CALGARY, ALBERTA--(Marketwire -06/28/12)- C&C Energia Ltd. ("C&C" or the "Company") (CZE.TO) announced today organizational changes respecting its senior management team and board of directors.
In announcing these changes, Mr. Carl Tricoli, Chair of C&C's Board of Directors observed: "The C&C management team has made great strides since going public two years ago. Our production has more than doubled, our 2P reserves have increased by more than 50%, cash flow per share has increased by 65%, and the Company has assembled approximately 500,000 net acres of undeveloped land. In addition to an estimated 2012 funds flow from operations of approximately US$160 million, we have a very strong balance sheet with a working capital balance of approximately US$49 million as of May 31, 2012, including approximately US$111 million in cash, and a US$200 million credit facility with a current borrowing base of US$90 million. We believe that the Company is positioned well for future growth."
The following organizational changes are effective immediately:
-- Dr. Richard Walls is retiring from the Company as President & Chief Executive Officer. Dr. Walls assembled the senior management team that took the Company public in May 2010 and has been instrumental in overseeing the Company's growth and progress since then. He will continue to remain on the C&C board of directors and maintains a large shareholding position in C&C. -- Mr. Randy McLeod is appointed President & Chief Executive Officer and a member of the Board of Directors. Mr. McLeod has been the Company's Chief Operating Officer since April 2010 and has led the Bogota team in achieving the production and reserve growth noted above. -- Dr. Tomas Villamil, Executive Vice President, Exploration, will take on an expanded focus to source and develop growth opportunities under the direction of the Chief Executive Officer. Dr. Villamil was one of the founders of C&C and one of the architects of the Company's exploration success. -- As previously disclosed on April 10, 2012, Ing. Ricardo Andres Sarmiento has been appointed Vice President, Operations. Ing. Sarmiento will lead the operations group in the Bogota office. Prior to joining C&C in April 2012, he was the Technical and Development Manager for the E&P Division of Ecopetrol S.A. responsible for executing the development programs in Colombia. -- Dr. Oscar Lopez-Gamundi is appointed Vice President, Exploration and will lead the exploration group in the Bogota office. Dr. Lopez-Gamundi has had a distinguished career for over 30 years in international oil and gas exploration and, most recently, was the Exploration Manager of Central and South America for the Hess Corporation. -- Mr. Norman Mackenzie has retired from the Board of Directors having served as a director of C&C from the outset as a private company and since the completion of the Company's initial public offering.
In announcing his plans, Dr. Walls indicated: "When I got involved with C&C in the latter part of 2009, I quickly determined that the Company had a very solid base of opportunities, assets and people that would provide an excellent platform for taking C&C public. Over the past two and one half years, my management team and I have successfully completed the transition to a professionally managed public company and have grown the Company considerably. I have complete confidence that Randy McLeod and his management team can build on what we have achieved to date and grow C&C even further."
Mr. Tricoli added: "We expect that these organizational changes will solidify C&C's capabilities to capture growth opportunities in the E&P sector in Colombia. The Board of Directors and I are very grateful for the vision, leadership and success that Richard Walls brought to C&C. The Board of Directors also thanks Norman Mackenzie for his contributions to C&C as one of the founding shareholders of the Company and a Board member. We wish him well in his new venture in Australia."
C&C is planning to provide an update on its operations and drilling program during the week of July 9, 2012.
Conference Call Information
C&C will host a conference call to discuss the press release on Thursday, June 28, 2012 at 9:00 a.m. MDT (11:00 a.m. EDT). Media, analysts and investors wishing to participate can access it by calling 1-416-340-2217/1-866-696-5910/1-800-8989-6336; pass code: 1510120. The call will be available for replay until July 4, 2012. Individuals wishing to listen to the replay can access using 1-905-694-9451 or 1-800-408-3053; pass code: 6821237.
NOTICES TO READERS
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian securities laws that involves known and unknown risks and uncertainties. Forward-looking information typically contains statements with words such as "anticipate", "estimate", "expect", "potential", "could", "will", "plans" or similar words suggesting future outcomes. The Company cautions readers and prospective investors in the Company's securities to not place undue reliance on forward-looking information as by its nature, it is based on current expectations regarding future events that involve a number of assumptions, inherent risks and uncertainties, which could cause actual results to differ materially from those anticipated by C&C.
Forward-looking information in this press release includes, but is not limited to, information concerning the expectations of the Company with respect to the Company's future strategy and growth prospects, expectations regarding funds flow from operations in 2012 and the ability of the Company to execute on its future growth objectives. These forward-looking statements are subject to assumptions regarding the Company's operations and the operating environment in Colombia. In particular, expectations regarding funds flow from operations for 2012 are based on an expected average realized oil price of $93.50 per barrel and on assumptions that production will be in accordance with management's expectations and that there will not be any material increases to operating costs for the period. Forward-looking information involves significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those anticipated by C&C including, but not limited to, general risks associated with the oil and gas industry (e.g. operational risks in exploration; inherent uncertainties in interpreting geological data; changes in plans with respect to exploration or capital expenditures; the uncertainty of estimates and projections in relation to costs and expenses and health, safety and environmental risks, potential risks arising from trucking and other delivery disruptions), the risk of commodity price and foreign exchange rate fluctuations, the uncertainty associated with the negotiating with the ANH or with other third parties in countries other than Canada and the risk associated with international activity. The forward-looking information included in this news release is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date hereof and C&C assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances, except as required by law.
Note regarding Non-GAAP Measure
The Company's financial statements have been prepared in accordance with International Financial Reporting Standards which are generally accepted accounting principles for publicly accountable enterprises in Canada ("GAAP"). This press release makes reference to the term "funds flow from operations", which is not a recognized measure under GAAP and does not have a standardized meaning prescribed by GAAP. Accordingly, the Company's use of this term may not be comparable to similarly defined measures presented by other companies. Funds flow from operations is cash flow from operating activities before changes in non-cash working capital. Management uses this non-GAAP measurement for its own performance measures and to provide its shareholders and potential investors with a measurement of the Company's efficiency and its ability to fund a portion of its future growth expenditures. For a reconciliation of operating cash flow to the nearest applicable GAAP measure for prior periods, see the Company's management's discussion and analysis for the year ended December 31, 2012 which is available under the Company's profile on the SEDAR website at www.sedar.com.
All currency amounts are in U.S. dollars unless noted otherwise.