For the fourth quarter of fiscal 2013, capital expenditures, net of proceeds of farm-outs and other arrangements, are forecast to be approximately $25 million, with spending focused primarily on exploration activities in Indonesia. The level of capital spending for fiscal 2014 is flexible and decisions on spending will be made as the year progresses.
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion and analysis is a review of the Company's financial condition and results of operations as at and for the three and nine months ended December 31, 2012. The Company's financial statements are prepared in accordance with International Reporting Standards ("IFRS") and all amounts are in thousands of United States dollars unless specified otherwise. This discussion should be read in conjunction with the audited consolidated financial statements for the year ended March 31, 2012. This MD&A is effective February 13, 2013. Additional information relating to the Company, including the Company's Annual Information Form (AIF), is available on SEDAR at www.sedar.com.
The term "the quarter" used throughout this Management's Discussion and Analysis (MD&A) of Financial Condition and Results of Operations and in all cases refers to the period from October 1, 2012 through December 31, 2012. The term "prior year's quarter" used throughout this MD&A for comparative purposes and refers to the period from October 1, 2011 through December 31, 2011.
The term "the period" used throughout this Management's Discussion and Analysis (MD&A) of Financial Condition and Results of Operations and in all cases refers to the period from April 1, 2012 through December 31, 2012. The term "prior year's period" used throughout this MD&A for comparative purposes and refers to the period from April 1, 2011 through December 31, 2011.
The Company's fiscal year is the 12-month period ended March 31. The terms "Fiscal 2012" and "prior year" is used throughout this MD&A and in all cases refers to the period from April 1, 2011 through March 31, 2012. The terms "Fiscal 2013", "current year" and "the year" are used throughout the MD&A and in all cases refer to the period from April 1, 2012 through March 31, 2013.
Mcfe (thousand cubic feet equivalent) is a measure used throughout the MD&A. Mcfe is derived by converting oil and condensate to natural gas in the ratio of 1 bbl: 6 Mcf. Mcfe may be misleading, particularly if used in isolation. A Mcfe conversion ratio of 1 bbl: 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. MMBtu (million British thermal units) is a measure used in the MD&A. It refers to the energy content of natural gas (as well as other fuels) and is used for pricing purposes. One MMBtu is equivalent to 1 Mcfe plus or minus up to 20 percent, depending on the composition and heating value of the natural gas in question.
Cautionary Statement Regarding Forward-Looking Statements and Information
Certain statements in this MD&A are "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, herein "forward looking statements" or "forward looking information". Forward-looking information is frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate," "estimate," "scheduled," "potential" or other similar words, or statements that certain events or conditions "may," "should" or "could" occur. Forward-looking information is based on the Company's expectations regarding its future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. Such forward-looking information reflects the Company's current beliefs and assumptions and is based on information currently available to it. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information including risks associated with the impact of general economic conditions, industry conditions, governmental regulation, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the Company's ability to access sufficient capital from internal and external sources, the risks discussed under "Risk Factors" and elsewhere in this report and in the Company's public disclosure documents, and other factors, many of which are beyond its control. Although the forward-looking information contained in this report is based upon assumptions which the Company believes to be reasonable, it cannot assure investors that actual results will be consistent with such forward-looking information. Such forward-looking information is presented as of the date of this MD&A, and the Company assumes no obligation to update or revise such information to reflect new events or circumstances, except as required by law. Because of the risks, uncertainties and assumptions inherent in forward-looking information, you should not place undue reliance on this forward-looking information. See also "Risk Factors."
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