                                                  
 instruments           49,265     55,298    -11%   148,525   163,723     -9%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Funds from                                                                  
 operations            27,748     34,626    -20%    77,526   102,126    -24%
----------------------------------------------------------------------------
 Basic ($/common                                                            
  share)                 0.26       0.35    -26%      0.74      1.07    -31%
----------------------------------------------------------------------------
 Diluted ($/common                                                          
  share)                 0.26       0.34    -24%      0.72      1.04    -31%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Profit (loss)          (8,127)    (1,592)  -410%   (13,067)    3,100      - 
----------------------------------------------------------------------------
 Basic ($/common                                                            
  share)                (0.08)     (0.02)  -285%     (0.12)     0.03      - 
----------------------------------------------------------------------------
 Diluted ($/common                                                          
  share)                (0.08)     (0.02)  -285%     (0.12)     0.03      - 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Capital                                                                     
 expenditures, net                                                          
 of dispositions       75,517     96,682    -22%   288,039   237,398     21%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total assets        1,287,660    932,905     38% 1,287,660   932,905     38%
----------------------------------------------------------------------------
Bank debt             198,100    165,000     20%   198,100   165,000     20%
----------------------------------------------------------------------------
Working capital                                                             
 deficiency            47,316     54,738    -14%    47,316    54,738    -14%
----------------------------------------------------------------------------
Convertible                                                                 
 debentures           150,384          -      -    150,384         -      - 
----------------------------------------------------------------------------
Shareholders' equity  704,318    547,586     29%   704,318   547,586     29%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Weighted average                                                            
 common shares                                                              
 outstanding                                                                
 (thousands)                                                                
----------------------------------------------------------------------------
 Basic                105,650     97,650      8%   105,272    95,402     10%
----------------------------------------------------------------------------
 Diluted              107,567    100,900      7%   107,429    98,502      9%
----------------------------------------------------------------------------

FINANCIAL STATEMENTS

Celtic's unaudited condensed interim financial statements and related notes for the quarter ended September 30, 2012 will be available to the public on SEDAR at www.sedar.com and will also be posted on the Company's website at www.celticex.com on November 9, 2012.

Celtic's operating results for the three and nine months ended September 30, 2012 are summarized in the table below:


                             Three months ended           Nine months ended 
                                  September 30,               September 30, 
----------------------------------------------------------------------------
(CA$ thousands,                                                             
 unless otherwise                                                           
 indicated)              2012      2011  Change      2012      2011  Change 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Production                                                                  
----------------------------------------------------------------------------
 Oil (bbls/d)           4,391     3,859      14%    4,275     3,676      16%
----------------------------------------------------------------------------
 Gas (mcf/d)           90,105    71,691      26%   89,458    71,177      26%
----------------------------------------------------------------------------
 Combined (BOE/d)      19,409    15,808      23%   19,185    15,539      23%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Production per                                                              
 million common                                                             
 shares (BOE/d)           184       162      14%      182       163      12%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Average realized                                                            
 prices, after                                                              
 financial                                                                  
 instruments                                                                
----------------------------------------------------------------------------
 Oil ($/bbl)            74.43     79.77      -7%    80.09     79.64       1%
----------------------------------------------------------------------------
 Gas ($/mcf)             2.62      4.18     -37%     2.36      4.24     -44%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Operating netbacks                                                          
 ($/BOE)                                                                    
----------------------------------------------------------------------------
 Oil and gas revenue    27.59     38.02     -27%    28.26     38.59     -27%
----------------------------------------------------------------------------
 Realized gain                                                              
  (loss) on                                                                 
  financial                                                                 
  instruments            1.41      0.40     253%     0.60     (0.33)      - 
----------------------------------------------------------------------------
 Average realized                                                           
  price, after                                                              
  financial                                                                 
  instruments           29.00     38.42     -25%    28.86     38.26     -25%
----------------------------------------------------------------------------
 Royalties              (1.22)    (4.45)    -73%    (1.90)    (4.25)    -55%
----------------------------------------------------------------------------
 Production &                                                               
  transportation                                                            
  expense               (9.16)    (8.29)     10%    (9.80)    (7.90)     24%
----------------------------------------------------------------------------
 Operating netback      18.62     25.68     -27%    17.16     26.11     -34%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Drilling activity                                                           
----------------------------------------------------------------------------
 Total wells                8        12     -33%       28        46     -39%
----------------------------------------------------------------------------
 Working interest                                                           
  wells                   6.7       7.5     -11%     22.4      31.0     -28%
----------------------------------------------------------------------------
 Success rate on                                                            
  working interest                                                          
  wells                   100%       91%     10%      100%       98%      2%
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Undeveloped land                                                            
----------------------------------------------------------------------------
 Gross acres          820,842   710,513      16%  820,842   710,513      16%
----------------------------------------------------------------------------
 Net acres            701,763   643,557       9%  701,763   643,557       9%
----------------------------------------------------------------------------

MESSAGE TO SHAREHOLDERS

Celtic Exploration Ltd. ("Celtic" or the "Company") is pleased to report to shareholders the Company's activities in the third quarter of 2012.

During the quarter, Celtic drilled 8 (6.7 net) wells with an overall net success rate of 100%. Production during the quarter averaged 19,409 BOE per day, an increase of 23% from 15,808 BOE per day in the third quarter of 2011.

During the third quarter of 2012, Celtic recorded funds from operations of $27.7 million ($0.26 per share, diluted), down 20% from $34.6 million ($0.34 per share, diluted) reported in the same quarter of the previous year. Despite higher production levels during the third quarter of 2012, funds from operations decreased primarily due to significantly lower natural gas prices which averaged $2.62 per MCF in the third quarter of 2012, down 37% from $4.18 per MCF in the same period in 2011.

Net capital expenditures during the quarter were $75.5 million, down 22% from $96.7 million in the third quarter of 2011.

DRILLING AND OPERATIONS

At Kaybob, Alberta, the Company continued its delineation of the Devonian Duvernay play by drilling 2 gross (1.9 net) wells. A horizontal well located at 16-33-59-19W5 (86% WI) was drilled to a measured depth of 4,931 metres and is currently being completed. A vertical well located at 4-11-59-19W5 (100% WI) was drilled to a total vertical depth of 3,271 metres.

At Kaybob, Celtic has commenced construction of a 150 MMCF per day gas processing facility located at 15-7- 60-18W5. This facility has been designed to gather condensate and recover certain amounts of liquefied natural gas (butane and propane). The remaining natural gas will be shipped on the Alliance Pipeline System and pursuant to the Company's previously announced arrangement with Aux Sable Canada LP, Celtic will receive additional economic value for the remaining natural gas liquids contained in the natural gas stream.

In the Fir-Kaybob-Chickadee areas of Alberta, the Company drilled three (100% WI) horizontal wells in the Dunvegan formation. The well located at 1-27-60-17W5 was drilled with a horizontal lateral of 1,767 metres; the well located at 2-21-60-19W5 was drilled with a horizontal lateral of 1,239 metres; and the well located at 4-26- 59-22W5 was drilled with a horizontal lateral of 2,834 metres. All three wells were successfully completed and are either now on production or soon to be put on production.

At Inga, British Columbia, the Company participated in the drilling of 2 gross (0.8 net) wells. One well has been completed and is on production and the second well is currently being completed. The Company continues to remain encouraged by the results at Inga.

At Karr, Alberta, Celtic drilled a re-entry horizontal well (100% WI). The Company expects to commence completion operations on this well in the fourth quarter of 2012.

At Resthaven, Alberta, construction of the remaining six kilometre portion of the main pipeline system in the southern portion of the Greater Resthaven land block was completed. Two Montney horizontal wells and one dual Montney-Cretaceous horizontal well located in the Smoky-Horse-Leland areas that had previously been drilled and completed were put on production at the end of September and in early October.

OUTLOOK

In spite of lower than historical average realized natural gas prices averaging $2.36 per MCF during the first nine months of 2012, Celtic was able to generate high netbacks from its liquids production, the majority of which is condensate that attracts a premium to WTI pricing, resulting in an overall corporate operating netback of $17.16 per BOE. In addition, the Company continues to take advantage of the Alberta Government royalty incentive programs, resulting in an average corporate royalty rate of 6.9% for the nine month period ended September 30, 2012.

Celtic re-confirms its exit 2012 production guidance of 29,900 BOE per day. The Company expects to bring significant production volumes on-stream in the fourth quarter of 2012 from the following wells:


--  7 gross (5.2 net) wells at Kaybob from the Devonian Duvernay formation; 
--  2 gross (2.0 net) wells at Kaybob from the Dunvegan formation; 
--  3 gross (2.0 net) wells at Resthaven from the Montney formation; 
--  1 gross (1.0 net) well at Resthaven from the Cretaceous Falher
    formation; 
--  3 gross (1.2 net) wells at Inga from the Doig formation; and 
--  1 gross (1.0 net) well at Fir from the Montney formation. 

ACQUISITION BY EXXONMOBIL

On October 17, 2012, Celtic announced that Canadian affiliates of Exxon Mobil Corporation, including ExxonMobil Canada Ltd. ("ExxonMobil Canada") entered into an agreement with Celtic, providing for the purchase by a subsidiary of ExxonMobil Canada of all of Celtic's outstanding common shares at a cash price of C$24.50 per share plus 0.5 of a share of a new company called Kelt Exploration Ltd. ("Kelt"), for each Celtic common share.

The agreement between ExxonMobil Canada and Celtic provides for, among other things, a non-solicitation covenant on the part of Celtic, subject to "fiduciary out" provisions that entitle Celtic to consider and accept a superior proposal and a right in favour of ExxonMobil Canada to match any superior proposal. The arrangement agreement provides for a C$90.0 million termination fee payable by Celtic in certain circumstances if the transaction is not completed.

Completion of the transaction is subject to customary closing conditions, including receipt of court, shareholder and regulatory approvals, including under the Investment Canada Act and Competition Act. Celtic's securityholders will be asked to vote on the transaction at a special securityholders meeting and the completion of the transaction will require the approval of two-thirds of the votes cast by shareholders in person or by proxy at the meeting.

Under the proposed transaction, the holders of the Celtic convertible unsecured subordinated debentures outstanding will receive Celtic common shares, including shares pursuant to the make whole payments provided under the terms of the debentures in total equal to the amount they would otherwise receive, following the completion of the arrangement if they were not acquired under the arrangement, plus accrued interest to the closing date, plus additional interest for 32 days. The Celtic common shares received by debentureholders under the arrangement will be exchanged, as part of the arrangement, for the same $24.50 in cash and 0.5 of a Kelt share to be received by other holders of Celtic common shares.

Celtic's debentureholders will be asked to vote on the arrangement; however, completion of the arrangement is not conditional on their approval. If debentureholder approval is not obtained, the debentures will be excluded from the arrangement and will remain outstanding following completion of the arrangement and continue to be governed by the terms of their indenture.

An information circular regarding the arrangement is expected to be mailed to securityholders on or about November 19, 2012 for a special meeting of the holders of common shares and debentures to take place on December 14, 2012, with closing expected to occur as soon as reasonably practicable following the receipt of court, shareholder and regulatory approvals.

ADVISORY REGARDING FORWARD-LOOKING STATEMENTS

This document contains expectations, beliefs, plans, goals, objectives, assumptions, information and statements about future events, conditions, results of operations or performance that constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") under applicable securities laws, including all matters with respect to the proposed transaction with ExxonMobil Canada. Undue reliance should not be placed on forward-looking statements. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements. We caution that the foregoing list of risks and uncertainties is not exhaustive. Events or circumstances could cause actual dates to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. The forward-looking statements contained in this document are made as of the date hereof and the Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise unless expressly required by applicable securities laws. Readers are cautioned that the foregoing well test results are not necessarily indicative of long-term performance.

MEASUREMENTS AND ABBREVIATIONS

All dollar amounts are referenced in Canadian dollars, except when noted otherwise. Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to oil equivalence at six thousand cubic feet per barrel and sulphur volumes have been converted to oil equivalence at 0.6 long tons per barrel. The term BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids ("NGLs"). NGLs include condensate, pentane, propane, butane and ethane. References to gas in this discussion include natural gas and sulphur.

Working interest is abbreviated as "WI". Million cubic feet is abbreviated as "MMCF". Thousand cubic feet is abbreviated as "MCF". Barrels are abbreviated as "bbls". Giga joules are abbreviated as "GJ".

Contacts:
Celtic Exploration Ltd.
Suite 600, 321 - 6th Avenue SW
Calgary, Alberta, Canada T2P 3H3

Celtic Exploration Ltd.
David J. Wilson
President and Chief Executive Officer
(403) 201-5340

Celtic Exploration Ltd.
Sadiq H. Lalani
Vice President, Finance and Chief Financial Officer
(403) 215-5310
www.celticex.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...