Wrangler West Reports 2013 Six Months Operating and Financial Results

CALGARY, Aug. 23, 2013 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX") announces filing on SEDAR of the Company's unaudited Financial Statements and related Management's Discussion and Analysis ("MD&A") and the 2013 Second Interim Report to Shareholders for the three and six months ended June 30, 2013 with comparative data for the three and six months ended June 30, 2012. All documents may be viewed at www.sedar.com.

Review of 2013 First Half

During the first six months of 2013, Wrangler West produced 661 barrels of oil equivalent ("boe") per day, a 15 percent decrease compared to the same period one year ago.  The decrease was due to expected natural production declines in the Company's corporate petroleum and natural gas reserves base. Currently, Wrangler West is 80 percent weighted to natural gas.  During 2013 first half, the Company received an average natural gas price of $3.59 per Mcf.  As natural gas prices softened following 2013 second quarter, the Company suspended all capital expenditures and reduced costs where possible to maximize free cash flow to reduce its working capital deficiency.

Industry Conditions

At the time of this report, AECO natural gas price is $2.25 per Mcf.  Alberta storage of this product is reaching capacity.  Until the shoulder season passes and the heating season begins to draw down storage, the Company expects natural gas prices could remain in their current range.

Crude oil price continues at near record highs.  Oil differentials have returned to a more normal market range as the pressure on certain sales points has been reduced.  Movement of crude oil by rail has opened up some additional markets and, as a result, producers are receiving higher prices for this commodity.

Worldwide economic uncertainty continues to result in volatility in commodity markets. Access to equity markets remains constrained for public junior oil and natural gas companies.  When the heating season begins in late October, any improvement in natural gas price could provide the potential for new financings for junior exploration and production companies.

Corporate Overview

Improved natural gas markets would stabilize the Company's business environment. Wrangler West's objective is to prudently manage the corporate asset base during current weak natural gas prices.  In the meantime, strong crude oil prices are encouraging. The waterflood project at the Riviere oil property is showing ongoing pressure response following repairs conducted on the water source well late in the 2013 first quarter.  Riviere's Wabamun A oil pool is a significant asset with multiple infill opportunities that will require future capital to capture its full potential.  Under the Company's current liquidity constraints, management expects to remain in a holding pattern regarding near-term capital expenditures.

WRANGLER WEST ENERGY CORP.
STATEMENTS OF FINANCIAL POSITION
(Stated in thousands of dollars)
(Unaudited)
			June 30, 2013		December 31, 2012
Assets
Current assets
	Accounts receivable	$	538	$	1,079
	Prepaid expenses		169		132
			707		1,211
Property, plant and equipment (note 4)			22,583		24,132
		$	23,290	$	25,343
Liabilities and shareholders' equity
Current liabilities
	Bank indebtedness (note 5)	$	4,767	$	4,734
	Accounts payable and accrued liabilities		1,359		2,073
			6,126		6,807
Decommissioning obligations (note 6)			2,963		3,068
Deferred income tax			1,183		1,509
			10,272		11,384
Shareholders' equity
	Common shares (note 7)		12,402		12,402
	Contributed surplus		4,940		4,909
	Retained deficit		(4,324)		(3,352)
			13,018		13,959
Going concern (note 2 and 5)
		$	23,290	$	25,343

 

WRANGLER WEST ENERGY CORP.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Stated in thousands of dollars, except per share amounts)
(Unaudited)
			Three months ended			Six months ended
			June 30			June 30
			2013	2012		2013		2012
Revenue
	Petroleum and natural gas sales	$	1,853	$	1,550	$	3,869	$	3,482
	Royalties		(317)		2		(612)		(305)
			1,536		1,552		3,257		3,177
Expenses
	Operating		884		811		2,064		1,851
	General and administrative		367		235		636		512
	Share-based payments		16		26		24		51
	Depletion and depreciation		785		1,084		1,778		2,296
	Gain on sale of assets		(1)		-		(24)		-
Results from operating activities			(515)		(604)		(1,221)		(1,533)
Finance expenses (note 9)			71		50		131		98
Other income			-		(118)		(54)		(118)
Loss before income tax			(586)		(536)		(1,298)		(1,513)
Deferred income tax benefit			(153)		(127)		(326)		(362)
Net loss and comprehensive loss		$	(433)	$	(409)	$	(972)	$	(1,151)
Net loss per share (note 8)
	Basic and diluted	$	(0.07)	$	(0.06)	$	(0.15)	$	(0.18)

WRANGLER WEST ENERGY CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Stated in thousands of dollars and shares)
(Unaudited)
		Number of					Retained		Total
		common	Common		Contributed		earnings		shareholders'
		shares	shares		surplus		(deficit)		equity
Balance at January 1, 2013		6,466	$	12,402	$	4,909	$	(3,352)	$	13,959
	Share-based payments	-		-		31		-		31
	Net loss	-		-		-		(972)		(972)
Balance at June 30, 2013		6,466	$	12,402	$	4,940	$	(4,324)	$	13,018
Balance at January 1, 2012		6,466	$	12,402	$	4,740	$	493	$	17,635
	Share-based payments	-		-		95		-		95
	Net loss	-		-		-		(1,151)		(1,151)
Balance at June 30, 2012		6,466	$	12,402	$	4,835	$	(658)	$	16,579

 

WRANGLER WEST ENERGY CORP.
STATEMENTS OF CASH FLOWS
(Stated in thousands of dollars)
(Unaudited)
			Three months ended				Six months ended
			June 30				June 30
			2013		2012		2013		2012
Cash provided by (used in):
Operating
	Net loss		$	(433)	$	(409)	$	(972)	$	(1,151)
	Items not involving cash:
		Depletion and depreciation		785		1,084		1,778		2,296
		Accretion		23		11		39		26
		Share-based payments		16		26		24		51
		Gain on sale of assets		(1)		-		(24)		-
		Deferred income tax benefit		(153)		(127)		(326)		(362)
				237		585		519		860
	Change in non-cash operating
		working capital (note 10)		383		(545)		716		(318)
				620		40		1,235		542
Financing
	Increase (decrease) in bank indebtedness			(481)		103		34		1,021
Investing
	Property, plant and equipment expenditures			(23)		(481)		(443)		(995)
	Proceeds on sale of assets			1		-		101		-
	Change in non-cash investing
		working capital (note 10)		(117)		338		(927)		(568)
				(139)		(143)		(1,269)		(1,563)
Cash and cash equivalents,
	beginning and end of period		$	-	$	-	$	-	$	-
Supplementary cash flow information
	Interest paid			(47)		(38)		(108)		(68)

 

Additional Information
Wrangler West files additional shareholder and public information on SEDAR accessible at www.sedar.com. This includes the Statement of Reserves Data and Other Oil and Gas Information Form NI 51-101 F1, F2 and F3 effective December 31, 2012.  Alternatively, to obtain copies of published corporate information, contact Crista L. Ferguson, Chief Financial Officer, Wrangler West Energy Corp., 2300, 444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8 (telephone [phone] or e-mail [email protected]).

Reader Advisory
The second interim report unaudited condensed interim financial statements have been prepared by, and are the responsibility of, Wrangler West's management. The Company's independent auditor has not performed a review of these financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of interim financial statements.

This news release may contain forward-looking statements ("FLS") related to potential new crude oil and natural gas drilling, tie-ins, production operations, sources and use of capital, asset purchases or dispositions and expected future operations. Although Wrangler West believes the expectations reflected in FLS are reasonable, undue reliance should not be placed on FLS because the Company can give no assurance they will prove correct. FLS address future events and conditions and, by their very nature, involve inherent risks and uncertainties. A more detailed discussion of FLS is provided in Wrangler West's Management's Discussion and Analysis for the period ended June 30, 2013 and the year ended December 31, 2012 which is filed on SEDAR (www.sedar.com). The FLS contained in this news release are made as of the date hereof. Unless so required by applicable securities laws, Wrangler West undertakes no obligation to update publicly or revise any FLS or information, whether as a result of new information, future events or otherwise.

Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas producer which explores for and develops natural gas and crude oil production assets in the Province of Alberta. Since inception, the Company's mandate has been to use the drill bit to add shareholder value. Disciplined management of operations and the production portfolio creates sufficient funds flow to support ongoing operations. Wrangler West intends to reinvest funds flow from operations and other available capital to protect current, and add future, value.  Wrangler West common shares trade on the TSX Venture Exchange under the symbol "WX".

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

  

SOURCE: Wrangler West Energy Corp.

Wrangler West Energy Corp.
Steven F. Johnson
President and Chief Executive Officer
[email protected]
telephone:  [phone]