West Energy announces 2009 operating results
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./
CALGARY, March 24 /CNW/ - West Energy Ltd.("West" or the "Company") (TSX: WTL) announces it has filed its audited Consolidated Financial Statements for the year ended December 31, 2009 and related Management's Discussion and Analysis ("MD&A") in addition to its Annual Information Form ("AIF") which includes West's reserves data and other oil and gas information for the year ended December 31, 2009 as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators. Copies of West's materials may be obtained on www.sedar.com and on its website at www.westenergy.ca.
Production for the fourth quarter of 2009 was restricted due to a production outage caused by pipeline failure at Crossfire that shut in approximately 1,800 Boepd net to West for the last 23 days of the year. Daily production of approximately 1,450 boepd net to West from the Warburg acquisition was recognized subsequent to the close of the transaction on December 17, 2009. Certain selected financial and operational information for the three and twelve months ended December 31, 2009 and the 2008 comparatives are set out below and should be read in conjunction with West's Consolidated Financial Statements, MD&A and AIF.
Three months ended Year ended
December 31, December 31,
2009 2008 2009 2008
(unaudited)
OPERATING
Production
Crude oil (Bbls/d) 2,101 4,776 2,603 3,869
NGLs (Bbls/d) 468 1,010 682 1,127
Natural gas (Mcf/d) 4,357 7,734 4,803 7,140
Barrels of oil equivalent
(Boe/d at 6:1) 3,295 7,074 4,086 6,186
Prices
Crude oil (per Bbl) $ 75.43 $ 62.78 $ 62.59 $ 97.52
NGLs (per Bbl) $ 69.27 $ 60.27 $ 54.17 $ 88.55
Natural gas (per Mcf) $ 3.94 $ 7.37 $ 3.95 $ 9.06
Revenue (per Boe) $ 63.56 $ 60.32 $ 53.68 $ 88.57
Royalties (per Boe) $ 25.77 $ 16.45 $ 17.41 $ 24.42
Operating costs (per Boe) $ 11.00 $ 9.06 $ 9.86 $ 9.04
Operating netback
(per Boe)(1) $ 26.79 $ 34.81 $ 26.41 $ 55.12
General and administrative
(per Boe) $ 1.64 $ 1.70 $ 3.36 $ 2.11
Retention Plan (per Boe) $ 4.39 $ - $ 0.94 $ -
Interest income (per Boe) $ (0.56) $ (2.79) $ (0.45) $ (0.82)
Interest expense (per Boe) $ 0.80 $ - $ 0.17 $ -
Corporate netback
(per Boe)(1) $ 20.52 $ 35.90 $ 22.39 $ 53.84
Gross company reserves (Mboe)
Proven 13,070 4,506
Proven plus probable 19,349 8,136
Wells drilled - Gross/net
Oil 11/8.95 -/- 18/13.68 7/3.92
Gas -/- 4/1.25 3/1.30 6/2.41
Service (water source
and injection) -/- -/- 1/1.00 -/-
Abandoned 1/1.00 -/- 1/1.00 1/0.04
Total 12/9.95 4/1.25 23/16.98 14/6.37
Drilling success rate
(excluding service wells) 92%/90% 100%/100% 95%/94% 93%/99%
FINANCIAL (000s, except
per share amounts)
Oil and gas revenues $ 19,263 $ 39,259 $ 80,055 $ 200,524
Funds from operations(1) $ 5,601 $ 23,327 $ 32,692 $ 121,755
Per share - basic $ 0.07 $ 0.29 $ 0.40 $ 1.53
- diluted $ 0.07 $ 0.29 $ 0.40 $ 1.51
Cash flow from operating
activities $ 6,266 $ 25,346 $ 29,076 $ 130,769
Per share - basic $ 0.08 $ 0.31 $ 0.35 $ 1.64
- diluted $ 0.08 $ 0.31 $ 0.35 $ 1.62
Net income (loss) $ (2,655) $ (2,100) $ (8,939) $ 9,474
Per share - basic $ (0.03) $ (0.03) $ (0.11) $ 0.12
- diluted $ (0.03) $ (0.03) $ (0.11) $ 0.12
Working capital (deficiency) $ (92,916) $ 70,391
Capital expenditures $ 178,681 $ 14,611 $ 204,944 $ 47,018
Total assets $ 372,758 $ 291,092
Common shares
Outstanding 82,271 81,551 82,271 81,551
Weighted average - basic 82,272 80,693 81,999 79,754
- diluted 82,272 80,871 81,999 80,627
1.) The above table contains the terms "funds from operations",
"Operating Netback" and "Corporate Netback". These terms are non-GAAP
measures which the Company believes provide useful and relevant
information, and should not be considered an alternative to, or more
meaningful than "cash flow from operating activities" as determined in
accordance with GAAP as an indicator of the Company's financial
performance.
Subsequent Event
On March 5, 2010, the Company and Daylight Resources Trust ("Daylight") announced that they have entered into an arrangement agreement pursuant to which, subject to the approval of the West shareholders, Daylight shall acquire all of the outstanding common shares of West by way of a plan of arrangement. The Arrangement is expected to close in mid-May 2010, after Daylight's proposed conversion to a corporation. The directors of West unanimously support, and encourage all shareholders to vote in favour of, the transaction.
Annual and Special Meeting
All shareholders are invited to attend West's Annual and Special Meeting to approve the Daylight transaction that will be held at 10:00 am. on Tuesday, May 11, 2010 in the Strand-Tivoli Room of the Metropolitan Conference Centre, 333 - 4th Avenue S.W., Calgary, Alberta. Shareholders who are not able to attend the meeting in person are encouraged to complete and mail in their proxies.
Reader's Advisory:
Certain information regarding West Energy Ltd. in this news release including management's assessment of the future plans and operations and their timing may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, changes to the proposed royalty regime prior to implementation and thereafter, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information and that could cause actual results to differ materially from those anticipated in the forward-looking statements are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) or at the Company's website (www.westenergy.ca). Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release and the Company 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.
Disclosure provided herein in respect of barrel(s) of oil equivalent (Boe) may be misleading, particularly if used in isolation. A Boe conversion ratio of 6 mcf:1 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. There is no certainty that it will be commercially viable to produce any portion of the resources that are discovered resources. There is no certainty that any portion of the resources that are undiscovered resources will be discovered and, if discovered, there is no certainty that it will be commercially viable to produce any portion of such resources.
For further information: Ken McCagherty, President and Chief Executive Officer, Email: [email protected], Direct Phone: (403) 716-3458; Scott Bridge, Vice President Finance and Chief Financial Officer, Email: [email protected], Direct Phone: (403) 716-3457
Share this article