SYS-CON MEDIA Authors: Mat Mathews, PR.com Newswire, David Smith, Tim Crawford, Kevin Benedict

News Feed Item

Suroco Energy Inc. Announces Filing of Year-End Financial Statements, MD&A and Annual Information Form

CALGARY, ALBERTA -- (Marketwired) -- 04/28/14 -- (NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Suroco Energy Inc. (TSX VENTURE: SRN) (the "Corporation") is pleased to announce that it has filed its Audited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2013 and its Annual Information Form for the year ended December 31, 2013 on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Copies of these documents can be found on the SEDAR website at www.sedar.com.


Financial & Operating Highlights
(All references to $ are United States dollars unless otherwise noted)

                      3 months ended December 31 12 months ended December 31
                              2013          2012          2013          2012
                                   (Restated)(3)               (Restated)(3)
----------------------------------------------------------------------------
Financial
Oil and gas revenue
 ($)                    14,617,482     9,345,598    50,431,015    35,314,518
Funds flow from
 operations (1) ($)      1,805,780       268,469    13,014,383     8,916,025
  Per share - basic
   ($)                        0.01          0.00          0.10          0.07
  Per share - diluted
   ($)                        0.01          0.00          0.09          0.07
Net income (loss) ($)      101,874    (1,812,790)    1,105,515     1,745,122
  Per share - basic
   and diluted ($)            0.00         (0.01)         0.01          0.01
Adjusted net income
 (1) ($)                  (472,005)   (1,812,790)    2,026,273     1,745,122
  Per share - basic
   and diluted($)             0.01         (0.01)         0.01          0.01
Total assets ($)        84,018,279    61,006,917    84,018,279    61,006,917
Working capital
 surplus (deficit) (1)
 ($)                      (893,742)      395,140      (893,742)      395,140
Common shares
 outstanding, end of
 period
  Basic                134,329,734   134,329,734   134,329,734   134,329,734
  Fully Diluted        151,809,734   147,839,734   151,809,734   147,839,734
Weighted average
 common shares
 outstanding
  Basic                134,329,734   134,329,734   134,329,734   130,133,459
  Diluted (2)          138,770,746   138,897,055   139,145,173   134,816,152
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Operational
Average daily net
 after royalty
 production (bopd)           1,810         1,101         1,517           991
Average reference
 price - WTI ($ per
 barrel)                     97.50         88.01         97.98         94.05
Operating Netback ($
 per barrel)
  Average realized
   price                     83.51         91.39         88.89        100.96
  Royalties                   6.89          7.31          7.24          8.08
  Production and
   transportation
   expenses                  41.29         51.43         32.35         39.21
----------------------------------------------------------------------------
  Operating Netback          35.33         32.65         49.30        53.67
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Notes:


1.  Funds flow from operations is cash flow from operating activities before
    changes in other non-cash working capital items. Funds flow from
    operations is not a measure recognized by generally accepted accounting
    principles ("GAAP"). See "Non-GAAP Measures" in the MD&A.
2.  Working capital surplus includes current assets less current
    liabilities. Working capital surplus is not a measure recognized by
    GAAP. See "Non-GAAP Measures" in the MD&A.
3.  In periods where there were losses attributable to shareholders, all
    potentially dilutive securities were considered anti- dilutive and were
    therefore excluded from the fully diluted number of weighted average
    common shares outstanding calculation. All potentially dilutive
    securities were considered for the calculation of diluted number of
    shares outstanding at the end of period.

Proposed Transaction

On April 26, 2014, the Corporation entered into an arrangement agreement ("Arrangement Agreement") with Petroamerica Oil Corp ("Petroamerica") pursuant to which Petroamerica has agreed to acquire all the issued and outstanding common shares of the Corporation on the basis of 1.7627 of Petroamerica common shares for each outstanding common share of the Corporation (the "Arrangement"). The Arrangement is to be completed by way of a plan of arrangement under the Business Corporations Act (Alberta), subject to customary conditions for a transaction of this nature including, but not limited to the requisite approval of shareholders of the Corporation. A special meeting of the holders of common shares of the Corporation is scheduled to take place in June 2014. Closing of the Arrangement is expected to occur shortly thereafter.

Highlights from 2013


--  Increased average production (net to the Corporation after royalty) to
    1,517 barrels of oil per day ("bopd"), an increase of 53% from the prior
    year and increased average fourth quarter production to 1,810 bopd (net
    to the Corporation after royalty), an increase of 64% over the prior
    year.

--  Drilled and placed on permanent production 4 new Cohembi wells.

--  Closed on acquisition of a 25% economic interest in the PUT-2 Block in
    the Putumayo basin of Colombia.

--  Established $21 MM senior secured bank credit facility with Macquarie
    Bank Limited.

--  Decreased production costs on a per barrel basis of approximately 17%
    for the year from $39.21/bbl to $32.35/bbl.

--  Announced 32% increase in proved producing reserves for 2013.

--  The Pinuna 7 was drilled in Q3 of 2013 and reached a planned total depth
    of 10,200 feet however, the Corporation and its partner in the well were
    unable to produce oil due to pump electrical problems and are planning
    to go back and retest the well in 2014.

--  Spudded the Canelo Sur-2 well during 2013, however, due to mechanical
    difficulties, the Corporation and its partner in the well were not able
    to get to total depth prior to year-end.

--  Successfully Drilled Quinde 2 well, which encountered 10 feet of oil-
    bearing Upper Villeta Sand.

--  The Quinde 4 was successfully drilled to a total depth of 10,100 feet,
    encountering approximately 30 feet of oil- bearing Upper Villeta Sand.

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "SRN".

Reserves Information

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

FORWARD LOOKING STATEMENTS

Certain statements included in this press release constitute forward-looking statements under applicable securities legislation. These statements relate to future events or future performance of the Corporation. All statements other than statements of historical fact are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue", or the negative of these terms or other comparable terminology. Forward-looking statements or information in this press release include, but are not limited to, the completion of the Arrangement, the characteristics of the Corporation's oil and natural gas properties, reserve quantities and the discounted present value of future net cash flows from such reserves, net revenue, capital expenditures, operating costs, exploration plans and development plan. In addition, this press release may contain forward-looking statements attributed to third party industry sources. Undue reliance should not be placed on these forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, estimates, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; changes in environmental and other regulations; risks associated with oil and gas operations and future exploration activities; receipt of securityholder and third party approvals; and other factors, many of which are beyond the control of the Corporation. You can find an additional discussion of those assumptions, risks and uncertainties in the Corporation's Canadian securities filings.

The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above. New factors emerge from time to time, and it is not possible for management of the Corporation to predict all of these factors and to assess in advance the impact of each such factor on the Corporation's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement or information. The forward-looking statements contained herein are expressly qualified by this cautionary statement. Moreover, neither the Corporation nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements.

Statements relating to "reserves" are deemed to be forward-looking statements or information, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described can be profitable in the future. There are numerous uncertainties inherent in estimating quantities of proved reserves, including many factors beyond the control of the Corporation. The reserve data included herein represents estimates only. In general, estimates of economically recoverable oil and natural gas reserves and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as historical production from the properties, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary considerably from actual results. All such estimates are to some degree speculative and classifications of reserves are only attempts to define the degree of speculation involved. For those reasons, estimates of the economically recoverable oil and natural gas reserves attributable to any particular group of properties and classification of such reserves based on risk of recovery and estimates of future net revenues expected therefrom, prepared by different engineers or by the same engineers at different times, may vary substantially. The actual production, revenues, taxes and development and operating expenditures of the Corporation with respect to these reserves will vary from such estimates, and such variances could be material.

Estimates with respect to proved reserves that may be developed and produced in the future are often based upon volumetric calculations and upon analogy to similar types of reserves rather than actual production history. Estimates based on these methods are generally less reliable than those based on actual production history. Subsequent evaluation of the same reserves based upon production history will result in variations, which may be substantial, in the estimated reserves.

Consistent with the securities disclosure legislation and policies of Canada, the Corporation has used forecast prices and costs in calculating reserve quantities included herein. Actual future net cash flows also will be affected by other factors such as actual production levels, supply and demand for oil and natural gas, curtailments or increases in consumption by oil and natural gas purchasers, changes in governmental regulation or taxation and the impact of inflation on costs.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed Arrangement and has neither approved nor disapproved the contents of this press release.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:
Suroco Energy Inc.
Alastair Hill
President and Chief Executive Officer
(403) 232-6784
(403) 264-7455 (FAX)

Suroco Energy Inc.
Travis Doupe
VP Finance and Chief Financial Officer
(403) 232-6784
(403) 264-7455 (FAX)
www.suroco.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.