Coelacanth Energy Inc. (TSXV: CEI) ("Coelacanth" or the "Company") announces that it has completed and tested 4 additional wells at its Two Rivers East Project including 3 Lower Montney Wells and 1 Upper Montney well on the 5-19 pad.
LOWER MONTNEY
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to announce the receipt of a cash refund of $7.9M from the Australian Tax Office under the Research Development (“R&D”) Tax Incentive Scheme.
The refund is related to eligible R&D activities in FY 2024 incurred on Daydream-2. A further refund is expected next year in connection with expenditure incurred in the current financial year.
A short term loan secured against the R&D tax refund has been repaid in full.
This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Elixir Energy (ASX:EXR) is a gas exploration and development company currently focused on its portfolio of natural gas assets in Queensland, Australia and Mongolia. As an early mover in both areas, Elixir Energy has been the first company ever to free-flow gas from the deep Taroom Trough in Queensland and flow gas of any description in Mongolia.
Elixir Energy’s Grandis Gas project in Queensland is located in the Taroom Trough in the Southern Bowen Basin, where Australia’s premier physical and commercial gas hub – Wallumbilla – is immediately adjacent. Market factors are now driving new rounds of drilling in the Taroom Trough contributing to its reputation as an emerging energy super basin with major electricity as well as gas infrastructure.
A successful free-flowing test was conducted on the Lorelle Sandstone and has indicated it could produce a commercial flow rate of gas, with the breakeven commercial initial flow rate estimated at 2.5 million cubic feet per day.Gas flow from Stage 1 Lorelle Sandstone post stimulation
Elixir Energy’s Nomgon coal-bed methane (CBM) project is located in Mongolia.
The Nomgon CBM project is in the South Gobi region of Mongolia and on the Chinese/Mongolian border. The ideal location of the asset provides access to excellent infrastructure, including planned pipelines and local mines as customers. The Nomgon project includes a CBM pilot production plant, which flowed gas in its early stages and is now moving to progressively de-water with a view to building up a sustained gas flow rate.
The company is led by a highly experienced team with direct histories in Queensland, Australia and Mongolia and expertise in the natural resources industry, community engagement and working with government stakeholders.
The company’s asset in Queensland, Australia, covers approximately 1,000 square kilometers in an established oil and gas province. The project is well-suited for cost-effective transportation to domestic and international gas markets.
Daydream-2 Lorelle Sandstone Flow Testing*
Elixir Energy’s 100-percent-owned coal-bed methane (CBM) project is ideally located in the South Gobi region of Mongolia. This location gives the asset access to robust local infrastructure and close access to Chinese energy markets – the world’s largest.
Richard Cottee was appointed as the non-executive chairman of the company on April 29, 2019. Cottee was the managing director of coal-seam-gas(CSG)-focused Queensland Gas Company (QGC) during its growth from a $20-million market capitalization junior explorer through to its acquisition by BG Group for $5.7 billion. QGC’s CSG assets are now operated by Shell and produce gas that is sold to China and other LNG markets.
Originally a lawyer, Cottee has spent the vast majority of his career in senior executive roles in the energy industry, including as CEO at CS Energy, NRG Europe, Central Petroleum and Nexus Energy. A 32-year veteran of the industry, Cottee is a strong business development professional and a graduate of The University of Queensland.
Neil Young was appointed to the board of Elixir on December 14, 2018, as its chief executive officer. Young has more than 20 years of experience in senior management positions in the upstream and downstream parts of the energy sector, focusing on business development, new ventures, gas marketing and general commercial functions. He has worked for a range of companies in the UK and Australia, including EY, Tarong Energy and Santos. Young founded Golden Horde Ltd in 2011 to explore gas on the Chinese border in Mongolia. He has also developed various new ventures in other countries including Kazakhstan, Japan and the USA. Young has an M.A. (Hons) joint degree in economics/politics from the University of Edinburgh.
Stephen Kelemen was appointed as the non-executive director of the company on May 6, 2019. Kelemen led Santos’ coal seam gas (CSG) team from its inception in 2004 and drove the growth in this area that allowed Santos to become one of Australia’s leading CSG companies.
An engineering graduate from Adelaide University, Kelemen served Santos for 38 years in multiple technical and leadership roles.
Kelemen is currently an adjunct professor at the University of Queensland’s Centre for Coal Seam Gas and also acts as a non-executive director on the boards of Galilee Energy (ASX:GLL) and Advent Energy.
Anna Sloboda was appointed as the non-executive director of the company on October 1, 2020. Sloboda is a joint Belarusian/Australian citizen and has more than 20 years of experience in corporate finance, and in developing junior resource companies operating around the world.
Sloboda is currently an executive director of Red Citadel Resources Pty Ltd, a privately owned mineral resources exploration company with a range of projects in Africa and South America.
She also serves as an advisory committee member, maritime archaeology, at the Western Australian Museum.
Previously she was a co-founder of Trans-Tasman Resources and in that capacity had substantial experience in dealing with Chinese off-takers and partners. Other prior employers include Lehman Brothers, Clough and Curtin University.
Sloboda has a Master of Economics from Belarusian University and an executive MBA from Melbourne Business School.
Victoria Allinson is a fellow of The Association of Certified Chartered Accountants, a fellow of the Governance Institute of Australia and an NSX-nominated advisor. She has more than 30 years of accounting and auditing experience, including senior accounting positions in a number of listed companies and was an audit manager for Deloitte Touche Tohmatsu. Allinson has gained professional experience while living and working in both Australia and the United Kingdom.
Her previous experience has included being company secretary and CFO for a number of listed companies, including ASX-listed: Kiland, Safety Medical Products, Marmota Limited, Centrex Metals, Adelaide Energy, Enterprise Energy NL, and Island Sky Australia as well as several unlisted companies.
Tracy Shuchart, CEO and founder of Hilltower Resource Advisors, discussed the growing need for all types of energy in the US, saying she's looking for opportunities in oil, natural gas, grid stocks and uranium juniors.
"I think 2025 is going to be a really good year for energy, absolutely," she said. "Not just because of the incoming administration that is very pro-energy and very-pro nuclear as well. But I think with this demand explosion that we're having it's going to be hard to keep ignoring that sector as people have over the last few years."
Looking at oil stocks, Shuchart said those who do their research will be able to find bargains outside the majors.
"The Exxon Mobils (NYSE:XOM), the Chevrons (NYSE:CVX) — they're always going to perform well. But if you want to take on a little bit more risk, you can look at some of those smaller producers that maybe haven't performed as well."
When it comes to natural gas, she said she's looking at midstream companies due to the growing need for pipelines.
Shuchart is also interested in grid stocks as power demand from artificial intelligence data centers increases.
Those include utilities companies like Southern Company (NYSE:SO), as well as equipment stocks like Siemens (OTC Pink:SMAWF,ETR:SIE), LG Electronics (KRX:066570) and Hitachi (TSE:6501).
In the uranium sector, Shuchart is focused on North American juniors.
"They've been underperforming some of the majors, but now that we've had uranium prices kind of hold this US$80, US$85 (per pound) area for a long enough time, that's enough money that they can be successful," she said.
Watch the interview above for more from Shuchart on those topics and more. You can also click here to view the Investing News Network's New Orleans Investment Conference playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Coelacanth Energy Inc. (TSXV: CEI) ("Coelacanth" or the "Company") announces that it has completed and tested 4 additional wells at its Two Rivers East Project including 3 Lower Montney Wells and 1 Upper Montney well on the 5-19 pad.
LOWER MONTNEY
The 3 new Lower Montney wells (F5-19, G5-19, H5-19) were drilled with an average horizontal length of 3,285 metres and completed with approximately 2.5 tons of sand per horizontal metre. The wells were placed on test for clean-up for an average of 7 days until a stabilized rate was achieved. The test rates noted below are based on the final 24 hours of each test.
The average rate achieved for the 3 new Lower Montney wells was 1,624 boepd per well comprised of 989 bbls per day of 41 API light sweet oil and 3.8 mmcf/d of liquids-rich gas. The rates per well are outlined in the table below:
Well | Oil - bbls/d | Gas - mmcf/d | Total - boe/d | % Light Oil |
F5-19 | 1,061 | 3.2 | 1,595 | 67 |
G5-19 | 900 | 4.0 | 1,573 | 57 |
H5-19 | 1,007 | 4.2 | 1,703 | 59 |
Average | 989 | 3.8 | 1,624 | 61 |
The overall rates and more specifically the oil rates were materially higher than the previous 3 wells on the pad (C5-19, D5-19 and E5-19) that achieved an average test rate of 1,338 boepd including 729 bbls/d of light oil and 3.7 mmcf/d of gas (see press release dated January 18, 2024 for more information including per well test results and initial production rates). Although the 3 new Lower Montney wells were drilled with slightly longer lateral lengths and the completion design was slightly modified in an attempt to increase the overall oil production, the tests have exceeded expectations.
UPPER MONTNEY
The Upper Montney well (B5-19) was drilled with a horizontal length of 2,647 metres and completed with approximately 2.5 tons of sand per horizontal metre. The well flowed on cleanup for 6 days and achieved a rate of 1,136 boepd comprised of 271 bbls/d of 40 API light oil and 5.2 mmcf/d of liquids-rich gas. In comparison to the Lower Montney Wells noted above, the B5-19 was 20% shorter in horizontal length and had 42% less frac stages leaving room for future optimization.
Management is very pleased with the B5-19 test result particularly the potential impact on Coelacanth's development inventory over its 150-section contiguous Montney land block. The Upper Montney is extensively mapped over Coelacanth's lands, but the impact of this test is amplified given it is a 10-mile step-out from Coelacanth's Two Rivers West project and 5 miles from the nearest competitor well.
INFRASTRUCTURE & TAKEAWAY
As previously disclosed, Coelacanth has secured long-term takeaway and processing for up to 60 mmcf/d of gas and is in process of constructing the required facilities and pipelines to handle the 5-19 and subsequent pads. Initial testing and start-up of the facility is anticipated for late April 2025.
Overall, Coelacanth believes this was a very significant second step in its development that has materially expanded the development fairway of the Upper Montney as well as increased the productivity of the Lower Montney that was already established as productive.
FOR FURTHER INFORMATION PLEASE CONTACT:
Coelacanth Energy Inc.
2110, 530 - 8th Ave SW
Calgary, Alberta T2P 3S8
Phone: 403-705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Oil and Gas Terms
The Company uses the following frequently recurring oil and gas industry terms in the news release:
Liquids | |
Bbls | Barrels |
Bbls/d | Barrels per day |
NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
Natural Gas | |
Mcf | Thousands of cubic feet |
Mcf/d | Thousands of cubic feet per day |
MMcf/d | Millions of cubic feet per day |
Oil Equivalent | |
Boe | Barrels of oil equivalent |
Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Product Types
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil refers to tight oil
NGLs refers to butane, propane and pentanes combined
Liquids refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent as described above.
Forward-Looking Information
This news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this document contains forward-looking statements and information relating to the Company's oil, NGLs and natural gas production and capital programs. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities and the availability and cost of labor and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Test Results and Initial Production Rates
The B5-19 Upper Montney well was production tested for 6.3 days and produced at an average rate of 92 bbl/d oil and 2,100 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The F5-19 Lower Montney well was production tested for 4.9 days and produced at an average rate of 728 bbl/d oil and 1,607 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The G5-19 Lower Montney well was production tested for 7.1 days and produced at an average rate of 415 bbl/d oil and 1,489 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure and production rates were stable.
The H5-19 Basal Montney well was production tested for 8.1 days and produced at an average rate of 411 bbl/d oil and 1,166 mcf/d gas (net of load fluid and energizing fluid) over that period which includes the initial cleanup where only load water was being recovered. At the end of the test, flowing wellhead pressure was stable and production was starting to decline.
A pressure transient analysis or well-test interpretation has not been carried out on these four wells and thus certain of the test results provided herein should be considered to be preliminary until such analysis or interpretation has been completed. Test results and initial production rates disclosed herein, particularly those short in duration, may not necessarily be indicative of long-term performance or of ultimate recovery.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232259
News Provided by Newsfile via QuoteMedia
Eric Nuttall, partner and senior portfolio manager at Ninepoint Partners, spoke to the Investing News Network about 2024 oil market trends and what's next for the sector heading into 2025.
While the past year has been tough overall, he believes the biggest challenge is sentiment.
"Nobody's here. Nobody cares. Nobody is aware of any of the bullish potential, because everybody is just focused on the narrative around, '(The market is) awash in oil and we're going to fall to US$60 (per barrel).' Or I even saw US$40 the other day. You've got to try to really tune out the noise," Nuttall explained during the conversation.
"I think given how underweight people are, given how strong balance sheets — ie. business models — are today, that even at US$70, which seems to be a reasonable price to triangulate around, we can still find opportunities," he added.
Nuttall is looking for companies that have paid down their debt and have strong free cashflow.
"The only thing to do with that free cashflow is to meaningfully buy back shares," he said. "If you look at the relationship between share buybacks and performance, it's like mission accomplished — there's a very strong linear relationship between the companies that have been most aggressively buying back their stock and the biggest outperformers."
Nuttall also said he sees investment potential outside oil stocks in the year ahead.
"We're looking for names with multi decades of inventory, because my belief is that the demand for hydrocarbons — oil, natural gas, coal — will grow longer and stronger than consensus believes," he said.
When asked about his final thoughts heading into 2025, Nuttall returned to sentiment.
"I think that's the biggest thing — sentiment is awful, fundamentals are not. Things are not perfect, but they're not nearly as bad as what consensus believes, and there's still money to be made in this sector," he finished.
Watch the interview above for more from Nuttall on oil supply, demand and prices in 2025.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
As announced MEC (ASX:MMR) has received written confirmation from the Australian Securities Exchange (“ASX”) that the Company’s shares will be reinstated to trading on the official list of ASX, subject to the satisfaction of certain conditions precedent. MEC have provided all of the information to ASX in order to satisfy the conditions precedent and will update the market accordingly once that confirmation is received.
PEP11 continues to be a primary focus of MECs investee Advent Energy Ltd and this focus has been validated by recent key energy reports, in particular the ACCC Gas Inquiry 2017-2030 Report released on 7 July 20241.
The ACCC Gas Inquiry report has stated:
Key further points
Asset Energy continues to progress the PEP11 joint venture applications for the variation and suspension of work program conditions and related extension of PEP11.
On 6th August 2024, Advent announced that Asset had filed an Originating Application for Judicial Review in the Federal Court seeking the following:
1. A declaration that the Commonwealth-New South Wales Offshore Petroleum Joint Authority has breached an implied duty by failing to make a decision under the Offshore Petroleum and Greenhouse Gas Storage Act 2006 (Cth) with respect to two pending applications relating to Petroleum Exploration Permit NSW–11 (PEP11 Permit); and
2. An order that the Joint Authority be compelled to determine the applications within 45 days2.
Asset alleged that the failure by the Joint Authority to make a decision with respect to the applications constitutes a breach of its duty to consider the applications within a reasonable time.
On 18 September 2024, Minister Husic, via NOPTA, gave Asset Energy (Advents subsidiary) a statement of preliminary views with attachments and invited Asset Energy to provide a response within 30 days. The statement of preliminary views included 45 annexures totaling 1608 pages. Asset Energy provided its response to NOPTA on 15 November 2024.
Following conferral between the parties to the Federal Court proceeding, on 9 October 2024 orders were made vacating the previous orders and adjourning the proceedings to a date on or after 7 February 2025. The parties have liberty to apply to bring the matter back before the Federal Court on 3 days’ notice.
Included in the material provided by Minister Husic was a copy of the NOPTA recommendation to the Joint Authority which recommended that the Joint Authority approve Asset’s second Application. In the NOPTA Annual Report of Activities 2020-21 it was noted that 54 applications for COVID-19 related suspensions and extensions were approved in that period. The company understands that the Second Application (for COVID-19 relief) made in respect of the PEP11 Permit was the only application outstanding.
Following the close of the MEC Entitlement Offer, the existing cash held by the Company, together with the funds raised under the Offer, and Shortfall Offer, the Company has approximately $3.36m (after costs of the offer) in cash. This ensures that the Company is adequately funded going forward and as set out in its Prospectus, the Company has developed a clearly defined business framework that covers its strategic goals to develop and commercialize its investments over the first two years following its Re-Instatement, as set out in the Prospectus dated. The Directors are satisfied that the Company will have sufficient working capital to carry out its objectives as stated in its Prospectus.
Click here for the Reinstatement to Quotation
Click here for the full ASX Release
This article includes content from MEC Resources, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Incoming US President Donald Trump has proposed the application of a 25 percent tariff on all imports from Canada and Mexico on his first day in office, sparking concerns over possible economic implications.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump posted on his Truth Social platform, adding that the move was spurred by worries over illegal drug imports and immigration.
Canada and Mexico are America's closest trading partners, with both being integral to the US-Mexico-Canada Agreement (USMCA). They account for significant portions of US imports in critical sectors, from energy to automobiles.
Analysts are already predicting widespread economic disruption if the tariffs are implemented, with Canadian and Mexican leaders raising concerns about the implications for trade relations and resource exports.
Canada exported US$587 billion in goods globally in 2022, relying heavily on the US as its primary trading partner. In total, 74.5 percent of the country’s exports are destined for the US market.
Overall, the country's top exports for that year included crude petroleum (US$123 billion), cars (US$29.4 billion), petroleum gas (US$24.3 billion) and refined petroleum (US$17.2 billion).
Canadian crude oil alone accounts 62 percent of US crude imports. Canadian officials argue that tariffs on such goods could disrupt supply chains and inflate costs for businesses and consumers across North America.
Mexico also has a strong trade relationship with the US, exporting US$421 billion worth of goods to the country. Its overall top exports include cars (US$48.4 billion), computers (US$39.3 billion) and crude petroleum (US$38.2 billion).
Canadian responses to Trump’s comments focus on the economic losses for all parties involved.
Deputy Prime Minister Chrystia Freeland and Public Safety Minister Dominic LeBlanc issued a joint statement on X, formerly Twitter, emphasizing the importance of maintaining the integrity of cross-border trade.
"Canada and the United States have one of the strongest and closest relationships — particularly when it comes to trade and border security. Canada places the highest priority on border security and the integrity of our shared border,” they said in a post issued on Monday (November 25).
Read the joint statement from @cafreeland and me:
— Dominic LeBlanc (@DLeBlancNB) November 26, 2024
//
Lisez la déclaration conjointe de @cafreeland et moi: pic.twitter.com/g9unlJrOEe
Prime Minister Justin Trudeau also addressed the issue, revealing that he had spoken with Trump to stress the significance of the USMCA in fostering stable trade relations.
"This is a relationship that we know takes a certain amount of working on, and that's what we'll do," he said.
Mexican President Claudia Sheinbaum echoed this cautionary sentiment, saying, "To one tariff will follow another in response and so on, until we put our common businesses at risk."
The automotive sector in particular stands out as a critical area of concern. The US imports the majority of its cars and car parts from Canada and Mexico, with Mexico surpassing China as the top exporter to the US in 2023.
The tariffs could lead to increased vehicle prices and production delays, impacting automakers and consumers alike.
The proposed tariffs come at a time when US businesses are already grappling with inflationary pressures and labor shortages. Analysts warn that additional tariffs could exacerbate these challenges by driving up costs.
The Peterson Institute for International Economics estimates that Trump’s broader tariff proposals could cost the average US household over US$2,600 annually, a figure that may rise further with the inclusion of Canada and Mexico.
The potential impact on currency markets has also been noted.
Following Trump’s announcement, the Canadian dollar and Mexican peso both experienced immediate declines against the US dollar, although partial recoveries were observed in subsequent trading sessions.
As the US’ trade partners seek to establish a compromise, analysts are warning that the economic costs of such tariffs could extend beyond North America, impacting further global supply chains and consumer markets.
The coming months are likely to see intensified discussions between US, Canadian and Mexican officials as they seek to establish a middle ground to avoid an all-out breakdown in their relationship.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Coelacanth Energy Inc. (TSXV: CEI) ("Coelacanth" or the "Company") is pleased to announce its financial and operating results for the three and nine months ended September 30, 2024. All dollar figures are Canadian dollars unless otherwise noted.
FINANCIAL RESULTS | Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | |||||||||||||||||
($000s, except per share amounts) | 2024 | 2023 | % Change | 2024 | 2023 | % Change | ||||||||||||
Oil and natural gas sales | 2,362 | 679 | 248 | 9,192 | 2,459 | 274 | ||||||||||||
Cash flow used in operating activities | (3,730 | ) | (2,553 | ) | 46 | (954 | ) | (3,830 | ) | (75 | ) | |||||||
Per share - basic and diluted (1) | (0.01 | ) | (0.01 | ) | - | (-) | (0.01 | ) | (100 | ) | ||||||||
Adjusted funds flow (used) (1) | (207 | ) | (773 | ) | (73 | ) | 1,133 | (2,083 | ) | (154 | ) | |||||||
Per share - basic and diluted | (-) | (-) | - | - | (-) | - | ||||||||||||
Net loss | (2,464 | ) | (1,869 | ) | 32 | (5,994 | ) | (5,823 | ) | 3 | ||||||||
Per share - basic and diluted | (-) | (-) | - | (0.01 | ) | (0.01 | ) | - | ||||||||||
Capital expenditures (1) | 15,760 | 31,176 | (49 | ) | 19,545 | 39,957 | (51 | ) | ||||||||||
Adjusted working capital (1) | 47,264 | 23,516 | 101 | |||||||||||||||
Common shares outstanding (000s) | ||||||||||||||||||
Weighted average - basic and diluted | 530,212 | 426,476 | 24 | 529,605 | 425,685 | 24 | ||||||||||||
End of period - basic | 530,267 | 426,670 | 24 | |||||||||||||||
End of period - fully diluted | 617,214 | 469,781 | 31 | |||||||||||||||
(1) See "Non-GAAP and Other Financial Measures" section. |
OPERATING RESULTS (1) | Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30 | September 30 | |||||||||||||||||
2024 | 2023 | % Change | 2024 | 2023 | % Change | |||||||||||||
Daily production (2) | ||||||||||||||||||
Oil and condensate (bbls/d) | 221 | 39 | 467 | 268 | 46 | 483 | ||||||||||||
Other NGLs (bbls/d) | 33 | 7 | 371 | 36 | 12 | 200 | ||||||||||||
Oil and NGLs (bbls/d) | 254 | 46 | 452 | 304 | 58 | 424 | ||||||||||||
Natural gas (mcf/d) | 3,450 | 929 | 271 | 3,702 | 1,208 | 206 | ||||||||||||
Oil equivalent (boe/d) | 829 | 201 | 313 | 921 | 259 | 256 | ||||||||||||
Oil and natural gas sales | ||||||||||||||||||
Oil and condensate ($/bbl) | 89.68 | 99.00 | (9 | ) | 90.88 | 93.73 | (3 | ) | ||||||||||
Other NGLs ($/bbl) | 31.39 | 28.07 | 12 | 33.20 | 33.97 | (2 | ) | |||||||||||
Oil and NGLs ($/bbl) | 82.10 | 88.43 | (7 | ) | 84.00 | 81.69 | 3 | |||||||||||
Natural gas ($/mcf) | 1.41 | 3.60 | (61 | ) | 2.16 | 3.58 | (40 | ) | ||||||||||
Oil equivalent ($/boe) | 30.99 | 36.85 | (16 | ) | 36.41 | 34.83 | 5 | |||||||||||
Royalties | ||||||||||||||||||
Oil and NGLs ($/bbl) | 15.52 | 20.08 | (23 | ) | 19.73 | 22.51 | (12 | ) | ||||||||||
Natural gas ($/mcf) | 0.06 | 0.79 | (92 | ) | 0.23 | 0.82 | (72 | ) | ||||||||||
Oil equivalent ($/boe) | 5.02 | 8.26 | (39 | ) | 7.44 | 8.82 | (16 | ) | ||||||||||
Operating expenses | ||||||||||||||||||
Oil and NGLs ($/bbl) | 10.07 | 18.92 | (47 | ) | 10.10 | 17.68 | (43 | ) | ||||||||||
Natural gas ($/mcf) | 1.68 | 3.17 | (47 | ) | 1.68 | 2.95 | (43 | ) | ||||||||||
Oil equivalent ($/boe) | 10.07 | 18.98 | (47 | ) | 10.10 | 17.68 | (43 | ) | ||||||||||
Net transportation expenses (3) | ||||||||||||||||||
Oil and NGLs ($/bbl) | 2.36 | 2.40 | (2 | ) | 2.30 | 1.86 | 24 | |||||||||||
Natural gas ($/mcf) | 0.76 | 1.40 | (46 | ) | 0.72 | 1.36 | (47 | ) | ||||||||||
Oil equivalent ($/boe) | 3.91 | 7.05 | (45 | ) | 3.65 | 6.76 | (46 | ) | ||||||||||
Operating netback (loss) (3) | ||||||||||||||||||
Oil and NGLs ($/bbl) | 54.15 | 47.03 | 15 | 51.87 | 39.64 | 31 | ||||||||||||
Natural gas ($/mcf) | (1.09 | ) | (1.76 | ) | (38 | ) | (0.47 | ) | (1.55 | ) | (70 | ) | ||||||
Oil equivalent ($/boe) | 11.99 | 2.56 | 368 | 15.22 | 1.57 | 869 | ||||||||||||
Depletion and depreciation ($/boe) | (14.89 | ) | (21.33 | ) | (30 | ) | (14.71 | ) | (18.24 | ) | (19 | ) | ||||||
General and administrative expenses ($/boe) | (12.51 | ) | (47.09 | ) | (73 | ) | (13.90 | ) | (46.70 | ) | (70 | ) | ||||||
Share based compensation ($/boe) | (13.81 | ) | (34.70 | ) | (60 | ) | (12.72 | ) | (32.12 | ) | (60 | ) | ||||||
Finance expense ($/boe) | (2.71 | ) | (9.61 | ) | (72 | ) | (1.72 | ) | (5.27 | ) | (67 | ) | ||||||
Finance income ($/boe) | 9.54 | 37.32 | (74 | ) | 10.03 | 29.26 | (66 | ) | ||||||||||
Unutilized transportation ($/boe) | (9.94 | ) | (28.44 | ) | (65 | ) | (5.96 | ) | (10.95 | ) | (46 | ) | ||||||
Net loss ($/boe) | (32.33 | ) | (101.29 | ) | (68 | ) | (23.76 | ) | (82.45 | ) | (71 | ) | ||||||
(1) See "Oil and Gas Terms" section. | ||||||||||||||||||
(2) See "Product Types" section. | ||||||||||||||||||
(3) See "Non-GAAP and Other Financial Measures" section. | ||||||||||||||||||
Selected financial and operational information outlined in this news release should be read in conjunction with Coelacanth's unaudited condensed interim financial statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2024, which are available for review under the Company's profile on SEDAR+ at www.sedarplus.com. |
OPERATIONS UPDATE
In Q3 2024, Coelacanth started the construction of its planned $80.0 million infrastructure project that includes over 35 kilometers of pipelines and a facility to handle current behind pipe volumes and future expansions. Ultimately the facility will be able to handle approximately 16,000 boe/d of which Coelacanth has approximately 4,400 boe/d tested but shut-in at the 5-19 Two Rivers East pad. The infrastructure is expected to be operational by mid-April 2025. Funding for this project is from cash on hand of approximately $64 million at the inception of the project plus up to $27.0 million from a mid-stream company that will fund the pipeline connection to its area gathering lines upon achievement of certain project milestones.
An additional four Montney wells are currently being completed and tested on the 5-19 pad which will add additional capacity to be brought on once the facility is operational. Debt financing of $52.0 million was secured subsequent to the quarter through two revolving bank credit facilities with $35.0 million currently being invested in the four new Montney wells noted plus a water disposal well.
Although the construction and start-up of the Two Rivers East project is a huge step in Coelacanth's development, we believe we are just scratching the surface on what the potential of this large Montney asset base may ultimately be able to perform.
We look forward to reporting updates on the Two Rivers East project in the upcoming quarters.
OIL AND GAS TERMS
The Company uses the following frequently recurring oil and gas industry terms in the news release:
Liquids | |
Bbls | Barrels |
Bbls/d | Barrels per day |
NGLs | Natural gas liquids (includes condensate, pentane, butane, propane, and ethane) |
Condensate | Pentane and heavier hydrocarbons |
Natural Gas | |
Mcf | Thousands of cubic feet |
Mcf/d | Thousands of cubic feet per day |
MMcf/d | Millions of cubic feet per day |
MMbtu | Million of British thermal units |
MMbtu/d | Million of British thermal units per day |
Oil Equivalent | |
Boe | Barrels of oil equivalent |
Boe/d | Barrels of oil equivalent per day |
Disclosure provided herein in respect of a boe may be misleading, particularly if used in isolation. A boe conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent has been used for the calculation of boe amounts in the news release. This boe conversion rate is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
NON-GAAP AND OTHER FINANCIAL MEASURES
This news release refers to certain measures that are not determined in accordance with IFRS (or "GAAP"). These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered alternatives to, or more meaningful than, financial measures that are determined in accordance with IFRS as indicators of the Company's performance. Management believes that the presentation of these non-GAAP and other financial measures provides useful information to shareholders and investors in understanding and evaluating the Company's ongoing operating performance, and the measures provide increased transparency to better analyze the Company's performance against prior periods on a comparable basis.
Non-GAAP Financial Measures
Adjusted funds flow (used)
Management uses adjusted funds flow (used) to analyze performance and considers it a key measure as it demonstrates the Company's ability to generate the cash necessary to fund future capital investments and abandonment obligations and to repay debt, if any. Adjusted funds flow (used) is a non-GAAP financial measure and has been defined by the Company as cash flow from (used in) operating activities excluding the change in non-cash working capital related to operating activities, movements in restricted cash deposits and expenditures on decommissioning obligations. Management believes the timing of collection, payment or incurrence of these items involves a high degree of discretion and as such may not be useful for evaluating the Company's cash flows. Adjusted funds flow (used) is reconciled from cash flow from (used in) operating activities as follows:
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
($000s) | 2024 | 2023 | 2024 | 2023 | ||||||||
Cash flow used in operating activities | (3,730 | ) | (2,553 | ) | (954 | ) | (3,830 | ) | ||||
Add (deduct): | ||||||||||||
Decommissioning expenditures | 790 | 925 | 1,266 | 1,677 | ||||||||
Change in restricted cash deposits | 2,139 | - | 2,985 | (784 | ) | |||||||
Change in non-cash working capital | 594 | 855 | (2,164 | ) | 854 | |||||||
Adjusted funds flow (used) (non-GAAP) | (207 | ) | (773 | ) | 1,133 | (2,083 | ) |
Net transportation expenses
Management considers net transportation expenses an important measure as it demonstrates the cost of utilized transportation related to the Company's production. Net transportation expenses is calculated as transportation expenses less unutilized transportation and is calculated as follows:
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
($000s) | 2024 | 2023 | 2024 | 2023 | ||||||||
Transportation expenses | 1,055 | 654 | 2,426 | 1,250 | ||||||||
Unutilized transportation | (757 | ) | (525 | ) | (1,504 | ) | (773 | ) | ||||
Net transportation expenses (non-GAAP) | 298 | 129 | 922 | 477 |
Operating netback
Management considers operating netback an important measure as it demonstrates its profitability relative to current commodity prices. Operating netback is calculated as oil and natural gas sales less royalties, operating expenses, and net transportation expenses and is calculated as follows:
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
($000s) | 2024 | 2023 | 2024 | 2023 | ||||||||
Oil and natural gas sales | 2,362 | 679 | 9,192 | 2,459 | ||||||||
Royalties | (383 | ) | (152 | ) | (1,878 | ) | (623 | ) | ||||
Operating expenses | (767 | ) | (350 | ) | (2,549 | ) | (1,249 | ) | ||||
Net transportation expenses | (298 | ) | (129 | ) | (922 | ) | (477 | ) | ||||
Operating netback (non-GAAP) | 914 | 48 | 3,843 | 110 |
Capital expenditures
Coelacanth utilizes capital expenditures as a measure of capital investment on property, plant, and equipment, exploration and evaluation assets and property acquisitions compared to its annual budgeted capital expenditures. Capital expenditures are calculated as follows:
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
($000s) | 2024 | 2023 | 2024 | 2023 | ||||||||
Capital expenditures - property, plant, and equipment | 396 | 15,785 | 973 | 22,344 | ||||||||
Capital expenditures - exploration and evaluation assets | 15,364 | 15,391 | 18,572 | 17,613 | ||||||||
Capital expenditures (non-GAAP) | 15,760 | 31,176 | 19,545 | 39,957 |
Capital Management Measures
Adjusted working capital
Management uses adjusted working capital as a measure to assess the Company's financial position. Adjusted working capital is calculated as current assets and restricted cash deposits less current liabilities, excluding the current portion of decommissioning obligations.
($000s) | September 30, 2024 | December 31, 2023 | ||||
Current assets | 49,905 | 87,616 | ||||
Less: | ||||||
Current liabilities | (14,235 | ) | (28,754 | ) | ||
Working capital | 35,670 | 58,862 | ||||
Add: | ||||||
Restricted cash deposits | 10,001 | 6,784 | ||||
Current portion of decommissioning obligations | 1,593 | 1,943 | ||||
Adjusted working capital (Capital management measure) | 47,264 | 67,589 |
Non-GAAP Financial Ratios
Adjusted Funds Flow (Used) per Share
Adjusted funds flow (used) per share is a non-GAAP financial ratio, calculated using adjusted funds flow (used) and the same weighted average basic and diluted shares used in calculating net loss per share.
Net transportation expenses per boe
The Company utilizes net transportation expenses per boe to assess the per unit cost of utilized transportation related to the Company's production. Net transportation expenses per boe is calculated as net transportation expenses divided by total production for the applicable period.
Operating netback per boe
The Company utilizes operating netback per boe to assess the operating performance of its petroleum and natural gas assets on a per unit of production basis. Operating netback per boe is calculated as operating netback divided by total production for the applicable period.
Supplementary Financial Measures
The supplementary financial measures used in this news release (primarily average sales price per product type and certain per boe and per share figures) are either a per unit disclosure of a corresponding GAAP measure, or a component of a corresponding GAAP measure, presented in the financial statements. Supplementary financial measures that are disclosed on a per unit basis are calculated by dividing the aggregate GAAP measure (or component thereof) by the applicable unit for the period. Supplementary financial measures that are disclosed on a component basis of a corresponding GAAP measure are a granular representation of a financial statement line item and are determined in accordance with GAAP.
PRODUCT TYPES
The Company uses the following references to sales volumes in the news release:
Natural gas refers to shale gas
Oil and condensate refers to condensate and tight oil combined
Other NGLs refers to butane, propane and ethane combined
Oil and NGLs refers to tight oil and NGLs combined
Oil equivalent refers to the total oil equivalent of shale gas, tight oil, and NGLs combined, using the conversion rate of six thousand cubic feet of shale gas to one barrel of oil equivalent.
The following is a complete breakdown of sales volumes for applicable periods by specific product types of shale gas, tight oil, and NGLs:
Three Months Ended | Nine Months Ended | |||||||||||
September 30 | September 30 | |||||||||||
Sales Volumes by Product Type | 2024 | 2023 | 2024 | 2023 | ||||||||
Condensate (bbls/d) | 33 | 4 | 36 | 6 | ||||||||
Other NGLs (bbls/d) | 33 | 7 | 36 | 12 | ||||||||
NGLs (bbls/d) | 66 | 11 | 72 | 18 | ||||||||
Tight oil (bbls/d) | 188 | 35 | 232 | 40 | ||||||||
Condensate (bbls/d) | 33 | 4 | 36 | 6 | ||||||||
Oil and condensate (bbls/d) | 221 | 39 | 268 | 46 | ||||||||
Other NGLs (bbls/d) | 33 | 7 | 36 | 12 | ||||||||
Oil and NGLs (bbls/d) | 254 | 46 | 304 | 58 | ||||||||
Shale gas (mcf/d) | 3,450 | 929 | 3,702 | 1,208 | ||||||||
Natural gas (mcf/d) | 3,450 | 929 | 3,702 | 1,208 | ||||||||
Oil equivalent (boe/d) | 829 | 201 | 921 | 259 |
FORWARD-LOOKING INFORMATION
This document contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "should", "believe", "intends", "forecast", "plans", "guidance" and similar expressions are intended to identify forward-looking statements or information.
More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's oil and condensate, other NGLs, and natural gas production, capital programs, and adjusted working capital. The forward-looking statements and information are based on certain key expectations and assumptions made by the Company, including expectations and assumptions relating to prevailing commodity prices and exchange rates, applicable royalty rates and tax laws, future well production rates, the performance of existing wells, the success of drilling new wells, the availability of capital to undertake planned activities, and the availability and cost of labour and services.
Although the Company believes that the expectations reflected in such forward-looking statements and information are reasonable, it can give no assurance that such expectations will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with the oil and gas industry in general such as operational risks in development, exploration and production, delays or changes in plans with respect to exploration or development projects or capital expenditures, the uncertainty of estimates and projections relating to production rates, costs, and expenses, commodity price and exchange rate fluctuations, marketing and transportation, environmental risks, competition, the ability to access sufficient capital from internal and external sources and changes in tax, royalty, and environmental legislation. The forward-looking statements and information contained in this document are made as of the date hereof for the purpose of providing the readers with the Company's expectations for the coming year. The forward-looking statements and information may not be appropriate for other purposes. The Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Coelacanth is an oil and natural gas company, actively engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in northeastern British Columbia, Canada.
Further Information
For additional information, please contact:
Coelacanth Energy Inc.
Suite 2110, 530 - 8th Avenue SW
Calgary, Alberta T2P 3S8
Phone: (403) 705-4525
www.coelacanth.ca
Mr. Robert J. Zakresky
President and Chief Executive Officer
Mr. Nolan Chicoine
Vice President, Finance and Chief Financial Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230803
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