CALGARY, July 30 /CNW/ - Breaker Energy Ltd. ("Breaker" or "Company")
(TSX: WAV) is pleased to announce its financial and operating results for the
quarter ended June 30, 2009, including its 19th consecutive quarter of
production growth since inception.
Financial and Operating Summary
3 Months Ended 6 Months Ended
June June % June June %
30, 30, Change 30, 30, Change
2009 2008 2009 2008
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Financials ($000s except
per share amounts)
Oil and NGL sales 16,213 35,398 (54) 29,728 57,242 (48)
Natural gas sales 8,678 15,320 (43) 19,561 26,341 (26)
Processing sales (35) 611 (106) 242 854 (72)
Total oil, natural gas
and NGL revenue 24,856 51,329 (52) 49,531 84,437 (41)
Funds from operations(1) 7,493 31,072 (76) 15,436 50,355 (69)
Per share basic ($) 0.16 0.84 (81) 0.34 1.36 (75)
Per share diluted ($) 0.16 0.82 (80) 0.34 1.34 (75)
Net earnings (loss) (5,435) 14,223 (138) (11,185) 20,767 (154)
Per share basic ($) (0.11) 0.38 (132) (0.25) 0.56 (145)
Per share diluted ($) (0.11) 0.37 (132) (0.25) 0.55 (145)
Capital expenditures(2) 6,676 18,623 (64) 29,666 49,526 (40)
Net debt (end of
period) 73,711 55,921 32 73,711 55,921 32
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Operating Highlights
Production
Oil & NGL
(bbls per day) 2,867 3,167 (9) 3,012 2,826 7
Natural gas
(mcf per day) 25,038 16,530 51 23,697 15,994 48
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Total
(boe per day) (6:1) 7,040 5,922 19 6,962 5,491 27
Average realized price:
Oil & NGL ($ per bbl) 62.15 122.83 (49) 54.53 111.31 (51)
Natural gas ($ per mcf) 3.81 10.19 (63) 4.56 9.05 (50)
Realized loss on
commodity contracts
($ per boe) (1.79) - nm (1.03) - nm
Combined average
(incl. processing
revenue) ($ per boe) 37.01 95.25 (61) 38.28 84.49 (55)
Netback ($ per boe)
Oil, natural gas
and NGL sales 37.01 95.25 (61) 38.28 84.49 (55)
Royalties (9.56) (19.90) (52) (9.27) (17.18) (46)
Operating expenses (9.95) (10.48) (5) (10.88) (9.97) 9
Transportation expenses (2.13) (3.24) (34) (2.19) (2.95) (26)
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Operating netback 15.37 61.63 (75) 15.94 54.39 (71)
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G&A expenses (2.93) (2.76) 6 (2.91) (2.66) 9
Interest expense (0.52) (1.13) (43) (0.64) (1.14) (44)
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Corporate netback 11.92 57.74 (79) 12.39 50.59 (76)
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Common Shares (000s)
Class A Shares
outstanding,
end of period 52,125 36,416 43 52,125 36,416 43
Weighted average
Class A shares 47,885 36,364 32 45,609 36,309 26
Weighted average
Class B shares - 900 (100) - 900 (100)
Conversion of Class B
shares - weighted
average(3) - 717 (100) - 717 (100)
Weighted average basic
shares outstanding(3) 47,885 37,081 29 45,609 37,026 23
Stock option dilution
(treasury method) - 1,014 (100) - 585 (100)
Weighted average diluted
shares outstanding(3) 47,885 38,095 26 45,609 37,611 21
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(1) Management uses funds from operations (before changes in non-cash
working capital) to analyze operating performance and leverage. Funds
from operations as presented does not have any standardized meaning
prescribed by Canadian GAAP and, therefore, may not be comparable
with the calculation of similar measures for other entities.
(2) Capital expenditures includes cash additions for the period including
acquisition additions net of dispositions.
(3) For the period ended June 30, 2008 the Class B shares were converted
at the quarter-end Class A share price of $12.55 and added to the
Class A shares to calculate basic shares outstanding. On August 13,
2008, the Company converted all of its Class B shares to Class A
shares. Each Class B share was exchanged for 0.8675 of a Class A
Share, resulting in the issuance of 780,753 Class A shares.
Overview and Highlights
- Breaker's operations focused on aggressively developing its portfolio
of large oil-in-place resource plays while reducing costs and
maintaining financial and operational flexibility during the
depressed economic and natural gas price environment of the second
quarter of 2009.
- At Irricana, Breaker drilled its first horizontal multi-frac well
down-spaced to approximately 200 metre inter-well spacing. On initial
test the well flowed at over 300 boe/d while still recovering
significant load fluid, a very promising early result for tighter
inter-well spacing in the pool. Breaker believes the additional 56
possible follow-up locations in inventory at 200 metre inter-well
spacing will provide many years of future light oil production
increases.
- Breaker drilled two horizontal wells into its large oil-in-place
Leduc oil pool in the second quarter of 2009. The wells came on
production early in the third quarter at a restricted rate of
approximately 100 bbls/d each, with potential to ramp up production
rates after cleanup. Neither of these well locations had proved or
probable reserves booked as of year-end 2008, exemplifying the
significant reserve and value growth yet to come in the area. Breaker
has identified 15 similar drill locations in the pool.
- Breaker began taking advantage of the Alberta government's royalty
incentive programs near the end of the second quarter and achieved a
100 percent success rate drilling eight gross (8.0 net) wells and
invested $6.7 million of capital.
- Breaker marked its 19th consecutive quarter of record production,
achieved despite significant capital deferrals in the second quarter
of this year.
