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Pine Cliff Energy Announces First Quarter 2011 Results

Jun 21, 2011 - 06:00 PM ET

CALGARY, ALBERTA--(Marketwire - June 21, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Pine Cliff Energy Ltd. (Pine Cliff or the Company) is pleased to announce its operating and financial results for the first quarter ended March 31, 2011. The related unaudited condensed consolidated financial statements and notes, as well as management's discussion and analysis, are available on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com and on Pine Cliff's website at www.pinecliffenergy.com

Highlights

IFRS
As at and for the three months endedMarch 31,
2011
December 31,
2010
March 31,
2010
TOTAL OPERATIONS ($)
Cash Flow (Deficiency) from Operations148,12038,856(48,741)
Per Share Basic and Diluted0.000.00(0.00)
Net Loss(32,444)(917,079)(188,494)
Per Share Basic and Diluted(0.00)(0.02)(0.00)
Capital Expenditures6,15581,6221,013,177
Total Assets2,896,3252,929,7823,767,607
Working Capital (Deficiency)482,299309,805(426,596)
Shareholders' Equity2,574,3532,549,8502,963,254
CONTINUING OPERATIONS ($)
Cash Flow from Operations148,12038,85619,600
Per Share Basic and Diluted0.000.000.00
Net Loss(32,444)(917,079)(22,029)
Per Share Basic and Diluted(0.00)(0.02)(0.00)
Capital Expenditures6,15581,622989,250
TOTAL OPERATIONS
Revenue - Oil and Gas ($)245,518279,741210,797
Natural Gas Liquids (NGLs)
- Barrels per day113
- Average Price ($ per barrel)83.6374.9181.19
Natural Gas
- MCF Per Day659768435
- Average Price ($ per MCF)4.033.864.91
Total Barrels of Oil Equivalent (BOE) Per Day (2)11112976

(1) The comparative highlights have been restated with the adoption of International Financial Reporting Standards (IFRS).
(2) Barrels of oil equivalent (BOE) are calculated using a conversion ratio of 6 MCF to 1 barrel of oil. The conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and as such may be misleading if used in isolation.

Operational Highlights

  • Senior management and the Board of Directors have refocused Pine Cliff's corporate strategy on its Western Canadian properties and are taking an aggressive approach in Canada to find new opportunities to increase shareholder value.
  • A significant step to realizing this strategy was the disposition of its South American Operations in the third quarter of 2010 which significantly reduced future operating and capital costs. Currently, Pine Cliff has positive cash flow from operations as well as a positive working capital position.
  • Production increased 46 percent in Q1 2011 over the same period in 2010 with average daily production totaling 111 BOE per day. The higher volumes are due to the Company's increased activities in Canada, specifically on its Sundance properties. During 2010, the Company completed and placed on production four gross natural gas wells (0.6 net, 15 percent working interest in each well) between February and April of the year. Quarter over quarter production levels decreased approximately 14 percent mainly due to natural production declines related to these new wells.
  • The promising results realized on the Sundance properties have led to further opportunities in the area. Subsequent to quarter-end, four wells (0.6 net, 15 percent working interest in each well) have been licensed in the area and it is anticipated that the operator will drill these wells in 2011.
  • Pine Cliff was pleased to welcome Robb D. Thompson to the Company in February 2011 as Vice President, Finance. Mr. Thompson now holds the position of Chief Financial Officer and Secretary.

IFRS Transition

  • The first quarter of 2011's Management's Discussion and Analysis (MD&A) and Financial Statements along with the notes thereto, are reported under International Financial Reporting Standards (IFRS). It is mandatory that all Canadian publicly accountable enterprises prepare their financial statements in accordance with Canadian Generally Accepted Accounting Principles (Canadian GAAP) revised to incorporate new accounting standards under IFRS.
  • Pine Cliff will ensure that appropriate disclosures and discussions are provided in the MD&A and the financial statements to assist shareholders, analysts and other parties with their respective evaluations.

Outlook

  • As March 31, 2011, Pine Cliff had positive working capital of $482,299. With the current and prolonged low natural gas price environment, there may be opportunities for either corporate or property acquisitions. Pine Cliff also intends to continue increasing activity in Canada through participating in a more active drill program.
  • With the disposition of the South American Operations complete, a key focus for the Company will be to substantially increase the Company's asset base. Pine Cliff has no debt and as such, should be able to finance any domestic opportunities it identifies either through current working capital, bank debt or an equity placement to improve shareholder value.

Cautionary Statement

This summarized news release should not be considered a suitable source of information for readers who are unfamiliar with Pine Cliff and should not be considered in any way as a substitute for reading the full report.

For the full report, please go to www.pinecliffenergy.com

Forward-Looking Statements

Certain statements contained in this MD&A include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. Forward-looking information in this MD&A includes, but is not limited to: expected cash provided by continuing operations; future capital expenditures, including the amount and nature thereof; oil and natural gas prices and demand; expansion and other development trends of the oil and natural gas industry; business strategy and outlook; expansion and growth of our business and operations; and maintenance of existing customer, supplier and partner relationships; supply channels; accounting policies; credit risks; and other such matters.

All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and may include, without limitation: the risks of foreign operations; foreign exchange fluctuations; equipment and labour shortages and inflationary costs; general economic conditions; industry conditions; changes in applicable environmental, taxation and other laws and regulations as well as how such laws and regulations are interpreted and enforced; the ability of oil and natural gas companies to raise capital; the effect of weather conditions on operations and facilities; the existence of operating risks; volatility of oil and natural gas prices; oil and gas product supply and demand; risks inherent in the ability to generate sufficient cash flow from operations to meet current and future obligations; increased competition; stock market volatility; opportunities available to or pursued by us; and other factors, many of which are beyond our control. The foregoing factors are not exhaustive.

Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do, what benefits will be derived therefrom. Except as required by law, Pine Cliff disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

The forward-looking information contained herein is expressly qualified by this cautionary statement.

The TSX Venture Exchange does not accept responsibility for the accuracy of this release.



FOR FURTHER INFORMATION PLEASE CONTACT:

Pine Cliff Energy
George F. Fink
President , CEO and Director
403-262-1400
403-232-1421 (FAX)

Pine Cliff Energy
Robb D. Thompson
CFO and Secretary
403-262-1400
403-232-1421 (FAX)

Pine Cliff Energy
Kirsten Lankester
Manager, Investor Relations
403-262-1400
403-232-1421 (FAX)
info@pinecliffenergy.com
www.pinecliffenergy.com