Legacy Oil + Gas Announces Year-End Results
Legacy Oil + Gas Inc. (LEG.TO) announced year-end results and filed its annual information form.
- Demonstrated strong year over year per share growth: reserves per share 7% increase; production per share 26% increase; and cash flow per share 16%.
- Increased average production from 12,650 Boe per day in 2011 to 16,301 Boe per day in 2012 (29% increase); increased average production from 14,880 Boe per day in the fourth quarter of 2011 to 17,439 Boe per day in the fourth quarter of 2012 (17% increase).
- Increased funds generated from operations from $188.9 million in 2011 to $222.9 million in 2012 (21% increase); increased funds generated from operations from $1.32 per share in 2011 to $1.53 per share in 2012 (16% increase).
- Reduced operating costs from $15.52 per Boe in 2011 to $14.36 per Boe in 2012 (7 percent decrease); reduced operating costs from $16.40 per Boe in the fourth quarter of 2011 to $13.88 per Boe in the fourth quarter of 2012 (15% decrease).
- Reduced general and administrative costs from $3.05 per Boe in 2011 to $2.90 per Boe in 2012 (5% decrease).
- Drilled 145 gross (110.4 net) oil wells with a 100% success rate in 2012. Drilled 32 gross (24.7 net) oil wells in the fourth quarter of 2012, with a 100% success rate.
- Total capital expenditures on organic opportunities for 2012 were $307.7 million (not including capitalized G&A, corporate fixed assets or net acquisitions and divestitures) relative to guidance of $305 million.
- Increased gross proved plus probable reserves from 88.0 MMBoe at December 31, 2011 to 94.2 MMBoe at December 31, 2012 (7% increase); proved plus probable reserve additions replaced 205% of production in the year
- Generated solid 2012 total proved plus probable finding, development and acquisition costs of $22.74 per Boe (including future development costs, representing a 2.0 times recycle ratio based on $44.42 per Boe operating netbacks (including effect of realized derivatives).
- Completed a Contingent Oil Resource Assessment on a portion of Legacy oil resource play lands, demonstrating capture of a significant light oil resource and potential reserve base.
- Completed the issuance to CPPIB Credit Investments Inc., a wholly-owned subsidiary of the CPP Investment Board, of US$200 million of unsecured, five year term notes with a 7.5% coupon.
- Entered a new syndicated banking facility and increased available line of credit to $525 million. Year end net debt was $485.6 million, representing approximately 1.9 times estimated forward cash flow (using strip pricing) and only 54 percent total utilization of the borrowing base of $525 million and 67% of the debt capacity of $725 million, taking into account the term notes described above.
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