Forent Energy Announces Q1 2015 Financial and Operating Results
CALGARY, ALBERTA (May 28, 2015) – Forent Energy Ltd. (“Forent” or the “Company”) is pleased to announce that it has filed its Financial Statements and Management’s Discussion &
Analysis, for the three months ended March 31, 2015, with applicable securities regulatory authorities in Canada. Copies of these documents can be accessed under the Company’s profile on the SEDAR website at www.sedar.com and on the Company’s website www.forentenergy.com.
Financial results during the first quarter of 2015 were directly impacted by the almost 50% reduction of commodity prices, even though oil and gas volumes were increased relative to the same time period of last year. In order to help mitigate losses, the Company focused on operating cost reductions, operational efficiency, and G&A cuts through staff reductions and substantial employee pay cuts. The Company’s long life oil and natural gas production remains steady and continues to underpin the Company’s production base. Recently there has been an abundance of available quality assets and potential corporate merger opportunities to amalgamate into Forent’s portfolio to improve financial results.
Forent’s revenues, net of royalties, for the three months ended March 31, 2015 decreased to $503,000 compared with $859,000 in the prior year quarter. As a result, Q1 2015 funds outflow from operations was a negative $449,000 compared with a positive $150,000 in Q1 2014.
Forent’s net debt (calculated as current liabilities less current assets) at March 31, 2015, was $6.3 million compared with net debt of $5.8 million at the beginning of the year. The Company has access to a credit facility of $7.0 million (currently under annual review) of which $6.7 million was drawn at the end of the quarter.
Forent’s oil and natural gas sales during the first quarter averaged 219 BOEd compared with
194 BOEd in Q1 2014. The overall quarterly rate was reduced by approximately 10 BOEd as a third party gas gathering system underwent repairs in late February, temporarily shutting in production at the Twining field (6 BOEd for the quarter) and oil inventories vs. sales increased (4 bopd for the quarter), at the Wayne field.
During Q1 2015 the Twining field experienced a 10 day production curtailment while a third party gas transportation line was temporarily removed from service. Following the 10 day outage, all operations were returned to normal production levels. Operational optimization efforts took place in Q1 to redirect our sales oil to terminals that provided superior netbacks, resulting in a 20 % decrease in commodity price offsetting costs.
The initial development phase of our Twining property was the first step in our plan to materially increase oil and associated gas production for the Company. Within our portfolio, we have several low risk exploitation opportunities available when prices recover. Meanwhile Forent has taken appropriate steps to reduce overhead, while actively pursuing its mandate of growth through asset acquisitions and corporate mergers.
Shares of Forent trade on the TSX Venture Exchange under the symbol “FEN”.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FORENT ENERGY LTD.
Richard Wade, President & CEO – or – Brad R. Perry, CFO
Email: [email protected] [email protected]
Phone: (403) 262-9444 #211 (403) 262-9444 #208