Press release from Marketwire
Nordic Oil and Gas Announces Financial Results; Revenue Up 29%
Monday, April 30, 2012
Nordic Oil and Gas Announces Financial Results; Revenue Up 29%20:22 EDT Monday, April 30, 2012WINNIPEG, MANITOBA--(Marketwire - April 30, 2012) - Nordic Oil and Gas Ltd. (TSX VENTURE:NOG), today announced the Company's financial results from operations for its fourth quarter and year ended December 31, 2011. All amounts referenced herein are in Canadian dollars. Financial Results Revenue from oil and natural gas sales (including liquids and transport revenue) for the 12 months ended December 31, 2011 totalled $1,035,295, as opposed to $806,064 for the year ended December 31, 2010, an increase of approximately 29%. When adding interest income, revenue for the 12 months ended December 31, 2011 totalled $1,038,732, an increase of some $226,469, versus the 2010 total of $512,263. The primary reason for the increase was the strength of the Company's new gas well at Lloydminster, which is producing at a rate of approximately 65 BOEs/d.Revenue for the fourth quarter of 2011 totalled $223,993 down slightly from the $285,954 reported during the fourth quarter of 2010. When adding interest, total revenue for the fourth quarter this year was $224,703 versus $288,206 for the three months ended December 31, 2010. The primary reason for the slight decrease in revenue for the quarter was the fact that the Company's natural gas wells at Joffre, Alberta were not on production for the entire quarter.Total assets, including cash, short-term investments, accounts receivable, property and equipment and other assets (deposits), for the year ended December 31, 2011 were $13,797,699, up slightly from $13,538,405 at December 31, 2010, but down from the January 1, 2010 total of $17,357,549. The primary reason for the decrease in assets from January 1, 2010 to December 31, 2011 was as a result of the sale of property and equipment related to the disposition of a 66 2/3% interest in the Company's Lloydminster property. As a result, total P & NG assets dropped from $16,168,787 at the end of 2009 to $12,093,561 at the end of 2010.Overall expenses for the year ended December 31, 2011 totalled $2,449,320, an increase of more than $300,000 from the $2,131,304 at December 31, 2010. The primary reason for the increase year over year was the increase in Depletion, Depreciation and Impairment, which was up approximately $464,000 and the increase in legal costs, which rose to $289,545 in 2011 versus $132,020. This increase in legal costs is attributed to the litigation regarding the Joffre lands. However, there was a decrease of approximately $170,000 in General and Administrative costs, along with a decrease of production & operating costs of approximately $130,000 due to the fact that several wells were down during the 4th quarter.Total expenses for the quarter ended December 31, 2011 totalled $461,953 down approximately $380,000 from the 2010 fourth quarter total of $844,136. Production and operating expenses were down approximately $60,000 compared to the fourth quarter of 2010: $111,367 this year compared to $470,542 for the fourth quarter of 2010. The main reason for the drop in expenses this quarter was the decrease in depletion, amortization & impairment to $53,818 from $203,801 during the fourth quarter of 2010, and, the fact that in the fourth quarter of 2010, there was a stock based compensation charge of $164,346, as opposed to no charge during the fourth quarter ended December 31, 2011.The net comprehensive loss for the three months ended December 31, 2011 before income taxes was ($620,404), a significant improvement over the loss of ($1,227,594) recorded during the same period a year ago. For the year ended December 31, 2011, the net comprehensive loss before taxes was ($1,894,101), again, a significant improvement when compared to the loss of ($3,794,503) for the year ended December 31, 2010. When applying deferred taxes to the 12-months total, the 2011 loss was ($1,896,268), compared to a loss of ($3,342,986) for the year ended December 31, 2010. Production Highlights Average production volume for gas for the year ended December 31, 2011 was 7.03 103m3/day or 270.74 GJ/day, compared to 4.02 103m3/day or 154.72 GJ/day in 2010. This equates to approximately 46 BOEs/d in 2011, versus 25 BOEs/d last year. The Company received $3.12/GJ as a weighted average gas price during the year under review compared to $3.82/GJ last year. During most of the second half of 2011, the Company shut-in its natural gas wells at Joffre due to continued low prices for gas, however the new gas well at Lloydminster, which was placed on production in September 2011, remains on production and has been producing up to 65 BOEs/d.Average production volume for gas for the three months ended December 31, 2011 was 6.12 103m3/day or 204.14 GJ/day compared to 5.30/103m3/day or 204.14 GJ/day during the fourth quarter last year. This year's total equates to approximately 42 BOES/d for the quarter versus 33 BOES/day for the same period in 2010. The increase in production from the Company's gas wells in the fourth quarter is due to the fact the new well at Lloydminster was on production.The Company received $2.67/GJ as a weighted average gas price during the fourth quarter of 2010 compared to $3.82/GJ for the fourth quarter last year.Average daily heavy oil production for the year ended December 31, 2011 was approximately 29 BOPD, with an average price received of $67.68 per barrel. This compares to an average volume of 37 BOPD with an average price of $64.53 for the year ended December 31, 2010. For the fourth quarter of 2011, average daily heavy oil production was approximately 25 BOPD, with an average price received of $74.72 per barrel. This compares to approximately 35 barrels of oil produced per day in the fourth quarter of 2010 and an average net price per barrel of $65.15. Oil production was impacted due to the fact that the heavy oil wells at Lloydminster were shut-in at various times during the year for ongoing maintenance. Average resulting netbacks for the year totalled $24.75. About Nordic Oil and Gas Ltd .Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation's management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.* The term BOEs may be misleading, particularly if used in isolation. A BOES conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.FOR FURTHER INFORMATION PLEASE CONTACT: Don BainNordic Oil and Gas Ltd.Corporate Secretary204-943-1810204-943-1829 (FAX)firstname.lastname@example.orgTwitter: www.twitter.com/Nordic_OilNeither 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 the contents of this News Release.