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Briko Energy Corp. Announces First Quarter 2020 Financial and Operating Results


Calgary, Alberta –  Briko Energy Corp. (“Briko” or the “Corporation”) is pleased to report its financial and operating results for the three months ended March 31, 2020. Financial and operational information is set out below and should be read in conjunction with Briko’s March 31, 2020 condensed unaudited interim financial statements and the related management’s discussion and analysis (“MD&A”). Briko’s condensed unaudited interim financial statements and MD&A are available for review at www.sedar.com and on the Corporation’s website at www.brikoenergy.com.

FINANCIAL AND OPERATING RESULTS

  • Decreased net operating expenses per boe by 6% to $11.94/boe for the three months ended March 31, 2020 as compared to $12.71/boe for the three months ended March 31, 2019.
  • Average daily production of 568 boe per day for the three months ended March 31, 2020 compared to 668 boe per day for the three months ended March 31, 2019.
  • Operating netback of $6.74 per boe for the three months ended March 31, 2020 compared to $9.42 per boe for the three months ended March 31, 2019.
  • Adjusted funds flow for the three months ended March 31, 2020 of $0.2 million ($0.02/share) compared to $0.4 million (0.03/share) for the three months ended March 31, 2019.
  • Net loss for the three months ended March 31, 2020 of $2.6 million, including a $2.7 million impairment expense.
  • Maintained a strong Liability Management Rating (“LMR”) in excess of 8.0 at March 31, 2020.
(Expressed in thousands of Canadian dollars except per boe and share amounts) Three Months Ended
March 31, 2020 March 31, 2019
OPERATIONS
Average daily production
Light oil (bbl/d) 138 181
Natural gas (mcf/d) 2,266 2,584
NGLs (bbl/d) 52 57
Total equivalent (boe/d) 568 668
Average prices
Light oil ($/bbl) $ 57.42 $ 63.11
Natural gas ($/mcf) 1.61 2.46
NGLs ($/bbl) 45.72 48.72
Operating netback
Revenue ($/boe) $ 24.58 $ 30.74
Realized gain on risk management contracts ($/boe) 0.44
Royalties ($/boe) (4.17 ) (6.29 )
Net operating expenses(1) ($/boe) (11.94 ) (12.71 )
Transportation expenses ($/boe) (2.17 ) (2.32 )
Operating netback (1) ($/boe) $ 6.74 $ 9.42
FINANCIAL
Oil and natural gas revenues (2) $ 1,270 $ 1,849
Operating income(1) $ 348 $ 567
Cash provided by operating activities $ 309 $ 558
Per share – basic and diluted $ 0.03 $ 0.05
Adjusted funds flow (1) $ 187 $ 351
Per share – basic and diluted $ 0.02 $ 0.03
Net income (loss) $ (2,611 ) $ 5
Per share – basic and diluted $ (0.23 ) $ 0.00
Capital expenditures $ 25 $ 25
Net working capital (1) $ 188 $ 129
Shares outstanding (‘000s) 11,207 11,206
Weighted average shares outstanding
basic and diluted (‘000s) 11,207 11,206


(
1)Operating netback, operating income, net operating expenses, adjusted funds flow and net working capital are non-IFRS measures. See “Non- IFRS Measures”.
(2)
 Before royalties.

GUIDANCE

Given the current weak crude oil commodity price environment, Briko has proactively responded to this very volatile period. The Corporation currently has approximately 70 bbl/d of crude oil production shut in until prices recover. Due to these shut in decisions, Briko’s estimated production for the second quarter of 2020 is in the range of 525 – 575 boe/d and 2020 estimated production is in the range of 500 – 600 boe/d. Briko continues to establish a prudent capital expenditure program focussed on maintenance and optimization initiatives that is anticipated to be funded by adjusted funds flow for 2020.

About Briko Energy Corp.

Briko Energy Corp. is an Alberta Foothills Cardium focused company with undeveloped land, crude oil and natural gas reserves and a production base with associated infrastructure. Corporate information can be found at: www.brikoenergy.com.



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