| From: johnlw | 8/1/2024 10:30:36 AM | | | | | | Interesting.
The liberal freak show in Ottawa continues to show their ineptitude.
"...Lisa Baiton, president and CEO of the Canadian Association of Petroleum Producers, says companies in the industry face "impossible" legal hurdles as a result of last month's policy update.
"The vagueness of the Competition Act amendments, and their rapid implementation without any guidance from the Competition Bureau, make it impossible for organizations to know if they are compliant," she said in an email to Yahoo Finance Canada.
"Parliament’s approach curtails the ability to participate in open discussions and debates on a topic, and should be a serious concern for all Canadians."...."
MEG Energy yanks climate targets, blaming greenwashing law. Will other oilsands companies follow? (yahoo.com) |
| | Canadian Oil & Gas Companies | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
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| To: johnlw who wrote (24694) | 8/1/2024 1:48:10 PM | | From: LoneClone | | | | John, please get off the political crap. You want me to start going after the lunatic approach of the Alberta 'government'?
LC |
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| From: LoneClone | 8/1/2024 2:01:22 PM | | | | | | Gran Tierra Energy Reports Second Quarter 2024 Net Income of $36 Million and Continued Exploration Success
ca.finance.yahoo.com
Gran Tierra Energy Inc.
Wed, July 31, 2024 at 3:00 p.m. PDT·31 min read
GTE
-10.26%
- High Impact Exploration Program Continues to Deliver Exciting Catalysts for Growth with the Completion of the Charapa 3D Seismic Program Along with Drilling of the Bocachico Norte-J1 and Charapa B6 Wells
- Arawana-J1 and Bocachico-J1 Wells Continue to Yield Strong Production Results and Continued Positive Exploration Results with Bocachico Norte-J1
- Second Quarter 2024 Total Average WI Production of 32,776 BOPD, a 4% Increase in Production per Share from Second Quarter 2023
- Since January 1, 2023, Gran Tierra has Re-purchased Approximately 3.9 million or 11% of Its Outstanding Shares
- Achieved Second Quarter 2024 Net Income of $36 Million
- Operating Netback of $113 Million and Adjusted EBITDA of $103 Million(1)(3)
- Exited the Quarter with $115 Million in Cash
CALGARY, Alberta, July 31, 2024 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) announced the Company’s financial and operating results for the quarter ended June 30, 2024 (“the Quarter”). All dollar amounts are in United States dollars, and production amounts are on an average working interest (“WI”) before royalties basis unless otherwise indicated. Per barrel (“bbl”) and bbl per day (“BOPD”) amounts are based on WI sales before royalties. For per bbl amounts based on net after royalty (“NAR”) production, see Gran Tierra’s Quarterly Report on Form 10-Q filed July 31, 2024.
Message to Shareholders
Gary Guidry, President and Chief Executive Officer of Gran Tierra, commented: “During the second quarter of 2024, Gran Tierra systematically stimulated and added electrical submersible pumps into each of our Costayaco 56, 57, 58, and 59 wells, which were drilled as part of the 2024 development campaign. While the temporary offline status of these wells for the planned completions did impact second-quarter production, the improvements have resulted in enhanced production and all wells are back online. We continue to be excited about these development wells demonstrating further potential to enhance recovery and optimize value from further development drilling and waterflood optimization.
In Ecuador, we have drilled a second successful well in the Bocachico field to the west of the recent Arawana discovery which we have completed, and testing is underway. More recently, we are seeing very encouraging results in the Charapa-B6 well which has been cored with excellent oil shows in the targeted Hollin formation and is now being completed for testing. Importantly, we are constructing two new drilling pads at the exciting Arawana field area with the first expected to be completed by early September.
We are encouraged by the preliminary results of Bocachico Norte-J1 which confirmed our geological interpretation of the Bocachico discovery with potential pay in the T-Sand, B-Limestone and the Basal Tena and we look forward to testing each zone in the third quarter. We are looking forward to the second half of the year where we plan to drill the remainder of our high impact near field exploration wells in Ecuador including drilling two wells to further assess the Arawana discovery. From a development perspective, we are completing the civil works associated with building infrastructure and pads in the Suroriente Block in the southern Putumayo. We expect to begin drilling wells in the fourth quarter of 2024. We are very pleased about our first half results and there are still many more catalysts we are looking forward to in the second half of 2024.”
Ecuador Exploration Update:
- Chanangue Block
- During the Quarter the Bocachico Norte-J1 well was spud and drilled. Log data and core data is positive and testing in multiple zones including the Basal Tena sand, the T-sand and B-limestone is planned during the third quarter of 2024. Based on logs there is reservoir and net pay in the Basal Tena, T-sand and the B-Limestone. The B-Limestone was not a primary target but had positive shows while drilling, which indicates it may be connected to a fracture network. The completion will allow for multi-zone commingling when finished. The preliminary data confirms Gran Tierra’s geological understanding of the Bocachico field and provides further data of the fault mechanism between the Bocachico and Arawana fields.
- The Arawana-J1 and Bocachico-J1 wells continue to yield strong production results with a combined 1,600 to 1,800 BOPD. Gran Tierra plans to convert both wells from jet pump to electrical submersible pumping systems in the second half of 2024.
- Charapa Block
- Upon completion of the Bocachico Norte-J1 well, the rig was moved from the Chanangue Block to the Charapa Block. On July 14th, 2024, the Charapa B6 well was spud with the primary target being the Hollin formation. 60 feet of core was recovered and analyzed from the Hollin structure and the core was saturated with oil from the top to base, further corroborating the expected hydrocarbon column in our geological model of the Charapa field. Drilling is expected to be completed this week followed by casing and testing. Following the drilling of the Charapa B6 well, the rig will begin drilling the Charapa B7 well from the same pad and then move to appraise the Arawana discovery.
- The 3D seismic program of the Charapa Block has been completed, and the data is currently being processed. Preliminary interpretations of the high-quality 3D data confirms potential prospectivity and additional areas of interest identified on seismic including better definition over the Charapa structure. The 3D data will further delineate reserves, underpin future drilling locations scheduled for 2025 and support future development planning.
Key Highlights of the Quarter:
- Production: Gran Tierra’s total average WI production was 32,776 BOPD, an increase of 2% compared to the first quarter 2024 (“the Prior Quarter”) and up 4% on a per share basis since the second quarter 2023. During the Quarter the Company systematically stimulated and installed electrical submersible pumps on four of the high producing Costayaco wells that were drilled as part of the 2024 development campaign. The process required that each well be taken offline for a period of time, which negatively impacted second quarter 2024 production by approximately 700 BOPD. All four wells are now back online with positive production results and Gran Tierra anticipates these positive trends will continue through the remainder of the year.
- Net Income: Gran Tierra incurred net income of $36 million, compared to a net loss of $0.1 million in the Prior Quarter and a net loss of $11 million in the second quarter of 2023.
- Adjusted EBITDA(1): Adjusted EBITDA(1) was $103 million compared to $95 million in the Prior Quarter and $97 million in the second quarter of 2023. Twelve month trailing Net Debt(1) to Adjusted EBITDA(1) was 1.3 times and is expected to be less than 1.0x by year end 2024, which is consistent with the Company’s previous guidance.
- Funds Flow from Operations(1): Funds flow from operations(1) was $46 million ($1.48 per share), down 38% from the Prior Quarter and down 13% from the second quarter of 2023. The main driver of the decrease in funds flow is the result of tax planning that resulted in the immediate increase of current taxes by $28 million. The company strategically revised its 2022 tax return to use its long-term tax receivables balance to offset current tax liabilities, rather than applying net operating loss carryforwards. This decision was driven by higher current and future tax rates and increased profitability in Colombia. As a result, the current tax expense increased by approximately $28 million, but this was offset by long-term tax receivables, resulting in no cash outflow. However, the increased tax expense did negatively impact our funds flow from operations(1). Nonetheless, this approach preserved our net operating loss carryforwards of approximately $85 million for future periods, providing greater tax benefit in 2024 and in the future. This tax initiative also allowed us to recover $18 million of taxes receivable in 2024 and accelerate the recovery of an estimated $65 million of taxes receivable over the next three years.
- Cash and Debt: As of June 30, 2024, the Company had a cash balance of $115 million, total debt of $637 million and net debt(1) of $521 million.
- Share Buybacks: Gran Tierra purchased approximately 0.4 million shares during the Quarter. From January 1, 2023 to July 29, 2024, the Company has repurchased approximately 3.9 million shares, or 11% of shares issued and outstanding at January 1, 2023, from free cash flow(1).
- Return on Average Capital Employed(1): Achieved return on average capital employed(1) of 18% during the Quarter and 17% over the trailing 12 months.
Additional Key Financial Metrics:
- Capital Expenditures: Capital expenditures of $61 million were higher than the $55 million in the Prior Quarter due to the launch of a 2024 exploration 3D seismic and drilling campaign, in addition to completions of the Costayaco development wells during the Quarter and down from $66 million compared to the second quarter of 2023.
- Oil Sales: Gran Tierra generated oil sales of $166 million, up 5% from the second quarter of 2023 as a result of stronger Brent pricing and lower Vasconia, Castilla and Oriente oil differentials offset by 5% lower sales volumes as a result of an increased build in inventory due to timing of sales. Oil sales increased 5% from the Prior Quarter primarily due to a 4% increase in Brent price and narrower Castilla and Vasconia oil differentials offset by a slightly higher Oriente oil differential and 2% lower sales volumes.
- Quality and Transportation Discounts: The Company’s quality and transportation discounts per bbl were down during the Quarter at $12.79, compared to $15.36 in the Prior Quarter and $14.10 in the second quarter of 2023. The Castilla oil differential per bbl narrowed to $8.21 from $8.82 in the Prior Quarter and from $9.41 in the second quarter of 2023 (Castilla is the benchmark for the Company’s Middle Magdalena Valley Basin oil production). The Vasconia differential per bbl narrowed to $4.00 from $5.05 in the Prior Quarter, and from $5.53 in the second quarter of 2023. Finally, the Ecuadorian benchmark, Oriente, per bbl was $8.38, up from $8.02 in the Prior Quarter, and down from $11.43 one year ago. The current(2) Castilla differential is approximately $9.40 per bbl, the Vasconia differential is approximately $4.60 per bbl and the Oriente differential is approximately $9.00 per bbl.
- Operating Expenses: Gran Tierra’s operating expenses decreased by 3% to $47 million, compared to the Prior Quarter primarily due to lower workover activities. Compared to the second quarter of 2023, operating expenses decreased by 3% from $48.5 million, primarily due to lower lifting costs, partially offset by higher workover activities. On a per bbl basis operating expense increased by 2% when compared to the second quarter of 2023 and decreased by 1% when compared to the Prior Quarter.
- Transportation Expenses: The Company’s transportation expenses increased by 24% to $6 million, compared to the Prior Quarter of $5 million and increased by 54% from $4 million in the second quarter of 2023. Transportation expenses in the Quarter were higher as a result of Gran Tierra utilizing longer distance delivery points due to low water levels in the Magdalena river.
- Operating Netback(1)(3): The Company’s operating netback(1)(3) was $38.80 per bbl, up 10% from the Prior Quarter and up 12% from the second quarter of 2023.
- General and Administrative (“G&A”) Expenses: Commensurate with increased activity, G&A expenses before stock-based compensation were $3.69 per bbl, up from $3.22 per bbl in the Prior Quarter due to increased activity, consultant and information technology expenses and up from $3.12 per bbl, when compared to the second quarter of 2023 due to increased activity and information technology expense, general office expense and bank fees.
- Cash Netback(1): Cash netback(1) per bbl was $15.85, compared to $25.13 in the Prior Quarter primarily as a result of higher current tax expenses of $14.54 per bbl compared to a current tax expense of $1.33 per bbl in the Prior Quarter (see explanation above in funds flow from operations section). Compared to one year ago, cash netback(1) per bbl decreased by $1.52 from $17.37 per bbl as a result of higher current taxes in the Quarter mentioned above and offset by stronger realized pricing.
Financial and Operational Highlights (all amounts in $000s, except per share and bbl amounts)
| Three Months Ended
June 30,
|
| Three
Months
Ended
March 31,
|
| Six Months Ended
June 30,
|
| 2024
| 2023
|
| 2024
|
| 2024
| 2023
|
|
|
|
|
|
|
|
| Net Income (Loss)
| $36,371
| $(10,825)
|
| $(78)
|
| $36,293
| $(20,525)
| Per Share - Basic and Diluted(4)
| $1.16
| $(0.33)
|
| $—
|
| $1.15
| $(0.61)
|
|
|
|
|
|
|
|
| Oil Sales
| $165,609
| $157,902
|
| $157,577
|
| $323,186
| $302,092
| Operating Expenses
| (47,035)
| (48,491)
|
| (48,466)
|
| (95,501)
| (89,860)
| Transportation Expenses
| (5,690)
| (3,691)
|
| (4,584)
|
| (10,274)
| (6,757)
| Operating Netback(1)(3)
| $112,884
| $105,720
|
| $104,527
|
| $217,411
| $205,475
|
|
|
|
|
|
|
|
| G&A Expenses Before Stock-Based Compensation
| $10,737
| $9,549
|
| $9,516
|
| $20,253
| $20,745
| G&A Stock-Based Compensation Expense
| 6,160
| 317
|
| 3,361
|
| 9,521
| 1,817
| G&A Expenses, Including Stock Based Compensation
| $16,897
| $9,866
|
| $12,877
|
| $29,774
| $22,562
|
|
|
|
|
|
|
|
| Adjusted EBITDA(1)
| $103,004
| $97,291
|
| $94,792
|
| $197,796
| $187,156
|
|
|
|
|
|
|
|
| EBITDA(1)
| $101,187
| $91,794
|
| $91,891
|
| $193,078
| $179,009
|
|
|
|
|
|
|
|
| Net Cash Provided by Operating Activities
| $73,233
| $37,877
|
| $60,827
|
| $134,060
| $87,130
|
|
|
|
|
|
|
|
| Funds Flow from Operations(1)
| $46,167
| $53,106
|
| $74,307
|
| $120,474
| $113,122
|
|
|
|
|
|
|
|
| Capital Expenditures
| $61,273
| $65,565
|
| $55,331
|
| $116,604
| $136,627
|
|
|
|
|
|
|
|
| Free Cash Flow(1)
| $(15,106)
| $(12,459)
|
| $18,976
|
| $3,870
| $(23,505)
|
|
|
|
|
|
|
|
| Average Daily Volumes (BOPD)
|
|
|
|
|
|
|
| WI Production Before Royalties
| 32,776
| 33,719
|
| 32,242
|
| 32,509
| 32,671
| Royalties
| (6,774)
| (6,515)
|
| (6,397)
|
| (6,586)
| (6,301)
| Production NAR
| 26,002
| 27,204
|
| 25,845
|
| 25,923
| 26,370
| (Increase) Decrease in Inventory
| (811)
| 67
|
| 235
|
| (288)
| (143)
| Sales
| 25,191
| 27,271
|
| 26,080
|
| 25,635
| 26,227
| Royalties, % of WI Production Before Royalties
| 21%
| 19%
|
| 20%
|
| 20%
| 19%
|
|
|
|
|
|
|
|
| Per bbl
|
|
|
|
|
|
|
| Brent
| $85.03
| $77.73
|
| $81.76
|
| $83.42
| $79.91
| Quality and Transportation Discount
| (12.79)
| (14.10)
|
| (15.36)
|
| (14.15)
| (16.27)
| Royalties
| (15.31)
| (11.98)
|
| (13.08)
|
| (14.16)
| (12.38)
| Average Realized Price
| 56.93
| 51.65
|
| 53.32
|
| 55.11
| 51.26
| Transportation Expenses
| (1.96)
| (1.21)
|
| (1.55)
|
| (1.75)
| (1.15)
| Average Realized Price Net of Transportation Expenses
| 54.97
| 50.44
|
| 51.77
|
| 53.36
| 50.11
| Operating Expenses
| (16.17)
| (15.86)
|
| (16.40)
|
| (16.29)
| (15.25)
| Operating Netback(1)(3)
| 38.80
| 34.58
|
| 35.37
|
| 37.07
| 34.86
| G&A Expenses Before Stock-Based Compensation
| (3.69)
| (3.12)
|
| (3.22)
|
| (3.45)
| (3.52)
| Severance Expenses
| (0.08)
| —
|
| (0.43)
|
| (0.26)
| —
| Realized Foreign Exchange Gain (Loss)
| 0.37
| (4.18)
|
| (0.49)
|
| (0.06)
| (2.37)
| Interest Expense, Excluding Amortization of Debt Issuance Costs
| (5.38)
| (3.81)
|
| (5.12)
|
| (5.24)
| (3.85)
| Interest Income
| 0.35
| 0.21
|
| 0.23
|
| 0.29
| 0.24
| Net Lease Payments
| 0.02
| 0.15
|
| 0.12
|
| 0.07
| 0.17
| Current Income Tax Expense
| (14.54)
| (6.46)
|
| (1.33)
|
| (7.88)
| (6.34)
| Cash Netback(1)
| $15.85
| $17.37
|
| $25.13
|
| $20.54
| $19.19
|
|
|
|
|
|
|
|
| Share Information (000s)
|
|
|
|
|
|
|
| Common Stock Outstanding, End of Period(4)
| 31,022
| 33,287
|
| 31,401
|
| 31,022
| 33,287
| Weighted Average Number of Shares of Common Stock Outstanding - Basic and Diluted(4)
| 31,282
| 33,300
|
| 31,813
|
| 31,547
| 33,872
|
(1) Funds flow from operations, operating netback, net debt, cash netback, return on average capital employed, earnings before interest, taxes and depletion, depreciation and accretion (“DD&A”) (“EBITDA”) and EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gains or losses, stock-based compensation expense, other gains or losses, and financial instruments gains or losses (“Adjusted EBITDA”), cash flow and free cash flow are non-GAAP measures and do not have standardized meanings under generally accepted accounting principles in the United States of America (“GAAP”). Cash flow refers to funds flow from operations. Free cash flow refers to funds flow from operations less capital expenditures. Refer to “Non-GAAP Measures” in this press release for descriptions of these non-GAAP measures and, where applicable, reconciliations to the most directly comparable measures calculated and presented in accordance with GAAP.
(2) Gran Tierra’s third quarter-to-date 2024 total average differentials are for the period from July 1 to July 31, 2024.
(3) Operating netback as presented is defined as oil sales less operating and transportation expenses. See the table titled Financial and Operational Highlights above for the components of consolidated operating netback and corresponding reconciliation.
(4) Reflects our 1-for-10 reverse stock split that became effective May 5, 2023.
Conference Call Information:
Gran Tierra will host its second quarter 2024 results conference call on Thursday, August 1, 2024, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time. Interested parties may access the conference call by registering at the following link: register.vevent.com. The call will also be available via webcast at www.grantierra.com.
Corporate Presentation:
Gran Tierra’s Corporate Presentation has been updated and is available on the Company website at www.grantierra.com.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are available on the SEC website at sec.gov. The Company’s Canadian securities regulatory filings are available on SEDAR+ at sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at data.fca.org.uk.
Forward Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical facts included in this press release regarding our business strategy, plans and objectives of our management for future operations, capital spending plans and benefits of the changes in our capital program or expenditures, our liquidity and financial condition, and those statements preceded by, followed by or that otherwise include the words “expect,” “plan,” “can,” “will,” “should,” “guidance,” “forecast,” “budget,” “estimate,” “signal,” “progress” and “believes,” derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking statements regarding: the Company’s leverage ratio target, the Company’s plans regarding strategic investments, acquisitions and growth, the Company’s drilling program and the Company’s expectations of commodity prices, exploration and production trends and its positioning for 2024. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, pricing and cost estimates (including with respect to commodity pricing and exchange rates), and the general continuance of assumed operational, regulatory and industry conditions in Colombia and Ecuador, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.
Among the important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include, but are not limited to: our operations are located in South America and unexpected problems can arise due to guerilla activity, strikes, local blockades or protests; technical difficulties and operational difficulties may arise which impact the production, transport or sale of our products; other disruptions to local operations; global health events; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including inflation and changes resulting from a global health crisis, geopolitical events, including the conflicts in Ukraine and the Gaza region, or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including volatility or a prolonged decline in these prices relative to historical or future expected levels; the risk that current global economic and credit conditions may impact oil prices and oil consumption more than we currently predict. which could cause further modification of our strategy and capital spending program; prices and markets for oil and natural gas are unpredictable and volatile; the effect of hedges; the accuracy of productive capacity of any particular field; geographic, political and weather conditions can impact the production, transport or sale of our products; our ability to execute our business plan, which may include acquisitions, and realize expected benefits from current or future initiatives; the risk that unexpected delays and difficulties in developing currently owned properties may occur; the ability to replace reserves and production and develop and manage reserves on an economically viable basis; the accuracy of testing and production results and seismic data, pricing and cost estimates (including with respect to commodity pricing and exchange rates); the risk profile of planned exploration activities; the effects of drilling down-dip; the effects of waterflood and multi-stage fracture stimulation operations; the extent and effect of delivery disruptions, equipment performance and costs; actions by third parties; the timely receipt of regulatory or other required approvals for our operating activities; the failure of exploratory drilling to result in commercial wells; unexpected delays due to the limited availability of drilling equipment and personnel; volatility or declines in the trading price of our common stock or bonds; the risk that we do not receive the anticipated benefits of government programs, including government tax refunds; our ability to access debt or equity capital markets from time to time to raise additional capital, increase liquidity, fund acquisitions or refinance debt; our ability to comply with financial covenants in our indentures and make borrowings under any future credit agreement; and the risk factors detailed from time to time in Gran Tierra’s periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2023 filed February 20, 2024 and its other filings with the SEC. These filings are available on the SEC website at sec.gov and on SEDAR+ at www.sedarplus.ca.
The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management’s experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risk and uncertainties, many of which are beyond Gran Tierra’s control, which may cause actual results to differ materially from those implied or expressed by the forward looking statements. The risk that the assumptions on which the 2024 outlook are based prove incorrect may increase the later the period to which the outlook relates. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
The estimates of future financial performance and production set forth in this press release may be considered to be future-oriented financial information or a financial outlook for purposes of applicable Canadian securities laws. Financial outlook and future-oriented financial information contained in this press release about the Company’s prospective Net Debt to Adjusted EBITDA ratio, financial performance, financial position or cash flows are provided to give the reader a better understanding of the potential future performance of the Company in certain areas and are based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s assessment of the relevant information currently available, and to become available in the future. In particular, this press release contains projected operational and financial information for 2024. These projections contain forward-looking statements and are based on a number of material assumptions and factors set out above. Actual results may differ significantly from the projections presented herein. The actual results of Gran Tierra’s operations for any period could vary from the amounts set forth in these projections, and such variations may be material. See above for a discussion of the risks that could cause actual results to vary. The future-oriented financial information and financial outlooks contained in this press release have been approved by management as of the date of this press release. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information has been prepared on a reasonable basis, reflecting management’s best estimates and judgments, and represent, to the best of management’s knowledge and opinion, the Company’s expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. See Gran Tierra’s press release dated January 23, 2024 for additional information regarding 2024 financial and production outlook.
Non-GAAP Measures
This press release includes non-GAAP financial measures as further described herein. These non-GAAP measures do not have a standardized meaning under GAAP. Investors are cautioned that these measures should not be construed as alternatives to net income or loss, cash flow from operating activities or other measures of financial performance as determined in accordance with GAAP. Gran Tierra’s method of calculating these measures may differ from other companies and, accordingly, they may not be comparable to similar measures used by other companies. Each non-GAAP financial measure is presented along with the corresponding GAAP measure so as to not imply that more emphasis should be placed on the non-GAAP measure.
Operating netback, as presented, is defined as oil sales less operating and transportation expenses. See the table entitled Financial and Operational Highlights above for the components of consolidated operating netback and corresponding reconciliation.
Return on average capital employed as presented is defined as earnings before interest and taxes ("EBIT"; annualized, if the period is other than one year) divided by average capital employed (total assets minus cash and current liabilities; average of the opening and closing balances for the period).
|
| Three Months
Ended June 30,
|
| Twelve Month
Trailing June 30,
|
| As at June 30,
| Return on Average Capital Employed - (Non-GAAP) Measure ($000s)
|
|
| 2024
|
|
|
| 2024
|
|
|
| 2024
|
| Net Income
|
| $
| 36,371
|
|
| $
| 50,531
|
|
|
| Adjustments to reconcile net income to EBIT:
|
|
|
|
|
|
| Interest Expense
|
|
| 18,398
|
|
|
| 68,114
|
|
|
| Income Tax Expense (Recovery)
|
|
| (9,072
| )
|
|
| 54,155
|
|
|
| EBIT
|
| $
| 45,697
|
|
| $
| 172,800
|
|
|
|
|
|
|
|
|
|
| Total Assets
|
|
|
|
|
| $
| 1,379,584
|
| Less Current Liabilities
|
|
|
|
|
|
| 245,708
|
| Less Cash and Cash Equivalents
|
|
|
|
|
|
| 115,327
|
| Capital Employed
|
|
|
|
|
| $
| 1,018,549
|
|
|
|
|
|
|
|
| Annualized EBIT*
|
| $
| 182,788
|
|
|
|
|
| Divided by Average Capital Employed
|
|
| 1,018,549
|
|
|
| 1,018,549
|
|
|
| Return on Average Capital Employed
|
|
| 18
| %
|
|
| 17
| %
|
|
|
*Annualized EBIT was calculated for the three months ended June 30, 2024, by multiplying the quarter-to-date EBIT by 4.
Cash netback as presented is defined as net income or loss adjusted for DD&A expenses, deferred tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss and other gain or loss. Management believes that operating netback and cash netback are useful supplemental measures for investors to analyze financial performance and provide an indication of the results generated by Gran Tierra’s principal business activities prior to the consideration of other income and expenses. A reconciliation from net income or loss to cash netback is as follows:
| Three Months Ended
June 30,
|
| Three
Months
Ended
March 31,
|
| Six Months Ended
June 30,
| Cash Netback - (Non-GAAP) Measure ($000s)
|
| 2024
|
|
| 2023
|
|
|
| 2024
|
|
|
| 2024
|
|
| 2023
|
| Net Income (Loss)
| $
| 36,371
|
| $
| (10,825
| )
|
| $
| (78
| )
|
| $
| 36,293
|
| $
| (20,525
| )
| Adjustments to reconcile net income (loss) to cash netback
|
|
|
|
|
|
|
| DD&A expenses
|
| 55,490
|
|
| 56,209
|
|
|
| 56,150
|
|
|
| 111,640
|
|
| 108,405
|
| Deferred tax (recovery) expense
|
| (51,361
| )
|
| 13,975
|
|
|
| 13,479
|
|
|
| (37,882
| )
|
| 29,252
|
| Stock-based compensation expense
|
| 6,160
|
|
| 317
|
|
|
| 3,361
|
|
|
| 9,521
|
|
| 1,817
|
| Amortization of debt issuance costs
|
| 2,760
|
|
| 1,019
|
|
|
| 3,306
|
|
|
| 6,066
|
|
| 1,800
|
| Non-cash lease expense
|
| 1,381
|
|
| 1,109
|
|
|
| 1,413
|
|
|
| 2,794
|
|
| 2,253
|
| Lease payments
|
| (1,311
| )
|
| (636
| )
|
|
| (1,058
| )
|
|
| (2,369
| )
|
| (1,242
| )
| Unrealized foreign exchange gain
|
| (3,323
| )
|
| (8,062
| )
|
|
| (2,266
| )
|
|
| (5,589
| )
|
| (7,548
| )
| Other gain
|
| —
|
|
| —
|
|
|
| —
|
|
|
| —
|
|
| (1,090
| )
| Cash netback
| $
| 46,167
|
| $
| 53,106
|
|
| $
| 74,307
|
|
| $
| 120,474
|
| $
| 113,122
|
|
|
EBITDA, as presented, is defined as net income or loss adjusted for DD&A expenses, interest expense and income tax expense or recovery. Adjusted EBITDA, as presented, is defined as EBITDA adjusted for non-cash lease expense, lease payments, foreign exchange gain or loss, stock-based compensation expense or recovery, other gain or loss and financial instruments loss. Management uses this supplemental measure to analyze performance and income generated by our principal business activities prior to the consideration of how non-cash items affect that income, and believes that this financial measure is useful supplemental information for investors to analyze our performance and our financial results. A reconciliation from net income or loss to EBITDA and adjusted EBITDA is as follows:
| Three Months Ended
June 30,
|
| Three
Months
Ended
March 31,
|
| Six Months Ended
June 30,
|
| Twelve
Month
Trailing
June 30,
| EBITDA - (Non-GAAP) Measure ($000s)
|
| 2024
|
|
| 2023
|
|
|
| 2024
|
|
|
| 2024
|
|
| 2023
|
|
|
| 2024
|
| Net Income (Loss)
| $
| 36,371
|
| $
| (10,825
| )
|
| $
| (78
| )
|
| $
| 36,293
|
| $
| (20,525
| )
|
| $
| 50,531
|
| Adjustments to reconcile net income (loss) to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
| DD&A expenses
|
| 55,490
|
|
| 56,209
|
|
|
| 56,150
|
|
|
| 111,640
|
|
| 108,405
|
|
|
| 218,819
|
| Interest expense
|
| 18,398
|
|
| 12,678
|
|
|
| 18,424
|
|
|
| 36,822
|
|
| 24,514
|
|
|
| 68,114
|
| Income tax (recovery) expense
|
| (9,072
| )
|
| 33,732
|
|
|
| 17,395
|
|
|
| 8,323
|
|
| 66,615
|
|
|
| 54,155
|
| EBITDA
| $
| 101,187
|
| $
| 91,794
|
|
| $
| 91,891
|
|
| $
| 193,078
|
| $
| 179,009
|
|
| $
| 391,619
|
| Non-cash lease expense
|
| 1,381
|
|
| 1,109
|
|
|
| 1,413
|
|
|
| 2,794
|
|
| 2,253
|
|
|
| 5,508
|
| Lease payments
|
| (1,311
| )
|
| (636
| )
|
|
| (1,058
| )
|
|
| (2,369
| )
|
| (1,242
| )
|
|
| (4,145
| )
| Foreign exchange (gain) loss
|
| (4,413
| )
|
| 4,707
|
|
|
| (815
| )
|
|
| (5,228
| )
|
| 6,409
|
|
|
| 185
|
| Stock-based compensation expense
|
| 6,160
|
|
| 317
|
|
|
| 3,361
|
|
|
| 9,521
|
|
| 1,817
|
|
|
| 13,426
|
| Other (gain) loss
|
| —
|
|
| —
|
|
|
| —
|
|
|
| —
|
|
| (1,090
| )
|
|
| 3,387
|
| Financial instruments loss
|
| —
|
|
| —
|
|
|
| —
|
|
|
| —
|
|
| —
|
|
|
| 15
|
| Adjusted EBITDA
| $
| 103,004
|
| $
| 97,291
|
|
| $
| 94,792
|
|
| $
| 197,796
|
| $
| 187,156
|
|
| $
| 409,995
|
|
|
Funds flow from operations, as presented, is defined as net income or loss adjusted for DD&A expenses, deferred tax expense or recovery, stock-based compensation expense or recovery, amortization of debt issuance costs, non-cash lease expense, lease payments, unrealized foreign exchange gain or loss, other gain or loss and financial instruments loss. Management uses this financial measure to analyze performance and income or loss generated by our principal business activities prior to the consideration of how non-cash items affect that income or loss, and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. Free cash flow, as presented, is defined as funds flow from operations adjusted for capital expenditures. Management uses this financial measure to analyze cash flow generated by our principal business activities after capital requirements and believes that this financial measure is also useful supplemental information for investors to analyze performance and our financial results. A reconciliation from net income or loss to both funds flow from operations and free cash flow is as follows:
| Three Months Ended
June 30,
|
| Three
Months
Ended
March 31,
|
| Six Months Ended
June 30,
|
| Twelve
Month
Trailing
June 30,
| Funds Flow From Operations -
(Non-GAAP) Measure ($000s)
|
| 2024
|
|
| 2023
|
|
|
| 2024
|
|
|
| 2024
|
|
| 2023
|
|
|
| 2024
|
| Net Income (Loss)
| $
| 36,371
|
| $
| (10,825
| )
|
| $
| (78
| )
|
| $
| 36,293
|
| $
| (20,525
| )
|
| $
| 50,531
|
| Adjustments to reconcile net income (loss) to funds flow from operations
|
|
|
|
|
|
|
|
|
| DD&A expenses
|
| 55,490
|
|
| 56,209
|
|
|
| 56,150
|
|
|
| 111,640
|
|
| 108,405
|
|
|
| 218,819
|
| Deferred tax (recovery) expense
|
| (51,361
| )
|
| 13,975
|
|
|
| 13,479
|
|
|
| (37,882
| )
|
| 29,252
|
|
|
| (10,375
| )
| Stock-based compensation expense
|
| 6,160
|
|
| 317
|
|
|
| 3,361
|
|
|
| 9,521
|
|
| 1,817
|
|
|
| 13,426
|
| Amortization of debt issuance costs
|
| 2,760
|
|
| 1,019
|
|
|
| 3,306
|
|
|
| 6,066
|
|
| 1,800
|
|
|
| 10,097
|
| Non-cash lease expense
|
| 1,381
|
|
| 1,109
|
|
|
| 1,413
|
|
|
| 2,794
|
|
| 2,253
|
|
|
| 5,508
|
| Lease payments
|
| (1,311
| )
|
| (636
| )
|
|
| (1,058
| )
|
|
| (2,369
| )
|
| (1,242
| )
|
|
| (4,145
| )
| Unrealized foreign exchange gain
|
| (3,323
| )
|
| (8,062
| )
|
|
| (2,266
| )
|
|
| (5,589
| )
|
| (7,548
| )
|
|
| (3,126
| )
| Other (gain) loss
|
| —
|
|
| —
|
|
|
| —
|
|
|
| —
|
|
| (1,090
| )
|
|
| 3,387
|
| Financial instruments loss
|
| —
|
|
| —
|
|
|
| —
|
|
|
| —
|
|
| —
|
|
|
| 15
|
| Funds flow from operations
| $
| 46,167
|
| $
| 53,106
|
|
| $
| 74,307
|
|
| $
| 120,474
|
| $
| 113,122
|
|
| $
| 284,137
|
| Capital expenditures
| $
| 61,273
|
| $
| 65,565
|
|
| $
| 55,331
|
|
| $
| 116,604
|
| $
| 136,627
|
|
| $
| 198,859
|
| Free cash flow
| $
| (15,106
| )
| $
| (12,459
| )
|
| $
| 18,976
|
|
| $
| 3,870
|
| $
| (23,505
| )
|
| $
| 85,278
|
|
|
Net debt as of June 30, 2024, was $521 million, calculated using the sum of 6.25% Senior Notes, 7.75% Senior Notes, and 9.50% Senior Notes excluding deferred financing fees totaling $637 million, less cash and cash equivalents of $115 million.
Presentation of Oil and Gas Information
References to a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume. Gran Tierra’s reported production is a mix of light crude oil and medium and heavy crude oil for which there is not a precise breakdown since the Company’s oil sales volumes typically represent blends of more than one type of crude oil. Well test results should be considered as preliminary and not necessarily indicative of long-term performance or of ultimate recovery. Well log interpretations indicating oil and gas accumulations are not necessarily indicative of future production or ultimate recovery. If it is indicated that a pressure transient analysis or well-test interpretation has not been carried out, any data disclosed in that respect should be considered preliminary until such analysis has been completed. References to thickness of “oil pay” or of a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume.
This press release contains certain oil and gas metrics, including operating netback and cash netback, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. These metrics are calculated as described in this press release and management believes that they are useful supplemental measures for the reasons described in this press release.
Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods. |
| | Canadian Oil & Gas Companies | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
|
| To: pstad60 who wrote (24693) | 8/2/2024 9:14:17 AM | | From: pstad60 | | | | Regarding Touchstone Exploration acquisition attempt of Trinity
Trinity Directors recommend counter all-cash offer from Lease Operators
Hopefully Touchstone mg't do NOT contemplate increasing their bid.
Doubt TXP shareholders would approve of additional dilution or expense.
Trinity shareholders won't get any further longterm upside by accepting 68 p offer
from Lease Operators. Let Trinity shareholders decide what they want, immediate cash
or longer term chance to recoup last year's 140 p share price with TXP development
.
Today's news release from Trinity:
londonstockexchange.com
.
TXP share price should rise based on no forthcoming dilution for Trinity acquistion.
If I were TXP m'g't, I would just let the offer sit for now and see where our share price
settles for the next couple weeks, as new Cascadura gas wells are coming onstream at the end of Q3.
GLTA ! |
| | Canadian Oil & Gas Companies | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last ReadRead Replies (1) |
|
| To: pstad60 who wrote (24698) | 8/5/2024 8:09:49 PM | | From: pstad60 | | | |
STATEMENT REGARDING LEASE OPERATORS OFFER
TOUCHSTONE EXPLORATION INC
Released 07:00:09 05 August 2024
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
5 August 2024
ALL SHARE OFFER
for
Trinity Exploration & Production Plc ("Trinity")
by
Touchstone Exploration Inc. ("Touchstone")
Statement regarding Lease Operators offer for Trinity and update on Irrevocable Undertakings and Letter of Intent
CALGARY, ALBERTA - Touchstone notes the announcement by Lease Operators Limited ("Lease Operators") and Trinity of a recommended offer by Lease Operators for the entire issued and to be issued share capital of Trinity (the "Lease Operators Offer"), which is intended to be implemented by way of a Court-sanctioned scheme of arrangement pursuant to Part 26 of the Companies Act (the "Lease Operators Scheme").
Touchstone is considering its position and urges Trinity Shareholders to take no action in response to the announcement by Lease Operators and Trinity.
Irrevocable undertakings summary
The board of directors of Touchstone (the "Touchstone Board") notes that prior to the announcement of the all share offer by Touchstone on 1 May 2024 (the "Touchstone Offer"), Touchstone received Irrevocable Undertakings in respect of a total of 15,083,344 Trinity Shares representing, in aggregate, approximately 38.9 percent of Trinity's ordinary share capital in issue (excluding any Trinity Shares held in treasury). The necessary resolutions to approve the scheme of arrangement proposed by Trinity to implement the Touchstone Offer (the "Touchstone Scheme") were approved by majorities of over 99 percent of shareholders voting at both the Trinity Court Meeting and General Meeting.
The terms of the Irrevocable Undertakings were summarised in both the announcement on 1 May 2024 and the shareholder circular relating to the Touchstone Scheme published by Trinity on 24 May 2024 (the "Touchstone Scheme Document"), and that summary is reproduced in full in the Annex to this announcement. The Irrevocable Undertakings themselves are available online at: touchstoneexploration.com
In particular, Touchstone draws the attention of Trinity Shareholders to the fact that, as the Trinity Court Meeting and General Meeting have both taken place, the Irrevocable Undertakings remain binding regardless of the Lease Operators Offer unless the Touchstone scheme lapses or is withdrawn. A summary of the circumstances in which the Irrevocable Undertakings would cease to have effect is included in the Annex to this announcement.
Touchstone notes that the terms of the Irrevocable Undertakings oblige those Trinity Shareholders and Trinity Directors who gave Irrevocable Undertakings to vote against the Lease Operators Scheme. As long as the Irrevocable Undertakings remain binding, the statutory majorities required for shareholder approval of the Lease Operators Scheme would not be capable of being met and the Lease Operators Scheme would not, therefore, be capable of becoming effective.
Receipt of Letter of Intent in Support of Touchstone's Offer
Touchstone further announces that it has received a letter of intent from Andrew Byles in respect of a total of 1,000,000 Trinity Shares, representing approximately 2.58 per cent. of the ordinary share capital of Trinity (excluding any Trinity Shares held in treasury) (the "Letter of Intent"), which confirms:
i. that he remains fully supportive of the Touchstone Offer;
ii. that he intends to vote against any resolution put to Trinity shareholders to approve the Lease Operators Offer and / or any other shareholder resolution to approve, implement or facilitate the Lease Operators Offer (or any other resolution which may delay, impede or frustrate the Touchstone Offer); and
iii. that, if the Lease Operators Offer were to be revised so as to be implemented by means of a contractual takeover offer, it would also be his intention not to accept the Lease Operators Offer.
When taken together with the Irrevocable Undertakings, this brings the total number of Trinity Shares subject to Irrevocable Undertakings and the Letter of Intent to 16,083,344 Trinity Shares, representing approximately 41.45 per cent. of the ordinary share capital of Trinity in issue on 2 August 2024 (being the latest practicable date prior to this announcement and excluding any Trinity Shares held in treasury).
As highlighted by the Trinity Board and in Touchstone's announcement on 25 July 2024, Touchstone notes that it will have the ability to invoke Condition 2.3 (ii) of Part A of Part Three of the Touchstone Scheme Document and lapse the Scheme on 22 August 2024, being the 22nd day following the date of the original Court Hearing date of 31 July 2024, if it so chooses. In such circumstances, the Irrevocable Undertakings would also cease to have effect.
A further announcement will be made by Touchstone in due course, as and when appropriate.
Capitalised terms used but not defined in this announcement have the meanings given to them in the Touchstone Scheme Document.
Enquiries:
Touchstone Exploration Inc.
Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487
Scott Budau, Chief Financial Officer
Brian Hollingshead, Vice President Engineering and Business Development
Shore Capital (Lead Financial Adviser, Nominated Advisor and Joint Broker)
Daniel Bush / Toby Gibbs / Tom Knibbs Tel: +44 (0) 207 408 4090
Canaccord Genuity (Co-Financial Adviser and Joint Broker)
Adam James / Charlie Hammond Tel: +44 (0) 207 523 8000
Important notices
Shore Capital & Corporate Limited and Shore Capital Stockbrokers Limited (either individually or collectively "Shore Capital") which are authorised and regulated by the Financial Conduct Authority in the United Kingdom, are acting exclusively as lead financial adviser and joint corporate broker for Touchstone and for no-one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Shore Capital, or for providing advice in relation to the Acquisition or any other matter referred to herein. Neither Shore Capital & Corporate Limited nor Shore Capital Stockbrokers Limited, nor any of their subsidiaries or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Shore Capital in connection with this announcement, any statement contained herein or otherwise.
Canaccord Genuity Limited ("Canaccord Genuity"), which is authorised and regulated in the UK by the FCA, is acting as co-financial adviser and joint corporate broker to Touchstone and no one else in connection with the matters set out in this announcement and will not be responsible to anyone other than Touchstone for providing the protections afforded to clients of Canaccord Genuity or for providing advice in relation to contents of this announcement or any other matters referred to in this announcement. Neither Canaccord Genuity nor any of its affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Canaccord Genuity in connection with this announcement, any statement contained herein or otherwise.
Further information
This announcement is for information purposes only and is not intended to and does not constitute, or form part of, any offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of any vote or approval in relation to the Acquisition or the Scheme or otherwise, in any jurisdiction in which such offer, invitation or solicitation is unlawful.
This announcement has been prepared for the purpose of complying with the laws of England and Wales and the Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside of England and Wales.
Nothing in this announcement should be relied on for any other purpose.
Touchstone urges Trinity Shareholders to read the Touchstone Scheme Document because it contains important information relating to the Acquisition.
This announcement does not constitute a prospectus or prospectus exempted document.
Overseas Shareholders
The availability of the Acquisition to Trinity Shareholders who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdictions in which they are resident. Any person outside the United Kingdom or who are subject to the laws and/regulations of another jurisdiction should inform themselves of, and should observe, any applicable legal and/or regulatory requirements.
The release, publication or distribution of this announcement in or into or from jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe, such restrictions. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Acquisition disclaim any responsibility or liability for the violation of such restrictions by any person.
Unless otherwise determined by Touchstone or required by the Code and permitted by applicable law and regulation, the Acquisition will not be made available, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no person may vote in favour of the Acquisition by any such use, means, instrumentality or form (including, without limitation, facsimile, email or other electronic transmission, telex or telephone) within any Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction. Accordingly, copies of this announcement, the Touchstone Scheme Document and all documents relating to the Acquisition are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction, and persons receiving this document and all documents relating to the Acquisition (including custodians, nominees and trustees) must observe these restrictions and must not mail or otherwise distribute or send them in, into or from such jurisdictions where to do so would violate the laws in that jurisdiction. Doing so may render invalid any purported vote in respect of the Acquisition.
Publication on Website
In accordance with Rule 26.1 of the Code a copy of this announcement and the Letter of Intent will be available free of charge, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on the investor relations section of Touchstone's website at url.avanan.click by no later than 12.00 noon (London time) on the business day immediately following this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
Annex - Irrevocable Undertakings summary extracted from the Touchstone Scheme Document
The Touchstone Scheme Document contained the following summary of the Irrevocable Undertakings:
Trinity Director irrevocable undertakings in respect of Trinity Shares
The following holders or controllers of Trinity Shares have given irrevocable undertakings to vote in favour of the Scheme at the Court Meeting and the Resolution to be proposed at the General Meeting and, if Touchstone exercises its right to implement the Acquisition by way of a Takeover Offer, to accept or procure acceptance of such offer:
Name of Trinity Director
| Number of Trinity Shares in respect of which undertaking is given
| Percentage of Trinity issued share capital (excluding Trinity Shares held in treasury) as at 30 April 2024
| Jeremy Bridglalsingh
| 319,463
| 0.8%
| James Menzies
| 115,000
| 0.3%
| Nicholas Clayton
| 30,000
| 0.1%
| TOTAL
| 464,463
| 1.2%
|
These irrevocable undertakings also extend to any shares acquired by the Trinity Directors as a result of the vesting of awards or the exercise of options under the Trinity Share Plan. The obligations of the Trinity Directors under the irrevocable undertakings shall lapse and cease to have effect on and from the following occurrences:
i. the Panel consents to Touchstone not proceeding with the Acquisition;
ii. the Acquisition lapses or is withdrawn or does not become effective by the Long-stop Date, provided that this shall not apply where the Acquisition is withdrawn as a result of Touchstone exercising its right to implement the Acquisition by way of a Takeover Offer rather than by way of Scheme and such Takeover Offer has not lapsed or been withdrawn); or
iii. any competing offer for the entire issued and to be issued share capital of Trinity is declared unconditional or, if proceeding by way of a scheme of arrangement, becomes effective.
The irrevocable undertakings therefore remain binding in the event an alternate or higher competing possible offer or offer is made for Trinity.
Additional Shareholder irrevocable undertakings in respect of Trinity Shares
The following persons have given irrevocable undertakings which include undertakings to vote, or procure a vote, in favour of the Scheme at the Court Meeting and the Resolution relating to the Acquisition at the General Meeting, or, in the event that the Acquisition is implemented by way of a Takeover Offer, to accept or procure the acceptance of such Takeover Offer, in respect of the following Trinity Shares:
Name of Trinity Shareholder giving undertaking
| Number of Trinity Shares in respect of which undertaking is given
| Percentage of Trinity issued share capital (excluding Trinity Shares held in treasury as at 30 April 2024
| Angus Winther
| 3,113,299
| 8.0%
| Gavin White
| 2,914,748
| 7.5%
| CS Living Trust
| 1,985,414
| 5.1%
| David A. Segel Trust
| 1,985,414
| 5.1%
| Jan-Dirk Lueders
| 1,498,855
| 3.9%
| Bruce Dingwall Trust
| 1,464,374
| 3.8%
| Scott Casto
| 1,463,374
| 3.8%
| CMT Investments LLC*
| 111,460
| 0.3%
| Segel Children's Trust
| 81,943
| 0.2%
| TOTAL
| 14,618,881
| 37.7%
|
*Held jointly by Jan-Dirk Lueders and Scott Casto through CMT Investments LLC
The irrevocable undertakings shall lapse and cease to have effect if:
i. the Panel consents to Touchstone not proceeding with the Acquisition;
ii. the Acquisition lapses or is withdrawn or does not become effective by the Long-stop Date, provided that this shall not apply where the Acquisition is withdrawn as a result of Touchstone exercising its right to implement the Acquisition by way of a Takeover Offer rather than by way of Scheme and such Takeover Offer has not lapsed or been withdrawn); or
iii. any person other than Touchstone (or any person acting in concert with Touchstone) announces either:
a. a competing offer for the entire issued and to be issued share capital of Trinity which is wholly in cash in an amount which is equal to or more than the value of the Acquisition; or
b. a competing offer for the entire issued and to be issued share capital of Trinity, if not wholly in cash, on terms which represents (in the reasonable opinion of Shore Capital) an improvement of 20 per cent. or more on the value of the Acquisition,
in each case prior to the date of the Court Meeting and the General Meeting; or
c. any competing offer for the entire issued and to be issued share capital of Trinity is declared unconditional or, if proceeding by way of a scheme of arrangement, becomes effective.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
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| From: LoneClone | 8/7/2024 1:54:57 PM | | | | | | QIMC and INRS Announce Expansion to 9kms of Significant Anomalous Natural Hydrogen Soil Gas Discovery at Ville Marie Project
August 06, 2024 9:02 AM EDT | Source: Quebec Innovative Materials Corp.
Lachute, Quebec--(Newsfile Corp. - August 6, 2024) - Quebec Innovative Materials Corp. (CSE: QIMC) (FSE: 7FJ) ("QI Materials", "QIMC" or the "Company"), Quebec Innovative Materials with its partner the Institut National de la Recherche Scientifique (INRS), is proud to announce that our recent exploration has extended the discovery of significant anomalous natural hydrogen soil gas to lines 4 and 5, marking an important milestone that supports Quebec's clean energy agenda and low carbon emissions targets.
"This significant extension of our discovery to 9kms to the south of Line 1, combined with the large zones of strong anomalous soil samples exceeding 300 ppm in Line 5, highlights the district-wide natural hydrogen potential of the Ville Marie project. This development plays a crucial role in Quebec's transition towards a more sustainable and renewable energy future," comments John Karagiannidis, CEO of QIMC.
Following the surveys on Lines 1 to 3, QIMC and INRS continued soil gas surveys south of the town of St-Bruno-de-Guigues to verify the extent of hydrogen anomalous zones or domains. The new lines 4 and 5 are located 6.9 and 9.2 km south of line 1, respectively (Figure 1). Data from lines 4 and 5 show numerous large continuous anomalies above 300 ppm hydrogen (Figure 2).
Figure 1
To view an enhanced version of this graphic, please visit:
images.newsfilecorp.com
Figure 2
To view an enhanced version of this graphic, please visit:
images.newsfilecorp.com
Key Highlights:
- Extended Discovery: The anomalous natural hydrogen soil gas discovery now includes lines 4 and 5, expanding the scope and significance of our findings across the Ville Marie project area to over 9kms.
- Support for Clean Energy: The extension of this discovery aligns with Quebec's clean energy goals by identifying a promising source of natural hydrogen, which is essential for developing clean fuel technologies and reducing carbon emissions.
- Environmental Impact: This development reinforces QIMC's commitment to supporting low carbon initiatives and advancing environmental sustainability and low footprint
"We are excited to share this important update with our stakeholders and the community," said John Karagiannidis, CEO of QIMC. "The expansion of our natural hydrogen discovery is not only a testament to our team's expertise and dedication but also a significant contribution to Quebec's clean energy objectives. We are committed to advancing this significant discovery and supporting the province's transition to a low-carbon economy."
Marc Richer-Laflèche comments: "Comparing the median distribution of values for each line, Figure 3 shows a progressive decrease in median values from lines 3 W and 3 E to line 4. The significantly higher median observed on line 5 is striking and indicates the possible presence of a new hydrogen anomaly zone situated south of the survey boundary. The spatial distribution of hydrogen anomalies over more than 9 km (north-south axis) is particularly notable. By analogy with hydrocarbon-rich geological systems, it appears that a geological unit in the Temiskaming Graben controls local hydrogen production. In such a context, the normal faults of the graben would favor the transfer of hydrogen to the subsurface."
Figure 3
To view an enhanced version of this graphic, please visit:
images.newsfilecorp.com
"We are ramping up personnel and equipment at our camp as we prepare for the next phases of our project. In particular, we are excited about the 9-kilometer north-south soil sampling line, which will intersect with the five existing east-west lines," said John Karagiannidis, CEO of QIMC. "The INRS team will be sampling soil every 50 meters along this critical line and has already started setting up markers. This essential step will provide us with a 2D perspective on the hydrogen distribution within the 7 by 9-kilometer area of our 250 square kilometer Ville Marie project," he added.
About the INRS and Pr. Marc Richer-LaFlèche, P.Geo.
The Institut National de la Recherche Scientifique ("INRS") is a high-level research and training institute. Pr. Richer-LaFlèche's team has geological, geochemical and geophysical experience specifically in the regions of QIMC's newly acquired claims. They have carried out over six years of geophysical and geochemical work and collected thousands of C1-C4 Soil-Gas analyses.
M. Richer-LaFlèche also holds an FRQNT grant, in partnership with Quebec MRN and the mining industry, to develop and optimize a Soil-Gas method for the direct detection of mineralized bodies and faults under Quaternary cover. In addition to sulphide gases, hydrogen was systematically analyzed in the numerous surveys carried out in 2023 in Abitibi, Témiscamingue and also in the Quebec Appachian. M. Richer-LaFlèche is the Qualified Person responsible for the technical information contained in this news release and has read the information contained herein.
In addition, the INRS team has several portable gas spectrometers and the sampling equipment and logistics necessary for taking gas samples and geophysical measurements on the ground or in the aquatic environment. He is a professional geologist registered with the Ordre des géologues du Québec and is the Qualified Person responsible for the technical information contained in this news release and has read the information contained herein.
For more information about Quebec Innovative Materials Corp. and its products, please visit www.qimaterials.com.
About Québec Innovative Materials Corp.
Québec Innovative Materials Corp. is a mineral exploration, and development company dedicated to exploring and harnessing the potential of Canada's abundant resources. With properties in Ontario and Québec, QIMC is focused on specializing in the exploration of white (natural) hydrogen and high-grade silica deposits, QIMC is committed to sustainable practices and innovation. With a focus on environmental stewardship and cutting-edge extraction technology, we aim to unlock the full potential of these materials to drive forward clean energy solutions to power the AI and carbon-neutral economy and contribute to a more sustainable future.
QUÉBEC INNOVATIVE MATERIALS CORP.
John Karagiannidis
Chief Executive Officer
Tel: +1 438-401-8271
For further information, please contact:
Email: info@qimaterials.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the CSE policies) accepts responsibility for the adequacy or accuracy of this news release and has neither approved nor disapproved the contents of this news release.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause Québec Innovative Materials' actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.
Although Québec Innovative Materials believes the forward-looking information contained in this news release is reasonable based on information available on the date hereof, by their nature, forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
Examples of such assumptions, risks and uncertainties include, without limitation, assumptions, risks and uncertainties associated with general economic conditions; adverse industry events; future legislative and regulatory developments in the mining sector; the Company's ability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favorable terms; mining industry and markets in Canada and generally; the ability of Québec Innovative Materials Corp. to implement its business strategies; competition; and other assumptions, risks and uncertainties.
The forward-looking information contained in this news release represents the expectations of the Company as of the date of this news release and, accordingly, is subject to change after such date. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, it does not undertake to update this information at any particular time except as required in accordance with applicable laws.
 SOURCE: Quebec Innovative Materials Corp. |
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| From: LoneClone | 8/12/2024 1:42:02 PM | | | | | | Gran Tierra Energy Announces Fifth Consecutive Ecuador Oil Discovery from the Charapa-B6 Well
ca.finance.yahoo.com
Gran Tierra Energy Inc.
Mon, August 12, 2024 at 3:10 a.m. PDT·8 min read
GTE
+4.76%
CALGARY, Alberta, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) today announced an operational update. Production amounts are on an average working interest before royalties (“WI”) basis unless otherwise indicated. Per barrel (“bbl”) and bbl of oil per day (“BOPD”) amounts are based on WI sales before royalties.
Message to Shareholders
“We are pleased to announce that Gran Tierra has successfully made another oil discovery with the Charapa-B6 well on the Charapa Block in Ecuador. This significant find is located just west of the recently discovered Arawana-J1 and Bocachico Norte-J1 wells on the Chanangue Block, further underscoring the potential of this highly prospective region. The Charapa-B6 well marks our third oil discovery in 2024, and remarkably, our fifth in Ecuador since we resumed our exploration campaign after the disruptions caused by the pandemic.
This series of discoveries is a testament to the dedication and expertise of our team, and it reaffirms the value of our strategic focus on high impact near field exploration in Ecuador. This discovery is not only a reflection of the successful implementation of our exploration strategy but also a strong indicator of the promising future that lies ahead for Gran Tierra in both Ecuador and Colombia. As we continue to explore and develop our assets in the Putumayo and Oriente basins, we expect to leverage our learnings from these exploration wells on both sides of the border”, commented Gary Guidry, President and Chief Executive Officer of Gran Tierra.
Charapa B6 Oil Discovery:
- Gran Tierra has run production casing, cemented and perforated the Hollin oil zone and has begun production testing.
- The Hollin oil zone was perforated over 50 ft of reservoir with 45 ft of reservoir pay based on log evaluation. A jet pump was run and the well has produced at stabilized rates over 53 hours at 2,118 BOPD, 28.2-degree API gravity oil, a 2.2% water cut, and a gas-oil ratio (“GOR”) of 21 standard cubic feet per stock tank barrel (“scf/stb”).
- This is the first exploration well drilled in the Charapa Block since the successful Charapa B5 well was drilled in 2022. We continue to build confidence and solidify our understanding of both the Charapa and Chanangue Blocks with each successful exploration well drilled. To date, the Charapa-B5 well has produced over 280 thousand bbls of oil (“Mbbl”).
- The rig has been moved to drill the Charapa-B7 exploration well which was spud on August 9, 2024.
Five Consecutive Ecuador Oil Discoveries:
Gran Tierra has successfully drilled five exploration wells in Ecuador, each leading to an oil discovery. Impressively, three of these five wells are drawing medium to light hydrocarbons from distinct geological zones, highlighting the exceptional potential of the Oriente and Putumayo basins and the significant exploration opportunities that remain within both the Charapa and Chanangue Blocks.
Well
| Zone
| Onstream
Date
| Initial
Rate
(BOPD)
| IP30
(BOPD)1
| IP90
(BOPD)2
| IP30
BS&W3
| API
| GOR
(scf/stb)
| Cumulative
Production
to Date
(Mbbl)
| Charapa-B5
| Hollin
| 11/9/2022
| -
| 1,092
| 910
| 2%
| 28
| 160
| 287
| Bocachico-J1
| Basal Tena
| 5/30/2023
| -
| 1,296
| 1,146
| <1%
| 20
| 204
| 396
| Arawana-J1
| Basal Tena
| 5/17/2024
| -
| 1,182
| -
| <1%
| 20
| 264
| 76
| Bocachico Norte-J1
| T-Sand
| 8/1/2024
| 1,353
| -
| -
| -
| 35
| 324
| 13
| Charapa-B6
| Hollin
| 8/7/2024
| 2,118
| -
| -
| -
| 28
| 21
| 6
|
1. Average initial 30-day production per well.
2. Average initial 90-day production per well.
3. Percentage of basic sediment and water in the initial 30-day production.
Contact Information
For investor and media inquiries please contact:
Gary Guidry
President & Chief Executive Officer
Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com
About Gran Tierra Energy Inc.
Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.
Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are available on the SEC website at sec.gov. The Company’s Canadian securities regulatory filings are available on SEDAR+ at sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at data.fca.org.uk.
Forward-Looking Statements and Legal Advisories:
This press release contains opinions, forecasts, projections, and other statements about future events or results that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and financial outlook and forward looking information within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”). All statements other than statements of historical facts included in this press release and those statements preceded by, followed by or that otherwise include the words “expect,” “plan,” “can,” “will,” “should,” “guidance,” “forecast,” “budget,” “estimate,” “signal,” “progress” and “believes,” derivations thereof and similar terms identify forward-looking statements. In particular, but without limiting the foregoing, this press release contains forward-looking statements regarding: the Company’s drilling program and the Company’s expectations regarding future discoveries and drivers of production growth and the anticipated timing of the drilling of the Charapa-B7 well. The forward-looking statements contained in this press release reflect several material factors and expectations and assumptions of Gran Tierra including, without limitation, that Gran Tierra will continue to conduct its operations in a manner consistent with its current expectations, pricing and cost estimates (including with respect to commodity pricing and exchange rates), the general continuance of assumed operational, regulatory and industry conditions in Colombia and Ecuador, and the ability of Gran Tierra to execute its business and operational plans in the manner currently planned.
Among the important factors that could cause our actual results to differ materially from the forward-looking statements in this press release include, but are not limited to, the risk factors detailed from time to time in Gran Tierra’s periodic reports filed with the Securities and Exchange Commission, including, without limitation, under the caption “Risk Factors” in Gran Tierra’s Annual Report on Form 10-K for the year ended December 31, 2023 filed February 20, 2024 and its other filings with the SEC. These filings are available on the SEC website at sec.gov and on SEDAR+ at www.sedarplus.ca.
The forward-looking statements contained in this press release are based on certain assumptions made by Gran Tierra based on management’s experience and other factors believed to be appropriate. Gran Tierra believes these assumptions to be reasonable at this time, but the forward-looking statements are subject to risk and uncertainties, many of which are beyond Gran Tierra’s control, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. All forward-looking statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by Gran Tierra that Gran Tierra believes these forward-looking statements continue to be true as of any subsequent date. Actual results may vary materially from the expected results expressed in forward-looking statements. Gran Tierra disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.
Presentation of Oil and Gas Information
References to a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume. Gran Tierra’s reported production is a mix of light crude oil and medium and heavy crude oil for which there is not a precise breakdown since the Company’s oil sales volumes typically represent blends of more than one type of crude oil. Well test results should be considered as preliminary and not necessarily indicative of long-term performance or of ultimate recovery. Well log interpretations indicating oil and gas accumulations are not necessarily indicative of future production or ultimate recovery. If it is indicated that a pressure transient analysis or well-test interpretation has not been carried out, any data disclosed in that respect should be considered preliminary until such analysis has been completed. References to thickness of “oil pay” or of a formation where evidence of hydrocarbons has been encountered is not necessarily an indicator that hydrocarbons will be recoverable in commercial quantities or in any estimated volume.
References in this press release to IP30, IP90 and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of the Company. The Company cautions that such results should be considered to be preliminary. |
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| To: pstad60 who wrote (24699) | 8/13/2024 5:27:53 PM | | From: pstad60 | | | | Touchstone files Q2 Financial Results
Year to Date Second Quarter 2024 Financial and Operating Highlights
Attained average production volumes of 6,223 boe/d (78 percent natural gas), representing a 214 percent increase relative to the 1,982 boe/d (39 percent natural gas) produced in the six months ended June 30, 2023, mainly attributed from Cascadura natural gas and associated liquids volumes that were brought online in September 2023.
Achieved funds flow from operations of $10,110,000 versus $809,000 reported in the prior year comparative period, driven by an increase in operating netback of $12,112,000 primarily from increased production volumes and realized commodity pricing.
Recognized net earnings of $6,967,000 ($0.03 per basic and diluted share) during the six months ended June 30, 2024 compared to a net loss of $350,000 ($0.00 per basic share) reported in the equivalent 2023 period.
Second Quarter 2024 Financial and Operating Highlights
Achieved average quarterly production of 5,432 boe/d (77 percent natural gas), a 23 percent decrease relative to 7,015 boe/d produced in the first quarter of 2024 (80 percent natural gas), mainly reflecting natural declines from our Cascadura field.
Realized petroleum and natural gas sales of $14,090,000 compared to $16,584,000 in the first quarter of 2024, primarily attributed to a decrease in natural gas and NGL sales volumes.
Cascadura field production volumes in the quarter contributed $5,168,000 of natural gas sales at an average realized price of $2.52 per Mcf and $680,000 of petroleum sales at an average realized price of $73.86 per barrel.
Natural gas production from the Coho-1 well contributed $483,000 of natural gas sales in the quarter at an average realized price of $2.16 per Mcf.
Crude oil production contributed $7,759,000 of petroleum sales at an average realized price of $73.62 per barrel.
Generated an operating netback of $8,127,000, a 22 percent decrease from the first quarter of 2024, primarily due to decreased natural gas and NGL sales volumes.
Achieved quarterly funds flow from operations of $3,968,000 in the second quarter of 2024 compared to $6,142,000 in the preceding quarter.
Delivered net earnings of $3,339,000 ($0.01 per basic and diluted share) versus $3,628,000 ($0.02 per basic and diluted share) recognized in the first quarter of 2024.
$5,543,000 in quarterly capital investments primarily focused on expenditures directed towards one CO-1 well and progressing construction on the flowline from the Cascadura C site to the Cascadura natural gas processing facility.
In April 2024 we entered into a third amended and restated loan agreement with our existing lender providing for an additional $13 million of bank debt capacity.
Effective June 1, 2024 we closed an asset swap where we exchanged private San Francique leases for the Balata East block, which resulted in a $1,535,000 gain on asset disposition.
Exited the second quarter of 2024 with a cash balance of $6,990,000 and a net debt position of $28,674,000, resulting in a net debt to annual funds flow from operations ratio of 1.25 times.
Post Period-end Highlights
Effective July 1, 2024 we entered into exploration and production licences for the Charuma and Cipero onshore blocks awarded pursuant to the 2022 onshore competitive bid round, where we have an 80 percent operating interest in each licence.
Following a recompletion of Cascadura Deep-1, in July 2024 we attained average net sales volumes of 5,816 boe/d representing an increase of 18 percent from June 2024 average net sales, comprised of:
average natural gas sales volumes of 27.5 MMcf/d (4,578 boe/d); and
average crude oil and natural gas liquid sales volumes of 1,238 bbls/d.
Cascadura facility infrastructure and tie-in operations are progressing as scheduled, and we continue to target initial production from our Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September 2024.
For complete news release :
touchstoneexploration.com |
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| To: pstad60 who wrote (24702) | 8/14/2024 12:08:35 PM | | From: pstad60 | | | | Re: Touchstone Exploration.
Commentary from Stockwatch's Aug 13 Energy Summary
stockwatch.com*MKTOIL-3587505&symbol=*MKTOIL®ion=C
.......... "Further afield, a different suitor is facing much rougher sailing in attempting to close a takeover. Paul Baay's Trinidad-focused Touchstone Exploration Ltd. (TXP) added two cents to 57 cents on 80,000 shares, as it released its latest quarterly financials, which included a rundown of the continuing Trinity Exploration saga. Trinity is a small local producer that accepted a $30.1-million all-share takeover offer from Touchstone in May. A rival bidder is continuing to try to scupper the deal.
As discussed previously, the rival is a local private company called Lease Operators, which on July 18 offered $47-million for Trinity in all cash. Trinity immediately said it wanted to consider this offer, and subsequently said on Aug. 2 that it prefers this offer and wants to break things off with Touchstone. Trinity's shareholders, however, already approved Touchstone's offer on June 24, which triggered binding contracts in respect of nearly two-fifths of Trinity's shares -- enough to fend off Lease Operators. The contracts are irrevocable unless Touchstone bows out. It can do so without consequence on Aug. 22, but has not said whether that is its intention.
Today's financials rehashed much of the above (although only in the lengthy and tortured legalese that Touchstone seems to find mandatory whenever it so much as whispers the name Trinity). More usefully, the financials also included a long-awaited update to Touchstone's production guidance. The company previously said it would aim for a full-year average of 9,400 barrels a day and end the year producing 14,500 barrels a day. Four months ago, however, investors were dismayed to learn that reservoir woes at the core Cascadura field were dragging production down significantly. (Total output averaged just 5,400 barrels a day in the second quarter.) Citing early success in a recompletion program, Touchstone has now revised its full-year guidance to 8,000 barrels a day and the year-end target to 13,500 barrels a day. While these cuts are not as steep as some had feared, the new targets are highly dependent on the results of new wells that Touchstone hopes to bring on-line next month ........" |
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