Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Elizabeth White, tru welu, Blue Box Blog

News Feed Item

Relentless Announces Q2 2014 Financial and Operating Results

CALGARY, ALBERTA -- (Marketwired) -- 08/19/14 -- Relentless Resources Ltd. ("Relentless" or "the Company") (TSX VENTURE: RRL) announces that it has issued its June 30, 2014 condensed interim financial statements and related MD&A.

Additional information about Relentless is available on SEDAR at www.sedar.com or on the Company`s website at www.relentless-resources.com.

Corporate Update

On June 27, 2014, Relentless closed a non-brokered private placement for gross proceeds of $3.75 million, made up of 4,166,666 flow-through shares at 24 cents per share and 13,750,000 common shares at 20 cents per share. The shares are subject to a four-month hold period.

The proceeds of the common share portion of the offering were used to finance the $3 million purchase of oil and natural gas assets from a private company.

The assets consist of approximately 127 barrels of oil equivalent per day ("boe/d") of conventional producing petroleum and natural gas properties in the Peace River Arch area of Alberta.

Highlights of the acquisition are as follows:


--  127 boe/d of 64 per cent natural gas production (6:1 conversion) from 12
    gross (7.4 net) producing wells, two gross (1.2 net) suspended wells and
    one gross (0.23 net) abandoned well;
--  Production from the Doe Creek and Charlie Lake intervals with 2013
    historical operating netbacks in excess of $30 per barrel of oil
    equivalent;
--  A 2.08-per-cent working interest in the Saddle Hills Doe Creek unit No.
    1;
--  Largely operated production and corresponding high Alberta Energy
    Regulator licensee liability rating;
--  Accretive purchase metrics of $24,000 per boe/d and $9.38 per boe for
    total proved plus probable reserves;
--  Forecast 15-per-cent annual production decline with significant infill
    and horizontal drilling upside.

On June 27, 2014 Relentless also announced that Sony Gill was appointed as corporate secretary of the Company. Mr. Gill is a partner in the CFMA Group in the Calgary office of the national law firm McCarthy Tetrault LLP. Mr. Gill replaced Leigh Stewart, who resigned as corporate secretary. Relentless wishes to thank Mr. Stewart for providing guidance to the company for a number of years.

In connection with his appointment as corporate secretary, the company granted Mr. Gill an option to acquire 200,000 common shares. The grant of the option is for a five-year term. The options vested immediately and are exercisable at a price of 30 cents per common share.

On June 12, 2014, the Company closed the acquisition of a 100% working interest in one producing well and 3 non-producing well bores at Heathdale, Alberta for $700,000. Average production from the one well is 8 barrels of oil per day ("bbl/d").

The acquisition included a farm in and a drilling commitment on certain lands in the area. In July, 2014, Relentless recompleted the 3 non-producing wells in the glauconitic formation and will be placing the wells on production in the near future.

Subsequent to the quarter end, Relentless renewed its credit facility increasing the amount available from $700,000 to $3,000,000. At June 30, 2014, the Company had a working capital surplus of $719,511.

Relentless's current production volumes are approximately 211 boe/d comprised of 86 bbl/d of oil and NGLs and 750 thousand cubic feet per day ("mcf/d") of natural gas.

Financial summary


---------------------------------------------------------------------------
                                         Three months ended June 30
---------------------------------------------------------------------------
                                          2014           2013     % Change
---------------------------------------------------------------------------
Oil and gas revenue              $     471,357  $     368,906           28
Cash flow from operations (1)           64,557        121,386          (47)
  Per share - basic and diluted
   (1)                                    0.00           0.00            -
Comprehensive loss                    (153,532)      (122,205)          26
  Per share - basic and diluted          (0.00)         (0.00)           -
Total assets                         8,790,090      3,030,049          190
Net surplus (1)                        719,511         72,471          893
Capital expenditures, net        $   3,646,534  $     192,829        1,791
Shares outstanding - end of
 period                             52,462,466     30,025,085           75
---------------------------------------------------------------------------


---------------------------------------------------------------------------
                                          Six months ended June 30
---------------------------------------------------------------------------
                                          2014           2013     % Change
---------------------------------------------------------------------------
Oil and gas revenue              $     821,163  $     667,244           23
Cash flow from operations (1)          140,172        193,680          (28)
  Per share - basic and diluted
   (1)                                    0.00           0.01            -
Comprehensive loss                    (280,583)      (427,321)         (34)
  Per share - basic and diluted          (0.01)         (0.01)           -
Total assets                         8,790,090      3,030,049          190
Net surplus (1)                        719,511         72,471          893
Capital expenditures, net        $   3,785,637  $     501,733          655
---------------------------------------------------------------------------
Shares outstanding - end of
 period                             52,462,466     30,025,085           75
---------------------------------------------------------------------------
(1) Non IFRS measure

Daily Production and Commodity Prices


--------------------------------------------------------------------------

Three months ended June 30,                 2014          2013    % Change
--------------------------------------------------------------------------
Daily production
Oil and NGLs (bbl/d)                          37            35           6
Natural gas (mcf/d)                          308           253          23
Oil equivalent (boe/d @ 6:1)                  88            77          14
--------------------------------------------------------------------------
Realized commodity prices ($CDN)
Oil and NGLs (bbl/d)               $       98.16 $       87.58          12
Natural gas (mcf/d)                         5.16          3.91          32
Oil equivalent (boe/d @ 6:1)       $       58.92 $       52.53          12
--------------------------------------------------------------------------

-------------------------------------------------------------------------

Six months ended June 30,                   2014          2013   % Change
-------------------------------------------------------------------------
Daily production
Oil and NGLs (bbl/d)                          31            33         (5)
Natural gas (mcf/d)                          278           237         18
Oil equivalent (boe/d @ 6:1)                  77            73          6
-------------------------------------------------------------------------
Realized commodity prices ($CDN)
Oil and NGLs (bbl/d)               $       94.96 $       84.57         22
Natural gas (mcf/d)                         5.77          3.78         54
Oil equivalent (boe/d @ 6:1)       $       58.78 $       50.85         16
-------------------------------------------------------------------------

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding the volumes and estimated value of the Company's proved and probable reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Company are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

These assumptions and statements necessarily involve known and unknown risks and uncertainties inherent in the oil and gas industry such as geological, technical, drilling and processing problems and other risks and uncertainties, as well as the business risks discussed in Management's Discussion and Analysis of the Company under the heading "Business Risks". The Company does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.

Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel of oil) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

This press release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. These non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Cash flow from operations and net surplus (debt) are not recognized measures under IFRS. Management believes that in addition to net income (loss), cash flow from operations and net surplus (debt) are useful supplemental measures that demonstrate the Company's ability to generate the cash necessary to repay debt or fund future capital investment. Investors are cautioned, however, that these measures should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indication of the Company's performance. The Company's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Cash flow from operations is calculated by adjusting net income (loss) for other income, unrealized gains or losses on financial derivative instruments, transaction costs, accretion, share based compensation, impairment and depletion and depreciation. Net surplus (debt) is the total of cash plus accounts receivable, prepaids and deposits, less accounts payable plus bank debt.

Neither 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.

About Relentless Resources Ltd.

Relentless is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta and Saskatchewan. Relentless's common shares trade on the TSX Venture Exchange under the symbol RRL.

Relentless's primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.

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.

Latest Stories
2015 predictions circa 1970: houses anticipate our needs and adapt, city infrastructure is citizen and situation aware, office buildings identify and preprocess you. Today smart buildings have no such collective conscience, no shared set of fundamental services to identify, predict and synchronize around us. LiveSpace and M2Mi are changing that. LiveSpace Smart Environment devices deliver over the M2Mi IoT Platform real time presence, awareness and intent analytics as a service to local connecte...
High-performing enterprise Software Quality Assurance (SQA) teams validate systems that are ready for use - getting most actively involved as components integrate and form complete systems. These teams catch and report on defects, making sure the customer gets the best software possible. SQA teams have leveraged automation and virtualization to execute more thorough testing in less time - bringing Dev and Ops together, ensuring production readiness. Does the emergence of DevOps mean the end of E...
Amazon and Google have built software-defined data centers (SDDCs) that deliver massively scalable services with great efficiency. Yet, building SDDCs has proven to be a near impossibility for companies without hyper-scale resources. In his session at 15th Cloud Expo, David Cauthron, CTO and Founder of NIMBOXX, highlighted how a mid-sized manufacturer of global industrial equipment bridged the gap from virtualization to software-defined services, streamlining operations and costs while connect...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
The Industrial Internet revolution is now underway, enabled by connected machines and billions of devices that communicate and collaborate. The massive amounts of Big Data requiring real-time analysis is flooding legacy IT systems and giving way to cloud environments that can handle the unpredictable workloads. Yet many barriers remain until we can fully realize the opportunities and benefits from the convergence of machines and devices with Big Data and the cloud, including interoperability, ...
paradigm shifts in networking, to cloud and licensure, and all the Internet of Things in between. In 2014 automation was the name of the game. In his session at DevOps Summit, Matthew Joyce, a Sales Engineer at Big Switch, will discuss why in 2015 it’s complexity reduction. Matthew Joyce, a sales engineer at Big Switch, is helping push networking into the 21st century. He is also a hacker at NYC Resistor. Previously he worked at NASA Ames Research Center with the Nebula Project (where OpenSta...
The term culture has had a polarizing effect among DevOps supporters. Some propose that culture change is critical for success with DevOps, but are remiss to define culture. Some talk about a DevOps culture but then reference activities that could lead to culture change and there are those that talk about culture change as a set of behaviors that need to be adopted by those in IT. There is no question that businesses successful in adopting a DevOps mindset have seen departmental culture change, ...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will address the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affec...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In this session, James Kirkland, Red Hat's Chief Architect for the ...
While there are hundreds of public and private cloud hosting providers to choose from, not all clouds are created equal. If you’re seeking to host enterprise-level mission-critical applications, where Cloud Security is a primary concern, WHOA.com is setting new standards for cloud hosting, and has established itself as a major contender in the marketplace. We are constantly seeking ways to innovate and leverage state-of-the-art technologies. In his session at 16th Cloud Expo, Mike Rivera, Seni...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are bein...
Cloud Expo, Inc. has announced today that Andi Mann returns to DevOps Summit 2015 as Conference Chair. The 4th International DevOps Summit will take place on June 9-11, 2015, at the Javits Center in New York City. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at ...
EMC Corporation on Tuesday announced it has entered into a definitive agreement to acquire privately held Virtustream. When the transaction closes, Virtustream will form EMC’s new managed cloud services business. The acquisition represents a transformational element of EMC’s strategy to help customers move all applications to cloud-based IT environments. With the addition of Virtustream, EMC completes the industry’s most comprehensive hybrid cloud portfolio to support all applications, all workl...
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...