We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for real-time alerts, custom portfolio, and market movers
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Edge Res | LSE:EDG | London | Ordinary Share | CA27986R1010 | COM SHS NPV (DI) |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.175 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From May 2019 to May 2024
TIDMEDG
RNS Number : 1271Y
Edge Resources Inc.
27 November 2014
FOR IMMEDIATE RELEASE
TSX Venture Exchange Symbol: EDE
AIM Exchange Symbol: EDG November 27, 2014
EDGE RESOURCES INC. Calgary, Alberta
Edge Resources Inc. Announces Half Year Results
Edge Resources Inc. ("Edge" or the "Company") is pleased to report its operating and financial results, for the second quarter and half year ended September 30, 2014 ("Q2 2015" and "H1 2015").
Detailed operating and financial results are presented in Edge's unaudited financial statements and related Management Discussion & Analysis ("MD&A"), which can be accessed on the Company's website (www.edgeres.com) and on SEDAR (www.sedar.com). The unaudited results for the three and six month periods ended September 30, 2014 are highlighted and summarised below.
Highlights for the three and six month periods, ending September 30, 2014:
-- Oil and Natural Gas Sales for H1 2015 amounted to $5,831,131 versus $4,887,341 for the same period last year (19% increase).
-- Cash generated from operating activities continued its trend and increased to $1,241,000 in H1 2015 from $850,000 one year ago (46% increase). It increased to $99,000 for Q2 2015, compared to a loss of $185,000 for the same quarter one year ago.
-- Net income of $170,000 in H1 2015 versus a net loss of $246,000 for the same period last year.
-- Half yearly Operating Costs for oil decreased to $18.52/bbl from $20.42/bbl and oil Netbacks increased to $45.37/bbl from $44.42/bbl. Oil-based half year Netbacks increased to $2,547,000 compared to $2,065,000 one year earlier (23% increase).
-- Continued focus on controlling costs resulted in a 5% and 9% decrease in G&A Costs for the quarter and half year periods, respectively.
Brad Nichol, President & CEO of Edge, commented, "We are very pleased with our half-yearly results, as we held our own despite a falling oil price - which started the quarter at $105/bbl and ended the quarter at $91/bbl - and a temporary production issue that occurred and was resolved during the second quarter. Even with these challenges, we exited the first half of our financial year with a Netback above $40/bbl and with more cash and a higher production rate than when we started the quarter. This success was aided by a much-improved heavy oil discount to WTI and a weaker Canadian dollar, both of which appear to be holding steady into the future." Nichol added, "In hindsight, we made excellent capital choices, having chosen to conserve cash in the midst of deteriorating oil prices and take a 'wait and see' approach to our capital plans. While this tact did not provide a multitude of drilling activity and announcements, we are still very excited about the significant number of wells we can, and will, drill in Eye Hill. This view has been reassured by the robust production from the wells we drilled last year and that are still producing at roughly the same - or better - levels than almost one year ago. Additionally, having just generated sales of $1.1 million from October production when the average WTI oil price was $84/bbl, we have nothing but confidence in the path forward. Finally, we are planning to construct a water disposal facility in Eye Hill East, which will provide a level of water handling capacity, capability and cost control that is necessary when considering a large-scale, long-term drilling programme, which is an important step in the bigger blueprint for Eye Hill East. We anticipate that this new facility will enable us to increase production from existing wells whilst at the same time reduce production costs for existing and upcoming wells. Our bank has agreed to fund this facility, which nicely complements our confidence in the long-term strategy and while oil prices are unstable, bringing down operating costs is what I believe all oil companies should be focused on."
To view the Company's full financial statements and MD&A, please go to the Company website www.edgeres.com or to www.sedar.com.
For more information, visit the company website: www.edgeres.com or contact:
Brad Nichol, President and CEO Phone: +1 403 767 9905
Sanlam Securities UK Limited Phone: +44 (0)20 7628 2200
Simon Clements / James Thomas / Max Bascombe
SP Angel Corporate Finance LLP Phone: +44 (0)20 3463 2260
John MacKay / Richard Hail / Stuart Gledhill / Zac Phillips (Research)
About Edge Resources Inc.
Edge Resources is focused on developing a balanced portfolio of oil and natural gas assets from properties in Alberta and Saskatchewan, Canada. Management has consistently focused on:
1. Shallow, vertical, conventional programs with reduced capital, operational and geological risks
2. Very high or 100% working interests and fully operated assets 3. Pools and horizons with exceptionally high reserves in place
The management team's very high drilling success rate is based on the safe, efficient deployment of capital and a proven ability to efficiently execute in shallow formations, which gives Edge Resources a sustainable, low-cost, competitive advantage.
Competent Person's Statement
The preparation of the technical information contained herein was supervised by Brad Nichol, President and CEO of Edge Resources, who is recognized as a Qualified Person for the purposes of National Instrument 51-101, and who has reviewed and approved the findings in this press release
Condensed Interim Balance Sheets
(amounts in Canadian dollars)
(unaudited)
Hot Features
Premium
September
30, March 31,
Note 2014 2014
Assets
Current assets
Cash and cash equivalents $ 10,841 $ 39,446
Accounts receivable 840,956 1,401,293
Deposits and prepaid expenses 254,689 86,836
Total current assets 1,106,486 1,527,575
---------------------------------------------- ----- ------------- ------------
Non-current assets
Exploration and evaluation assets 74,061 74,061
Property, plant and equipment 3 38,292,515 37,768,037
---------------------------------------------- ----- ------------- ------------
Total non-current assets 38,366,576 37,842,098
---------------------------------------------- ----- ------------- ------------
Total assets $ 39,473,062 $ 39,369,673
---------------------------------------------- ----- ------------- ------------
Liabilities
Current liabilities
Bank overdraft $ 239,939 $ 858,756
Accounts payable and accrued liabilities 1,159,646 1,832,726
Bank debt 4 5,840,000 5,700,000
Fair value of derivative instruments 204,110 667,316
Total current liabilities 7,443,695 9,058,798
Loans payable 5 10,244,712 9,843,616
Decommissioning provisions 7,000,000 6,044,000
---------------------------------------------- ----- ------------- ------------
Total liabilities 24,688,407 24,946,414
---------------------------------------------- ----- ------------- ------------
Shareholders' Equity
Share capital 36,111,048 36,094,048
Contributed surplus 2,599,156 2,425,249
Deficit (23,925,549) (24,096,038)
---------------------------------------------- ----- ------------- ------------
Total shareholders' equity 14,784,655 14,423,259
---------------------------------------------- ----- ------------- ------------
Total liabilities and shareholders'
equity $ 39,473,062 $ 39,369,673
---------------------------------------------- ----- ------------- ------------
Condensed Interim Statements of Income (Loss) and Comprehensive Income (Loss)
(amounts in Canadian dollars)
(unaudited)
Three months ended Six months ended
September September September September
30, 30, 2013 30, 2014 30, 2013
Note 2014
Revenue
Oil and natural gas
sales $ 2,356,740 $ 2,566,411 $ 5,831,131 $ 4,887,341
Royalties (389,349) (460,255) (1,059,315) (817,420)
----------------------------------------- ----------- ------------ ----------- -----------
Revenue, net of royalties 1,967,391 2,106,156 4,771,816 4,069,921
----------------------------------------- ----------- ------------ ----------- -----------
Other income (losses)
Realized loss on financial
derivatives (112,294) (47,483) (310,387) (96,329)
Unrealized gain (loss)
on financial derivatives 301,225 (118,808) 463,206 166,972
Gain on disposition
of oil and natural gas
interests - - - 185,000
Other income 10,883 13,152 22,192 26,483
----------------------------------------- ----------- ------------ ----------- -----------
Total income, before
expenses 2,167,205 1,953,017 4,946,827 4,352,047
----------------------------------------- ----------- ------------ ----------- -----------
Expenses
Operating 917,721 830,047 1,835,696 1,684,240
Transportation 83,097 64,538 194,213 166,110
General and administrative 444,887 465,929 903,221 997,415
Depletion and depreciation 386,500 505,200 900,200 1,039,600
Finance 364,805 307,247 700,431 613,405
Stock-based compensation 65,221 47,054 179,907 115,453
Capital taxes 22,916 (52,008) 62,670 (18,508)
Total expenses 2,285,147 2,168,007 4,776,338 4,597,715
----------------------------------------- ----------- ------------ ----------- -----------
Income (loss) and comprehensive
income (loss) for the
period $ (117,942) $ (214,990) $ 170,489 $ (245,668)
----------------------------------------- ----------- ------------ ----------- -----------
Income (loss) and comprehensive
income (loss) per share
Basic and diluted $ (0.00) $ (0.00) $ 0.00 $ (0.00)
----------------------------------------- ----------- ------------ ----------- -----------
Condensed Interim Statements of Changes in Shareholders' Equity
(amounts in Canadian dollars)
(unaudited)
Contributed Total Shareholders'
Share Capital surplus Deficit Equity
Balance at March 31, 2014 $36,094,048 $2,425,249 $(24,096,038) $ 14,423,259
Issue of common shares on exercise
of stock options 17,000 (6,000) - 11,000
Stock-based compensation - 179,907 - 179,907
Income for the period - - 170,489 170,489
----------------------------------- -------------- ------------ --------------- --------------------
Balance at September 30, 2014 $36,111,048 $ 2,599,156 $(23,925,549) $ 14,784,655
----------------------------------- -------------- ------------ --------------- --------------------
Balance at March 31, 2013 $32,691,059 $ 2,097,875 $ (22,392,438) $ 12,396,496
Stock-based compensation - 115,453 - 115,453
Loss for the period - - (245,668) (245,668)
Balance at September 30, 2013 $32,691,059 $ 2,213,328 $ (22,638,106) $ 12,266,281
----------------------------------- -------------- ------------ --------------- --------------------
Condensed Interim Statements of Cash Flows
(amounts in Canadian dollars)
(unaudited)
Three months ended Six months ended
September September September
30, 30, 2014 30, 2013
2014 September
30, 2013
Cash flows provided by (used
for):
Cash flows generated from operating
activities
Income (loss) $ (117,942) $ (214,990) $ 170,489 $ (245,668)
Items not affecting cash:
Unrealized gain (loss) on financial
derivatives (301,225) 118,808 (463,206) (166,972)
Gain on disposition of oil and
natural gas interests - - - (185,000)
Foreign exchange gain (loss) (553) 428 11 (1,122)
Depletion and depreciation 386,500 505,200 900,200 1,039,600
Accretion of decommissioning
provisions 41,000 37,000 85,000 74,000
Stock-based compensation 65,221 47,054 179,907 115,453
Changes in non-cash items 26,250 (678,197) 368,998 219,407
Net cash generated from (used
in) operating activities 99,251 (184,697) 1,241,399 849,698
--------------------------------------------------- ----------- ------------ ----------- -----------
Cash flows used in investing
activities
Exploration and evaluation assets
expenditures - (8,637) - (38,332)
Property, plant and equipment
expenditures (190,507) (126,381) (553,678) (555,433)
Changes in non-cash items (170,752) (274,193) (248,498) (1,139,619)
--------------------------------------------------- ----------- ------------ ----------- -----------
Net cash used in investing activities (361,259) (409,211) (802,176) (1,733,384)
--------------------------------------------------- ----------- ------------ ----------- -----------
Cash flows from financing activities
Proceeds from bank debt, net 40,000 350,000 140,000 1,100,000
Proceeds from issuance of common
shares - - 11,000 -
Net cash from (used in) financing
activities 40,000 350,000 151,000 1,100,000
--------------------------------------------------- ----------- ------------ ----------- -----------
Effect of exchange rates on cash
and cash equivalents held in
foreign currency 553 (428) (11) 1,122
--------------------------------------------------- ----------- ------------ ----------- -----------
Net change in cash and cash equivalents
(bank overdraft) (221,455) (244,336) 590,212 217,436
Cash and cash equivalents (bank
overdraft), beginning of period (7,643) 56,983 (819,310) (404,789)
--------------------------------------------------- ----------- ------------ ----------- -----------
Cash and cash equivalents (bank
overdraft), end of period $ (229,098) $ (187,353) $ (229,098) $ (187,353)
--------------------------------------------------- ----------- ------------ ----------- -----------
Certain non-cash transactions have been excluded from the statements of cash flows
Notes to the Condensed Interim Financial Statements
Three and six months ended September 30, 2014
(amounts in Canadian dollars)
(unaudited)
1. Going Concern
These condensed interim financial statements have been prepared on a going concern basis which presumes that the Company will be able to discharge its obligations and realize its assets in the normal course of business. The Company had a loss and comprehensive loss of $0.1 million for the three month period ended September 30, 2014. As at September 30, 2014, the Company had a working capital deficiency of $6.1 million (March 31, 2014 - $6.9 million) that includes $5.8 million (March 31, 2014 - $5.7 million) in bank debt (excluding derivative assets/liabilities). The Company had an unused credit line of $11.2 million on its revolving credit facility at September 30, 2014. At September 30, 2014, the Company was not compliant with its lender's senior debt to cash flow covenant, however as per note 4, the Company obtained a waiver for the non-compliance.
As per note 4, the Company has a revolving credit facility with a $17.0 million limit, and as of September 30, 2014, there was $11.2 million available for use. However, given the amount available for use under the facility is also limited by the "senior debt to cash flow" ratio, the actual limit will vary on a period by period basis. Management actively forecasts applicable cash flows and will conduct an appropriate capital program based on estimated future credit facility availability. Management believes with its current credit facility, positive expected cash flows in the near future, and its planned capital program, that the Company will generate sufficient cash flows to meet its foreseeable obligations in the normal course of operations. Management has been and continues to be active in seeking alternative sources of funding to help facilitate its planned capital expenditure program, and to ultimately reduce its total debt. The Company cannot provide any assurance that sufficient cash flows will be generated from operating activities to reduce its working capital deficiency and to carry out its planned capital expenditure program.
The above-noted factors describe matters and conditions that indicate the existence of a material uncertainty that may cast significant doubt about the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent upon its ability to attain profitable operations, generate sufficient funds to continue its exploration and development activities, to repay its debts as they come due, and continue to obtain sufficient capital from investors or other sources of financing to meet its current and future obligations.
Management considers the Company is a going concern and has prepared the condensed interim financial statements on a going concern basis.
2. Basis of preparation
These condensed interim financial statements are unaudited and have been prepared in accordance with International Accounting Standard ("IAS") 34, "Interim Financial Reporting" using accounting policies consistent with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"). Certain information and disclosures normally included in the annual financial statements prepared in accordance with IFRS have been condensed or omitted.
The condensed interim financial statements should be read in conjunction with the Company's audited annual financial statements as at and for the year ended March 31, 2013 and the notes thereto.
3. Property, plant and equipment
Oil and
natural Corporate
gas interests and other Total
Cost
Balance at March 31, 2013 $ 42,244,490 $ 57,198 $ 42,301,688
Capital expenditures 3,634,251 13,607 3,647,858
Transfers from exploration and evaluation
assets 589,255 - 589,255
Disposition (1) (60,000) - (60,000)
Change in decommissioning provisions (128,000) - (128,000)
Balance at March 31, 2014 46,279,996 70,805 46,350,801
Capital expenditures 552,688 990 553,678
Change in decommissioning provisions 871,000 - 871,000
----------------------------------------------- --------------- ----------- -------------
Balance at September 30, 2014 $ 47,703,684 $ 71,795 $ 47,775,479
----------------------------------------------- --------------- ----------- -------------
Accumulated depletion and depreciation
and impairment losses
Balance at March 31, 2013 $ 6,588,000 $ 28,264 $ 6,616,264
Depletion and depreciation expense 1,962,000 9,500 1,971,500
Disposition (1) (5,000) - (5,000)
----------------------------------------------- --------------- ----------- -------------
Balance at March 31, 2014 8,545,000 37,764 8,582,764
Depletion and depreciation expense 895,000 5,200 900,200
Balance at September 30, 2014 $ 9,440,000 $ 42,964 $ 9,482,964
----------------------------------------------- --------------- ----------- -------------
Oil and
natural Corporate
gas interests and other Total
Net carrying value:
-------------------------- --------------- ----------- -------------
At March 31, 2014 $ 37,734,996 $ 33,041 $ 37,768,037
-------------------------- --------------- ----------- -------------
At September 30, 2014 $ 38,263,684 $ 28,831 $ 38,292,515
-------------------------- --------------- ----------- -------------
(1) On May 15, 2013, the Company completed an asset swap transaction with an unrelated third party such that $200,000 of oil and natural gas interests were swapped for $200,000 of undeveloped lands. The carrying amount of the oil and natural gas interests was $15,000, including a decommissioning provision of $40,000, resulting in a gain on sale of $185,000 for the six month period ended September 30, 2013.
4. Bank debt
In July 2014, the Company replaced its bank debt lender with another Canadian chartered bank. In conjunction with this replacement, the previous bank debt lender was repaid in full and those lending facilities cancelled.
As at September 30, 2014, the Company had lending facilities with a Canadian chartered bank, consisting of a $17 million revolving demand operating credit facility of which $5.8 million was drawn. The revolving facility is a borrowing base facility that is determined based on, among other things, the Company's current reserve report, results of operations, current and forecasted commodity prices and the current economic environment. The revolving credit facility contains standard commercial covenants for facilities of this nature. The Company also has available a risk management facility which allows the Company to conduct certain financial risk management options. The interest rate on the facility is bank prime plus 1.75% per annum. Guaranteed notes are subject to a 2.75% acceptance fee plus an applicable market interest rate. The facilities are secured by a general security agreement covering all assets of the Company including a subordination agreement with the lender and repayments are interest only, subject to the bank's right of demand. The revolving credit facility provides that advances may be made by way of direct advances, guaranteed notes, or standby letters of credit/guarantee.
The revolving facility has the following financial covenant requirements:
-- The working capital ratio must be maintained above 1.0:1. The working capital ratio is defined as current assets (excluding derivative assets if any) plus the undrawn availability of the revolving facility to current liabilities (excluding the current portion of bank debt and derivative liabilities if any).
-- The senior debt to cash flow ratio must not exceed 3.0:1. The senior debt to cash flow ratio is defined as the amount drawn under the bank facility to net income for the trailing one year period from the balance sheet date adjusted for non-cash items, and less dividends declared and repayments of shareholder loans.
The senior debt to cash flow ratio was not met for the period ended September 30, 2014; however, subsequent to September 30, 2014, the Company's bank provided a waiver of the ratio and also increased the same ratio to 3.5 to 1.0 from 3.0 to 1.0 for the period ended December 31, 2014 only.
In addition, the Company may not enter into any risk management agreements with a term greater than two years or for a volume greater than 60% of its forecasted currently producing volumes.
The facilities may be reviewed at any time; however the next review date is scheduled for July 31, 2015.
5. Loans payable
As at September 30, 2014, the Company has a loan payable with a principal amount of $8 million, which bears interest at 10% per annum, is secured against the assets of the Company as a second charge to the Company's lending facility (note 4) and is due January 31, 2017. Any interest and principal repayments for this loan are subject to the bank's prior approval. The loan payable is due to a company that is also a shareholder of the Company, and is repayable at any time without penalty.
The following table summarizes changes in the loan payable:
Principal
Balance March 31 and September
30, 2014 8,000,000
-----------
Interest
Balance March 31, 2014 1,843,616
Interest expense 401,096
-----------
Balance September 30, 2014 2,244,712
-----------
Total loan payable at September
30, 2014 10,244,712
-----------
6. Availability of the Financial Statements and MD&A
Copies of all the Company's Financial Statements and MD&A's will be available on the Company's website (www.edgeres.com) and on SEDAR (www.sedar.com).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR FEDEEMFLSESF
1 Year Edge Res Chart |
1 Month Edge Res Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
