Calgary, Alberta - August 2, 2022 (Newsfile Corp.) (Investorideas.com Newswire) New Stratus Energy Inc. (TSXV: NSE) ("New Stratus" or the "Corporation") is pleased to announce its financial and operating results for the three months and year ended March 31, 2022, our first quarter incorporating the acquisition of 100% of the shares of Repsol Ecuador S.A., which was completed on January 14, 2022. Subsequent to the year end, Repsol Ecuador S.A. completed a corporate name change to Petrolia Ecuador S.A.
Selected financial and operational information is outlined below and should be read in conjunction with the audited financial statements and the related management's discussion and analysis ("MD&A") for the year ended March 31, 2022. These filings are available on SEDAR at www.sedar.com and the Corporation's web page (www.newstratusenergy.com). The financial statements and MD&A, as well as the financial and operating highlights outlined below, are presented in Canadian dollars.
Petrotech Engineering Ltd. assessed the Corporation's reserves in its report dated effective March 31, 2022 (the "Petrotech Report") which was prepared in accordance with the standards of the Canadian Oil and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities and is based on forecast prices and costs as at March 31, 2022. Additional information regarding reserves data and other oil and gas information is included in the Corporation's Statement of Reserves Data and Other Oil and Gas Information for the year ended March 31, 2022, available on SEDAR at www.sedar.com.
All of the Corporation's reserves are located in onshore Ecuador. On January 14, 2022, the Corporation acquired an indirect 35% working interest in Block 16 and Block 67 in Ecuador (the "Blocks") pursuant to Service Operating Contracts held by Repsol Ecuador S.A. (now, Petrolia Ecuador S.A.). The Service Operating Contracts expire on December 31, 2022. The Corporation is negotiating with the Government of Ecuador to extend the Corporation's rights to the Blocks through a production sharing contract.
The following tables are a summary of the Corporation's reserves, as evaluated by Petrotech effective March 31, 2022. It should not be assumed that the estimates of future net revenue presented in the table below represent the fair market value of the reserves. The estimates of future net revenues are presented in United States dollars. There is no assurance that the forecast prices and cost assumptions will be attained, and variances could be material. The recovery and reserve estimates of our crude oil reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual reserves may be greater or less than the estimates provided herein. Reserves information may not add due to rounding.
Jose Francisco Arata
Chairman & Chief Executive Officer
President & Director
Chief Financial Officer
email@example.com - (416) 363-4900
Certain information set forth in this news release constitutes "forward-looking statements", and "forward-looking information" under applicable securities legislation (collectively, "forward-looking statements"). All statements other than statements of historical fact are forward-looking statements. Forward-looking statements may be identified by the use of conditional or future tenses or by the use of words such as "will", "expects", "intends", "may", "should", "estimates", "anticipates", "believes", "projects", "plans", and similar expressions, including variations thereof and negative forms. Forward-looking statements in this press release include the extension of the term of the Blocks and entering into a production sharing contract with the Government of Ecuador in respect of the Blocks instead of the Service Operating Contracts; and are based on the Corporation's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed on them.
In respect of the forward-looking statements contained herein, the Corporation has provided them in reliance on certain assumptions that it believes are reasonable at this time, some or all of which may prove to be incorrect. Accordingly, readers should not place undue reliance on the forward-looking statements contained herein. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. New Stratus undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. Actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits may be derived therefrom.
Non-GAAP and Other Financial Measures
This news release contains the financial terms "Operating EBITDA", "Operating Netback" and "Netback" that do not have a standardized definition under International Financial Reporting Standards ("IFRS"). These financial measures, together with measures prepared in accordance with IFRS, provide useful information to investors and shareholders, as management uses them to evaluate the operating performance of the Corporation. The Corporation's determination of these non-IFRS measures may differ from other reporting issuers, and therefore are unlikely to be comparable to similar measures presented by other companies. Further, these non-IFRS measures should not be considered in isolation or as a substitute for measures of performance or cash flows prepared in accordance with IFRS.
EBITDA is a commonly used measure that adjusts net income (loss) as reported under IFRS to exclude the effects of income taxes, finance income and expenses, and depletion, depreciation and amortization expense. Operating EBITDA represents the operating results of the Company's primary business, excluding the following items: restructuring, severance and other costs, certain non-cash items (such as impairments, foreign exchange, costs under terminated pipeline contracts and share-based compensation) and gains or losses arising from the disposal of capital assets. In addition, other unusual or non-recurring items are excluded from operating EBITDA, as they are not indicative of the underlying core operating performance of the Company.
Operating EBITDA represents the results of the Corporation's primary business, excluding the items noted above. Other unusual or non-recurring items are excluded from operating EBITDA, as they are not indicative of the underlying core operating performance of the Corporation.
Neither 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 this release.
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