Winnipeg, Manitoba (FSCwire) - Nordic Oil and Gas Ltd. (TSXV: NOG), today announced the Company's financial results from operations for its second quarter and six months ended June 30, 2014. All amounts referenced herein are in Canadian dollars.
Revenue from oil and natural gas sales (including liquids and transport revenue) during the second quarter of 2014 totaled $56,874 down from the $90,063 reported during the second quarter of 2013.
The primary reason for the decrease in revenue for the quarter was the fact that several of the Company’s gas wells at Joffre, Alberta remained shut-in, resulting in the fact that minimal revenue has been forthcoming from that area. The wells at Lloydminster were also off production during the quarter.
On a year-to-date basis, production revenue for the six months ended June 30, 2014 totaled $128,208, as opposed to $160,331 for the same period in 2013. The revenue decrease for the year-to-date is due in large part to the factors noted above.
Total assets, including cash, short-term investments, accounts receivable, property and equipment and other assets (deposits), for the period ended June 30, 2014 were $9,083,134, down slightly from the December 31, 2013 total of $9,280,162 and the Q2 2013 total of $10,666,028. The primary reason for the marginal decrease in assets was the fact that no short term investments were accounted for in 2014..
Royalties paid in the second quarter of 2014 totaled $2,650, down from the $13,884 paid during the same period last year, as fewer wells were on production this year. For the six months ended June 30, 2014, royalties totaled $5,414 versus $16,978 for the same period in 2013.
Overall expenses for the quarter ended June 30, 2014 totaled $289,458, up approximately $64,000 from the 2013 second quarter total of $225,163. Production and operating expenses however, were down during the second quarter of 2014: $42,964 this year compared to $82,353 in 2013. The primary reason for the increase in overall expenses was due to the fact that the Company recorded a stock option expense of $100,000.
On a year-to-date basis, overall expenses were down for the first six months of 2014 as they totaled $421,080, down some $15,700 from the $436,820 for the same period last year. The primary reason for the decrease was the drop in production and operating costs from $143,353 for the first six months of 2013 to $107,794 for the first six months of this year – a 25% decrease – and a $52,500 decrease in G & A expenses.
The net comprehensive loss for the three months ended June 30, 2014 before income taxes was $291,985, compared to a loss of ($194,346) recorded during the same period a year ago. When applying deferred taxes, the second quarter loss for 2013 was $152,134; there were no deferred taxes applied for the first six months of 2014.
Year-to-date, the net comprehensive loss before taxes was $398,037 a up approximately $12,000 over the net loss of $385,684 for the first six months of 2013.When applying deferred taxes, the loss for 2013 was $293,850; there were no deferred taxes reported during the first six months of 2014
In other news, Mr. Benson announced today that operatorship of the Company’s wells at Lloydminster, Alberta has been transferred to Nordic’s Joint Venture partner, who will be putting the wells back on production as soon as possible.
In addition, on August 1 Nordic’s four natural gas wells at Joffre were placed back on production by our operator. The wells were shut in for a couple of months while new contracts were signed with the operator.
Finally, Mr. Benson also announced today that the date of the maturity and the interest payment for the Company’s Series “B”, 3 year, 10% Secured Convertible Redeemable Debenture (the “Debenture”), scheduled for August 21, 2014, has been extended to November 21, 2014. Debentureholders representing the requisite percentage of the principal amount of the debentures required to facilitate the extension provided written consent to the Trustee of the Debenture, Computershare Trust Company of Canada.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG.
This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Corporation expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Corporation believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploration and drilling success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Corporation’s management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.
* The term BOEs may be misleading, particularly if used in isolation. A BOES conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of the contents of this News Release.
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Nordic Oil and Gas Ltd.
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Source: Nordic Oil and Gas Ltd. (TSX Venture:NOG)
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