ArPetrol Ltd. (RPT.V) today reported its financial and operating results for the three months ended March 31, 2013.
Net income for the quarter was $1,726,730, compared to a net loss of $1,066,167 for the first quarter of 2012. During the first quarter ArPetrol recorded an unrealized foreign exchange gain of $2.8 million which was the major factor in generating net income.
ArPetrol had a working capital deficit of $0.8 million as at March 31, 2013, which will increase as a result of the rig demobilization at Faro Virgenes. The Company has no long-term debt.
Operational Update and Outlook
The Company recently signed a new agreement with improved pricing for the sale of its natural gas production. Starting May 1st, and continuing to September 30th, the Company will receive $US3.65 per Mcf of natural gas sold under the agreement, a 31% increase over the current price. For the period of October 1st to December 31st, the price received will be $US3.23 per Mcf. The Company can sell 100% of its production under the new agreement.
The Company's recently announced sale of its overriding royalty interests in non-operated properties in the Williston Basin of North Dakota has closed and gross cash proceeds of $US 594,000 have been received.
The Company continues to pursue and evaluate a broad range of strategic alternatives through its previously announced strategic review process with the assistance of its financial advisor, Raymond James Ltd.
ArPetrol is now trading at 1 cent.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
