CALGARY, ALBERTA – November 26, 2014 – Anterra Energy Inc. (“Anterra” or the “Company”) (TSX-V: AE.A, OTCQX: ATERF) announces its financial and operating results for the three and nine months ended September 30, 2014. Selected information presented below should be read in conjunction with the Company’s unaudited financial statements and related management discussion and analysis filed with the Canadian regulatory authorities and available on SEDAR at www.sedar.com and on the Company’s website at www.anterraenergy.com.
Dr. Gang Fang, President and CEO of Anterra, stated: “Our results for the nine months ended September 30, 2014 reflect the full nine month impact of the two strategic transactions conducted in 2013: the corporate acquisition of Terrex Energy Inc. in March, and the Nipisi property acquisition in December. Largely as a result of these acquisitions, our production increased 73% over the first nine months of 2013 and generated funds flow from operations of $2.6 million. Unfortunately, otherwise satisfactory results for the third quarter were severely impacted by pipeline failures at Nipisi.”
Pipe Line Failures
The Company experienced two pipeline failures at Nipisi during the third quarter of 2014 that resulted in the Company incurring significant spill clean-up and remediation costs. Expenditures of $1.9 million were incurred, before expected recoveries, which together with associated production disruptions and declining commodity prices were major contributors to the net loss of $2.4 million reported for the quarter and a working capital deficiency of $3.9 million, excluding bank debt, at September 30, 2014. Clean-up and remediation activities are ongoing and will also impact fourth quarter results.
Three months ended September 30, 2014
Nine months ended September 30, 2014
Summary of Financial and Operating Results
(1) Funds flow from operations, net debt, net debt to annualized funds flow, and field netback are non GAAP measures. See Reader Advisories.
About Anterra Energy Inc.
Anterra is an independent oil focused junior exploration and production company with an expanding presence in the Western Canadian Sedimentary Basin. The Company is actively engaged in the acquisition, development and production of oil and natural gas complemented by the operation of fee-based midstream facilities. Anterra is headquartered in Calgary, Alberta, is listed and trades on the TSX-V under the symbol “AE.A” and trades on OTCQX International under the symbol “ATERF”. Additional information is available on the Company’s website at www.anterraenergy.com.
For further information, please contact:
|Dr. Gang Fang
Chairman and Chief Executive Officer
Telephone: (403) 215-2383
Facsimile: (403) 261-6601
|Norm Knecht CA
Vice president finance and CFO
Telephone: (403) 215-3286
Facsimile: (403) 261-6601
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Certain information in this News Release constitutes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. Forward-looking statements are usually identified by the words “believe”, “anticipate”, “expect”, “plan”, “estimate”, “target”, “continue”, “could”, “intend”, “may”, “potential”, “predict”, “should”, “will”, “objective”, “project”, “forecast”, “goal”, “guidance”, “outlook”, “effort”, “seeks”, “schedule” or expressions of a similar nature suggesting future outcome or statements regarding an outlook. In particular, forward-looking statements include:
Statements relating to Anterra’s ongoing spill clean-up and remediation activities.
Forward-looking statements are not guarantees of future performance and the reader should not place undue reliance on these forward-looking statements as there can be no assurances that the assumptions, plans, initiatives or expectations upon which they are based will occur. In addition, forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Such factors include, among others: general economic and business conditions; the price of and demand for oil and natural gas and their effect on the economics of oil and gas exploration; fluctuations in currency and interest rates and their effect on projected profitability of the Company’s operations; the ability of the Company to implement its business strategy, including exploration and development plans; the impact of competition and in particular the ability of the Company to maintain its land position in a competitive leasing environment; the availability and cost of seismic, drilling, completions and other equipment; the Company’s ability to secure adequate transportation and markets for any oil or gas discovered; drilling and operating hazards and other difficulties inherent in the exploration for and production and sale of oil and natural gas; the availability and cost of financing; the success of any exploration and development undertaken; actions by governmental authorities; and, changes in government regulations and the expenditures required to comply with them (including, but not limited to, the changes in taxes or the royalty or other share of production taken by governmental authorities). Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in the forward-looking statements. Readers are cautioned that the foregoing list of risks, uncertainties and other factors is not exhaustive. Unpredictable or unknown factors not discussed could also have material adverse effects on forward-looking statements. The impact of any one factor on a particular forward-looking statement is not determinable with certainty as such factors are dependent on other factors, and the Company’s course of action would depend on its assessment of the future considering all information then available. All forward-looking statements in this MD&A are expressly qualified in their entirety by these cautionary statements. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change
This news release makes reference to terms commonly used in the petroleum and natural gas industry including funds flow from operations, funds from operations per share, net debt, net debt to annualized funds flow, and field netback. Such terms do not have a standard meaning as prescribed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable with the determination of similar measures for other entities. These measures are identified as non-GAAP measures and are used by management to analyze operating performance and leverage. These measures should not be considered an alternative to, or more meaningful, than cash flow from/used in operating activities or net income (loss) as determined in accordance with IFRS.
Production volumes and reserves are commonly expressed on a barrel of oil equivalent (“boe”) basis whereby natural gas volumes are converted at the ratio of six thousand cubic feet of gas equal to one barrel of oil, based on an energy equivalency at the burner tip and does not represent a value equivalency at the wellhead. Used in isolation, barrels of oil equivalent may be misleading.Filed under: 2014