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Calgary, Alberta – Briko Energy Corp. (“Briko” or the “Corporation”) is pleased to report its financial and operating results for the three and six months ended June 30, 2020. Financial and operational information is set out below and should be read in conjunction with Briko’s June 30, 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
- Average daily production of 600 boe per day for the three months ended June 30, 2020 compared to 715 boe per day for the three months ended June 30, 2019.
- Approximately 50 barrels per day of oil production was shut in during the second quarter of 2020 due to the 35% decrease in the Corporation’s revenue per boe from the significant reduction in global oil prices.
- Decreased net operating expenses per boe by 12% to $9.50/boe for the three months ended June 30, 2020 as compared to $10.82/boe for the three months ended June 30, 2019.
- Decreased G&A expenses per boe by 44% to $2.32/boe for the three months ended June 30, 2020 as compared to $4.12/boe for the three months ended June 30, 2019.
- Adjusted funds flow for the three months ended June 30, 2020 of $185,000 ($0.02/share) compared to $372,000 (0.04/share) for the three months ended June 30, 2019.
- Maintained a strong Liability Management Rating (“LMR”) of 7.9 at June 30, 2020.
| (Expressed in thousands of Canadian dollars except per boe and share amounts) | Three Months Ended June 30 |
Six Months Ended June 30 |
||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||
| OPERATIONS | ||||||||||||
| Average daily production | ||||||||||||
| Light oil (bbl/d) | 85 | 176 | 112 | 178 | ||||||||
| Natural gas (mcf/d) | 2,742 | 2,801 | 2,504 | 2,693 | ||||||||
| NGLs (bbl/d) | 58 | 72 | 55 | 65 | ||||||||
| Total equivalent (boe/d) | 600 | 715 | 584 | 692 | ||||||||
| Average prices | ||||||||||||
| Light oil ($/bbl) | $ | 57.09 | $ | 71.16 | $ | 57.29 | $ | 67.11 | ||||
| Natural gas ($/mcf) | 1.70 | 1.20 | 1.66 | 1.80 | ||||||||
| NGLs ($/bbl) | 21.54 | 52.00 | 32.99 | 50.56 | ||||||||
| Operating netback | ||||||||||||
| Revenue ($/boe) | $ | 17.92 | $ | 27.45 | $ | 21.16 | $ | 29.03 | ||||
| Realized gain (loss) on risk management | ||||||||||||
| contracts ($/boe) | 2.97 | (0.18 | ) | 1.74 | (0.09 | ) | ||||||
| Royalties ($/boe) | (3.71 | ) | (3.72 | ) | (3.93 | ) | (4.96 | ) | ||||
| Net operating expenses(1) ($/boe) | (9.50 | ) | (10.82 | ) | (10.69 | ) | (11.73 | ) | ||||
| Transportation expenses ($/boe) | (1.95 | ) | (2.08 | ) | (2.06 | ) | (2.19 | ) | ||||
| Operating netback (1) ($/boe) | $ | 5.73 | $ | 10.65 | $ | 6.22 | $ | 10.06 | ||||
| FINANCIAL | ||||||||||||
| Oil and natural gas revenues (2) | $ | 978 | $ | 1,786 | $ | 2,248 | $ | 3,635 | ||||
| Operating income(1) | 312 | 692 | 660 | 1,259 | ||||||||
| Cash provided by operating activities | 452 | 207 | 761 | 765 | ||||||||
| Per share – basic and diluted | 0.04 | 0.02 | 0.07 | 0.07 | ||||||||
| Adjusted funds flow (1) | 185 | 424 | 372 | 775 | ||||||||
| Per share – basic and diluted | 0.02 | 0.04 | 0.03 | 0.07 | ||||||||
| Net income (loss) and comprehensive income (loss) | (458 | ) | 31 | (3,069 | ) | 36 | ||||||
| Per share – basic and diluted | (0.04 | ) | 0.00 | (0.27 | ) | 0.00 | ||||||
| Capital expenditures | 5 | 128 | 30 | 153 | ||||||||
| Net working capital(1) | 337 | 408 | 337 | 408 | ||||||||
| Shares outstanding (‘000s) | 11,211 | 11,207 | 11,211 | 11,207 | ||||||||
| Weighted average shares outstanding | ||||||||||||
| basic and diluted (‘000s) | 11,207 | 11,207 | 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
Briko’s estimated production for the third 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.
ANNUAL GENERAL MEETING
Briko’s annual general meeting (the “Meeting”) is scheduled for 9:00 am (MST) on September 9, 2020. In response to the COVID-19 pandemic, the Corporation encourages Shareholders and proxyholders not to attend the meeting in person and has decided to offer shareholders an opportunity to listen to the business to be conducted at the Meeting by teleconference. Shareholders not attending in person must vote on the matters not less than forty-eight (48) hours (excluding Saturdays, Sundays and statutory holidays in the Province of Alberta) before the time of the Meeting. Further instructions on how to listen to the Meeting and how to vote in advance of the Meeting are contained in Briko’s management information circular that is posted on the Corporation’s website and on SEDAR. In line with Briko’s commitment to safety, in-person attendance by directors and senior management of Briko will be limited and will be subject to the orders, limitations, advice and guidance of the federal and provincial health ministries and other governmental authorities. Accordingly, Briko expects to only have a minimum number of in-person attendees present to conduct the formal business of the Meeting and does not intend to provide a corporate presentation after the Meeting.
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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