After adjusting for the disposition of the Elmworth assets, the Company expanded its total proved reserves by 16% to 5.8 million boe from 5.0 million boe at year-end 2011. Our total proved plus probable reserves at year-end 2012 increased 10% to 8.9 million boe from 8.1 million boe at the end of 2011. In 2012, Rock delivered average daily production of 2,377 boepd; during the fourth quarter production averaged 2,678 boepd. Currently the Company is producing over 3,000 boe per day with an 85% oil weighting
At Mantario, we assembled a land position on our main pool that exceeds 27 sections, and shot over 70 square kilometres of 3D seismic. During the year we drilled 15 wells in Mantario, resulting in 13 oil wells and two D&A wells. Rock spent a total of $17.5 million at Mantario in 2012 ($12 million drilling, $2.5 million land, $3 million seismic). The activity in this area generated one-year F&D costs of $17.24/bbl (including future development capital) compared to last year's field netback price of $31.40/bbl. We anticipate that the finding costs will come down going forward with limited spending on land and seismic, and recognition of additional reserves by the Company's independent engineering evaluator.
At Onward, we completed the drilling of 2 heavy oil wells, 1 oil well, and 3 water injection wells. In addition we pipeline-connected the water flood area producers and expanded our central facility to accommodate increased fluid volumes. In total Rock invested over $8 million at Onward during 2012.
2012 Drilling Results
Rock drilled and cased 17 (17.0 net) oil wells, three (3.0 net) water injection wells and three (3.0 net) dry and abandoned wells.
Reserves and Net Asset Value
Due to the sale of the Elmworth property Rock's total Company proved plus probable reserves decreased by 59% year-over-year to 8.9 million boe at year-end 2012. However, on a proforma basis (adjusting for the effect of the sale) total proved plus probable reserves increased by 7% to 8.9 million boe from 8.1 million boe, generating an RLI of 8.8 years (using December average production rates). All-in finding, development and acquisition costs (including changes in future development capital) averaged $13.05 per proved plus probable boe, and $20.25 per total proved boe. On a proforma basis (adjusting for the effect of the sale) and excluding reserve revisions, Rock generated a one year finding and development cost of $21.09 per proved plus probable boe, and $25.72 per total proved boe. It is important to note that this reserve report recognizes 2.2 million boe of proved plus probable reserves at Mantario. Since year-end 2012 the Company has drilled an additional 14 wells to further confirm the potential of this property.
The year-end 2012 reserve report by GLJ Petroleum Consultants Ltd., using its January 1, 2013 price forecast, indicates a value of $133.3 million for Rock's proved plus probable reserves (net present value discounted at 10%, before tax).
The company's net asset value is calculated as $3.83 per basic share, assuming debt at year-end of $3.1 million, 90,039 net acres of land valued at $19.7 million and 39.1 million basic shares outstanding.
Further information respecting Rock's year-end reserves is contained in its AIF, as described above.
Rock generated funds from operations of $13.6 million ($0.35 per basic share) in 2012, compared to $20.5 million ($0.56 per basic share) in 2011. For the fourth quarter of 2012, the Company generated funds from operations of $3.2 million ($0.08 per basic share) compared to $3.7 million ($0.09 per basic share) in the third quarter of 2012. Funds from operations for the fourth quarter were impacted by increased price differentials (W.T.I vs. Western Canada Select) during December and November. Realized prices averaged $51.96/boe during the quarter compared to $53.53/boe during the year. Operating costs decreased during the quarter as lower cost production from Mantario began to grow (averaging $23.80 per boe compared to $25.69 from the prior quarter and $24.21 per boe for the full year of 2012).
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