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Return Energy inc. announces year-end 2019 financial results and reserves


CALGARY, Alberta, April 07, 2020 (GLOBE NEWSWIRE) — Return Energy Inc. (“Return” or the “Company”) (RTN: TSXV) is pleased to provide a summary of its financial and operational results for the three months and year ended December 31, 2019.

Selected financial and operational information is outlined below and should be read with Return’s audited consolidated financial statements (“Financial Statements”) and management’s discussion and analysis (“MD&A”) as of December 31, 2019, which are available on SEDAR at www.sedar.com and on the Company’s website at www.spartandeltacorp.com. The Company’s annual information form (“AIF”) for the year ended December 31, 2019, which includes the results of its independent oil and gas reserves evaluation as of December 31, 2019 prepared by Sproule Associated Limited, has also been filed on SEDAR and is available on the Company’s website.

2019 Financial and Operating Highlights

The following table summarizes the Company’s financial and operational results for the three months and year ended December 31, 2019.

  Three months ended December 31 Year ended December 31
($, unless otherwise stated) 2019 2018 % 2019 2018 %
FINANCIAL
Revenue  471,344  345,151 37 %  1,649,145  2,033,828 -19 %
Net loss and comprehensive loss  (58,972 ) (1,496,741 ) -96 %  (1,997,830 )  (3,156,096 ) -37 %
$ per share, basic and diluted  –   (0.01 ) -100 %  (0.01 )  (0.03 ) -67 %
Funds used in operations (1)  (788,309 )  (520,970 ) 51 %  (1,900,788 )  (2,031,870 ) -6 %
Capital expenditures, net of dispositions  29,459  6,575 348 %  (230,871 )  2,675,350 -109 %
Total assets  34,245,022  12,274,560 179 %
Working capital surplus  23,537,806  814,938 2788 %
Long-term liabilities  7,212,875  8,743,099 -18 %
Shareholders’ equity  25,640,170  3,043,943 742 %
OPERATING
Average daily production (BOE/d)  223  229 -3 %  225  248 -9 %
% Crude oil and NGLs 20 % 18 % 11 % 18 % 20 % -10 %
Average realized price ($ per BOE)  21.33  15.01 42 %  18.18  19.98 -9 %
Operating netback (loss) ($ per BOE) (1)  (7.95 )  (7.30 ) 9 %  (4.48 )  0.01
Reserves – proved plus probable
Crude oil (mbbls)  1,457.0  778.7 87 %
NGLs (mbbls)  137.2  124.1 11 %
Natural gas (mmcf)  10,319.5  8,701.0 19 %
Combined (mBOE)  3,314.1  2,353.0 41 %

Notes:
(1) See “Non-IFRS Measures”.

Return was recapitalized on December 19, 2019 upon completion of a non-brokered private placement for gross proceeds of $25.0 million and the appointment of a new management team and new board of directors.  As at December 31, 2019, the Company had no bank debt and a net working capital surplus of $23.5 million, including $24.7 million of cash on hand.  Return is well positioned to take advantage of opportunities as they arise.

Growth Strategy

Structural changes to the market over the last quarter have materially enhanced the opportunity set for Return’s targeted acquisition and consolidation strategy. The Company is focused across multiple jurisdictions on rarely seen opportunities to acquire top tier assets at historically low valuations, while simultaneously utilizing restructuring tools to reduce burdensome debt, legacy fixed cost commitments and unnecessary overhead. The Company’s intent is to emerge from future acquisitions with an industry leading balance sheet with both sustainable and profitable corporate metrics on strip commodity pricing.  Simultaneously, the Company continues to focus on the expansion of its opportunity suite through internally generated prospects and strategic tuck-in acquisitions, in addition to its identified horizontal drilling locations in both the Upper Charlie Lake at Rycroft and in the Lower Charlie Lake at Gordondale.

About Return

Return Energy Inc. is a Calgary, Alberta based company engaged in oil and gas exploration and development.  The Common Shares are currently listed on the TSX Venture Exchange (the “TSXV”) under the trading symbol “RTN”.



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