ENP Newswire -
Release date- 27052014 -
The Company's interim condensed consolidated financial statements and management's discussion and analysis (MD&A) for the reporting period have been filed on SEDAR at www.sedar.com and posted on the Company's website at www.arpetrol.com.
Summary for the First Quarter 2014
Operating and Financial
The Company had drawn
The first-quarter 2014 average realized natural gas price was
The average price realized for natural gas liquids (NGLs) in the quarter was
There were no capital expenditures during the quarter.
Net income for the quarter was
Operational Update and Outlook
During the first quarter of 2014,
The Company's 2014 outlook includes estimated production of 200 to 240 boe/d, estimated processing volumes of 70 to 80 MMcf/d and estimated capital expenditures for maintenance and improvements of
Over the next few months,
For the initial step of the corporate re-structuring, the Board of Directors of
The company believes that such a consolidation may enhance the marketability of the common shares as an investment and may facilitate future financings, issuance of shares or any other form of securities, as the company is subject to the
Based upon the number of issued and outstanding
This news release includes references to financial measures commonly used in the oil and natural gas industry. The terms 'operating netback' and 'funds flow from operations' (cash generated from operating activities before changes in refundable Argentinean taxes, foreign exchange on non-cash working capital, non-cash working capital, and translation adjustment on operating items) do not have any standardized meaning under International Financial Reporting Standards (IFRS), which have been incorporated into GAAP, and may not be comparable with similar measures presented by other companies.
Funds flow from operations should not be considered an alternative to, or more meaningful than, cash generated from operating activities, net loss or other measures determined in accordance with IFRS, as an indicator of the Company's performance.
Production information is commonly reported in units of barrels of oil equivalent (boe). For purposes of computing such units, natural gas is converted to equivalent barrels of oil using a conversion factor of six thousand cubic feet (Mcf) to one barrel (bbl). This conversion ratio of 6:1 represents energy equivalency, which is primarily applicable at the burner tip, and does not represent a value equivalency at the wellhead. Such disclosure of boe may be misleading, particularly if used in isolation.
This news release contains certain forward looking statements relating, but not limited, to operational information, the ability to maintain processing rates and revenue in the same range as realized in the first quarter, the ability to negotiate a settlement agreement with the remaining service provider, the ability to reduce future expenses, the ability to be self-funding and maintain positive cash flow in 2014, estimated production volumes, processing volumes and capital expenditures, the repayment of the Company's short term loan and timing thereof, the pursuit of growth opportunities, and the ability or inability to continue as a going concern.
Forward looking information typically contains statements with words such as 'anticipate', 'believe', 'expect', 'plan', 'intend', 'estimate', 'propose', 'project', or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities not to place undue reliance on forward looking information as, by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by the Company.
Forward-looking information is based on management's current expectations and assumptions regarding, among other things, the willingness of the remaining creditor to settle outstanding amounts, future operations and transactions, future capital and other expenditures (including the amount, nature, timing, availability and sources of funding thereof), stable processing volumes, future production and processing revenue, future economic conditions, future currency and exchange rates, future pricing, the ability to repatriate funds from
Although the Company believes the expectations and assumptions reflected in such forward looking information are reasonable, they may prove to be incorrect. Forward looking information involves significant known and unknown risks and uncertainties.
A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to uncertainty regarding the willingness of the remaining creditor to negotiate a settlement or whether it will commence legal proceedings, risks associated with the oil and natural gas industry (e.g., operational risks for its producing assets risks inherent in future drilling programs and the operation of the gas plant, and health, safety and environmental risks), the ability to retain management and staff, the ability to continue as a going concern, difficulties that may be encountered to repatriate funds, weather-induced delays and natural disasters, interruptions to production and processing revenue, production declines, the uncertainty regarding future revenues, union activities and labour issues in
The forward looking information included herein is expressly qualified in its entirety by this cautionary statement. The forward looking information included herein is made as of the date hereof and the Company assumes no obligation to update or revise any forward looking information to reflect new events or circumstances, except as required by law.
Additional information relating to the Company is also available on SEDAR at www.sedar.com
President and Chief Financial Officer
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