Hemisphere Energy Announces 2024 Second Quarter Results, Declares Quarterly Dividend, and Provides Operations Update
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) has released its Q2 2024 financial and operating results, highlighting record quarterly production of 3,628 boe/d, a 26% increase year-over-year. The company achieved quarterly revenue of $28.9 million, up 52% from Q2 2023, and delivered an operating netback of $17.7 million. Hemisphere reported adjusted funds flow from operations (AFF) of $13.6 million and free funds flow of $10.6 million. The company declared a quarterly dividend of $0.025 per share and provided an operations update, noting current production of approximately 3,700 boe/d. Hemisphere's 2024 summer drilling program is underway, with plans to drill eight horizontal wells in Atlee Buffalo, Alberta, and the company is preparing to start polymer injection in its new Saskatchewan property.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) ha pubblicato i risultati finanziari e operativi del secondo trimestre 2024, evidenziando un record di produzione trimestrale di 3.628 boe/d, con un aumento del 26% rispetto allo stesso periodo dell'anno precedente. L'azienda ha raggiunto un fatturato trimestrale di 28,9 milioni di dollari, in crescita del 52% rispetto al secondo trimestre 2023, e ha realizzato un netback operativo di 17,7 milioni di dollari. Hemisphere ha riportato un flusso di fondi rettificato da operazioni (AFF) di 13,6 milioni di dollari e un flusso di fondi libero di 10,6 milioni di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,025 dollari per azione e ha fornito un aggiornamento sulle operazioni, segnalando una produzione attuale di circa 3.700 boe/d. Il programma di perforazione estiva 2024 di Hemisphere è in corso, con piani per perforare otto pozzi orizzontali ad Atlee Buffalo, Alberta, e l'azienda si sta preparando a iniziare l'iniezione di polimeri nella sua nuova proprietà in Saskatchewan.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) ha publicado sus resultados financieros y operativos del segundo trimestre de 2024, destacando una producción trimestral récord de 3,628 boe/d, un aumento del 26% en comparación con el año anterior. La empresa logró ingresos trimestrales de 28.9 millones de dólares, un 52% más que en el segundo trimestre de 2023, y entregó un netback operativo de 17.7 millones de dólares. Hemisphere reportó un flujo de fondos ajustados de operaciones (AFF) de 13.6 millones de dólares y un flujo de fondos libre de 10.6 millones de dólares. La empresa anunció un dividendo trimestral de 0.025 dólares por acción y proporcionó una actualización sobre las operaciones, señalando una producción actual de aproximadamente 3,700 boe/d. El programa de perforación de verano 2024 de Hemisphere está en marcha, con planes para perforar ocho pozos horizontales en Atlee Buffalo, Alberta, y la empresa se está preparando para comenzar la inyección de polímeros en su nueva propiedad en Saskatchewan.
헤미스피어 에너지 (TSXV: HME) (OTCQX: HMENF)는 2024년 2분기 재무 및 운영 결과를 발표하며 분기 생산량이 3,628 boe/d로 기록적인 수치를 기록했으며, 이는 전년 대비 26% 증가한 수치이다. 회사는 분기 수익이 2,890만 달러에 달하며, 이는 2023년 2분기 대비 52% 증가한 것이다. 또한 운영 순이익이 1,770만 달러로 보고되었다. 헤미스피어는 운영에서 조정된 자금 흐름 (AFF)이 1,360만 달러이고 자유 자금 흐름이 1,060만 달러라고 밝혔다. 회사는 주당 0.025달러의 분기 배당금을 발표했으며, 현재 약 3,700 boe/d의 생산량을 보고하였다. 헤미스피어의 2024년 여름 유정 프로그램은 진행 중이며, 앨버타주 아틀리 버팔로에서 8개의 수평 유정을 시추할 계획을 세우고 있으며, 사스캐처원 새 부지에서 폴리머 주입을 시작할 준비를 하고 있다.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) a publié ses résultats financiers et opérationnels du deuxième trimestre 2024, mettant en évidence une production trimestrielle record de 3 628 boe/j, soit une augmentation de 26 % par rapport à l'année précédente. L'entreprise a réalisé un chiffre d'affaires trimestriel de 28,9 millions de dollars, en hausse de 52 % par rapport au deuxième trimestre 2023, et a produit un résultat net d'exploitation de 17,7 millions de dollars. Hemisphere a rapporté un flux de fonds ajusté des opérations (AFF) de 13,6 millions de dollars et un flux de fonds libre de 10,6 millions de dollars. L'entreprise a déclaré un dividende trimestriel de 0,025 dollar par action et a fourni une mise à jour sur ses opérations, notant une production actuelle d'environ 3 700 boe/j. Le programme de forage d'été 2024 de Hemisphere est en cours, avec des plans pour forer huit puits horizontaux à Atlee Buffalo, Alberta, et l'entreprise se prépare à commencer l'injection de polymères dans sa nouvelle propriété en Saskatchewan.
Hemisphere Energy (TSXV: HME) (OTCQX: HMENF) hat seine finanziellen und betrieblichen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei eine quartalsmäßige Rekordproduktion von 3.628 boe/d hervorgehoben, was einem Anstieg von 26 % im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte quartalsweise Einnahmen von 28,9 Millionen US-Dollar, was einem Anstieg von 52 % gegenüber dem zweiten Quartal 2023 entspricht, und lieferte einen betrieblichen Nettoertrag von 17,7 Millionen US-Dollar. Hemisphere berichtete von adjustierten Mittelzuflüssen aus dem Betrieb (AFF) in Höhe von 13,6 Millionen US-Dollar und freien Mittelzuflüssen von 10,6 Millionen US-Dollar. Das Unternehmen erklärte eine quartalsweise Dividende von 0,025 US-Dollar pro Aktie und gab ein Update zu den Betrieben, wobei eine aktuelle Produktion von etwa 3.700 boe/d verzeichnet wurde. Das Sommerbohrprogramm 2024 von Hemisphere ist in vollem Gange, mit Plänen zur Bohrung von acht horizontalen Bohrlöchern in Atlee Buffalo, Alberta, und das Unternehmen bereitet sich auf den Beginn der Polymerinjektion in seinem neuen Grundstück in Saskatchewan vor.
- Record quarterly production of 3,628 boe/d, a 26% increase year-over-year
- Quarterly revenue of $28.9 million, up 52% from Q2 2023
- Operating netback of $17.7 million or $53.58/boe for the quarter
- Free funds flow of $10.6 million or $0.11/share
- Positive working capital position of $11.6 million at quarter-end
- Current production of approximately 3,700 boe/d, with 97% from EOR projects
- Increased transportation costs from $2.93/boe in Q2 2023 to $5.00/boe in Q2 2024
Vancouver, British Columbia--(Newsfile Corp. - August 20, 2024) - Hemisphere Energy Corporation (TSXV: HME) (OTCQX: HMENF) ("Hemisphere" or the "Company") is pleased to provide its financial and operating results for the three and six months ended June 30, 2024, declare a quarterly dividend payment to shareholders, and provide an operations update.
Q2 2024 Highlights
- Achieved record quarterly production of 3,628 boe/d (
99% heavy oil), a26% increase over the same quarter last year. - Attained quarterly revenue of
$28.9 million , a52% increase from the second quarter of 2023. - Delivered operating netback1 of
$17.7 million or$53.58 /boe for the quarter. - Realized quarterly adjusted funds flow from operations ("AFF")1 of
$13.6 million or$41.13 /boe. - Invested
$3.0 million of capital expenditures in the Company's Marsden and Atlee Buffalo properties. - Achieved quarterly free funds flow1 of
$10.6 million or$0.11 /share. - Exited the second quarter with a positive working capital1 position of
$11.6 million . - Distributed
$2.5 million or$0.02 5/share in dividends to shareholders during the quarter. - Announced a special dividend of
$0.03 /share to shareholders that was paid subsequent to the quarter on July 26, 2024. - Purchased and cancelled 1,054,200 shares under the Company's Normal Course Issuer Bid ("NCIB").
- Renewed the Company's
$35 million two-year extendible credit facility.
(1) Operating netback, adjusted funds flow from operations (AFF), free funds flow, capital expenditures, and working capital are non-IFRS measures, or when expressed on a per share or boe basis, non-IFRS ratio, that do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other entities. Non-IFRS financial measures and ratios are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Refer to the section "Non-IFRS and Other Specified Financial Measures".
Selected financial and operational highlights should be read in conjunction with Hemisphere's unaudited consolidated interim financial statements and related notes, and the Management's Discussion and Analysis for the three and six months ended June 30, 2024 which are available on SEDAR+ at www.sedarplus.ca and on Hemisphere's website at www.hemisphereenergy.ca. All amounts are expressed in Canadian dollars unless otherwise noted.
Financial and Operating Summary
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| FINANCIAL | ||||||||||||
| Petroleum and natural gas revenue | $ | 28,938 | $ | 19,013 | $ | 49,899 | $ | 37,707 | ||||
| Operating field netback(1) | 17,851 | 11,124 | 30,809 | 22,466 | ||||||||
| Operating netback(1) | 17,687 | 10,944 | 30,812 | 22,058 | ||||||||
| Cash flow provided by operating activities | 14,795 | 9,371 | 17,479 | 18,405 | ||||||||
| Adjusted funds flow from operations ("AFF")(1) | 13,578 | 8,123 | 23,664 | 16,403 | ||||||||
| Per share, basic and diluted(1) ($/share) | 0.14 | 0.08 | 0.24 | 0.16 | ||||||||
| Free funds flow(1) | 10,599 | 3,591 | 15,037 | 10,406 | ||||||||
| Net income | 10,387 | 5,790 | 17,165 | 11,748 | ||||||||
| Per share, basic ($/share) | 0.11 | 0.06 | 0.17 | 0.12 | ||||||||
| Per share, diluted ($/share) | 0.10 | 0.06 | 0.17 | 0.11 | ||||||||
| Dividends | 2,467 | 2,523 | 4,938 | 5,068 | ||||||||
| Per share, basic ($/share) | 0.025 | 0.025 | 0.050 | 0.050 | ||||||||
| NCIB share repurchases | 1,730 | 1,107 | 2,897 | 1,371 | ||||||||
| Capital expenditures(1) | 2,979 | 4,532 | 8,627 | 5,997 | ||||||||
| Working capital (1) | 11,582 | 2,599 | 11,582 | 2,599 | ||||||||
| OPERATING | ||||||||||||
| Average daily production | ||||||||||||
| Heavy oil (bbl/d) | 3,609 | 2,859 | 3,360 | 3,000 | ||||||||
| Natural gas (Mcf/d) | 111 | 141 | 123 | 155 | ||||||||
| Combined (boe/d) | 3,628 | 2,883 | 3,380 | 3,026 | ||||||||
| Oil weighting | ||||||||||||
| Average sales prices | ||||||||||||
| Heavy oil ($/bbl) | $ | 88.07 | $ | 72.96 | $ | 81.54 | $ | 69.30 | ||||
| Natural gas ($/Mcf) | 1.13 | 2.36 | 1.75 | 2.75 | ||||||||
| Combined ($/boe) | $ | 87.65 | $ | 72.48 | $ | 81.11 | $ | 68.85 | ||||
| Operating netback ($/boe) | ||||||||||||
| Petroleum and natural gas revenue | $ | 87.65 | $ | 72.48 | $ | 81.11 | $ | 68.85 | ||||
| Royalties | (18.95 | ) | (15.42 | ) | (16.58 | ) | (13.36 | ) | ||||
| Operating costs | (9.63 | ) | (11.72 | ) | (10.33 | ) | (11.39 | ) | ||||
| Transportation costs | (5.00 | ) | (2.93 | ) | (4.12 | ) | (3.08 | ) | ||||
| Operating field netback(1) | 54.07 | 42.41 | 50.08 | 41.02 | ||||||||
| Realized commodity hedging loss | (0.49 | ) | (0.69 | ) | 0.00 | (0.75 | ) | |||||
| Operating netback(1) | $ | 53.58 | $ | 41.72 | $ | 50.08 | $ | 40.27 | ||||
| General and administrative expense | (3.50 | ) | (3.32 | ) | (3.53 | ) | (3.09 | ) | ||||
| Interest expense and foreign exchange gain (loss) | (0.53 | ) | (0.68 | ) | (0.49 | ) | (0.67 | ) | ||||
| Tax expense provision | (8.42 | ) | (6.75 | ) | (7.59 | ) | (6.56 | ) | ||||
| Adjusted funds flow from operations(1) ($/boe) | $ | 41.13 | $ | 30.97 | $ | 38.47 | $ | 29.95 | ||||
Note: (1) Non-IFRS and other financial measure. Refer to "Non-IFRS and Other Financial Measures" section below.
| SHARE CAPITAL | As at August 19, 2024 | As at June 30, 2024 | As at December 31, 2023 |
| Common shares outstanding | 98,256,839 | 98,673,439 | 99,340,339 |
| Stock options outstanding | 6,306,600 | 6,306,600 | 7,563,000 |
| Total fully diluted shares outstanding | 104,563,439 | 104,980,039 | 106,903,339 |
Quarterly Dividend
Hemisphere is pleased to announce that its Board of Directors has approved a quarterly cash dividend of
Operations Update
Hemisphere's current corporate production is approximately 3,700 boe/d (
Atlee Buffalo, Alberta
Hemisphere's 2024 summer drilling program was kicked off in early August, with one of eight planned horizontal wells having been drilled to date. These wells will be brought on production in stages as they are tied-in between the end of August and October. Up to three of the new wells are planned to be converted to injectors within a year.
Marsden, Saskatchewan
The majority of capital spent year-to-date included drilling five wells and constructing a multi-well battery with a pilot polymer skid in the Company's new Saskatchewan property. Battery production and polymer injection start-up in Marsden is now anticipated by the end of August. The Company has budgeted minimal production from the area for the year and expects that several months of injection could be required before polymer flood response is seen. At present, only one of the three wells brought on production in May for EOR data gathering purposes is still producing on primary recovery. The other two producers are anticipated to be turned back online in the coming months once polymer injection is underway.
EnerCom Denver Conference
Ms. Ashley Ramsden-Wood, Chief Development Officer of Hemisphere, will be presenting at the EnerCom Denver Conference on Tuesday, August 20 at 1:55 pm Mountain Daylight Time (12:55 pm Pacific Daylight Time). Her presentation will be livestreamed on EnerCom's website at www.enercomdenver.com/webcast (Confluence A) and archived on Hemisphere's website at www.hemisphereenergy.ca.
About Hemisphere Energy Corporation
Hemisphere is a dividend-paying Canadian oil company focused on maximizing value-per-share growth with the sustainable development of its high netback, low decline conventional heavy oil assets through polymer flood enhanced recovery methods. Hemisphere trades on the TSX Venture Exchange as a Tier 1 issuer under the symbol "HME" and on the OTCQX Venture Marketplace under the symbol "HMENF".
For further information, please visit the Company's website at www.hemisphereenergy.ca to view its corporate presentation or contact:
Don Simmons, President & Chief Executive Officer
Telephone: (604) 685-9255
Email: info@hemisphereenergy.ca
Website: www.hemisphereenergy.ca
Forward-looking Statements
Certain statements included in this news release constitute forward-looking statements or forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target" and similar words suggesting future events or future performance. In particular, but without limiting the generality of the foregoing, this news release includes forward-looking statements including that a quarterly dividend will be paid September 13, 2024 to shareholders of record as of the close of business on August 30, 2024; estimated annual average production volumes; timing to place recently completed wells on production and/or convert them into injectors; anticipated timing for Battery production and polymer injection start-up in Marsden; the Company's expectation that several months of injection could be required before polymer flood response is seen at Marsden; and expected timing for two producers at Marsden to be turned back online in the coming months once polymer injection is underway.
Forward‐looking statements are based on a number of material factors, expectations or assumptions of Hemisphere which have been used to develop such statements and information, but which may prove to be incorrect. Although Hemisphere believes that the expectations reflected in such forward‐looking statements or information are reasonable, undue reliance should not be placed on forward‐looking statements because Hemisphere can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the current and go-forward oil price environment; that Hemisphere will continue to conduct its operations in a manner consistent with past operations; that results from drilling and development activities are consistent with past operations; the quality of the reservoirs in which Hemisphere operates and continued performance from existing wells; the perspectivity of recently acquired properties and the timing and manner to explore and develop the same; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Hemisphere's reserve volumes; certain commodity price and other cost assumptions; continued availability of debt and equity financing and cash flow to fund Hemisphere's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Hemisphere operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Hemisphere to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Hemisphere has an interest in to operate the field in a safe, efficient and effective manner; the ability of Hemisphere to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Hemisphere to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Hemisphere operates; and the ability of Hemisphere to successfully market its oil and natural gas products.
The forward‐looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward‐looking statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Hemisphere's products, the early stage of development of some of the evaluated areas and zones; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Hemisphere or by third party operators of Hemisphere's properties, increased debt levels or debt service requirements; inaccurate estimation of Hemisphere's oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time‐to‐time in Hemisphere's public disclosure documents, (including, without limitation, those risks identified in this news release and in Hemisphere's Annual Information Form).
The forward‐looking statements contained in this news release speak only as of the date of this news release, and Hemisphere does not assume any obligation to publicly update or 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.
Non-IFRS and Other Financial Measures
This news release contains the terms adjusted funds flow from operations, free funds flow, capital expenditures, operating field netback, operating netback, and working capital/net debt, which are considered "non-IFRS financial measures" and any of these measures calculated on a per boe basis, which are considered "non-IFRS financial ratios". These terms do not have a standardized meaning prescribed by IFRS. Accordingly, the Company's use of these terms may not be comparable to similarly defined measures presented by other companies. Investors are cautioned that these measures should not be construed as an alternative to net income (loss) or cashflow from operations determined in accordance with IFRS and these measures should not be considered more meaningful than IFRS measures in evaluating the Company's performance.
a) Adjusted funds flow from operations ("AFF") (Non-IFRS Financial Measure and Ratio if calculated on a per share or boe basis): The Company considers AFF to be a key measure that indicates the Company's ability to generate the funds necessary to support future growth through capital investment and to repay any debt. AFF is a measure that represents cash flow generated by operating activities, before changes in non-cash working capital and adjusted for decommissioning expenditures and may not be comparable to measures used by other companies. The most directly comparable IFRS measure for AFF is cash provided by operating activities. AFF per share is calculated using the same weighted-average number of shares outstanding as in the case of the earnings per share calculation for the period.
A reconciliation of AFF to cash provided by operating activities is presented as follows:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash provided by operating activities | $ | 14,795 | $ | 9,371 | $ | 17,479 | $ | 18,405 | ||||
| Change in non-cash working capital | 1,544 | (1,462 | ) | 10,825 | (2,294 | ) | ||||||
| Adjust: Tax Provision(1) | (2,779 | ) | - | (4,668 | ) | - | ||||||
| Adjust: Decommissioning obligation expenditures | 18 | 214 | 28 | 292 | ||||||||
| Adjusted funds flow from operations | $ | 13,578 | $ | 8,123 | $ | 23,664 | $ | 16,403 | ||||
| Per share, basic and diluted | $ | 0.14 | $ | 0.08 | $ | 0.24 | $ | 0.16 | ||||
Note: (1) Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
b) Free funds flow ("FFF") (Non-IFRS Financial Measure): Calculated by taking adjusted funds flow and subtracting capital expenditures, excluding acquisitions and dispositions. Management believes that free funds flow provides a useful measure to determine Hemisphere's ability to improve returns and to manage the long-term value of the business.
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Adjusted funds flow from operations | $ | 13,578 | $ | 8,123 | $ | 23,664 | $ | 16,403 | ||||
| Capital expenditures | (2,979) | (4,532 | ) | (8,627 | ) | (5,997 | ) | |||||
| Free funds flow | $ | 10,599 | $ | 3,591 | $ | 15,037 | $ | 10,406 | ||||
| Per share, basic | $ | 0.11 | $ | 0.04 | $ | 0.15 | $ | 0.10 | ||||
| Per share, diluted | $ | 0.11 | $ | 0.03 | $ | 0.15 | $ | 0.10 | ||||
c) Capital expenditures (Non-IFRS Financial Measure): Management uses the term "capital expenditures" as a measure of capital investment in exploration and production assets, and such spending is compared to the Company's annual budgeted capital expenditures. The most directly comparable IFRS measure for capital expenditures is cash flow used in investing activities. A summary of the reconciliation of cash flow used in investing activities to capital expenditures is set forth below:
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| ( | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash used in investing activities | $ | 4,908 | $ | 4,321 | $ | 8,591 | $ | 7,814 | ||||
| Change in non-cash working capital | (1,929) | 211 | 36 | (1,817 | ) | |||||||
| Capital expenditures | $ | 2,979 | $ | 4,532 | $ | 8,627 | $ | 5,997 | ||||
d) Operating field netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): A benchmark used in the oil and natural gas industry and a key indicator of profitability relative to current commodity prices. Operating field netback is calculated as oil and gas sales, less royalties, operating expenses, and transportation costs on an absolute and per barrel of oil equivalent basis. These terms should not be considered an alternative to, or more meaningful than, cash flow from operating activities or net income or loss as determined in accordance with IFRS as an indicator of the Company's performance.
e) Operating netback (Non-IFRS Financial Measure and Ratio if calculated on a per boe basis): Calculated as the operating field netback plus the Company's realized gain (loss) on derivative financial instruments on an absolute and per barrel of oil equivalent basis.
f) Working capital/Net debt (Non-IFRS Financial Measure): Closely monitored by the Company to ensure that its capital structure is maintained by a strong balance sheet to fund the future growth of the Company. Working capital/Net debt is used in this document in the context of liquidity and is calculated as the total of the Company's current assets, less current liabilities, excluding derivative financial instruments, decommissioning obligations, lease liabilities, and tax provisions, and including any bank debt. There is no IFRS measure that is reasonably comparable to working capital/net debt.
The following table outlines the Company calculation of working capital/net debt:
| ( | As at June 30, 2024 | As at December 31, 2023 | ||||
| Current assets(1) | $ | 20,243 | $ | 14,110 | ||
| Current liabilities(1) | (3,993 | ) | (10,521 | ) | ||
| Adjust: Tax Provision(2) | (4,668 | ) | - | |||
| Working capital | $ | 11,582 | $ | 3,589 | ||
Notes:
(1) Excluding fair value of financial instruments, decommissioning obligations, and lease liabilities.
(2) Provision for income taxes deferred under new corporate partnership structure effective as of January 2, 2024.
The Company has provided additional information on how these measures are calculated in the Management's Discussion and Analysis for the year ended December 31, 2023 and the interim period ended June 30, 2024, which are available under the Company's SEDAR+ profile at www.sedarplus.ca.
Oil and Gas Advisories
Any references in this news release to initial production rates (including as a result of recent polymer flood activities) are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will continue production and decline thereafter and are not necessarily indicative of long-term performance or ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. Such rates are based on field estimates and may be based on limited data available at this time.
A barrel of oil equivalent ("boe") 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. In addition, given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Definitions and Abbreviations
| bbl | Barrel | Mcf | thousand cubic feet |
| bbl/d | barrels per day | Mcf/d | thousand cubic feet per day |
| $/bbl | dollar per barrel | $/Mcf | dollar per thousand cubic feet |
| boe | barrel of oil equivalent | IFRS | International Financial Reporting Standards |
| boe/d | barrel of oil equivalent per day | ||
| $/boe | dollar per barrel of oil equivalent | ||
| US$ | United States Dollar |
Neither the 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/220515
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