Raging River Exploration Inc. Announces First Quarter 2012 Operating and Financial Results

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CALGARY, ALBERTA--(Marketwire - May 28, 2012) - Raging River Exploration Inc. (the "Company" or "Raging River") (TSX VENTURE:RRX.V - News) is pleased to announce its operating and financial results for the three months ended March 31, 2012. Selected financial and operational information is outlined below and should be read in conjunction with the interim financial statements and the related MD&A. These filings will be available at www.sedar.com and the Company's website at www.rrexploration.com

Raging River commenced active operations on March 16, 2012 following the completion of the Plan of Arrangement among Wild Stream Exploration Inc., Crescent Point Energy Corp. and the Company. Accordingly the operations below reflect only a 15 day period in the quarter. No comparisons for operational results have been included as Raging River was not a reporting issuer prior to March 16, 2012.

Financial and Operating Highlights

                                of operations                               
                               March 16, 2012                               
                                  to March 31,                              
                                         2012           2011 Percent Change 
Financial (thousands of dollars                                             
 except share data)                                                         
Petroleum and natural gas                                                   
 revenue                                1,559              -            100 
Funds from operations (1)                 948              -            100 
  Per share - basic                      0.01              -            100 
            - diluted                    0.01              -            100 
Net earnings                              383              -            100 
  Per share - basic                      0.00              -            100 
            - diluted                    0.00              -            100 
Capital expenditures, net                  72              -            100 
Corporate acquisitions                      -              -            100 
Net Debt(4)                            35,123              -            100 
Proforma Net Debt(5)                   17,266              -            100 
Shareholders' equity                   97,640              -            100 
Weighted average shares                                                     
  Basic                                88,416              -            100 
  Diluted                              94,342              -            100 
Shares outstanding, end of                                                  
 period (thousands)                                                         
  Basic                                91,041              -            100 
  Diluted                             102,310              -            100 
Operating (6:1 boe conversion)                                              
Average daily production                                                    
  Crude Oil and NGLs (bbls/d)           1,345              -            100 
  Natural gas (mcf/d)                     291              -            100 
  Barrels of oil equivalent                                                 
   (2)(boe/d)                           1,394              -            100 
Average selling prices                                                      
  Crude Oil and NGLs ($/bbl)            76.95              -            100 
  Natural gas ($/mcf)                    1.38              -            100 
  Barrels of oil equivalent                                                 
   (2)($/boe)                           74.56              -            100 
Netbacks ($/boe)                                                            
  Petroleum and natural gas                                                 
   revenue(4)                           74.56              -            100 
  Royalties                             (7.10)             -            100 
  Operating expenses                   (14.63)             -            100 
  Transportation expenses               (2.03)             -            100 
Operating netback ($/boe)               50.80              -            100 
Wells drilled                                                               
  Gross                                     -              -              - 
  Net                                       -              -              - 
  Success                                   -              -              - 
(1) Management uses funds generated by operations to analyze operating      
    performance and leverage. Funds generated by operations as presented do 
    not have any standardized meaning prescribed by IFRS and therefore it   
    may not be comparable with the calculation of similar measures for other
    entities. The reconciliation between funds flow from operations and cash
    flow from operating activities can be found in the MD & A.              
(2) Boe conversion ratio for natural gas of 1 Boe: 6 Mcf has been used,     
    which is based on an energy equivalency conversion method primarily     
    applicable at the burner tip and does not necessarily represent a value 
    equivalency at the wellhead. As the value ratio between natural gas and 
    crude oil based on the current prices of natural gas and crude oil is   
    significantly different from the energy equivalency of 6:1, utilizing a 
    conversion on a 6:1 basis may be misleading as an indication of value.  
(3) Corporate netbacks are calculated as the operating netback less general 
    and administrative expenses, financial charges asset retirement         
    obligations and transaction costs.                                      
(4) Excludes unrealized risk management contracts.                          
(5) Includes $17.9 million of proceeds received from the exercise of 11.1   
    million warrants during the period of April 1 to April 16, 2012.        
First Quarter 2012 Highlights                                               

--  Exited the quarter at 1,600 boepd (97% oil) achieving 60% growth over
    January production volumes of 1,000 boepd.

--  Raised $23.1 million through the completion of a private placement with
    the issuance of 14.4 million units at a price of $1.61 per unit.

--  Raised $4.7 million through the exercise of 2.9 million warrants at
    $1.61 per warrant. An additional $17.9 million was raised in the period
    of April 1, 2012 to April 16, 2012 with the exercise of 11.1 million
    warrants at $1.61 per warrant. Proforma net debt after the exercise of
    all warrants was $17.2 million.

Subsequent Events                                                           

--  Raging River closed its previously announced $30.5 million, 175 boe/d
    acquisition of focused light oil assets in the Dodsland area of
    southwest Saskatchewan. 

--  Raging River completed a bought deal financing for gross proceeds of $35
    million and issued 17.5 million special warrants at a price of $2.00 per
    special warrant. The special warrants, issued on May 8, 2012,
    subsequently converted in accordance with their terms to 17.5 million
    common shares on May 17, 2012.

--  On May 25, 2012, the Company increased its revolving credit facility to
    $65 million from $45 million.


Increased 2012 Guidance - April through December 2012

Quarter to date Raging River's production (based on field estimates) has averaged greater than 1,600 boe/d (97% oil). With continued strong performance of our first quarter drilling program the Company is increasing its average production guidance for 2012.

Average daily production for the period of April through December 2012 is now expected to be 1,800 boepd (97% oil) a further 6% increase from our prior guidance of 1,700 boepd. Raging River continues to anticipate 2012 exit production of approximately 2,200 boepd (97% oil) which reflects a 120% increase from our starting point in January 2012 of 1,000 boepd.

Operations Review

Second quarter drilling operations commenced on May 11th and, quarter to date, we have drilled and cased 2 (0.9 net) wells. Pending continual favorable weather conditions, the Company expects to drill up to an additional 21 (12.3 net) wells throughout the quarter.

Early in the first quarter, Raging River completed an extensive review of the historical drilling and completion techniques in the Dodsland area resulting in some modifications to our techniques. Although results are preliminary, the 13 wells completed in the first quarter using the revised methods resulted in average 60 day production rates of 50 bbls/d oil which is a 25% increase from the existing type curve for the area of 40 bbls/d of oil.


Even though WTI oil prices have deteriorated from US$106/bbl in March 2012 to their current levels of approximately US$92/bbl, the Company remains well positioned to continue to execute its business plan. Edmonton Par crude prices have remained relatively flat during this period resulting in Raging River's net price currently received, being approximately equal to that which was received in March.

The price differential between WTI and Edmonton par were at historical high levels in March and April, but have since narrowed significantly. Raging River expects this price differential volatility to continue until additional export pipeline capacity is added to throughout the basin. To continue to manage this effectively, the Company will continue to utilize hedging strategies and rail delivery options to maximize the value received for the Company's crude oil production.

The Company anticipates spending $80 million for the last three quarters of the 2012 including $30 million of acquisition capital, $43 million of drilling capital in addition to $7 million of land, seismic and facility expenditures. With the expected expenditures, the Company's balance sheet will remain very strong with projected net debt at year end 2012 staying at less than 1.0 times annualized cashflow.

Raging River's experienced management team remains committed to operational and execution excellence to continually deliver per share growth to our shareholders. The current asset base with extensive development drilling inventory is expected to deliver consistent growth for 2012 and beyond.