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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| TSXV:HRN | TSX Venture | Common Stock |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
Horn Petroleum Corporation (TSX VENTURE:HRN) ("Horn" or the "Company") is
pleased to announce its financial and operating results for the three months
ended March 31, 2013.
-- During the three months ended March 31, 2013, Horn increased its
investment in intangible exploration assets by $1.3 million. The
majority of the costs incurred during the first three months of 2013
related to Production Sharing Agreement ("PSA") related expenditures and
general and administrative costs.
-- Efforts are currently focused on making preparations for a seismic
acquisition campaign in the Dharoor Valley area which will include a
regional seismic reconnaissance grid in the previously unexplored
eastern portion of the basin as well as prospect specific seismic to
delineate a drilling candidate in the western portion of the basin where
an active petroleum system was confirmed by the recent drilling at the
Shabeel-1 and Shabeel North-1 well locations.
-- As at March 31, 2013, the Company had cash of $6.9 million and working
capital of $5.9 million as compared to cash of $9.5 million and working
capital of $4.4 million at December 31, 2012.
-- Horn continues to investigate potential joint venture partnerships and
also is reviewing new venture opportunities in the region.
Horn President and CEO, David Grellman, commented, "We remain very encouraged by
the exploratio n potential of our Jurassic rift basins in Puntland. We have
committed to the next exploration phase in both PSAs and plan to aggressively
explore both areas to confirm this potential. We are also optimistic that the
political progress in Somalia will continue and allow oil and gas exploration in
the region to expand."
First Quarter 2013 Financial and Operating Highlights
Consolidated Statement of Net Income (Loss) and Comprehensive Income (Loss)
(Thousands of United States Dollars)
----------------------------------------------------------------------------
Three months Three months
ended ended
March 31, 2013 March 31, 2012
----------------------------------------------------------------------------
Operating expenses
Stock-based compensation 130 178
Management fees 224 224
Office and general 45 34
Professional fees 16 41
Stock exchange and filing fees 16 15
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431 492
Finance expense 26 27,399
Finance income (3,637) (289)
----------------------------------------------------------------------------
Net income (loss) and comprehensive income
(loss) attributable to common shareholders 3,180 (27,602)
----------------------------------------------------------------------------
Net income (loss) per share
Basic $ 0.03 $ (0.36)
Diluted $ 0.03 $ (0.36)
----------------------------------------------------------------------------
Weighted average number of shares
outstanding for the purpose of calculating
earnings per share
Basic 96,849,316 75,658,202
Diluted 96,849,316 75,682,152
----------------------------------------------------------------------------
Operating expenses decreased $0.1 million for the three months ended March 31,
2013 due mainly to a reduction in stock option expenses. The reduction in stock
option expenses can be attributed to a reduction in the remaining life of the
stock options.
Financial income and expense for the three months ended March 31, 2013 and 2012
is made up of the following items:
----------------------------------------------------------------------------
March 31, March 31,
2013 2012
----------------------------------------------------------------------------
Fair market value adjustment - warrants $ (3,633) $ 27,399
Interest and other income (4) (36)
Foreign exchange (gain) loss 26 (253)
----------------------------------------------------------------------------
Financial income $ (3,637) $ (289)
Financial expense $ 26 $ 27,399
----------------------------------------------------------------------------
At March 31, 2013, 53.4 million warrants were outstanding. The Company recorded
a $3.6 million gain on the revaluation of warrants for the three months ended
March 31, 2013 due to a reduction in the volatility of the shares of Horn
combined with a reduction in the remaining life of the warrants.
The foreign exchange gains and losses are the direct result of changes in the
value of the Canadian dollar in comparison to the US dollar. The Company's cash
holdings are primarily in US and Canadian currency.
Consolidated Balance Sheets
(Thousands United States Dollars)
----------------------------------------------------------------------------
March 31, December 31,
2013 2012
----------------------------------------------------------------------------
ASSETS
Current assets
Cash and cash equivalents $ 6,871 $ 9,545
Accounts receivable 177 596
Prepaid expenses 70 109
----------------------------------------------------------------------------
7,118 10,250
Long-term assets
Intangible exploration assets 88,615 87,302
----------------------------------------------------------------------------
88,615 87,302
Total assets $ 95,733 $ 97,552
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LIABILITIES AND EQUITY ATTRIBUTABLE TO
COMMON SHAREHOLDERS
Current liabilities
Accounts payable and accrued liabilities $ 1,245 $ 2,741
Current portion of warrants 11 3,080
----------------------------------------------------------------------------
1,256 5,821
Long-term liabilities
Warrants 492 1,056
----------------------------------------------------------------------------
492 1,056
Total liabilities 1,748 6,877
----------------------------------------------------------------------------
Equity attributable to common shareholders
Share capital 86,494 86,494
Contributed surplus 2,651 2,521
Retained earnings 4,840 1,660
----------------------------------------------------------------------------
Total equity attributable to common
shareholders 93,985 90,675
----------------------------------------------------------------------------
Total liabilities and equity attributable to
common shareholders $ 95,733 $ 97,552
----------------------------------------------------------------------------
The decrease in total assets from December 31, 2012 to March 31, 2013 is the
result of a decrease in cash and cash equivalents which is due to operating
expenditures and the settlement of accounts payables and accrued liabilities.
The increase in net working capital from December 31, 2012 to March 31, 2013 is
mainly due to the $3.0 million decrease in current portion of warrant
liabilities resulting from the revaluation of warrant liability.
Consolidated Statement of Cash Flows
(Thousands United States Dollars)
----------------------------------------------------------------------------
Three months ended March 31, March 31,
2013 2012
----------------------------------------------------------------------------
Cash flow s provided by (used in):
Operations:
Net income (loss) for the period $ 3,180 $ (27,602)
Item not affecting cash:
Stock-based compensation 130 178
Fair market value adjustment - warrants (3,633) 27,399
Unrealized foreign exchange (gain) loss 26 (426)
Changes in non-cash operating working
capital 20 (58)
----------------------------------------------------------------------------
(277) (509)
Investing:
Intangible exploration expenditures (1,313) (7,467)
Changes in non-cash investing working
capital (1,058) (277)
----------------------------------------------------------------------------
(2,371) (7,744)
Financing:
Common shares issued - 25
Advances from related party 244 328
Payments to related party (244) (632)
Repayment of an advance issued to a
related party - 1,488
----------------------------------------------------------------------------
- 1,209
Effect of exchange rate changes on cash and
cash equivalents denominated in foreign
currency (26) 426
----------------------------------------------------------------------------
Decrease in cash and cash equivalents (2,674) (6,618)
Cash and cash equivalents, beginning of the
period $ 9,545 $ 27,614
----------------------------------------------------------------------------
Cash and cash equivalents, end of the period $ 6,871 $ 20,996
----------------------------------------------------------------------------
Supplementary information:
Interest paid Nil Nil
Income taxes paid Nil Nil
----------------------------------------------------------------------------
The decrease in cash in three months ended March 31, 2013 is mainly the result
of intangible exploration expenditures, operating expenses and the settlement of
accounts payable and accrued liabilities.
Consolidated Statement of Equity
(United States Dollars)
----------------------------------------------------------------------------
March 31, March 31,
2013 2012
----------------------------------------------------------------------------
Share capital:
Balance, beginning of period $ 86,494 $ 75,782
Exercise of warrants - 48
Exercise of options - 16
--------------------------------------------------------------------------
Balance, end of period 86,494 75,846
--------------------------------------------------------------------------
Contributed surplus:
Balance, beginning of period $ 2,521 $ 646
Stock-based compensation 130 178
--------------------------------------------------------------------------
Balance, end of period 2,651 824
--------------------------------------------------------------------------
Earnings (deficit):
Balance, beginning of period $ 1,660 $ (1,319)
Net income (loss) for the period 3,180 (27,602)
--------------------------------------------------------------------------
Balance, end of period 4,840 (28,921)
--------------------------------------------------------------------------
Equity attributable to common shareholders $ 93,985 $ 47,749
----------------------------------------------------------------------------
The Company's consolidated financial statements, notes to the financial
statements, management's discussion and analysis for the three months ended
March 31, 2013 and the 2012 Annual Information Form have been filed on SEDAR
(www.sedar.com) and are available on the Company's website
(www.hornpetroleum.com).
Outlook
Based on the encouragement provided by the Shabeel wells, the Company and its
partners entered the next exploration period in both the Dharoor Valley and
Nugaal Valley PSAs which carry a commitment to drill one well in each block
within an additional three year term ending October 2015. The current
operational plan is to contract a seismic crew to acquire additional data in the
Dharoor Valley block and to hold discussions with the Puntland Government
regarding drill ready prospects in the Nugaal Valley block. The focus of the
Dharoor Valley block seismic program will be to delineate new structural
prospects for the upcoming drilling campaign.
Horn has been in discussions with potential joint venture partners and also is
reviewing new venture opportunities in the region.
Horn holds a 60% working interest in the Dharoor and Nugaal Valley blocks and is
the operator. The other partners in the blocks are Range Resources (20%) and Red
Emperor (20%). Africa Oil Corporation holds an approximate 45% equity interest
in Horn.
Horn Petroleum Corporation is a Canadian oil and gas company with assets in
Puntland, Somalia. The Corporation holds a 60% interest and operatorship in the
Dharoor and Nugaal blocks encompassing a Jurassic Rift Basin on trend and
analogous to the large oil fields in Yemen. The Corporation's shares are listed
on the TSX Venture Exchange under the symbol "HRN".
ON BEHALF OF THE BOARD
David Grellman, President and CEO
FORWARD LOOKING INFORMATION
Certain statements made and information contained herein constitute
"forward-looking information" (within the meaning of applicable Canadian
securities legislation). Such statements and information (together, "forward
looking statements") relate to future events or the Company's future
performance, business prospects or opportunities. Forward-looking statements
include, but are not limited to, statements with respect to estimates of
reserves and or resources, future production levels, future capital expenditures
and their allocation to exploration and development activities, future drilling
and other exploration and development activities, ultimate recovery of reserves
or resources and dates by which certain areas will be explored, developed or
reach expected operating capacity, that are based on forecasts of future
results, estimates of amounts not yet determinable and assumptions of
management.
All statements other than statements of historical fact may be forward-looking
statements. Statements concerning proven and probable reserves and resource
estimates may also be deemed to constitute forward-looking statements and
reflect conclusions that are based on certain assumptions that the reserves and
resources can be economically exploited. Any statements that express or involve
discussions with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or performance (often, but
not always, using words or phrases such as "seek", "anticipate", "plan",
"continue", "estimate", "expect, "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe" and
similar expressions) are not statements of historical fact and may be
"forward-looking statements". Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such forward-looking
statements. The Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be given that
these expectations will prove to be correct and such forward-looking statements
should not be unduly relied upon. The Company does not intend, and does not
assume any obligation, to update these forward- looking statements, except as
required by applicable laws. These forward-looking statements involve risks and
uncertainties relating to, among other things, changes in oil prices, results of
exploration and development activities, uninsured risks, regulatory changes,
defects in title, availability of materials and equipment, timeliness of
government or other regulatory approvals, actual performance of facilities,
availability of financing on reasonable terms, availability of third party
service providers, equipment and processes relative to specifications and
expectations and unanticipated environmental impacts on operations. Actual
results may differ materially from those expressed or implied by such
forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Horn Petroleum Corporation
Sophia Shane
Corporate Development
(604) 689-7842
(604) 689-4250 (FAX)
hornpetroleum@namdo.com
www.hornpetroleum.com
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