The statistics above include trading on the Toronto Stock Exchange only. Shares also trade on alternative platforms like Alpha, Chi-X, Pure and Omega. Approximately 20 million common shares traded on these alternative exchanges in 2012 (2011 - 99.7 million). Including these exchanges, an average of 260,556 common shares traded per day in 2012 (2011 - 966,254), representing a turnover ratio of 38% (2011 - 140%).
RELATED PARTY TRANSACTIONS
On June 8, 2011, the Company issued 1,575 Series B Convertible Debentures to management and directors at a price of $1,000 per convertible debenture for total gross proceeds of $1.6 million as part of a $46.0 million bought deal offering of convertible debentures.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 2012, the Company had outstanding bank loans of $48.1 million, convertible debentures of $96.0 million (principal) and a cash working capital deficiency (excludes unrealized gain on derivative contracts) of $16.4 million. The working capital deficiency is largely due to accruals associated with the capital program in the last quarter of the year and will be funded through the available credit facilities and future operating cash flows. The following table shows the changes in bank loans plus cash working capital deficiency:
Three months ended Year ended December 31 December 31(thousands of dollars) 2012 2011 2012 2011Bank loans plus cash working capital deficiency, beginning of period $(96,991) $(108,583) $(132,656) $ (71,507)Funds from operations 5,694 16,997 29,641 54,464Net cash capital expenditures 26,880 (40,924) 38,990 (159,275)Proceeds from issue of convertible debentures, net of issue costs - - - 43,860Proceeds from exercise of stock options - - - 51Decommissioning expenditures (114) (146) (506) (249) ------------------ --------------------Bank loans plus cash working capital deficiency, end of period $(64,531) $(132,656) $ (64,531) $(132,656)----------------------------------------------------------------------------
The continued development of the Company's oil and gas assets are dependent on the ability of the Company to secure sufficient funds through operations, bank facilities and other sources from the strategic alternative process. Short-term capital is required to finance accounts receivable and other similar short-term assets while the acquisition and development of oil and natural gas properties requires larger amounts of long-term capital.
The Company had commitments to drill five horizontal wells in the Cardium formation on or before March 1, 2013 and earned an average 70 per cent working interest in the wells. The commitments were met for four of the wells prior to December 31, 2012, and the remaining commitment was met in January 2013. The Company does not have any other outstanding drilling commitments as at December 31, 2012.
At December 31, 2012, the Company had total credit facilities of $65 million, consisting of a $55 million revolving term credit facility and a $10 million working capital credit facility with a syndicate of Canadian banks. Advances can be drawn in either Canadian or U.S. funds and bear interest at the bank's prime lending rate, bankers' acceptance or LIBOR loan rates plus applicable margins. These margins vary from 3% to 4% depending on the borrowing option used. At December 31, 2012, no amounts were drawn in U.S. funds. The Company had $16.5 million of credit available at December 31, 2012. Anderson will prudently use its bank loan facilities to finance its operations as required.
