Molori Energy Issues Preliminary Q2 Production Results
Vancouver, British Columbia (Newsfile Corp. - May 18, 2017) - Molori Energy Inc. (TSXV: MOL) (OTCQB: MOLOF) ('Molori' or the 'Company'), is pleased to provide some preliminary operating results for the three and six-month period ending April 30, 2017. The Company plans to report complete Q2 financial results before June 29, 2017.
Highlights for the three and six-month period ending April 30, 20171
February to April 2017 ('Q2') production came in at a total of 31,800 barrels of oil equivalent ('BOE')*, compared to 13,500 BOE for the period November 2016 to January 31, 2017 ('Q1').
Production for the three months ended April 30, 2017 increased by 135% quarter over quarter.
$2.3 million in gross sales during the first six months of the fiscal year. Gross oil & gas sales amounted to USD $1.03 million in Q2, compared to $530,000 in Q1.
70% reduction in Lease operating expenses ('LOE'). LOE were reduced from $17.86/BOE in Q1 to $10.46/BOE in Q2.
25% reduction in general and administrative expenses from Q1 to Q2.
1 -All numbers are in USD, Molori interest is 25%
The Company, through its partner Ponderosa Energy Inc., continued to cost-effectively re-work wells, bringing them back into production. These efforts resulted in a significant increase in production numbers as well as a significant reduction in lease operating expenses ('LOE'). The Company plans to continue to re-work between 5-10 wells per month with a focus on its productive 'State' leases. This is expected to continue to add low-cost oil and gas production, while at the same time providing positive cash flow.
Joel Dumaresq, CEO of Molori commented, 'In the past several months, the team at Molori has not only developed an entirely new business model, but also established a solid reserve base, increased production month-over-month, and demonstrated an ability to deliver positive operational cash flow. What we are even more proud of, is the fact that with the assistance of our partners at Ponderosa, we've accomplished this increase in production and revenues while maintaining a debt-free Balance Sheet and at the same time lowering our operating expenses.'
The Company also wishes to announce (See news release dated April 11, 2017) that it has now identified several drilling opportunities in its recently announced 'Red Cave' play, and has developed a plan to expand its exposure to this prospective zone.
Molori has scheduled a conference call for Wednesday, May 24 at 11:00am EDT (8:00am PDT) to discuss progress relating to its core well-rehabilitation business, as well as the exciting opportunity it's pursuing in the Red Cave. The Company invites all interested parties to participate via the following conference call bridge:
+1 416-548-6023 (Canada and/or International) or 1 877-394-5901 (North America Only) Access Code: 4767148.
* Per BOE amounts have been calculated by using the conversion ratio of six thousand cubic feet (6 MCF) of natural gas to one barrel (1 bbl) of crude oil. The BOE conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of natural gas as compared to oil is significantly different from the energy equivalent of 1:6, utilizing a conversion on a 1:6 basis may be misleading as an indication of value. The ratio of gas to oil was 40% gas and 60% oil for the three month period ending April 30, 2017 and 50% gas and 50% oil for the three months ending January 31, 2017.
Molori Energy Inc. is an oil and gas production company with current operations in the Texas Panhandle West Field. The Company owns a 25 percent working interest in certain leases located in the bifurcated Texas panhandle, operated by Texas-based independent oil and gas producer Ponderosa Energy, LLC ('Ponderosa'), This giant field was discovered in 1910 and expanded three years later to create one of the US largest gas fields. The experienced management team at Molori is aggressively acquiring select properties which provide immediate cash flow and development opportunities, now and in the years ahead. Molori is seizing the opportunity, in the current oil & gas environment, to assemble oil and gas production in nearby and politically safe jurisdictions.
NEITHER THE 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 NEW RELEASE.
Cautionary Notes Regarding Forward Looking Statements
This News Release contains forward-looking statements. Forward-looking statements include but are not limited to those with respect to the prices of oil and gas, the estimation of oil and gas resources and reserves, the realization of oil and gas reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, Government regulation of oil and gas operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes' or variations of such words and phrases, or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of current exploration activities, conclusions or economic evaluations, changes in project parameters as plans continue to be refined, possible variations in grade and or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes or other risks of the oil & gas industry, delays in obtaining government approvals or financing or incompletion of development or construction activities, risks relating to the integration of acquisitions, to international operations, and to the prices of oil & gas. While the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
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18.05.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English
Company: Molori Energy Inc.
Canada ISIN: CA87402T2065 End of News DGAP News Service