On July 26, 2012, the Company closed a Share Purchase Agreement to acquire 100% of the common shares of Cepsa Egypt SA B.V. ("Cepsa Egypt"), a wholly-owned subsidiary of Compania Espanola De Petroleos, S.A.U. ("Cepsa"). Cepsa Egypt holds an operated 50% working interest in the South Alamein PSC in Egypt. In conjunction with the EP Energy LLC business combination that was completed in the second quarter of 2012, this transaction brought the Company's working interest in the South Alamein concession to 100%. The transaction was structured as an all-cash deal, effective July 1, 2012, funded through working capital. Total consideration for the transaction was $4.5 million, which represents an initial $3.0 million base purchase price plus $1.5 million in consumable drilling equipment inventory (which is classified as exploration and evaluation assets), working capital and other closing adjustments.
SELECTED ANNUAL INFORMATION($000s, except per share, price and % % volume amounts) 2012 Change 2011 Change 2010--------------------------------------------------------------------------------------------------------------------------------------------------------Operations Average sales volumes (Bopd) 17,496 44 12,132 22 9,960 Average price ($/Bbl) 99.01 (3) 101.58 37 73.97 Oil and gas sales 633,992 41 449,794 67 268,901 Oil and gas sales, net of royalties 317,666 28 247,754 58 157,220 Cash flow from operating activities 93,992 48 63,630 12 56,969 Funds flow from operations(i) 153,498 28 119,976 59 75,460 - Basic per share 2.09 1.65 1.14 - Diluted per share 2.03 1.60 1.10 Net earnings 87,734 8 81,392 101 40,565 - Basic per share 1.20 1.12 0.61 - Diluted per share 1.16 1.09 0.59-------------------------------------------------------------------------------------------------------------------------------------------------------- Total assets 653,425 24 525,806 52 345,625 Cash and cash equivalents 82,974 89 43,884 (24) 57,782 Convertible debentures 98,742 - - - - Total long-term debt, including current portion 16,885 (71) 57,609 (33) 86,420 Debt-to-funds flow ratio(ii) 0.8 0.5 1.1--------------------------------------------------------------------------------------------------------------------------------------------------------Reserves Total Proved (MMBbl)(iii) 32.8 16 28.2 37 20.5 Total Proved plus Probable (MMBbl)(iii) 48.7 10 44.2 45 30.4--------------------------------------------------------------------------------------------------------------------------------------------------------(i) Funds flow from operations is a measure that represents cash generated from operating activities before changes in non-cash working capital, and may not be comparable to measures used by other companies.(ii) Debt-to-funds flow ratio is a measure that represents total long-term debt (including the current portion) plus convertible debentures over funds flowfrom operations for the trailing 12 months, and may not be comparable to measures used by other companies.(iii)As determined by the Company's independent reserves evaluator, DeGolyer and MacNaughton Canada Limited ("DeGolyer") of Calgary, Alberta, in their reports dated January 18, 2013 and January 10, 2012 with effective dates of December 31, 2012 and December 31, 2011, respectively. The reports of DeGolyer have been prepared in accordance with the standards contained in the Canadian Oil and Gas Evaluation Handbook prepared jointly by The Society of Petroleum Evaluation Engineers (Calgary Chapter) and the Canadian Institute of Mining, Metallurgy & Petroleum (Petroleum Society), as amended from time to time.
