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CALGARY, ALBERTA -- (Marketwire) -- 03/06/13 -- Petrominerales (TSX: PMG)(BVC: PMGC) announces our 2012 fourth quarter and year-end financial results, 2012 reserves and an operational update highlighted by the Tatama heavy oil test rate of 556 barrels of oil per day ("bopd") over an extended period.
HIGHLIGHTS FOR THE FOURTH QUARTER AND 2012
-- At December 31, 2012, proved plus probable reserves totaled 41.3 million barrels with a net present value before tax discounted at 10 percent of US$1.6 billion;-- Our enterprise value is over US$1.9 billion, consisting of our proved plus probable reserves of US$1.6 billion and our pipeline assets (US$0.3 billion at cost), significantly higher than our current market value;-- We generated funds flow from operations of US$122.5 million or US$1.43 per share in the fourth quarter and US$647.9 million or US$6.96 per share for the year, resulting in net free cash flow of US$16.3 million in 2012;-- Operating netbacks remained strong at US$63.63 per barrel for the fourth quarter and US$68.22 per barrel for the year;-- Production averaged 25,140 bopd for the fourth quarter and 29,134 bopd for the year;-- Our Tatama horizontal well test of 556 bopd exceeds our internal economic hurdle for advancing toward a commercial project on our 500,000 acre Rio Ariari Block;-- We made five oil discoveries in the Llanos Basin that included Chilaco, Guala, Mambo, Maya, Tucuso, and we drilled our first horizontal development well into our Yenac/Mantis oil field;-- We made our first oil discovery in Peru with our Sheshea well, which tested 53 degree API oil averaging 1,430 bopd;-- We commenced operations in Brazil with the acquisition of Alvopetro S.A. Extracao de Petroleo e Gas Natural that owns three mature fields and seven exploration contracts covering over 40,000 acres onshore in the Reconcavo Basin, providing a large, light-oil opportunity;-- Petrominerales enters 2013 in a strong financial position, with high netback, light-oil production, cash on hand of US$40.5 million, access to a US$250 million reserve-based loan facility and strategic pipeline assets providing additional financial flexibility.
The following tables provide a summary of Petrominerales' financial and operating results for the fourth quarter and year ended December 31, 2012 and 2011. Consolidated financial statements with Management's Discussion and Analysis ("MD&A") are now available on the Company's website at www.petrominerales.com and will also be available on the SEDAR website at www.sedar.com.
---------------------------------------------------------------------------- Three months ended Year endedFinancial Highlights December 31, December 31,($US millions, except where % % noted) 2012 2011 change 2012 2011 change----------------------------------------------------------------------------Oil sales 224.9 329.9 (32) 1,099.1 1,420.6 (23)Funds flow from operations(1) 122.5 213.3 (43) 647.9 786.2 (18) Per share - basic ($) 1.43 2.14 (33) 6.96 7.69 (9) - diluted ($) 1.42 1.84 (23) 6.86 6.57 4Adjusted net income (loss)(1) (53.5) 77.7 (169) 102.0 326.2 (69) Per share - basic ($) (0.63) 0.78 (181) 1.10 3.19 (66) - diluted ($) (0.63) 0.72 (188) 1.03 2.94 (65)Dividends declared 10.6 12.5 (16) 45.3 51.5 (12)Expenditures on PP&E and E&E(2) 148.5 252.4 (41) 631.6 787.1 (20)----------------------------------------------------------------------------
