Coelacanth Announces Q1 2024 Financial and Operating Results
Coelacanth Energy announces its Q1 2024 financial and operating results. Key figures include a 284% increase in oil and natural gas sales to $3.666 million, and a net loss reduction of 33% to $1.201 million compared to Q1 2023. Daily production rose by 242% to 993 boe/d. Operating netback per boe surged by 521% to $18.06. The company reported adjusted working capital of $67.1 million and no debt.
Coelacanth's Two Rivers Montney project showed promising results with successful pad tests and ongoing licensing for infrastructure construction slated for completion by Q1 2025. The company secured long-term transportation and processing capacities to support future growth.
- Oil and natural gas sales increased by 284% to $3.666 million.
- Cash flow from operating activities turned positive, reaching $3.256 million from a deficit of $2.042 million.
- Daily production grew by 242% to 993 boe/d.
- Operating netback per boe increased by 521% to $18.06.
- General and administrative expenses per boe decreased by 70%.
- Coelacanth secured long-term gas transportation of 76.5 mmcf/d and processing capacities up to 60 mmcf/d.
- Company has no debt and adjusted working capital of $67.1 million.
- Net loss remains at $1.201 million despite a 33% improvement.
- Capital expenditures dropped by 75% to $1.263 million.
- Oil and condensate prices per barrel declined by 10%.
- Natural gas prices per mcf fell by 17%.
- Net transportation expenses for oil and NGLs rose by 71%.
Calgary, Alberta--(Newsfile Corp. - May 30, 2024) - COELACANTH ENERGY INC. (TSXV: CEI) ("Coelacanth" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2024. All dollar figures are Canadian dollars unless otherwise noted.
| FINANCIAL RESULTS | Three Months Ended | ||||||||
| March 31 | |||||||||
| ( | 2024 | 2023 | % Change | ||||||
| Oil and natural gas sales | 3,666 | 954 | 284 | ||||||
| Cash flow from (used in) operating activities | 3,256 | (2,042 | ) | (259 | ) | ||||
| Per share - basic and diluted (1) | 0.01 | (-) | 100 | ||||||
| Adjusted funds flow (used) (1) | 1,078 | (554 | ) | (295 | ) | ||||
| Per share - basic and diluted | - | (-) | - | ||||||
| Net loss | (1,201 | ) | (1,789 | ) | (33 | ) | |||
| Per share - basic and diluted | (-) | (-) | - | ||||||
| Capital expenditures (1) | 1,263 | 5,139 | (75 | ) | |||||
| Adjusted working capital (1) | 67,139 | 61,215 | 10 | ||||||
| Common shares outstanding (000s) | |||||||||
| Weighted average - basic and diluted | 529,196 | 425,116 | 24 | ||||||
| End of period - basic | 529,392 | 425,384 | 24 | ||||||
| End of period - fully diluted | 618,165 | 469,358 | 32 | ||||||
(1) See "Non-GAAP and Other Financial Measures" section.
| ` | Three Months Ended | |||||||||
| OPERATING RESULTS (1) | March 31 | |||||||||
| 2024 | 2023 | % Change | ||||||||
| Daily production (2) | ||||||||||
| Oil and condensate (bbls/d) | 300 | 46 | 552 | |||||||
| Other NGLs (bbls/d) | 37 | 14 | 164 | |||||||
| Oil and NGLs (bbls/d) | 337 | 60 | 462 | |||||||
| Natural gas (mcf/d) | 3,934 | 1,380 | 185 | |||||||
| Oil equivalent (boe/d) | 993 | 290 | 242 | |||||||
| Oil and natural gas sales | ||||||||||
| Oil and condensate ($/bbl) | 85.30 | 94.78 | (10 | ) | ||||||
| Other NGLs ($/bbl) | 34.79 | 42.98 | (19 | ) | ||||||
| Oil and NGLs ($/bbl) | 79.82 | 82.72 | (4 | ) | ||||||
| Natural gas ($/mcf) | 3.40 | 4.11 | (17 | ) | ||||||
| Oil equivalent ($/boe) | 40.57 | 36.60 | 11 | |||||||
| Royalties | ||||||||||
| Oil and NGLs ($/bbl) | 20.77 | 26.31 | (21 | ) | ||||||
| Natural gas ($/mcf) | 0.51 | 1.02 | (50 | ) | ||||||
| Oil equivalent ($/boe) | 9.08 | 10.26 | (12 | ) | ||||||
| Operating expenses | ||||||||||
| Oil and NGLs ($/bbl) | 9.89 | 16.93 | (42 | ) | ||||||
| Natural gas ($/mcf) | 1.65 | 2.82 | (41 | ) | ||||||
| Oil equivalent ($/boe) | 9.89 | 16.93 | (42 | ) | ||||||
| Net transportation expenses (3) | ||||||||||
| Oil and NGLs ($/bbl) | 2.45 | 1.43 | 71 | |||||||
| Natural gas ($/mcf) | 0.68 | 1.30 | (48 | ) | ||||||
| Oil equivalent ($/boe) | 3.54 | 6.50 | (46 | ) | ||||||
| Operating netback (3) | ||||||||||
| Oil and NGLs ($/bbl) | 46.71 | 38.05 | 23 | |||||||
| Natural gas ($/mcf) | 0.56 | (1.03 | ) | (154 | ) | |||||
| Oil equivalent ($/boe) | 18.06 | 2.91 | 521 | |||||||
| Depletion and depreciation ($/boe) | (14.42 | ) | (15.94 | ) | (10 | ) | ||||
| General and administrative expenses ($/boe) | (13.86 | ) | (46.35 | ) | (70 | ) | ||||
| Share based compensation ($/boe) | (10.11 | ) | (29.10 | ) | (65 | ) | ||||
| Finance expense ($/boe) | (1.06 | ) | (3.18 | ) | (67 | ) | ||||
| Finance income ($/boe) | 10.60 | 27.22 | (61 | ) | ||||||
| Unutilized transportation ($/boe) | (2.49 | ) | (4.17 | ) | (40 | ) | ||||
| Net loss ($/boe) | (13.28 | ) | (68.61 | ) | (81 | ) | ||||
(1) See "Oil and Gas Terms" section.
(2) See "Product Types" section.
(3) See "Non-GAAP and Other Financial Measures" section.
Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's unaudited condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2024, which are available for review under the Company's profile on SEDAR+ at www.sedarplus.com.
OPERATIONS UPDATE
In Q1 2024, Coelacanth continued to make strides on its large Two Rivers Montney project. As noted below, excellent pad results in the Upper and Lower Montney have proven commerciality and we are moving forward with licensing and ordering equipment for the ultimate construction of a battery facility and related pipeline infrastructure to accommodate future growth. The licensing process has gone very well, and we anticipate being on target for construction in Q4 2024 and Q1 2025 for an on-stream date of April 2025. To accommodate future growth, Coelacanth has to date secured long-term gas transportation of 76.5 mmcf/d as well as long-term gas processing of up to 60 mmcf/d.
At Two Rivers East, Coelacanth had previously released a successful pad (5-19) that consisted of three Lower Montney wells and one Basal Montney well. As previously released, test production from the four wells was a combined 4,410 boe/d (
At Two Rivers West, Coelacanth had previously released a successful pad that consisted of two Upper Montney wells. The C10-08 produced at a restricted rate of 542 boe/d for four months and was then re-tested at an unrestricted rate of 1,284 boe/d (1) for a short duration. Facility restrictions on both water and gas handling will limit production from the 10-08 pad until additional pipelines and facilities can be permitted and constructed. The timing of adding any material production will be longer term given the capital focus on Two Rivers East infrastructure for 2024 but Two Rivers West results show great potential for future development.
Overall, we believe Coelacanth is on track with its Two Rivers project in all aspects and well positioned for long-term growth given achievements to date on the project combined with its financial strength that includes
We look forward to reporting updates on the Two Rivers project in the upcoming quarters.
(1) See "Test Results and Initial Production Rates" section for more details.
OIL AND GAS TERMS
The Company uses the following frequently recurring oil and gas industry terms in the news release:
| Liquids | |
| Bbls | Barrels |
| Bbls/d | Barrels per day |
| NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
| Condensate | Pentane and heavier hydrocarbons |
| Natural Gas | |
| Mcf | Thousands of cubic feet |
| Mcf/d | Thousands of cubic feet per day |
| MMcf/d | Millions of cubic feet per day |
| MMbtu | Million of British thermal units |
| MMbtu/d | Million of British thermal units per day |
| Oil Equivalent | |
| Boe | Barrels of oil equivalent |
| Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
NON-GAAP AND OTHER FINANCIAL MEASURES
This news release refers to certain measures that are not determined in accordance with IFRS (or "GAAP"). These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of the Company's performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency to better analyze the Company's performance against prior periods on a comparable basis.
Non-GAAP Financial Measures
Adjusted funds flow (used)
Management uses adjusted funds flow (used) to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and abandonment obligations and to repay debt, if any. Adjusted funds flow (used) is a non-GAAP financial measure and has been defined by the Company as cash flow from (used in) operating activities excluding the change in non-cash working capital related to operating activities, movements in restricted cash deposits and expenditures on decommissioning obligations. Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating the Company's cash flows. Adjusted funds flow (used) is reconciled from cash flow from (used in) operating activities as follows:
| Three Months Ended | ||||||
| March 31 | ||||||
| ( | 2024 | 2023 | ||||
| Cash flow from (used in) operating activities | 3,256 | (2,042 | ) | |||
| Add (deduct): |
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FAQ
What were Coelacanth Energy's oil and natural gas sales for Q1 2024?
Coelacanth Energy's oil and natural gas sales for Q1 2024 were $3.666 million, a 284% increase compared to Q1 2023.
What was Coelacanth Energy's daily production in Q1 2024?
Coelacanth Energy's daily production in Q1 2024 was 993 boe/d, representing a 242% increase compared to Q1 2023.
How did Coelacanth Energy's operating netback per boe change in Q1 2024?
Coelacanth Energy's operating netback per boe increased by 521% to $18.06 in Q1 2024.
Did Coelacanth Energy report a net profit or loss for Q1 2024?
Coelacanth Energy reported a net loss of $1.201 million for Q1 2024, an improvement from a $1.789 million loss in Q1 2023.
What is the status of Coelacanth Energy's Two Rivers Montney project?
The Two Rivers Montney project is progressing well, with successful pad tests and ongoing licensing for infrastructure construction expected to complete by Q1 2025.
What is Coelacanth Energy's adjusted working capital as of Q1 2024?
As of Q1 2024, Coelacanth Energy's adjusted working capital is $67.1 million.
Has Coelacanth Energy secured long-term transportation and processing capacities?
Yes, Coelacanth Energy has secured long-term gas transportation of 76.5 mmcf/d and gas processing capacities of up to 60 mmcf/d.
COELACANTH ENERGY INC
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