-- Q4 2012 liquids production averaged 5,942 bbls/d; natural gas production averaged 35.8 mmcf/d and total production averaged 11,909 boe/d.-- Significant 3rd party operational disruptions continued into Q4. Extreme cold temperatures in Northwest Alberta coupled with soft access conditions had 5 mmcf/d of gas shut-in for 52 days in the quarter, while line replacements and repairs in Dixonville reduced oil production by approximately 250 bbls/d in the quarter.-- Production for 2012 averaged 13,223 boe/d. Oil and liquids production increased 2% to 6,374 bbls/d. Approximately 450 boe/d of annualized production was shut-in from unforeseen extended major third party outages and pipeline replacements projects.-- Operating expenses for Q4 2012 were $18.36/boe and averaged $16.15/boe for 2012. Operating costs were higher than expected in the winter of 2012 due to adverse weather in Northwest Alberta resulting in higher road maintenance, power costs and increased well maintenance and chemical costs. During the second half of the year, pipeline repairs and remediations in Dixonville for historic Fiberspar and Flexpipe deficiencies resulted in shut-in production of approximately 250 boe/d and $0.9 million of extra expense. The production outages throughout the year compounded the increase to the operating costs per boe as incremental repair costs are incurred without production and fixed costs are applied to lower production volumes.-- For 2012, funds from operations totalled $58.8 million or $1.25 per basic and diluted share compared to $97.9 million and $2.06 per basic and diluted share in 2011. Funds from operations decreased from 2011 primarily as a result of a decrease in production volume and commodity prices. Q4 2012 funds from operations decreased from $26.2 million in Q4 2011 to $13.6 million and from $0.55 per basic and diluted share to $0.29 per basic and diluted share with lower production and lower commodity prices.-- For 2012, the Company had a net loss of $153.0 million. The per basic and diluted share loss was $3.25. During the year the Company recorded impairments on its property plant and equipment due to the decline in forecasted natural gas prices and reduced the carrying value of its exploration and evaluation assets related to its Haro South project.-- 2012 capital expenditures totalled $83.2 million with $54.0 million spent on drilling and completion activities and $18.8 million on facilities, pipelines, equipping and tie-ins. In 2012 Pace focused on its oil opportunities and drilled 15 gross (14.4 net) oil wells, completed 16 gross (13.2 net) oil wells, completed the waterflood implementation at Dixonville and commenced water injector conversions in Southern Alberta. Pace also spent $2.7 on land primarily in Southern Alberta and Red Earth. The Company capitalized $6.4 million of G&A, $1.0 million of purchased seismic and $0.3 million of office related capital.
AUDITED CONSOLIDATED FINANCIAL STATEMENTS, MD&A AND AIF
Pace's audited consolidated financial statements for the year ended December 31, 2012 together with the notes thereto, Management Discussion and Analysis for the year ended December 31, 2012 and Pace's Annual Information Form for the year ended December 31, 2012 will be filed on SEDAR today and can be accessed at www.sedar.com or by visiting Pace's website at www.paceoil.ca.