| ||May 30, 2017|
MARKSMEN ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED MARCH 31, 2017
| ||Calgary, Alberta, May 30, 2017. Marksmen Energy Inc. ("Marksmen" or the "Company") and its wholly owned subsidiary Marksmen Energy USA, Inc. announces financial results for the interim period ended March 31, 2017. The following documents have been filed on SEDAR:|
• Financial Statements
• Management's Discussion and Analysis ("MD&A")
• Form 52-109FV2 Certificate of Interim Filings -- CEO
• Form 52-109FV2 Certificate of Interim Filings -- CEO
These filings may be viewed on the SEDAR website at www.sedar.com.
Highlights for quarter ended March 31, 2017 and 2016
Selected financial and operational information for the first quarter of 2017 are set out below and should be read in conjunction with Marksmen's financial statements, and the related MD&A.
| || || || |
|Production||Q1 2017||Q1 2016||Change||% Change|
|Oil production - bbls|| 5,468 || 1,029 || 4,439 ||431%|
|Production per day - bbls|| 61 || 11 || 49 ||433%|
Production increased by over four times in the first quarter of 2017 compared to the first quarter of 2016, primarily due to the successful well, Davis-Holbrook #1 drilled in July of 2016.
Net Loss and Comprehensive Loss before Tax -- improved significantly to $(17,861) in the first quarter of 2017 compared to a loss of $(502,713) in the first quarter of 2016, an improvement of $484,852. (see financial statements).
The calculation below of "net petroleum income" does not have any standardized meaning under IFRS and may not be directly comparable to similar measures presented by other companies. However, Marksmen and other oil and gas companies consider this measurement to be a valuable measurement of operational performance. Net petroleum income is calculated by deducting royalties and production expenses from revenue.
|Net Petroleum Income||Q1 2017||Q1 2016||Change||% Change|
|Revenue|| $366,804 || $45,209 || $321,595 ||711%|
|Royalties|| $(47,835)|| $(5,920)|| $(41,915)||708%|
|Production expenses|| $(29,363)|| $(30,975)|| $1,612 ||-5%|
|Net petroleum income|| $289,606 || $8,314 || $281,292 ||3383%|
|Net petroleum income per bbl of Oil|| $53 || $8 || $44.9 ||556%|
Revenue, less royalties, and production expenses has resulted in a significant improvement of the net petroleum income of approximately thirty-five times in the first quarter of 2017 compared to the same period in 2016.
Cash -- increased over two and a half times to $335,667 in the first quarter of 2017 compared to $116,806 in the same period of 2016.
Cash-flow provided by operating activities -- is positive in the first quarter of 2017 at $127,868 and is approximately five times the negative cash-flow of $(503,621) in the first quarter of 2016.
Other Costs -- general and administrative expenses were similar in quarter over quarter comparisons at approximately $124,000. Depletion, a non-cash expense, increased proportionally with production from $33,497 in the first quarter of 2016 to $133,911 in the first quarter of 2017.
Common Shares issued and outstanding -- there are 80,550,432 common shares outstanding as of March 31, 2017 compared to 63,593,152 common shares outstanding at March 31, 2016.
In June of 2016 the Company drilled the Davis-Holbrook #1 well and it was put on production in mid-July. It has contributed significantly to the revenue of the Company in the second half of 2016. The total production from this well to December 31, 2016 is 13,223 barrels of oil or 9,917 barrels net to Marksmen. As of the end of March 2017 the well has produced a total of 19,335 barrels of oil or 14,501 barrels net to Marksmen.
In February of 2017, the well at Delong-Davis #1 was deepened by approximately 20 feet to expose more of the producing zone. The total production from this well in the first quarter was 1,473 barrels of oil gross or 663 net barrels to Marksmen.
Marksmen is currently evaluating offset drilling opportunities on its current land position. The Company is also evaluating other land, 3D seismic and drilling opportunities in Ohio.
For additional information regarding this news release please contact Archie Nesbitt, CEO and President at (403) 265-7270 or e-mail email@example.com
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 news release.
This news release may contain certain forward-looking information and statements including drilling and other opportunities available to Marksmen. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen's disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.
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