|By Marketwired .||
|November 21, 2012 08:31 PM EST||
CALGARY, ALBERTA -- (Marketwire) -- 11/22/12 -- Painted Pony Petroleum Ltd. ("Painted Pony" or the "Company") (TSX VENTURE:PPY) is pleased to report its financial and operating results for the nine and three month periods ending September 30, 2012. Highlights for the third quarter of 2012 include:
-- production averaged 6,327 boe per day, an increase of 56% over the same period in 2011; -- funds flow from operations totaled $8.5 million ($0.12 per basic and diluted share); -- drilled 12 (8.2 net) wells, including 2 (1.2 net) wells on its Montney gas project in northeastern British Columbia and 10 (7.0 net) wells on the Company's light oil projects in southeastern Saskatchewan; and -- exited the quarter with no debt, a positive working capital position of $20.3 million and an undrawn demand credit facility of $100 million.
MONTNEY GAS OPERATIONS
Painted Pony has recently commenced completion and production testing operations on three 100% working interest horizontal Montney wells in the greater Blair area. An upper Montney well at c-B11-F/94-B-16 is currently flowing in-line to the non-operated third party Blair gas processing facility. Over the past seven days, this well has flowed at an average wellhead rate of 10.4 MMcf/d and at an average flowing casing pressure of 1,857 psi. The most recent 24-hour rate averaged 12.2 MMcf/d at an average flowing casing pressure of 1,520 psi. Painted Pony is encouraged by the early results from this well, as they are comparable to the initial rates reported from the Blair 41-F upper Montney well located approximately 2.7 kilometers north of c-B11-F and the Blair 8-F upper Montney well situated 4.5 kilometers west (please refer to press releases dated November 24, 2011 and January 9, 2012). Together, the Company believes these three wells delineate a region of high gas deliverability from the upper Montney zone along the southeastern portion of its Blair block.
Elsewhere at Blair, the c-C11-F/94-B-16 lower Montney well is currently flowing back on initial cleanup. In addition, the west Blair a-80-E/94-B-16 well is presently being completed in the upper, middle and lower Montney zones. Test results from these two wells are expected to be available prior to year-end.
LIGHT OIL OPERATIONS
Painted Pony continues to develop its light oil assets in southeastern Saskatchewan. During the first three quarters of 2012, the Company participated in the drilling of 17 (13.5 net) wells. Of these, 7 (5.3 net) wells were drilled and subsequently completed on the Bakken project in the Flat Lake area. During the fourth quarter of 2012, the Company expects to drill and complete an additional 3 (2.3 net) wells at Flat Lake.
In Alberta, Painted Pony is currently conducting testing operations on its second 100% working interest Viking exploratory well in the Wimborne area. Results are expected by year-end 2012. Elsewhere in Alberta, drilling operations have commenced on a third Viking exploratory well (100% working interest), which is testing a new play in the Corbett area.
During the third quarter, Painted Pony's production grew to average 6,327 boe/d (weighted 77% gas), an increase of 10% from average second quarter 2012 volumes of 5,745 boe/d (75% gas weighted). During the month of October 2012, the Company's field-estimated production averaged approximately 7,000 boe/d, weighted 75% to gas. The Company expects its British Columbia sales gas volumes to remain essentially flat for the last two months of 2012 due to current operational constraints at the Blair gas facility. Furthermore, certain existing Blair production has been temporarily restricted to permit in-line testing of the new 11-F pad wells.
In the third quarter, Painted Pony generated funds flow from operations of $8.5 million equating to $0.12 per basic and diluted share. The Company remains strong financially, exiting the third quarter of 2012 with no debt, a positive working capital position of $20.3 million and an undrawn demand credit facility of $100 million.
The Company continues to pursue the development and expansion of its Montney gas assets in northeastern British Columbia. In 2012, the Company expects to complete drilling operations on a total of 11 (6.8 net) Montney wells. For 2013, the Company has approved a capital budget of approximately $120 million, expected to be funded from cash flow and the existing credit facility. Approximately 80% of the budget has been allocated to Montney gas. During 2013, the Company expects to participate in 11 (9.4 net) Montney wells. This proposed Montney program will include step-out drilling in the Company's Cypress, northwest Blair and central Cameron blocks.
An updated presentation incorporating the Company's third quarter 2012 financial results will be available on the Company's website. Painted Pony's Common Shares trade on the TSX Venture Exchange under the symbol "PPY".
Financial and Operational Highlights
---------------------------------------------------------------------------- Three months ended Nine months ended September 30, September 30, 2012 2011 2012 2011 ---------------------------------------------------------------------------- Financial (000s, except per share) Petroleum and natural gas revenue $ 16,913 $ 16,647 $ 51,538 $ 53,408 Funds flow from operations(1) $ 8,492 $ 9,159 $ 26,978 $ 31,633 Per share - basic(2) $ 0.12 $ 0.15 $ 0.38 $ 0.55 Per share - diluted(3) $ 0.12 $ 0.15 $ 0.38 $ 0.53 Cash flows from operating activities $ 7,581 $ 8,586 $ 27,414 $ 31,995 Net income (loss) and comprehensive income (loss) $ (2,594) $ 4,765 $ (7,442) $ 5,085 Per share - basic and diluted(2)(3) $ (0.04) $ 0.08 $ (0.11) $ 0.09 Capital expenditures(4) $ 33,533 $ 45,924 $ 84,482 $ 108,416 Working capital $ 20,309 $ 6,709 $ 20,309 $ 6,709 Total assets $ 476,260 $ 360,227 $ 476,260 $ 360,227 Shares outstanding Class A/ Common 70,648,127 59,633,673 70,648,127 59,633,673 Class B - 1,173,600 - 1,173,600 Basic weighted-average shares 70,460,984 59,592,021 70,080,812 58,027,694 Diluted weighted-average shares 70,460,984 61,334,305 70,080,812 59,299,501 Operational Daily sales volumes Oil (bbls per day) 1,214 1,312 1,299 1,464 Condensate (bbls per day) 65 41 55 51 NGL's (bbls per day) 161 50 138 94 Gas (mcf per day) 29,324 15,965 29,180 13,715 Total (boe per day) 6,327 4,064 6,355 3,895 Realized prices Oil (per bbl) $ 85.12 $ 89.48 $ 86.50 $ 92.16 Gas (per mcf) $ 2.38 $ 3.60 $ 2.24 $ 3.76 Field operating netbacks British Columbia (per boe) $ 8.95 $ 14.18 $ 7.43 $ 14.67 Saskatchewan (per boe) $ 40.84 $ 51.56 $ 49.12 $ 57.90 Company combined (per boe) $ 16.25 $ 26.73 $ 17.41 $ 32.66 ---------------------------------------------------------------------------- 1. This table contains the term "funds flow from operations", which should not be considered an alternative to, or more meaningful than "cash flows from operating activities" as determined in accordance with International Financial Reporting Standards ("IFRS") as an indicator of the Company's performance. Funds flow from operations and funds flow from operations per share (basic and diluted) does not have any standardized meaning prescribed by IFRS and may not be comparable with the calculation of similar measures for other entities. Management uses funds flow from operations to analyze operating performance and leverage and considers funds flow from operations to be a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investment. The reconciliation between funds flow from operations and cash flows from operating activities can be found in "Management's Discussion and Analysis". Funds flow from operations per share is calculated using the basic and diluted weighted average number of shares for the period, and after the deemed conversion of the Class B shares to Class A shares for 2011, consistent with the calculations of earnings per share. 2. Basic per share information is calculated on the basis of the weighted average number of Common (re-designated from Class A) shares outstanding in the period. 3. Diluted per share information reflects the potential dilution effect of options and, for 2011, the convertible Class B shares, each of which may be anti-dilutive. Comprehensive income is adjusted for the amount of finance expense applicable to the Class B shares for the period. The conversion of Class B shares into Class A shares, if dilutive, is computed by dividing $10 by the greater of $1.00 and the Current Trading Price, defined as the weighted average trading price of the Class A shares for the last 30 consecutive trading days. 4. Including decommissioning costs and share-based payments.
Painted Pony Petroleum Ltd. was recognized as a TSX Venture 50® Company in 2012. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.
Special Note Regarding Forward-Looking Information
This news release contains certain forward-looking statements, which are based on numerous assumptions including but not limited to: (i) drilling success; (ii) production; (iii) future capital expenditures; and (iv) cash flows from operating activities. In addition, and without limiting the generality of the foregoing, the key assumptions underlying the forward-looking statements contained herein include the following: (i) commodity prices will be volatile, and natural gas prices will remain low, throughout 2012; (ii) capital, undeveloped lands and skilled personnel will continue to be available at the level Painted Pony has enjoyed to date; (iii) Painted Pony will be able to obtain equipment in a timely manner to carry out exploration, development and exploitation activities; (iv) production rates in 2012 are expected to show growth from 2011; (v) operational constraints at the Blair gas processing facility will continue for the remainder of 2012; (vi) Painted Pony will have sufficient financial resources with which to conduct the capital program; and (vii) the current tax and regulatory regime will remain substantially unchanged. The reader is cautioned that certain or all of the forgoing assumptions may prove to be incorrect.
Certain information regarding Painted Pony set forth in this document, including its future plans and operations, anticipated well results, and the planning and development of certain prospects, may constitute forward-looking statements under applicable securities laws and necessarily involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Painted Pony's control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof. Readers are cautioned that the foregoing list of factors is not exhaustive. Painted Pony's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
Additional information on these and other factors that could affect Painted Pony's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or Painted Pony's website (www.paintedpony.ca).
The forward-looking statements contained in this document are made as at the date of this news release and Painted Pony does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Special Note Regarding Disclosure of Reserves or Resources
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. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value.
Neither 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.
Painted Pony Petroleum Ltd.
Patrick R. Ward
President & CEO
Painted Pony Petroleum Ltd.
Joan E. Dunne
Vice President, Finance & CFO
Painted Pony Petroleum Ltd.
300, 602 - 12 Ave SW
Calgary, AB T2R 1J3
(403) 238-1487 (FAX)
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 30, 2016 04:30 PM EDT Reads: 2,262
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Jul. 30, 2016 04:30 PM EDT Reads: 1,103
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Jul. 30, 2016 01:30 PM EDT Reads: 968
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 30, 2016 11:30 AM EDT Reads: 1,400
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Jul. 30, 2016 10:45 AM EDT Reads: 1,108
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Jul. 30, 2016 10:15 AM EDT Reads: 1,515
ReadyTalk has expanded the capabilities of the FoxDen collaboration platform announced late last year to include FoxDen Connect, an in-room video collaboration experience that launches with a single touch. With FoxDen Connect, users can now not only engage in HD video conferencing between iOS and Android mobile devices or Chrome browsers, but also set up in-person meeting rooms for video interactions. A host’s mobile device automatically recognizes the presence of a meeting room via beacon tech...
Jul. 30, 2016 10:00 AM EDT Reads: 537
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 30, 2016 10:00 AM EDT Reads: 2,182
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 30, 2016 09:15 AM EDT Reads: 1,659
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Jul. 30, 2016 09:00 AM EDT Reads: 616
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 30, 2016 08:00 AM EDT Reads: 782
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 30, 2016 07:45 AM EDT Reads: 731
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 30, 2016 07:45 AM EDT Reads: 2,419
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 30, 2016 07:30 AM EDT Reads: 1,697
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 30, 2016 07:30 AM EDT Reads: 550
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices 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 opportuni...
Jul. 30, 2016 05:15 AM EDT Reads: 2,722
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
Jul. 30, 2016 04:00 AM EDT Reads: 2,150
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
Jul. 30, 2016 03:00 AM EDT Reads: 1,672
SYS-CON Events announced today that MangoApps will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
Jul. 30, 2016 02:45 AM EDT Reads: 1,508
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
Jul. 30, 2016 02:15 AM EDT Reads: 1,202