BNK Petroleum Inc. Announces Annual 2018 Results With Net Income of $5.3 Million
CAMARILLO, California, March 21, 2019 /PRNewswire/ --
All amounts are in U.S. Dollars unless otherwise indicated:
TSX ticker symbol: BKX
OTCQX ticker symbol: BNKPF
- Net income was $5.3 million for 2018 compared to a net loss of $1.6 million in 2017 due to higher production and prices in 2018 compared to the prior year. In addition, the Company had an unrealized gain on financial commodity contracts of $2.3 million in 2018, compared to an unrealized loss of $1.2 million in 2017.
- Funds from continuing operations was $11.5 million for 2018 compared to $6.5 million for 2017, an increase of 77%
- The Company's Total Proved Reserves increased by 26% to 33.8 million barrels of oil equivalent (BOE) and NPV10 value of the Total Proved Reserves increased by 31% to $376.9 million based on the Company's December 31, 2018 independent reserves evaluation.
- Average production for 2018 was 1,662 BOEPD, an increase of 52% compared to 2017 production of 1,092 BOEPD. This increase was mainly due to production from 3 new wells in 2018, the Glenn 16-2H, Brock 4-2H and the WLC 14-1H
- Average netback from operations was $33.99 per BOE in 2018, an increase of 33% compared to 2017 due to higher production and prices in 2018.
- Revenue, net of royalties was $23.8 million for 2018 compared to $12.6 million in 2017, an increase of 89%, due to higher prices and production compared to 2017
- Percentage of oil produced increased to 72% in 2018 compared to 70% of the production mix in 2017. The increase of oil in the mix is due to the most recent wells being drilled in locations with a higher concentration of oil.
BNK's President and Chief Executive Officer, Wolf Regener commented:
"We are very pleased with the results of our 2018 drilling program and our latest reserves report. The three wells that came on production during the year have significantly increased our production. Our average production for 2018 was 1,662 BOE per day, which was an increase of 52% from 2017. Our 2018 drilling program, as well as our existing wells outperforming previous estimates, also significantly improved our reserve report, as our proved reserves increased by 26% from 2017, to 33.8 million BOE. The NPV10 value of our proved reserves increased by 31% to $376.9 million compared to 2017.
"Our 2018 performance generated funds from continuing operations of $11.5 million in 2018, which was a 77% increase from 2017. In addition, we generated net income of $5.3 million compared to a net loss of $1.6 million in the prior year.
"Revenue, net of royalties was $23.8 million for 2018, an increase of 89% compared to the prior year due to the increase in production as well as prices.
"Average netback from operations for 2018 was $33.99 per BOE, an increase of 33% compared to the prior year due to higher production and prices. Netback after adjustments, which include the impact of price adjustments from commodity contracts and prior period adjustments on natural gas and NGL volumes sold as well as processing costs, were $27.71 per BOE for 2018 compared to $29.39 per BOE in the prior year.
The operator of the Anderson 1-15H10X3 well has successfully cleaned out the lateral, recovering debris that we believe was restricting production, and the well has been put back on flowback. We expect to have a better understanding of the productivity of the well once the fracture stimulation fluid has been recovered, which may take several weeks.
Fourth Quarter Year Ended 2018 2017 % 2018 2017 % Net Income (Loss): $ Thousands $5,431 $(1,303) -% $5,320 $(1,596) -% $ per common share $0.02 $(0.01) -% $0.02 $(0.01) -% assuming dilution Funds from continuing operations $2,537 $2,834 (10%) $11,532 $6,522 77% Capital Expenditures $5,850 $302 1,837% $19,621 $19,271 2% Average Production (Boepd) 1,555 1,539 1% 1,662 1,092 52% Gross Revenue 6,640 6,410 4% 30,367 16,150 88% Average Price per Barrel $47.11 $45.27 4% $52.15 $40.52 29% Average Netback from operations per Barrel $29.67 $29.81 -% $33.99 $25.49 33% Average Price after adjustments per Barrel $27.12 $30.46 (11%) $27.71 $29.39 (6%) December December 2018 2017 Cash and Cash Equivalents $1,456 $521 Working Capital ($2,393) ($537)