2012 Operational Highlights and Unaudited Full Year Results
Chinook's average daily production for fiscal year 2012 was 12,197 barrels of oil equivalent per day. Production for the last half of 2012 was 11,826 barrels of oil equivalent per day and for the fourth quarter was 11,688 barrels of oil equivalent per day. Projected cash flow from operations (before changes in non-cash working capital) for 2012 is estimated at $78.2 million or $0.37 per weighted average basic common share outstanding (unaudited). Year end 2012 net debt is $72.1 million.
The Canadian business focused on crude oil project development in the core areas of Grande Prairie and the Peace River Arch along with the disposition of $107.4 million of non-strategic assets representing approximately 1,600 boe/d of production. The Tunisian business focused on further light oil development and delineation and increased production on the Bir Ben Tartar Concession ("BBT Concession"). The corporate drilling program consisted of 19 (10.05 net) wells of which 11 were operated and eight were non-operated wells. The results are outlined in the table below:
--------------------------------------------------------------------------------------------------------------------------------------------------------Wells DrilledYear ended December 31, 2012 Tunisia Canada Total---------------------------------------------------------------------------- Gross Net Gross Net Gross Net----------------------------------------------------------------------------Exploration Oil - - 4 00 1.86 4.00 1.86 Gas - - - - - - Dry 2.00 0.96 - - 2.00 0.96---------------------------------------------------------------------------- 2.00 0.96 4.00 1.86 6.00 2.82----------------------------------------------------------------------------Development Oil 6.00 4.35 6.00 1.88 12.00 6.23 Gas - - 1.00 1.00 1.00 1.00 Dry - - - - - ----------------------------------------------------------------------------- 6.00 4.35 7.00 2.88 13.00 7.23----------------------------------------------------------------------------Total 8.00 5.31 11.00 4.74 19.00 10.05--------------------------------------------------------------------------------------------------------------------------------------------------------
Revised 2013 Guidance
As a result of higher initial water cuts associated with the most recent horizontal wells drilled on the BBT Concession, coupled with delays in commencement of the 2013 BBT Concession drilling program, the Company has revised its guidance for 2013 as set forth below from the initial 2013 guidance which was provided on November 13, 2012. The Company has also reduced its capital program by $38 million to $102-107 million in 2013 as a result.
-------------------------------------------------------------------------------------------------------------------------------------------------------- Revised Guidance (1)($ millions, except boe/d) Consolidated International Canada----------------------------------------------------------------------------Production (boe/d) 9,500 - 10,200 2,150 - 2,450 7,350 - 7,750Cash flow $ 95 - 100 $ 55 - 58 $ 40 - 42Capital expenditures $ 102 - 107 $ 58 - 60 $ 44 - 47Net debt $ 60 - 65 - -Debt facility $ 115 - $ 115--------------------------------------------------------------------------------------------------------------------------------------------------------(1) Revised guidance is based on: AECO gas price of $3.22/mcf; Edmonton light oil price of $89.80/bbl (CDN); Brent oil price of $104.75/bbl (CAD); 54% natural gas production; 46% liquids.-------------------------------------------------------------------------------------------------------------------------------------------------------- Previous Guidance (2)($ millions, except boe/d) Consolidated International Canada---------------------------------------------------------------------------- 10,800 -Production (boe/d) 11,500 3,000 - 3,400 7,800 - 8,100Cash flow $ 130 - 135 $ 90 - 94 $ 38 - 41Capital expenditures $ 140 - 145 $ 90 - 95 $ 45 - 50Net debt $ 95-100 - -Debt facility $ 115 - $ 115--------------------------------------------------------------------------------------------------------------------------------------------------------(2) Previous guidance was based on: AECO gas price of $3.26/mcf; Edmonton light oil price of $88.94/bbl (CDN); Brent oil price of $103.00/bbl (CAD); 47% natural gas production; 53% liquids.
