HALIFAX, Nova Scotia, May 13, 2015 (TSX – CDH): Corridor Resources Inc. (“Corridor”) announced today its first quarter financial results.
The following table provides a summary of Corridor’s financial and operating results for the three months ended March 31, 2015, with comparisons to the three months ended March 31, 2014. Corridor’s unaudited financial statements and management’s discussion and analysis for the first quarter have been filed on SEDAR at www.sedar.com and are available on Corridor’s website at www.corridor.ca.
All amounts referred to in this press release are in Canadian dollars unless otherwise stated.
Selected Financial Information
|Three months ended March 31|
|thousands of dollars except per share amounts||2015||2014|
|Sales||$ 10,098||$ 11,713|
|Net income||$ 3,692||$ 4,009|
|Net income per share – basic and diluted||$ 0.042||$ 0.045|
|Cash flow from operations (1)||$ 7,612||$ 8,073|
|Working capital||$ 27,911||$ 24,571|
|Capital expenditures||$ 545||$ 805|
|Total assets||$ 167,926||$ 183,985|
Q1 2015 Netback Analysis
|Three months ended March 31|
|thousands of dollars except $/boe (2)||2015||2014|
|Natural gas sales||$ 9,889||$ 11,438|
|Field operating netback||$ 8,104||$ 8,760|
|Natural gas production per day (mmscfpd)||6.9||7.6|
|Barrels of oil equivalent per day (boepd)||1,156||1,261|
|Average natural gas price ($/mscf)||$ 15.84||$ 16.80|
|Natural gas revenues ($/boe)||$ 95.02||$ 100.82|
|Other revenues ($/boe)||2.01||2.42|
|Royalty expense ($/boe)||(2.53)||(10.16)|
|Transportation expense ($/boe)||(9.28)||(8.58)|
|Production expense ($/boe)||(7.36)||(7.29)|
|Field operating netback ($/boe)||$ 77.86||$ 77.21|
|General and administrative expenses ($/boe)||(8.53)||(7.76)|
|Interest, foreign exchange gains and other ($/boe)||3.80||1.71|
|Cash flow from operations netback ($/boe) (1)||$ 73.13||$ 71.16|
(1) Cash flow from operations and cash flow from operations netback are non-IFRS measurements. Cash flow from operations represents net earnings adjusted for non-cash items including depletion, depreciation and amortization, deferred income taxes, share-based compensation and other non-cash expenses. See “Non-IFRS Financial Measures” in Corridor’s MD&A for the three months ended March 31, 2015.
(2) For the purpose of calculating unit revenues and costs, natural gas has been converted to barrels of oil equivalent (“boe”) on the basis of six thousand cubic feet (“mscf”) of natural gas being equal to one barrel of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of six mscf to one barrel (“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. All Boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Mboe means 1,000 boe.
- Corridor’s cash flow from operations netback increased to $73.13/boe in Q1 2015 from $71.16/boe in Q1 2014.
- Natural gas sales for Q1 2015 decreased to $9,889 thousand from $11,438 thousand for Q1 2014 due to the decrease in the average daily natural gas production to 6.9 mmscfpd in Q1 2015 from 7.6 mmscfpd in Q1 2014 and the decrease in the average natural gas sales price to $15.84/mscf in Q1 2015 from $16.80/mscf in Q1 2014.
- Corridor’s cash flow from operations for Q1 2015 decreased to $7,612 thousand from $8,073 thousand in Q1 2014 due primarily to the lower natural gas sales partially offset by lower royalty expenses.
- At March 31, 2015, Corridor had cash and cash equivalents of $23,563 thousand, working capital of $27,911 thousand and no outstanding debt.
- Subsequent to the quarter end, Anticosti Hydrocarbons announced that the drilling of the remaining approved stratigraphic corehole wells had resumed on Anticosti Island. The results of all the cores will help assess the rock quality and determine the optimal location for three test horizontal wells planned for the summer of 2016.
Steve Moran, Corridor’s President and CEO comments “Corridor’s 2015 first quarter cash flow from operations netback of $73.13/boe is surely to be industry top decile and highlights the premium natural gas pricing market at Algonquin city-gates during the winter. This further reinforces our recent decision to reduce production for the upcoming summer period, in order that we may optimize our production to capture the winter pricing in 2015/2016.”
Corridor is an Eastern Canadian junior resource company engaged in the exploration for and development and production of petroleum and natural gas onshore in New Brunswick and Québec and offshore in the Gulf of St. Lawrence. Corridor currently has natural gas production and reserves in the McCully Field near Sussex, New Brunswick. In addition, Corridor has discovered unrecoverable resources in Elgin, New Brunswick and a 21.67% interest in Anticosti Hydrocarbons, a joint venture which has undiscovered resources on Anticosti Island, Québec.
For further information:
Contact: Steve Moran, President and CEO
Corridor Resources Inc.
#301, 5475 Spring Garden Road, Halifax, Nova Scotia B3J 3T2
Ph: (902) 429-4511 F: (902) 429-0209