Forent Energy Announces Q2 2015 Financial and Operating Results
CALGARY, ALBERTA (August 28, 2015) – Forent Energy Ltd. (TSXV: FEN)(“Forent” or the “Company”) is pleased to announce that it has filed its Financial Statements and Management’s Discussion & Analysis, for the six months ended June 30, 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
On June 30, 2015, Forent completed the acquisition of a private company for shares. In addition, an equity financing was closed with some directors and all of the executives participating. This business combination resulted in the addition of $1,950,000 of cash, Elkton gas production and more than 2,500 acres of land prospective for Cardium production. The funds raised improved working capital and positions Forent for corporate transactions. Total costs of the transactions were less than $60,000.
Curtis Hartzler has joined Forent as Director and Vice President of Business Development. Mr. Hartzler has an extensive background as a senior executive of energy companies and has particularly good strengths in acquisitions and divestitures. Martin Hislop and John G.F. McLeod have also joined the Board of Directors of Forent Energy Ltd. Both of these gentlemen bring significant senior executive and director experience to their roles on the Board of Directors of Forent.
Richard Wade has become Chief Operating Officer and is responsible for the continued efficient operations and development of Forent’s properties as well as evaluating the acquisition of additional properties and companies.
Looking back over the first six months, Forent’s average oil and gas production increased relative to the same time periods of last year; however, for the second consecutive quarter, financial results were directly impacted by the sharp reduction of commodity prices. To help mitigate the price related effects on revenue, the Company will focus on operating cost reductions, operational efficiency, and G&A reductions including substantial voluntary employee pay reductions combined with a new option based incentive plan.
Forent’s revenues, net of royalties, for the three months ended June 30, 2015 was$700,000 compared with $738,000 in the prior year quarter. As a result, Q2 2015 funds outflow from operations was $255,000 compared with $16,000 in Q2 2014. For the six months ended June 30, 2015, Forent’s revenues net of royalties was $1.2 million compared with $1.6 million in the prior year period. Funds outflow from operations for the six month period was $704,000 compared with funds inflow of $133,000 for the first half of 2014.
Forent’s net debt (calculated as bank debt and current liabilities less current assets) at June 30, 2015 was $4.7 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 of which $4.9 million was drawn at the end of the quarter.
The Company’s long life oil and natural gas production remains steady and continues to underpin the Company’s production base. Forent’s oil and natural gas sales during the second quarter averaged 221 BOEd compared with 174 BOEd in Q2 2014. Oil and natural gas sales for the six month period averaged 220 BOEd compared with 183 BOEd for the first half of 2014.
In 2014, the initial development phase of our large oil in place Twining property was the first step in a plan to materially increase oil and associated gas production for the Company. We have low risk exploitation opportunities available within our portfolio for development when prices recover. In the interim, Forent has taken steps to reduce overhead while actively pursuing its mandate of growth through asset acquisitions and corporate mergers. We are in discussions with several likeminded shareholder groups that believe now is an opportune time to build a more cost-effective company that is focused on projects with large hydrocarbons in place and underused facilities. Forent is proceeding on the path to accumulate hydrocarbon reserves, production and facilities at less than their replacement cost.
FOR FURTHER INFORMATION, PLEASE CONTACT:
FORENT ENERGY LTD.
Robyn Lore, President & CEO
Email: [email protected]
Phone: (403) 262-9444 #201
– or –
Brad R. Perry, CFO
(403) 262-9444 #208