Northern Blizzard Resources Inc. Announces Third Quarter 2015 Results and Preliminary 2016 Guidance

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Northern Blizzard Resources Inc. Announces Third Quarter 2015 Results and Preliminary 2016 Guidance

by ahnationtalk on November 12, 2015336 Views

Press Release

CALGARY, ALBERTA (November 12, 2015) – Northern Blizzard Resources Inc. (“Northern Blizzard” or the “Company”) (TSX: NBZ) announces its operating and financial results for the three and nine months ended September 30, 2015. Northern Blizzard’s unaudited financial statements and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2015 are available on our website at www.northernblizzard.com and on SEDAR at www.sedar.com.

HIGHLIGHTS

Third quarter 2015 production was 20,445 boe/d (96% oil). Production was 21,497 boe/d for the first nine months of 2015, a 7% increase compared to the same period in 2014.

Funds from operations were $38.9 million ($0.35 per common share) for the third quarter of 2015. Funds from operations were $157.4 million ($1.46 per common share) for the first nine months of 2015, a 6% decrease compared to the same period in 2014.

Operating costs for the third quarter of 2015 were $16.71 per boe. Operating costs were $16.77 per boe for the first nine months of 2015, a 20% decrease compared to the same period in 2014. The Company benefited from cost saving measures implemented across all operating areas that reduced downhole, surface maintenance and other operating costs.

Northern Blizzard has a comprehensive hedging program in place to protect prices on crude oil volumes and maintain the stability of cash flows. We have WTI hedges in place for 0.4 million barrels (4,000 bbl/d) for the fourth quarter of 2015 at an average price of C$77.54/bbl, 4.2 million barrels (11,500 bbl/d) in 2016 at an average price of C$79.50/bbl and 0.7 million barrels (2,000 bbl/d) in 2017 at an average price of C$85.49/bbl.

Northern Blizzard has an undrawn credit facility of $475 million, which underpins the Company’s strong financial position. Net debt to trailing four quarters funds from operations was 1.7x.

Cactus Lake: Average production in the third quarter of 7,197 boe/d (96% oil) was supported by positive response from the Bakken polymer flood. An additional 60 drilling locations were recently identified by new 3D seismic, bringing the total drilling inventory to over 300 drilling locations.

Winter: Production in the third quarter averaged 3,283 boe/d (100% oil). Production from this area is supported by over 400 drilling locations and excellent capital efficiencies.

Coleville: Production in the third quarter averaged 843 boe/d (94% oil). Northern Blizzard has undeveloped lands with over 300 drilling locations and expects to grow production in this area to over 2,500 boe/d within the next two or three years.

Plover Lake SAGD: Production from this area averaged 1,141 boe/d (100% oil) in the third quarter. The Company remains optimistic this project will reach expected production rates in excess of 2,000 boe/d.

FINANCIAL AND OPERATING HIGHLIGHTS

Three months ended Nine months ended
September June September September September
30, 2015 30, 2015 30, 2014 30, 2015 30, 2014
Financial ($000s,except as otherwise noted)
Oil and natural gas sales 101,853 134,567 170,471 342,459 528,941
Funds from operations(1) 38,850 58,481 60,046 157,391 167,301
Per share – diluted 0.35 0.54 0.64 1.46 1.98
Net income (loss) (55,693) (10,466) (53,734) (110,066) (70,130)
Per share – basic (0.51) (0.10) (0.59) (1.03) (0.85)
Per share – diluted (0.52) (0.10) (0.59) (1.03) (0.85)
Net debt(1) 372,409 366,508 394,363 372,409 394,363
Dividends declared 17,498 25,641 14,171 68,279 14,171
Per share 0.160 0.240 0.139 0.640 0.139
Capital expenditures 14,776 14,403 81,794 51,618 208,736
Weighted average shares outstanding (000s)
Basic 108,980 106,492 91,729 106,642 82,584
Diluted 110,506 108,643 93,548 108,169 84,403
Shares outstanding at period end (000s) 110,617 107,330 102,053 110,617 102,053
Operating
Average daily production
Heavy oil (bbl/d) 18,751 19,412 18,819 19,333 18,607
Light oil & NGL (bbl/d) 797 1,204 259 1,183 228
Natural gas (mcf/d) 5,384 5,894 7,203 5,885 7,116
Total (boe/d) 20,445 21,598 20,279 21,497 20,021
Average realized price
Heavy oil ($/bbl)(2) 40.99 55.70 81.45 45.41 81.95
Light oil & NGL ($/bbl) 52.88 62.97 93.47 53.83 96.84
Oil & NGL ($/bbl) 41.45 56.13 81.61 45.89 82.13
Natural gas ($/mcf) 2.96 2.53 4.00 2.75 4.75
Combined ($/boe) 40.45 54.23 78.21 44.56 78.95
Netbacks ($/boe)
Average realized price 40.45 54.23 78.21 44.56 78.95
Royalties (4.50) (6.20) (11.58) (4.98) (11.34)
Production and operating expenses (16.71) (17.41) (21.32) (16.77) (21.05)
Transportation expenses (1.56) (1.92) (2.03) (1.82) (1.91)
Operating netback(1) 17.68 28.70 43.28 20.99 44.65
Realized gains (losses) on financial 6.86 11.36
derivative contracts 9.07 (5.44) (6.73)
General and administrative expenses (2.29) (3.17) (2.76) (2.68) (2.98)
Cash finance costs (4.07) (4.03) (4.86) (4.10) (5.16)
Other 1.56 (0.23) 1.91 1.04 0.74
Funds from operations(1) 19.74 30.34 32.13 26.61 30.52

Read More: http://www.northernblizzard.com/uploads/Documents/nbri-news-2015-nov-12.pdf

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