CDN NEWS | 
US NEWS 
CALGARY, Alberta, May 16, 2019 (GLOBE NEWSWIRE) — Traverse Energy Ltd. (“Traverse” or “the Company”) (TSX Venture: TVL) presents financial and operating results for the three months ended March 31, 2019.
| Three Months Ended | |||||||
| Highlights (unaudited) | March 31, 2019 | December 31, 2018 | March 31, 2018 | ||||
| Financial ($ thousands, except per share amounts) | |||||||
| Petroleum and natural gas revenue | 1,582 | 1,191 | 1,979 | ||||
| Cash from (used in) operating activities | 203 | (46 | ) | 1,144 | |||
| Adjusted funds flow (1) | 373 | (158 | ) | 614 | |||
| Per share – basic and diluted | 0.00 | (0.00 | ) | 0.01 | |||
| Net loss | (512 | ) | (8,944 | ) | (447 | ) | |
| Per share – basic and diluted | (0.00 | ) | (0.09 | ) | (0.00 | ) | |
| Capital expenditures | 238 | 409 | 825 | ||||
| Total assets | 28,596 | 28,694 | 47,666 | ||||
| Working capital deficiency | (6,671 | ) | (6,673 | ) | (5,257 | ) | |
| Common shares | |||||||
| Outstanding (millions) | 103.5 | 103.5 | 103.5 | ||||
| Weighted average (millions) | 103.5 | 103.5 | 103.5 | ||||
| Operations (Units as noted) | |||||||
| Average production | |||||||
| Natural gas (Mcf/day) | 1,629 | 2,037 | 2,252 | ||||
| Oil and NGL (bbls/day) | 237 | 254 | 298 | ||||
| Total (BOE/day) | 509 | 594 | 673 | ||||
| Average sales price | |||||||
| Natural gas ($/Mcf) | 2.63 | 1.93 | 2.21 | ||||
| Oil and NGL ($/bbl) | 56.10 | 35.45 | 57.18 | ||||
| Netback ($/BOE) | |||||||
| Petroleum and natural gas revenue | 34.58 | 21.80 | 32.67 | ||||
| Royalties | (0.55 | ) | (0.80 | ) | (1.23 | ) | |
| Operating and transportation expenses | (18.26 | ) | (17.45 | ) | (16.67 | ) | |
| Operating netback (2) | 15.77 | 3.55 | 14.77 | ||||
| General and administrative | (5.58 | ) | (4.84 | ) | (3.88 | ) | |
| Finance income and costs (3) | (2.03 | ) | (1.60 | ) | (0.76 | ) | |
| Corporate netback (4) | 8.16 | (2.89 | ) | 10.13 | |||
| (1) | Adjusted funds flow represents cash from (used in) operating activities prior to changes in non-cash working capital and settlement of decommissioning obligations. | ||
| (2) | Operating netback represents revenue, less royalties, operating and transportation expenses. Operating netback per BOE is the operating netback divided by barrels of oil equivalent production volumes for the applicable period. | ||
| (3) | Excludes non-cash accretion. | ||
| (4) | Corporate netback represents the operating netback less general and administrative costs and finance income and costs before accretion. Corporate netback per BOE is the corporate netback divided by barrels of oil equivalent production volume for the applicable period. | ||
Operations Review
Traverse’s production averaged 509 BOE per day (47% oil and ngl) during the first quarter of 2019. No new production was added during 2018 or the first quarter of 2019. Capital expenditures in the first quarter related mainly to land acquisition, retention and geological work.
At March 31, 2019 Traverse had a working capital deficiency of $6.7 million. The annual review of the borrowing base for the Company’s revolving operating loan facility has commenced. The Company has been advised that until the review is completed the availability under the current $9.0 million revolving operating loan facility will be capped at $7.0 million. The Company’s ability to continue as a going concern is dependent upon the ability to renew the current loan facility and generate positive cash flow from operations, equity financing, disposing of assets or other arrangements to fund future development capital.
Undeveloped land holdings in Alberta at March 31, 2019 totalled 204,400 gross (203,800 net) acres including 100,100 net acres in the Duvernay shale oil basin. In April 2019, Traverse began a divestiture process for its Duvernay lands. The process is expected to be concluded in June 2019.
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