Crocotta Energy Inc. is pleased to announce its financial and operating results for the year ended December 31, 2012, including consolidated financial statements, notes to the consolidated financial statements, and Management's Discussion and Analysis. All dollar figures are Canadian dollars unless otherwise noted.
• Increased average production 83% to 6,911 boepd in 2012 from 3,775 boepd in 2011
• Achieved 2012 exit guidance of 8,500 boepd
• Increased proved plus probable reserves 29% to 38.1 Mmboe in 2012 from 29.6 Mmboe in 2011
• Increased funds from operations 65% to $50.6 million in 2012 from $30.6 million in 2011
• Decreased production expenses 26% to $5.83/boe in 2012 from $7.85/boe in 2011
• Drilled 13.4 net Bluesky and Cardium wells at Edson, AB at a 100% success rate
• Subsequent to December 31, 2012, increased bank credit facility to $140.0 million
Crocotta had a highly successful 2012 with respect to many aspects of the business. Great strides were made in building long term value by proving up material inventory in the Cardium at Edson, starting to build infrastructure for liquids recovery at Sunrise-Dawson in the Montney, and reducing operating costs to below $6 per boe. The Cardium opened the year with one successful horizontal oil well producing at Edson and ended with 11 wells onstream and 35 additional net locations added to the drilling inventory.
Successful well tests in the Montney proved up a liquids-rich play at Sunrise-Dawson that will provide high growth and large returns for Crocotta in 2013 and beyond. Crocotta signed an agreement with a third party entity and will be constructing facilities in Q213 to extract a large portion of the natural gas liquids while materially reducing operating costs. This play, given liquids yield and high initial rates, will rival most liquids-rich plays in North America.
The last but certainly not the least play is the Bluesky at Edson. The 22 horizontal Bluesky wells drilled by Crocotta over the last two and half years provided a large portion of the growth from 2,200 boepd in 2010 to the 2012 exit rate of 8,500 boepd. While significantly delineated and de-risked, the Bluesky still has very material production upside with over 40 net locations in drilling inventory.
In 2013, Crocotta expects to further all three of its major plays which will contribute to our budgeted exit rate of 10,500 boepd. Crocotta also intends to drill two oil exploration plays and continues to pursue acquisitions in its core areas. We look forward to updating our shareholders throughout the year as we execute our plan for 2013.
For more information about related Opportunities and Key Players visit Unconventional Oil & Gas