Oilpatch Review

Canadian Insight into the oilpatch during the past week ...

Updated on Wednesday, March 20, 2019

Bonavista Energy Corporation (BNP:TSX) announced that a quarterly dividend of $0.01 per common share will be paid in cash on April 15, 2019 to common shareholders of record on March 29, 2019. The ex-dividend date is March 28, 2019. This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.

Bonavista Energy Corp is a Calgary based independent producer of oil and natural gas in the Western Canadian Sedimentary Basin. Company has a market cap of $330 million and approximately 255 million shares outstanding.

Pembina Pipeline Corporation (PPL:TSX) announced that none of Pembina's Cumulative Redeemable Rate Reset Class A Preferred Shares, Series 17 will be converted into Cumulative Redeemable Floating Rate Class A Preferred Shares, Series 18 of Pembina on March 31, 2019.

Pembina Pipeline Corporation is a Calgary based transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Company has a market cap of $22 billion and approximately 506 million shares outstanding.

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Bellatrix Exploration Ltd. (BXE:TSX) announced its financial and operating results for the fourth quarter and year ended December 31, 2018. Company reported a total revenue was $56.9 million for the fourth quarter of 2018 and adjusted funds flow generated in the three months ended December 31, 2018 was $15.5 million. Company experienced a loss of $(89.7) million in the fourth quarter. For the year 2018, Bellatrix reported a total revenue of $$228.7 million and a loss of $(146) million.

Production volumes in the fourth quarter of 2018 averaged 35,001 boe/d (71% natural gas weighted). Full year 2018 average production volumes of 35,635 boe/d represented 1% outperformance compared with the mid-point of Bellatrix's full year average production guidance range (35,000 to 35,500 boe/d).

In 2018, Bellatrix drilled and/or participated in 14 gross (9.2 net) total wells including 10 gross (7.7 net) operated Spirit River liquids rich natural gas wells, 1 gross (1.0 net) Cardium well and 3 gross (0.5 net) non-operated wells (two Spirit River and one Cardium). Bellatrix's operated drilling activity in 2018 included, a total of 49,027 meters drilled, 18,026 meters of which was horizontal length.

Bellatrix Exploration Ltd is a Calgary based oil and gas company, engaged in the exploration, acquisition, development, and production of oil and natural gas reserves in the provinces of Alberta, British Columbia, and Saskatchewan. Company has a market cap of $53 million and approximately 81 million shares outstanding.

CGX Energy Inc. (OYL:TSXV) announced that it has completed its previously announced rights offering. As at the close of business on February 11, 2019 an aggregate of 116,102,318 transferable rights were sold. Each Right entitled the holder thereof to subscribe for one common share upon payment of the subscription price of $0.25 per common share prior to the Expiry Date.

Frontera Energy Corporation, an insider and the corporation's largest shareholder, acquired an aggregate of 101,316,916 Common Shares in connection with the offering pursuant to the exercise of Rights under the Offering. Frontera now owns an aggregate of 157,383,129 common shares on a non-diluted basis, which represents approximately 67.78% of the issued and outstanding common shares following closing.

CGX will use US$ 7,904,036 of the net proceeds of the Offering to settle its debt to Japan Drilling Co., Ltd. in connection with historic legacy indebtedness. The remainder of the net proceeds of approximately US$13,923,744 along with the additional funding obtained through a farm-in joint venture agreement with Frontera in respect to the exploration and development of the Corentyne and Demerara blocks in Guyana.

CGX Energy Inc. is a Toronto based international oil and gas company with assets and operations in the Guyana- Suriname Basin. Company has a market cap of $48 million and approximately 116 million shares outstanding.

Crius Energy Trust (KWH.UN:TSX) announced its financial results as at and for the three and twelve month periods ended December 31, 2018. Crius reported a revenue of $284.8 million in the fourth quarter of 2018, representing an increase of 14.6% from $248.5 million in the fourth quarter of 2017. It experienced a net income of $1.7 million in the fourth quarter of 2018, compared to a net income of $36.0 million in the fourth quarter of 2017.

For the year 2018, the trust achieved a revenue of $1,235.1 million in 2018, representing an increase of 41.0% from $875.9 million in 2017. Trust's net income was $19.0 million in 2018, compared to a net income of $20.1 million in 2017.

On February 7, 2019, the company and Vistra Energy entered into a definitive agreement pursuant to which Vistra Energy will acquire the company for cash consideration of C$7.57 per Unit, for the company's 56,605,607 Units. On February 20, 2019, the company and Vistra Energy announced they had agreed to amend the cash consideration to C$8.80 per Unit. In addition to the purchase price Unitholders will receive the company's previously-declared distribution for the first quarter of 2019, in the amount of C$0.209 per Unit, for total consideration in the amount of C$9.009 per Unit.

Crius Energy Trust is is a Toronto based company engaged in the sale of electricity and natural gas to customers in USA. Trust has a market cap of $506 million and approximately 57 million shares outstanding.

East West Petroleum Corp. (EX:TSXV) announced that Mr. David Sidoo is no longer President and CEO. As has been mentioned in the media Mr. Sidoo has been named in legal proceedings from the US government. In light of this legal action Mr. Sidoo has decided it would be in the best interests of the company to take a leave of absence from his executive role in the company. Mr. Sidoo remains as a director of the company.

East West Petroleum Corp. is a Vancouver based oil and gas company with interest in New Zealand and Romania. Company has a market cap of $9.0 million and approximately 90 million shares outstanding.

Imperial Oil Ltd. (IMO:TSX) announced on March 15th that it has slowed the pace of development of its Aspen in situ oil sands project given market uncertainty stemming from Alberta government intervention and other industry competitiveness challenges.

Company remains concerned about the unintended consequences of the government’s decision to manipulate prices, including the negative impact on rail economics.

Rich Kruger, chairman, president and chief executive officer of Imperial, commented, “This was a difficult choice in light of our final investment decision on Aspen announced last November. However, we cannot invest billions of dollars on behalf of our shareholders given the uncertainty in the current business environment. That said, our goal is to ensure the work we do this year will enable us to effectively and efficiently resume planned activity levels when the time is right.”

Imperial Oil Limited is a Calgary based company focused on upstream operations, petroleum refining operations, and the marketing of petroleum products. Imperial has a market cap of $28.5 billion and approximately 785 million shares outstanding.

Surge Energy Inc. (SGY:TSX) announced that a cash dividend to be paid on April 15, 2019 in respect of March 2019 production, for the shareholders of record on March 31, 2019 will be $0.008333 per share. The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

Surge Energy Inc. is an oil-weighted production and development company based in Calgary. Company has its operations in western Canada. Surge has a market cap of $450 million and approximately 309 million shares outstanding.

Source Energy Services Ltd. ( SHLE:TSX) announced its its 2018 financial results and achievements. Company reported a sales revenue of $45 million in the fourth quarter and $342 million in 2018. Company experienced a net loss of $(9.8) million in the fourth quarter and a net income of $23.6 million in 2018.

As at December 31, 2018, Source had $4.6 million cash on hand and had senior long-term debt outstanding of $148.5 million, as compared to $129.3 million as at December 31, 2017. For the fourth quarter of 2018, Source had cash flows provided by operating activities of $26.6 million compared to cash flows used by operating activities of $25.5 million for the same period in 2017.

In 2019, Source's capital structure is well positioned to provide flexibility to succeed during all stages of the cycle, and company remains committed to ensuring that its capital expenditures in 2019 are funded from cash flows provided by operating activities.

Source Energy Services Ltd is a Calgary based company engages in the production, supply, and distribution of northern white frac sand. Its services include proppants, logistics, terminals, storage and transfer of chemicals, and field solutions. Company has a market cap of $82 million and approximately 61 million shares outstanding

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Africa Energy Corp. (AFE:TSX) announced on March 14th new exploration activities in South Africa and Namibia. Company will start a new 3D marine seismic acquisition program over the Paddavissie Fairway on Block 11B/12B offshore South Africa.

Jan Maier, Africa Energy's VP Exploration, commented, "We are pleased to announce the initiation of a 3D seismic program with Polarcus to better define prospects within Block 11B/12B offshore South Africa. The recent success at the Brulpadda primary and secondary targets significantly de-risks other similar prospects already identified on the existing 2D seismic. With this new 3D seismic program, the reservoir zones will be better imaged for the selection of future drilling locations. The 3D seismic acquisition program will last until the end of April."

Africa Energy Corp. is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. Company is based in Vancouver. Africa Energy has a market cap of 130 million and approximately 683 million shares outstanding.

Emerald Bay Energy Inc. (EBY:TSXV) announced on March 14th an update on operations at the Bauer and Kuhn leases in South Texas. Company completed testing the Bauer wildcat well yesterday afternoon. The well was drilled to test the Edwards formation, and it has been determined that the Edwards is not commercially viable in this well. Additionally, the Company tested the Poth and Wilcox formations and determined that neither formation has commercial quantities of hydrocarbons.

At the Kuhn lease, the Company is in the process of upgrading the electrical capabilities of the lease to power the new pumps capable of lifting the increased fluid volumes brought on by the stimulations to the wells.

The wells were originally equipped with pumpjacks that limited them to total fluid flow rates of approximately 110 bbls/day each. To enhance production and maximize flow rates the wells were acid stimulated. Current estimates for flow rates are in excess of 2,000 bbls/day of total fluid per well. New lifting equipment, capable of flow rates near 2,000 bbls/day has been installed on Kuhn 4.

Emerald Bay Energy Inc. is a Calgary based energy company with oil producing properties in southwest Texas as well as non-operated oil and natural gas interests in Central Alberta. Company has a market cap of $4.2 million and approximately 277 million shares outstanding.

Frontera Energy Corporation (FEC:TSX) announced on March 14th that its board of directors has declared a dividend of C$0.165 per common share, which will be paid in cash on or about April 16, 2019 to shareholders of record at the close of business on April 2, 2019. The dividend is designated as an eligible dividend under the Income Tax Act (Canada).

Frontera Energy Corporation is a Toronto based oil and gas company with operations focused in South America. Company has a market cap of $1.06 billion and approximately 98 million shares outstanding.

Oryx Petroleum Corporation Limited (OXC:TSX) announced its fourth quarter and year end results for 2018.Company reported a sales revenue of $36.5 million in the fourth quarter and $97.6 million in 2018. Company experienced a net income of $56.8 million in the fourth quarter and $97.6 million in 2018.

Company's average gross (100%) oil production was 6,500 bbl/d (working interest 4,200 bbl/d) for the year ended December 31, 2018 vs 3,300 bbl/d (working interest 2,100 bbl/d) for the year ended December 31, 2017.

Oryx Petroleum's Chief Executive Officer, Vance Querio, commented, “ 2018 was a good year for Oryx Petroleum. During the year we substantially increased production from the Hawler license area thanks to the successful completion of six new producing wells, increasing production from the Zey Gawra Cretaceous reservoir and commencing production from both the Cretaceous and Tertiary reservoirs in the Banan field.”

Oryx Petroleum is a Calgary based international oil exploration, development and production company focused in Africa and the Middle East. Company has a market cap of $108 million and approximately 515 million shares outstanding.

Point Loma Resources Ltd. (PLX:TSXV) announced on March 14th the results of its 2018 year-end reserves as evaluated by McDaniel and Associates Ltd. and provide an update on operations. Proved producing reserves increased 35 percent year over year. Total proved plus probable ("2P") reserves of 5,284 mboe and proved ("1P") reserves of 2,967 mboe for the corporation, an increase of 19 percent and decrease of 15 percent, respectively, since 2017 year-end. Total proved plus probable oil reserves increased 92 percent and proved oil reserves increased 64 percent year over year largely due to the Rex oil discovery drilled and completed in late 2018.

Point Loma Resources Limited is a Calgary based oil and gas company with assets and operations in west central Alberta. Company has a market cap of $12 million and approximately 63 million shares outstanding.

Tidewater Midstream and Infrastructure Ltd. (TWM:TSX) announced on March 14th that it has filed its annual consolidated financial statements and Management's Discussion and Analysis for the year ended December 31, 2018. Company reported a revenue of $90.7 million in the fourth quarter and $324.3 million in 2018 Company experienced a net income of $13.2 million in the fourth quarter and $20.3 million in 2018.

Tidewater continues to evaluate additional strategic projects that address customer needs and the increasing demand for natural gas, NGLs and crude oil in North America. 2018 was a year of growth and new project construction and 2019 will be a year where Tidewater will rely on its ability to execute and position its business for continued earnings growth into 2020.

Tidewater Midstream and Infrastructure Limited is a Calgary based company engaged in providing infrastructure and natural gas storage facilities in North America. Company has a market cap of $447 million and approximately 331 million shares outstanding.

Touchstone Exploration Inc. (TXP:TSX) announced on March 14th an operations update. Company reported that it achieved January and February 2019 crude oil sales of 1,994 and 2,179 barrels per day and realized average prices of US$52.00 per barrel and US$56.84 per barrel for January and February crude oil volumes, respectively. Current field estimated production is approximately 2,358 bbls/d (based on the previous seven-day average).

Touchstone has initially completed all of the wells drilled in its 2018 drilling campaign. To date, the company has eight of the 11 wells optimized with the remaining three awaiting final approval to complete additional sands. Upon receipt of the customary regulatory approvals, the Company will proceed with the proposed workovers.

Touchstone Exploration Incorporated is a Calgary based international oil and gas company with operations in Trinidad and Tobago. Company has a market cap of $34 million and approximately 161 million shares outstanding.

Valeura Energy Inc. (VLE:TSX) announced on March 14th its financial and operating results for the three month period ended December 31, 2018. Company reported a sales revenue of $3.15 million in the fourth quarter and $11.9 million in 2018. Company experienced a loss of $(634,000) in the fourth quarter and a loss of $(7.1) million in 2018.

Net petroleum and natural gas sales in Q4 2018 averaged 623 boe/d, which was 5% lower than Q3 2018. This reflects natural declines in producing conventional reservoirs. Production was increased in late Q4 2018 as a result of workover activities and the exit rate for the last week of the quarter was 777 boe/d.

Valeura is fully focused on appraising and de-risking its BCGA play in the Thrace Basin. The objective of the company's work program for 2019 is to demonstrate that over-pressured gas is pervasive across Valeura's Thrace Basin lands and to show that commercial flow rates can be achieved.

Valeura Energy Inc. is a Calgary based company currently engaged in the exploration, development and production of petroleum and natural gas in Turkey. Company has a market cap of $262 million and approximately 86 million shares outstanding.

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Bonterra Energy Corp. (BNE:TSX) announced its operating and financial results for the year ended December 31, 2018. Company reported petroleum sales for 2018 were $223 million and funds flow were $107 million. Bonterra Energy experienced a net income of $7.167 in 2018.

Company achieved record average annual production of 13,206 BOE per day, in-line with guidance and three percent higher than 2017 volumes of 12,827 BOE per day due to a successful drilling and well reactivation program in the Pembina Cardium area weighted to the first quarter, supported by the company's low corporate decline rate of approximately 22 percent.

Bonterra's 2019 capital budget of $57 to $77 million is intended to maintain a balance between funds flow and capital spending with any excess cash used to reduce debt. Annual production volumes in 2019 are estimated to be in the range of 12,600 to 13,200 BOE per day, of which approximately 69 percent would be sweet crude oil and NGLs, with a forecast exit rate between 13,000 and 14,000 BOE per day.

Bonterra Energy Corp. is a Calgary based conventional oil and gas producer with operations in Alberta, Saskatchewan and British Columbia. Company has a market cap of $228 million and approximately 33 million shares outstanding.

Frontera Energy Corporation (FEC:TSX) announced on March 13th that it has acquired 12,181,000 rights to acquire common shares of CGX Energy Inc. Frontera acquired the Rights through the TSX Venture Exchange in connection with the rights offering.

Prior to the acquisition of the 12,181,000 Rights, Frontera owned or exercised control over 56,066,214 Common Shares and 56,066,214 Rights on a non-diluted basis (representing approximately 48.29% of the issued and outstanding common shares on a non-diluted basis) and 152,132,428 common shares on a partially-diluted basis.

In another news release, Frontera Energy Corporation and GeoPark Limited announced that they have been awarded production sharing contracts on two blocks in Ecuador's Intracampos Bid Round offered by the Ministerio de Energia y Recursos Naturales No Renovable, who will confirm the preliminary results by mid April 2019.

The blocks were acquired under an initial four-year exploration period, with the option to extend the exploration period by an additional two years. The company estimates that the total gross investment through the exploration phase, including the minimum work commitments and the additional exploration program offered, will be $64 million, or $32 million net to the company.

Frontera Energy Corporation is a Toronto based oil and gas company with operations focused in South America. Company has a market cap of $1.06 billion and approximately 98 million shares outstanding.

Keyera Corp. (KEY:TSX) announced a cash dividend for March 2019 of 15.00 cents per common share. The dividend will be payable on April 15, 2019, to shareholders of record on March 22, 2019. The ex-dividend date is March 21, 2019. This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

Keyera Corporation is a Calgary based company with extensive interconnected assets and depth of expertise in delivering midstream energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing. Company has a market cap of $5.8 billion and approximately 210 million shares outstanding.

Surge Energy Inc. (SGY:TSX) announced its operating and financial results for the quarter ended December 31, 2018. Company record a sales revenue of $58 million in the fourth quarter and $304.5 million in 2018. Company experienced a loss of $(1.25) million in the fourth quarter and $(1.67) million in 2018.

Surge's Q4/18 quarterly average production of 21,047 boepd increased by more than 34% as compared to Q4/17 production of 15,675 boepd. Company's Q4/18 quarterly average production of 21,047 boepd increased by 17% as compared to Q3/18 production of 18,029 boepd.

Surge Energy Inc. is an oil-weighted production and development company based in Calgary. Company has its operations in western Canada. Surge has a market cap of $450 million and approximately 309 million shares outstanding.

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Inter Pipeline Ltd. (IPL:TSX) announced the declaration of a cash dividend of $0.1425 per share for March 2019. This dividend will be paid on or about April 15, 2019 to shareholders of record on March 22, 2019. This dividend is designated as an "eligible dividend" for Canadian tax purposes.

Inter Pipeline Ltd. is a major petroleum transportation, natural gas liquids processing, and bulk liquid storage business based in Calgary, Alberta. Company has a market cap of $8.4 billion and approximately 402 million shares outstanding.

Journey Energy Inc. (JOY:TSX) announced its financial results for 2018. Company reported a revenue of $20.39 million in the fourth quarter of 2018 and $115 million in 2018. Journey experienced a loss of $(16.18) million in the fourth quarter and $(37.447) in 2018.

Journey completed its 2018 capital program in August and as a result, no new production volumes were added during the fourth quarter. Company drilled 9 (9.0 net) wells including 5 in Matziwin, 3 in Skiff, and 1 stratigraphic well in the Gilby Duvernay. The results from the eight combined Matziwin and Skiff wells exceeded the company's expectations.

Journey achieved production of 9,921 boe/d (46% liquids) in the fourth quarter of 2018, representing a slight decrease from the 10,277 Boe/d (48% liquids) recorded in the third quarter of 2018. Because of abnormally low crude oil prices in the fourth quarter, Journey restricted oil production from a key well at Matziwin, deferred routine workovers on oil wells at various locations, and maintained high field storage of oil until early in 2019 when oil prices started to recover.

Journey Energy Inc. is a Calgary based exploration and production company focused on oil-weighted operations in western Canada. Journey's strategy is to grow its production base by drilling on its existing core lands, implementing waterflood projects, and by executing on accretive acquisitions. Company has a market cap of $69 million and 39 million shares outstanding.

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Africa Energy Corp. (AFE:TSXV) announced on March 11th that the company's management will be presenting to shareholders and investors at a town hall meeting in Stockholm, Sweden on Wednesday, March 13, 2019, at 18:30 Central European Time. The town hall meeting will be held at Näringslivets Hus on Storgatan 19 in Stockholm (local Industrisalen). A copy of the presentation will be available on Africa Energy's website.

Africa Energy Corp. is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. Company is based in Vancouver. Africa Energy has a market cap of 130 million and approximately 683 million shares outstanding.

BNK Petroleum Inc. (BNK:TSX) announced on March 11th the results of its December 31, 2018 independent reserves evaluation. Company's Total Proved Reserves were 33.8 million Barrels of oil equivalent (BOE); that's an increase of 26% over the December 31, 2017 estimate. Its Proved plus Probable Reserves were 53.3 million BOEs; that's an increase of 11% over the December 31, 2017 estimate. Company's Proved plus Probable plus Possible Reserves 78.5 million BOEs; that's an increase of 6% from the December 31, 2017 estimate.

Wolf Regener, President and CEO commented, "We are very pleased with our proved reserve increases of 26% on a BOE basis and 31% on a NPV basis compared to the prior year. These increases were primarily due to our 2018 drilling program as well as our existing producing wells outperforming the previous years forecasts. We are also excited that the estimated ultimate recovery (EURs) from the existing wells increased from the prior year continuing the trend of the last few years.”

BNK Petroleum Inc. is an international oil and gas exploration and production company focused on its shale oil and gas properties in the United States. Company has a market cap of $73 million and approximately 233 million shares outstanding.

Pulse Oil Corp. (PUL:TSX) announced on March 11th that the company has spudded the first of two new wells within Pulse's Bigoray assets. The drilling of each well is expected to take approximately 18 days and Pulse will drill back to back from an existing well site which will become the site of Pulse's central EOR facility. If the wells are successful as anticipated, Pulse expects completion and infrastructure to be completed to allow for new production to flow in late April or early May 2019.

Pulse Oil Corp. is a Calgary based oil and gas company with assets and interests in the Bigoray area of Alberta. Company has a market cap of $29 million and approximately 144 million shares outstanding.

ShaMaran Petroleum Corp. (SNM:TSX) announced its financial and operating results for the year ended December 31, 2018. Revenue from oil sales in the fourth quarter was $14.5 million, up from $13.2 million reported in the third quarter due to the higher fourth quarter production and despite lower average netback oil prices over the same period which decreased from $59.72 per barrel to $52.58 per barrel. The company reported $69.6 million of revenue from oil sales for the year 2018. Company has reported in 2018 a net income of $1.9 million.

Three wells were successfully drilled in the year 2018. The CK-7 and CK-10 production wells started production near the end of July 2018. The Chiya Khere-9 ("CK-9) water disposal well was completed and tested according to schedule during November 2018 and is now online and used for disposal of Atrush produced water.

Annual production for the year 2018 was 22.1 Mbopd, which was below guidance mainly due to salt-related processing restrictions negatively impacting production during the second and third quarters.

ShaMaran Petroleum Corp. is a Vancouver based international company. It is a Kurdistan focused oil development and exploration company with interests in the Atrush oil discovery. Company has a market cap of $184 million and approximately 2.2 billion shares outstanding.

 

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Editor: Jim Klemchuk

Co-editor  & Photographer:

Fay Klemchuk

Contributing writer:

Allan Pierce

Contributing photographer:

Natalie Klemchuk

Assisting editor:

Allana Klemchuk



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