4/3/2006 10:32:39 AM ET News Release Index
Rolling Thunder announces financial and operating results for the three and nine months ended January 31, 2006
CALGARY, Apr 3, 2006 (Canada NewsWire via COMTEX) --
The new Rolling Thunder Exploration Ltd. ("Rolling Thunder" or the "Corporation") (TSX-V: ROL.A, ROL.B; OTC Pink Sheets: RTHXF) was created on January 12, 2006, through the amalgamation of Rolling Thunder and San Telmo Energy Ltd. ("San Telmo"). The Corporation is pleased to report the unaudited interim consolidated financial and operating results for the new amalgamated entity for the three and nine month periods ended January 31, 2006.
<< CONSOLIDATED RESULTS HIGHLIGHTS Consolidated Financial Three months ended Nine months ended Results January 31, January 31, ($ thousands) 2006 2005 2006 2005 ------------------------------------------------------------------------- Petroleum and natural gas revenues 2,551.9 1,651.8 7,770.6 3,587.2 Royalties (783.3) (514.3) (2,086.6) (946.8) Other revenues 17.8 44.3 41.9 65.0 Revenues, net of royalties 1,786.4 1,181.8 5,725.9 2,705.4 Net income (loss) 369.7 (471.2) 1,114.6 (1,381.6) Capital expenditures 2,635.4 1,230.5 5,238.4 2,632.4 Working capital surplus (deficiency) (562.6) (2,446.5) (562.6) (2,446.5) Total assets 22,898.6 8,826.3 22,898.6 8,826.3 Long-term liabilities 393.0 266.7 393.0 266.7 Cash flow from operations(1) 771.7 385.8 3,175.7 948.9 ------------------------------------------------------------------------- ($ per share) ------------------------------------------------------------------------- Net income (loss) Basic 0.01 (0.02)(2) 0.05 (0.06)(2) Diluted 0.01 (0.02)(2) 0.05 (0.06)(2) Cash flow from operations(1) Basic 0.03 0.02(2) 0.14 0.04(2) Diluted 0.03 0.02(2) 0.14 0.04(2) ------------------------------------------------------------------------- Shares outstanding Common shares - 44,468,502 - 44,468,502 Class A common shares 29,037,570 - 29,037,570 - Class B common shares 810,000 - 810,000 - Weighted average number of shares outstanding for the period Basic 25,303,609 22,234,251(2) 23,250,228 21,605,120(2) Diluted 25,465,404 22,234,251(2) 23,409,924 21,605,120(2) ------------------------------------------------------------------------- (1) Cash flow from operations is a non-GAAP measure and is calculated by adding/subtracting operating change in working capital. Cash flow from operations reports the Corporation's ability to generate cash from operations after interest and taxes and excludes the impact of changes in the Corporation's non-cash working capital related to operating activities. (2) The previously reported weighted average number of shares outstanding, both basic and diluted, for the three and nine months ended January 31, 2005 were 44,468,502 shares and 43,210,241 shares, respectively. 2005 per share amounts and weighted average number of shares have been retroactively adjusted to reflect the effect of the issue of one Class A common share for two common shares, upon amalgamation. Consolidated Three months ended Nine months ended Operating January 31, January 31, Results 2006 2005 2006 2005 ------------------------------------------------------------------------- Daily sales volumes Oil (bbls/d) 64 84 85 81 NGLs (bbls/d) 61 16 34 9 Natural gas (mcf/d) 2,036 2,008 2,460 1,334 Barrels of oil equivalent (boe/d) 464 434 529 313 Average prices received Oil ($/bbl) 60.73 50.64 61.58 50.61 NGLs ($/bbl) 16.73 40.93 30.42 39.85 Natural gas ($/mcf) 11.22 6.71 9.01 6.51 Barrels of oil equivalent ($/boe) 59.79 43.02 53.78 42.07 Operating netback per boe ($) Petroleum and natural gas revenues 59.79 43.02 53.78 42.07 Royalties 18.35 11.18 14.44 11.09 Operating expenses 5.84 11.51 6.11 8.83 Transportation expense 1.94 0.90 2.01 1.04 Operating netback 33.66 19.43 31.22 21.11 Wells drilled(1) Gross (net) drilled 2.0(2.0) - 5.0(4.5) 1.0(1.0) Gross (net) successful drilled 1.0(1.0) - 3.0(3.0) 1.0(1.0) Gross (net) drilled and abandoned 1.0(1.0) - 2.0(1.5) - ------------------------------------------------------------------------- Success rate (percent) 50.0 - 60.0 100.0 ------------------------------------------------------------------------- (1) Wells drilled reflect post-amalgamation numbers. Financial Results Highlights - Revenues increased by 54% for the three months ended January 31, 2006 and by 117% for the nine months ended January 31, 2006 compared to the same periods in 2005. - Cash flow from operations increased by 100% for the three months and by 235% for the nine months ended January 31, 2006 compared to the same periods in 2005. - On a per share basis, cash flow from operations increased to $0.14 per share from $0.04 per share for the nine months ended January 31, 2006 compared to the nine months ended January 31, 2005. - The Corporation reported net income of $369,657 and $1,114,558 for the three and nine months ended January 31, 2006 respectively compared to a net loss of $471,207 and $1,381,589 for the same periods in 2005. - On a per share basis, the Corporation reported net income of $0.05 per share, basic and diluted, for the nine months ended January 31, 2006 compared to a net loss of $0.06 per share, basic and diluted, for the same period in 2005. - Average daily sales volumes increased by 7% over the quarter and by 69% for the nine months ended January 31, 2006 compared to prior year. - Operating netbacks increased by 73% and 48% for the quarter and nine months ended January 31, 2006 respectively compared to 2005. Operational Highlights and Accomplishments - In June 2005, Rolling Thunder closed its initial public offering for $12.0 million. The Corporation began trading on the TSX Venture Exchange ("TSX-V") under the symbols ROL.A and ROL.B in July 2005. - In September 2005, Rolling Thunder committed to two wells at Gold Creek and Boundary Lake on its initial four Farm-in Agreements. - In October 2005, Rolling Thunder negotiated a fifth Farm-in Agreement with an independent Canadian oil and gas company on four sections of land in the Teepee Creek area, and committed to the drilling of one well. - Through the summer and fall of 2005, three wells were drilled, one at Legal which was abandoned, one at Teepee Creek which was cased and completed, and one at Gordondale which was cased. - On November 1, 2005, the Arrangement Agreement between Rolling Thunder and San Telmo was announced. - In mid-November 2005, Rolling Thunder negotiated the Ensign down-spacing and Farm-in Agreement on six sections of land in Southern Alberta. The opportunity was contingent on obtaining quarter-section down-spacing approval. The EUB recommended that Rolling Thunder proceed in two stages: firstly, half-section down-spacing and thereafter, quarter-section down-spacing. The agreement is being revised to reflect the EUB's recommendations. - In December 2005, Rolling Thunder initiated its winter drilling program. Four wells were drilled, of which two were cased, one each at Gold Creek and Teepee Creek, and two were abandoned. - From July to December 2005, the Corporation added 3,520 acres (net) to its land holdings through crown land purchases at Gold Creek, Boundary Lake, Teepee Creek and Woking. - On January 12, 2006, Rolling Thunder completed the amalgamation with San Telmo and on January 17, 2006, the new Rolling Thunder recommenced trading on the TSX-V under the symbols ROL.A and ROL.B. - Average sales production for the month of January 2006 was 400 boe/d. Rolling Thunder estimates an additional 150 boe/d behind pipe in the Teepee Creek area. At McLeod, production has been temporarily curtailed by 60 boe/d due to infrastructure constraints imposed by a third party operator. - On January 20, 2006, Rolling Thunder tied in the Teepee Creek 08-03 well that was drilled in the summer of 2005. The well began production at rates as high as 3 mmcf/d but was shut-in due to water from a suspected uphole zone. The Corporation is scheduled to commence remedial work in early April 2006. - In late January 2006, Rolling Thunder added one and three quarter sections of land at McLeod directly offsetting the Corporation's existing production. - In February 2006, Rolling Thunder renegotiated credit facilities of $6.5 million with the National Bank. - In early March 2006, the Corporation negotiated a Farm-out and Participation Agreement with a local independent oil and gas company to drill a second well at Gold Creek. The contract spud date is by June 30, 2006, subject to surface access and rig availability. - On March 20, 2006, Rolling Thunder secured a service rig for completion and remedial work at Teepee Creek, Gordondale and Gold Creek, and licensed three additional locations at Teepee Creek. - On March 22, 2006, Rolling Thunder purchased an additional half section of land at McLeod, completing the spacing unit for a well to be drilled this summer 2006. Outlook and Opportunities
The new amalgamated Rolling Thunder is now well situated with an excellent inventory of exploration and development opportunities, cash flow from operations and available credit facilities.
At Ensign, the Corporation has the potential to drill six initial gas wells on the down-spacing project, subject to EUB approval. Each well has the potential to produce at initial rates of between 750 and 1,000 mcf/d, declining in the first year to a long-term stabilized rate of approximately 400 mcf/d.
At Teepee Creek, there is potential for at least six Doig oil locations and two Charlie Lake gas locations. Three potential Doig oil wells have been licensed for after break-up. If successful, these wells could add between 200 and 300 boe/d to the Corporation. Successful Charlie Lake gas wells have the potential to add up to 2,000 mcf/d (330 boe/d) each. A 3D seismic survey is planned for the greater Teepee Creek area.
At Gordondale, the Corporation has a Gething gas location that is a re-drill of bypassed pay in one of its existing producers. Analogous Gething wells in the area have produced between 2.5 and 5.0 bcf, at rates of up to 2,000 mcf/d. The Corporation also plans to perforate the Cadomin in an existing well bore. The offsetting Cadomin well, 600 meters away, came on production at 500 mcf/d. In addition, Rolling Thunder has a development location for Boundary Lake oil in the southeast quarter of section 22 that could add 150 boe/d. The offsetting section to the south has the potential for Boundary Lake oil, Charlie Lake gas and Cretaceous gas.
At McLeod, the Corporation has expanded its land base and plans to drill at least one well this summer. A successful well, similar to its existing producer at 06-18, could add between 1,500 and 3,000 mcf/d. New production would require additional facilities that would also alleviate current production curtailment problems.
Additional exploration and exploitation opportunities exist at Teepee Creek North and Woking, and the Corporation continues to add new opportunities to its portfolio.
The amalgamation has created an entirely new platform for growth. The combination of assets, capital and talent has created a new company poised for significant growth in the junior oil and gas exploration and production sector. Rolling Thunder is very excited about the potential in its core producing areas of McLeod, Gordondale and Teepee Creek, as well as the potential from its new exploitation project opportunity at Ensign.
Natural Gas volumes that have been converted to barrels of oil equivalent (BOEs) have been converted on the basis of six thousand cubic feet (mcf) to one barrel (bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf to one bbl is based on an energy equivalency method and does not necessarily represent value equivalency at the wellhead. Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook. The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information. The risks and uncertainties that may affect the operations, performance, development and results of Rolling Thunder's businesses include, but are not limited to, the following factors: volatility of oil and gas prices, commodity supply and demand, fluctuations in currency and interest rates, ultimate recoverability of reserves, timing and costs of drilling activities and pipeline construction, new regulations and legislation and the availability of capital. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Rolling Thunder at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Rolling Thunder's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces of Canada, as may be updated from time to time. There is no representation by Rolling Thunder that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Rolling Thunder does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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SOURCE: Rolling Thunder Exploration Ltd.
To find out more about Rolling Thunder Exploration Ltd. (TSX-V: ROL.A, ROL.B; OTCPink Sheets: RTHXF), visit our website at www.rollingthunderexploration.com, orcontact: Peter Bolton, President & Chief Executive Officer, (403) 532-6221,peterb@rollingthunderexploration.com; Kamelia Wong, Chief Financial Officer, (403)532-6223, kameliaw@rollingthunderexploration.com
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