The trend is to invest in oil juniors "making bakken".
There is a lot more on the menu!
A good crisp website with lots of info upfront. No cute pictures of prairie dogs and grain fields, just business thanks.
To days price $.13
P/E Ratio 6.5
And a eps. of .02 ( that,s refreshing)
CALGARY, ALBERTA--(Marketwire - May 18, 2012) - Tuscany Energy Ltd. (TSX VENTURE:TUS) ("Tuscany" or the "Company") is pleased to report that for the three months ended March 31, 2012, it more than doubled oil production, revenues and cash flow from operations, as compared with the same period in the prior year.
Average production rates for the first quarter of 370 BOEd were the highest achieved by the Company, to date. Revenues increased to $2.2 million from $989,000 in Q1 2011. Ninety eight percent of these revenues were derived from oil production.
Cash flow increased to $1.1 million from $400,000 in Q1 2011. The Company ended the quarter with no debt.
The key to Tuscany's current growth is the success of the three recently drilled horizontal oil wells at Macklin, Saskatchewan. The three wells have been on production since late March 2012 and each well is currently producing heavy oil at rates between 90 bopd and 120 bopd. Based on the Company's interpretation of 3D seismic and well information, Tuscany anticipates that at least ten additional wells can be drilled in this pool. The next of the development wells should commence following breakup.
For the quarter, Tuscany's revenues net of royalties increased 126% to $2.2 million compared with $989,000 in the prior year. Cash flows from operations increased 168% to $1.2 million compared with $429,000 in Q1 2011. Net earnings increased to $86,000 compared with a net loss of $300,000 in Q1 2011.
Tuscany incurred $2.4 million of capital expenditures during the quarter compared with $397,000 for Q1 2011. Capital expenditures for the quarter were financed from cash flow from operations and the proceeds from sales of Magnum Hunter shares. At March 31, 2012, Tuscany had working capital of $549,000 compared with net debt of $447,000 at the beginning of the year.
Tuscany sold 326,195 shares of Magnum Hunter during the quarter for net proceeds of $2.2 million. Subsequent to the end of the quarter, Tuscany sold the remaining 100,000 shares of its investment for net proceeds of $595,700.
Tuscany expects WTI oil prices to remain above $90 per barrel through the balance of 2012, as demand for oil continues to be strong. Using current heavy oil discounts, this should result in the Company realizing average prices for its heavy oil production in excess of $65 per barrel for the remainder of the year. At this price the Company believes continued development of the Company's heavy oil projects have very positive economics.
Tuscany is focused on growth through oil exploration and development. Tuscany believes it can currently achieve growth by continuing to develop its Dina oil properties at Macklin and Evesham, from working capital and operating cash flows, while minimizing the reliance on bank debt to finance future capital expenditures.
Longer term growth will result from development of new production and reserves from Tuscany's additional heavy oil prospects, developed over the past three years.
|Three Months Ended|
|($ Thousands, unless otherwise indicated, unaudited)||2012||2011|
|Revenue, net of royalties||$||2,238||$||989|
|Cash flow from operations||1,148||429|
|per share, diluted||0.01||0.01|
|Earnings (loss) for the period||86||(300||)|
|per share, diluted||0.00||0.00|
|Net capital additions||2,372||397|
|Working capital (net debt)||549||(4,169||)|
|Investment - marketable securities||639||-|
|Total shares outstanding at period end (millions)||123.4||62.8|
|BOEd (6 Mcf = 1 Bbl)||370||192|
Edited by Deepglue - 5/27/12 at 11:52am