SUMMARY FINANCIAL RESULTS
For the three months ended March 31, --------------------------- 2014 2013 --------------------------- Sales Oil (Bbl) 58,312 74,565 NGL (Bbl) 5,301 9,876 Natural gas (Mcf) 270,545 946,163 Total (BOE/day) (a) 1,182 2,632 Revenue
$ 7,694,141 $ 11,558,554Total costs and expenses 5,030,910 11,905,307 --------------------------- Operating income (loss) 2,663,231 (346,753) Unrealized gain (loss) on financing warrants 751,000 51,000 Finance expenses (b) (1,712,549) (1,269,721) --------------------------- Income (loss) before tax expense 1,701,682 (1,565,474) Deferred tax expense (recovery) 616,000 (844,000) --------------------------- Income (loss) 1,085,682 (721,474) --------------------------- Income (loss) per share Basic 0.01 (0.01) Diluted 0.01 (0.01) Capital expenditures $ 1,988,493 $ 242,314EBITDAX (c) $ 3,763,933 $ 6,984,221(a) Gas volumes are converted to BOE on the basis of 6 Mcfe per 1 barrel. (b) Finance expense includes accretion for asset retirement obligations. (c) EBITDAX is a non-IFRS measure commonly used in the oil and gas industry. Such measures do not conform to IFRS and may not be comparable to those reported by other companies nor should they be viewed as an alternative to other measures of financial performance calculated in accordance with IFRS. The company defines EBITDAX as net income before finance expense, taxes, depreciation, amortization, accretion, exploration and evaluation, bad debt, impairments, stock- based compensation, and the non-cash portion of plug and abandonment expense.
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Forward-Looking Information and Statements
Certain statements and information in this press release may constitute "forward-looking information" or statements as such terms are used in applicable Canadian securities laws. Any statement that expresses, involves or includes expectations of future operations (including drill rig commitments and use of proceeds), commerciality of any hydrocarbon discovered, production rates, operating costs, commodity prices, administrative costs, commodity price risk and other components of cash flow and earnings, management activity, acquisitions and dispositions, capital spending, access to credit facilities taxes, regulatory changes, projections, objective, assumptions or future events that are not statements of historical fact should be viewed as "forward-looking statements". Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices, and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, or reservoir performance, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on any forward-looking statement in this press release. The Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Financial outlook information contained in this press release about the Company's prospective cash flows and financial position is based on assumptions about future events, including economic conditions and proposed courses of action, based on management's assessment of the relevant information currently available. Readers are cautioned that any such financial outlook information contained herein should not be used for purposes other than for which it is disclosed herein.
Note Regarding BOEs
The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly equivalency conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is misleading as an indication of value.
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Rooster Petroleum, LLC Gary Nuschler, Jr. Vice President-Finance (832) 463-0625 Source: Rooster Energy Ltd.