Petrobank currently has five conventional cold production wells operating on our Kerrobert Trend Lands. These wells are not yet producing at material oil rates.
Dawson Demonstration Project
At Dawson, we commenced cold production operations from both horizontal THAI® production wells in late 2012 and the wells produced at a combined rate of 20 bopd in the first two months of 2013. These wells will continue to produce conventional heavy oil, and assist in pre-conditioning the reservoir until such time as we commence the start-up of the approved THAI® demonstration project.
In early 2013, we purchased 46 sections of land in a Saskatchewan Crown land sale for approximately $2 million. These lands further enhance our inventory of opportunities for new THAI® projects and conventional heavy oil resources. We now own approximately 81 sections of land in Saskatchewan and 31 sections of land at Dawson, Alberta.
LIQUIDITY AND CAPITAL RESOURCES
On completion of the Arrangement with PetroBakken at the end of 2012, Petrobank began 2013 as a well financed junior heavy oil company leveraging our heavy oil asset base and patented technology. We ended 2012 with positive working capital of $91 million, including $103 million of cash and marketable securities, and no third party debt. We expect to fund our 2013 expenditures with cash on hand and sales revenue from production.
Our current capital resources are expected to be more than adequate for our planned 2013 expenditures while providing financial flexibility to pursue future THAI® developments and acquisition opportunities. In early 2013, we invested approximately $40 million of cash which is not expected to be used during 2013 in shares and debt securities of PetroBakken. The primary reason for this investment was to earn a reasonable return on capital in a company with an asset base, business plan and management team that was well known to Petrobank at the time of the investment. These securities were purchased for investment purposes and may be sold at any time. In addition to the PetroBakken shares received under PetroBakken's dividend reinvestment plan in January from the December 2012 dividend, we now hold approximately $48 million of PetroBakken shares and debt securities based on historical cost. A committee of Petrobank executives and directors who are independent of PetroBakken has been formed, which approved the initial investment in PetroBakken and is authorized to direct the timing of any future acquisitions or dispositions of PetroBakken securities.
SUMMARY OF FINANCIAL RESULTS
The following table provides a summary of Petrobank's financial results for the three months and year ending December 31, 2012 and 2011. Audited consolidated financial statements with MD&A will be available on the Company's website at www.petrobank.com and on the SEDAR website at www.sedar.com.
Three months ended Years ended December 31, December 31,($000s except where noted) 2012 2011 Change 2012 2011 Change----------------------------------------------------------------------------Net loss 155,830 59,482 162% 119,846 129,516 (7%) Per share - basic and diluted ($)(1) 1.60 0.61 162% 1.23 1.33 (8%)Expenditures on exploration assets 9,746 27,710 (65%) 41,281 166,856 (75%)Total assets 165,803 440,564 (62%) 165,803 440,564 (62%)Common share outstanding, end of period Basic and diluted (000s)(1) 97,597 97,597 - 97,597 97,597 -(1) Since Petrobank's shares were issued pursuant to the Arrangement, the per share amounts and shares outstanding for all periods are based on the number of shares outstanding on December 31, 2012.