CALGARY, ALBERTA--(Marketwire - May 30, 2012) - Twoco Petroleums Ltd. ("Twoco" or the "Company") (TWO.V - News) announces financial and operating results for the quarter ended March 31, 2012 and an update of its 2012 activities.
Twoco has filed the following documents on the System for Electronic Document Analysis and Retrieval (SEDAR):
1. Unaudited condensed financial statements as at and for the quarter ended
March 31, 2012, together with the notes therein as prepared in
accordance with International Financial Reporting Standards; and
2. Management's discussion and analysis of financial condition and results
of operations as at and for the quarter ended March 31, 2012.
Copies of these documents may be obtained via SEDAR at www.sedar.com.
Highlights of the First Quarter 2012 include:
-- Petroleum and natural gas sales revenue of $1,661,889 - an 18% increase
from the First Quarter 2011 - predominantly due to the increase in oil
production from the Company's Sparky heavy oil property in the Warspite
area of Alberta;
-- Cash flow from operations of $526,302 - a 991% increase from the First
Quarter 2011 primarily due to the increase in oil production from the
Company's Warspite Sparky heavy oil property;
-- Average production of 573 boe per day (includes 169 barrels per day of
oil and natural gas liquids) - an 8% decrease from the First Quarter
2011 - a result of shut-in natural gas volumes due to low natural gas
prices, a lack of natural gas drilling activity and production declines
of the Company's natural gas properties;
-- Average production of 169 barrels per day of oil and natural gas liquids
from the Company's Warspite heavy oil property represents a 117%
increase in the average production of oil and natural gas liquids from
the First Quarter 2011;
-- Operating netback of $983,315 ($18.87 per boe);
-- Operating netback of $52.23 per barrel in respect of the Company's
production of Sparky heavy oil;
-- Net loss of $100,036;
-- Capital expenditures of $445,544;
-- Current land position of 103,622 gross (75,034 net) acres;
-- Operating costs of $11.86 per boe;
-- General and administrative expenses of $2.91 per boe; and
-- In the First Quarter 2012, the Company issued a total of 323,846 common
shares in payment of interest accrued to March 31, 2012 on its $3.4
million principal amount of redeemable, convertible, unsecured 8%
Highlights of Twoco's operations for the 2012 year to date include:
-- Current production of 500 boe per day (includes approximately 180
barrels per day of oil and natural gas liquids);
-- Twoco estimates current shut-in and behind pipe production capability of
350 boe per day; and
-- On April 30, 2012, the Company and Alberta Treasury Branches entered
into an indicative term sheet extending the next review date of the
Company's credit facilities to July 31, 2012.
Twoco is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in the Province of Alberta. Twoco has 72,491,140 common shares issued and outstanding as at today's date.
In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.
Certain information set forth in this news release contains forward-looking statements or information ("forward-looking statements"), including statements regarding behind pipe production capability. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twoco's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Twoco believes that the expectations in our forward-looking statements are reasonable, our forward- looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward- looking statements. As such, readers are cautioned not to place undue reliance on the forward-looking statements, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Twoco does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.