Base Oil And Gas Ltd. (TSXV:BOG)
Historical Stock Chart
From Jun 2019 to Jun 2024
CALGARY, March 28 /CNW/ --
Symbol: BOG: TSX Venture
CALGARY, March 28 /CNW/ - Base Oil and Gas Ltd. ("Base" or the
"Company") is pleased to announce the financial and operating results
for the year ended December 31, 2010 along with the 2010 year end
reserves. The Company has filed its reserve reports, financial
statements and related management's discussion and analysis for the
year ended December 31, 2010 on www.sedar.com.
HIGHLIGHTS
-- Participated in three Earning Wells ("Earning Wells") under the
South Pembina Joint Venture Drilling Program, earning an
average working interest of 27.5% in 1,920 (528 net) acres of
Cardium rights.
-- Average production of 162 boe's/d in January and February 2011.
-- Established bank credit facility up to $5.4 million effective
March 24, 2011 comprised of $2.0 million revolving operating
demand loan and $3.4 million acquisition/development loan.
-- Increased proved plus probable reserves to 985.0 Mboe (36% oil
and NGL's) and proved reserves to 689.5 Mboe (41% oil and
NGL's).
-- The net present value ("NPV") of Base's year end 2010 total
proved plus probable reserves, at 10% discounted value before
tax is $8.0 million.
-- Base's estimated net asset value is $0.31 per basic share using
(PVBT10) values on proved plus probable reserves.
-- Maintained a long reserve index life of 13.5 years based on our
2010 exit production rate of 200 boe/d.
-- Finding and development costs, including future development
capital of $16.88 per boe on proved plus probable reserve
additions and $21.98 per boe on total proved reserve additions.
FINANCIAL
($'s)
Three Months Ended December
31 Year Ended December 31
2010 2009 2010 2009
Oil and natural 45,787 418,851
gas sales 259,514 45,787
Operating netback 129,602 19,537 102,096 12,380
Funds from (115,314) (263,794)
operations (10,434) (305,859)
Net earnings (49,251) (297,342)
(loss) 255,594 (277,594)
Per share,
basic & diluted 0.01 (0.01) (0.01) (0.04)
Capital 360,100 5,254,720
expenditures 2,069,979 306,260
Working capital - (1,785,142)
(net debt) - 1,197,170
Common share 999,999 2,802,000
issues - 999,999
OPERATING
Three Months Ended December
31 Year Ended December 31
2010 2009 2010 2009
Daily Production
Oil and NGL
(bbls/d) 23 7 11 2
Natural gas
(mcf/d) 294 5 95 1
Oil equivalent
(boe/d @ 6:1) 72 7 27 2
Revenue
Oil and NGL
($/bbl) 70.07 71.33 69.11 71.33
Natural gas
($/mcf) 4.14 3.28 4.15 3.28
Oil equivalent
($/boe @ 6:1) 39.27 65.60 42.91 65.60
Royalties
$ per boe (0.78) (0.27) (1.26) (0.27)
Operating costs
$ per boe (18.88) (37.34) (31.19) (47.59)
Netback
$ per boe 19.61 27.99 10.46 17.74
RESERVES
The Company's reserves were independently evaluated by Sproule
Associates Ltd. ("Sproule") as at December 31, 2010. The Sproule
reports for the Company have been filed on www.sedar.com. The forecasts of product prices used in this evaluation were based on
Sproule's December 31, 2010 price forecasts as detailed below:
Summary of Selected Price Forecasts
(Effective December 31, 2010)
Edmonton Par
WTI Cushing Price Alberta
Oklahoma 40° API AECO-C Spot Henry Hub
Forecast Year (SUS/bbl) ($Cdn/bbl) ($Cdn/MMBtu) ($US/MMBtu)
2011 88.40 93.08 4.04 4.44
2012 89.14 93.85 4.66 5.01
2013 88.77 93.43 4.99 5.32
2014 88.88 93.54 6.58 6.80
2015 90.22 94.95 6.69 6.90
2016 91.57 96.38 6.80 7.00
WTI Cushing Oklahoma for 40° API, 0.4% Sulphur
Summary of Company Gross Reserves (Forecast Pricing) (1)
As at December 31, 2010 As at
((2)()) December 31
2009 ((3))
Oil Gas (MMcf) NGL (Mbbls) Total Total
(Mbbls) (Mboe) (Mboe)
Proved 49.4 626 23.5 177.2 11.6
producing
Proved - 203 7.6 41.4 -
Non-Producing
Proved 99.0 1,821 68.3 470.9 -
Undeveloped
Total Proved 148.4 2,650 99.4 689.5 11.6
Probable 63.7 1,137 42.6 295.6 3.1
Total Proved 212.1 3,787 142.0 985.1 14.7
Plus Probable
Summary of Before Tax Net Present Values (Forecast Pricing) ($M) ((4))
As at December 31, 2010 (() As at December
(2)) 31,2009 ((3))
0% 5% 10% 10%
Proved producing 6,034 4,154 3,273 236
Proved Non-Producing 921 800 704 -
Proved Undeveloped 7,590 3,353 1,223 -
Total Proved 14,545 8,307 5,200 236
Probable 12,644 4,988 2,780 57
Total Proved Plus 27,189 13,295 7,980 293
Probable
Notes:
((1)) Gross company reserves are the company's total interest share before
the deduction of any royalties and without including any royalty
interest of the Company.
((2)) Based on Sproule's December 31, 2010 escalated price forecast.
((3)) Based on Sproule's. December 31, 2009 escalated price forecast.
((4)) The net present values of future net revenue do not represent fair
market value.
OUTLOOK
In 2011 the company plans to participate in two additional Earning Wells
under the South Pembina Joint Venture Drilling Program. By paying 50%
of the costs of each well, Base can earn a 30% working interest in
1,490 acres of Cardium rights. It is expected that these two wells
will be drilled in the third quarter of 2011.
Base Oil and Gas Ltd. is a Calgary based emerging oil and gas company,
focused on the development of Cardium oil & gas reserves in the Western
Canadian Sedimentary basin.
References herein to "boe" mean barrels of oil equivalent derived by
converting gas to oil in the ratio of six thousand cubic feet (Mcf) of
gas to one barrel (bbl) of oil. BOE may be misleading, particularly if
used in isolation. A BOE conversion ratio of 6 Mcf: 1 bbl is based on
an energy conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements. More
particularly, this press release contains statements concerning the
planned operational and exploration activities of the Company. The
forward-looking statements contained in this document are based on
certain key expectations and assumptions made by Base with respect to
the Company's planned operational and exploration activities. Although
the Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements because the
Company can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, the failure to obtain the necessary regulatory approvals
and risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks, commodity price and exchange rate
fluctuations). The forward-looking statements contained in this
document are made as of the date hereof and the Company takes no
obligation to update publicly or revise any forward-looking statements
or information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities
laws. Additionally, Base undertakes no obligation to comment on the
expectations of, or statements made by, third parties in respect of the
matters discussed above.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2011/28/c6756.html
p /p table valign="top" border="0" tr td Base Oil & Gas Ltd. /td td /td /tr tr td /td td /td /tr tr td Dennis Feuchuk /td td Roy Evans, C.A. /td /tr tr td President & CEO /td td Vice President, Finance & CFO /td /tr tr td (403) 384-0000 /td td (403) 384-0000 /td /tr tr td a href="mailto:dennisf@baseoilandgas.ca"dennisf@baseoilandgas.ca/a /td td a href="mailto:roye@baseoilandgas.ca"roye@baseoilandgas.ca/a /td /tr tr td /td td /td /tr tr td or visit the Company's website at a href="http://www.baseoilandgas.ca/"www.baseoilandgas.ca/a. /td /tr /table p /p