The Company is today filing its audited consolidated financial statements as at and for the year ended
Commenting today on Pan Orient's 2021 results, President and CEO
"In the fourth quarter of 2021 the Company announced its intention to take a number of steps that would accelerate Pan Orient shareholder value. The first of these steps was completed in
HIGHLIGHTS
- Net to Pan Orient's 50.01% equity interest in the Thailand Joint Venture, oil sales from Concession L53 were 1,395 BOPD in 2021, an increase of 15% from 1,213 BOPD in 2020. The L53-DD10 and L53-DD11 appraisal wells were drilled in the L53-DD field and brought onto production in 2021. In addition, water disposal capacity at the L53-DD field was increased through conversion of the L53-DD8 well to a water disposal well and drilling of the L53-DD12 water disposal well.
- Adjusted
Thailand funds flow from operations of$20.4 million in 2021 ($40.10 per barrel), with$5.7 million ($43.56 per barrel) in the fourth quarter, net to Pan Orient's 50.01% equity interest in the Thailand Joint Venture. During 2021, the realized price of Concession L53 crude oil was higher than the previous year by 56% as the Brent reference price increased 60%. Operating expenses in 2021 declined 27% to$5.66 per barrel primarily due to increased water handling capacity for the L53-DD field and higher oil volumes. - Net to Pan Orient's 50.01% equity interest in the Thailand Joint Venture, adjusted funds flow from
Thailand operations of$20.4 million in 2021 funded$5.8 million ofThailand exploration and development activities and$13.7 million of dividends from the Thailand Joint Venture to Pan Orient. Pan Orient's share of working capital and long-term deposits inThailand atDecember 31, 2021 was$5.0 million . December 31, 2021 reserves report assigned proved plus probable crude oil reserves of 2.3 million barrels (a decrease of 3%), net to Pan Orient's 50.01% equity interest in the Thailand Joint Venture, with an after tax net present value using forecast prices and costs discounted at 10% per year of$54.1 million (an 39% increase). The 3% decrease in proved plus probable crude oil reserves results from 509,195 barrels of oil sales largely offset by a 445,809 barrel increase from positive technical revisions, economic factors and extension of fields. The 39% increase in the net present value is the result of the 31% increase average oil sales prices more than offsetting the 3% decrease in proved plus probable reserves.
- The operator of the East Jabung Production Sharing Contract ("PSC") provided notice to the Government of
Indonesia inJanuary 2020 of withdrawal from the East Jabung PSC and is continuing to complete final steps to be taken for formal approval of the expiry from the Government ofIndonesia , including reclamation requirements. Pan Orient is withdrawing from operations inIndonesia and the office inJakarta was closedMarch 31, 2020 . - Activities of the Company in
Indonesia for 2021 are reported as discontinued operations. Discontinued operations inIndonesia for 2021 were$212 thousand of G&A expense,$23 thousand in foreign exchange loss and$165 thousand increase of impairment expense for the East Jabung PSC.
Sawn Lake (Operated by
- Since
March 31, 2020 , noSawn Lake operating expenses or G&A have been capitalized. For 2021, Pan Orient reports total operating expense of$279 thousand associated with theSawn Lake suspended SAGD facility and wellpair.
Corporate
- Total 2021 corporate adjusted funds flow from operations (including Pan Orient's 50.01% equity interest in the Thailand Joint Venture) of
$16.7 million ($0.33 per share), with$4.4 million ($0.09 per share) in the fourth quarter of 2021. The 75% increase from$9.5 million ($0.18 per share) in 2020 is largely due to the Thailand Joint Venture with 56% higher realized prices of Concession L53 crude oil and 15% higher oil sales volume. - Net income attributable to common shareholders was
$8.5 million ($0.17 per share) for 2021 and$3.0 million ($0.06 per share) for the fourth quarter of 2021. - Pan Orient repurchased 1,950,100 common shares in 2021 at an average price of
$0.87 per share (before the$0.40 per share special distribution to Pan Orient shareholders inFebruary 2022 ). There have been no shares repurchased in 2022 to date. - Pan Orient had working capital and non-current deposits of
$32.1 million and no long-term debt atDecember 31, 2021 . In addition, the Thailand Joint Venture had$5.0 million in working capital and long-term deposits, net to Pan Orient's 50.01% equity interest, andThailand funds flow from operations are expected to fund remaining development activities at Concession L53. - At the Annual and Special Meeting of Shareholders
January 18, 2022 , shareholders approved the previously announced capital reorganization resulting in a$0.40 per common share return of capital distribution to shareholders onFebruary 10, 2022 . The total amount of the distribution was$19.9 million .
OUTLOOK
CORPORATE
In the fourth quarter of 2021, the Company announced a process to accelerate shareholder value given the mid to late stage development of
An updated
It is currently proposed that in the period after the sale of the Company's oil and gas interests, and the distribution of the vast majority of cash to shareholders, the Company will continue to pursue international oil and gas opportunities with a substantially scaled down cost structure.
Pan Orient is a
This news release contains forward-looking information. Forward-looking information is generally identifiable by the terminology used, such as "expect", "believe", "estimate", "should", "anticipate" and "potential" or other similar wording. Forward-looking information in this news release includes, but is not limited to, references express or implied to estimates of reserves and potentially recoverable resources; oil price expectations;
Neither
Financial and Operating Summary | Three Months Ended | Year Ended | % Change | |||
(thousands of Canadian dollars except where indicated) | 2021 | 2020 | 2021 | 2020 | ||
FINANCIAL | ||||||
Financial Statement Results – Excluding 50.01% Interest in | ||||||
Net income (loss) attributed to common shareholders | 2,951 | (417) | 8,479 | (59,631) | -114% | |
Per share – basic and diluted | -114% | |||||
Cash flow used in operating activities (Note 2 & 3) | (1,212) | (597) | (3,050) | (1,942) | 57% | |
Per share – basic and diluted | 57% | |||||
Cash flow from (used in) investing activities (Note 2 & 3) | 5,098 | (26) | 13,712 | 6,984 | 96% | |
Per share – basic and diluted | $ 0.10 | $ 0.00 | 96% | |||
Cash flow used in financing activities (Note 2 & 3) | (3) | (225) | (1,728) | (1,733) | 0% | |
Per share – basic and diluted | 0% | |||||
Change in cash & cash equivalents from discontinued operations (Note 3) | (9) | (46) | (153) | (795) | -81% | |
Working capital | 31,472 | 22,968 | 31,472 | 22,968 | 37% | |
Working capital & non-current deposits | 32,084 | 23,577 | 32,084 | 23,577 | 36% | |
Long-term debt | - | - | - | - | 0% | |
Shares outstanding (thousands) | 49,794 | 51,744 | 49,794 | 51,744 | -4% | |
Capital Commitments (Note 4) | 1,060 | 801 | 1,060 | 801 | 32% | |
Working Capital and Non-current Deposits | ||||||
Beginning of period – Excluding Thailand Joint Venture | 28,443 | 26,411 | 23,577 | 22,158 | 6% | |
Adjusted funds flow used in continuing operations (Note 3 & 5) | (1,072) | (1,754) | (3,376) | (3,340) | 1% | |
Adjusted funds flow from (used in) discontinued operations (Note 3) | (239) | 47 | (400) | 395 | -201% | |
Consolidated capital expenditures (Note 6) | - | - | - | (85) | ||
Amounts advanced to Thailand Joint Venture | (8) | (25) | 31 | (43) | -172% | |
Dividend received from Thailand Joint Venture | 5,141 | - | 13,715 | 7,112 | 93% | |
Finance lease payments | (3) | (3) | (24) | (139) | -83% | |
Changes in current decommissioning liabilities | 125 | - | (518) | - | ||
Normal course issuer bid | - | (222) | (1,704) | (1,705) | 0% | |
Automatic share purchase plan (Note 7) | - | - | 945 | - | ||
Effect of foreign exchange and other | (303) | (877) | (162) | (776) | -79% | |
End of period - Excluding Thailand Joint Venture | 32,084 | 23,577 | 32,084 | 23,577 | 36% | |
Pan Orient 50.01% interest in | 5,023 | 4,875 | 5,023 | 4,875 | 3% | |
Economic Results – Including 50.01% Interest in | ||||||
Total corporate adjusted funds flow from (used in) operations by region (Note 5) | ||||||
(1,055) | (1,745) | (3,329) | (3,310) | 1% | ||
(17) | (9) | (47) | (30) | 57% | ||
From continuing operations | (1,072) | (1,754) | (3,376) | (3,340) | 1% | |
(239) | 47 | (400) | 395 | -201% | ||
Adjusted funds flow used in operations (excl. Thailand Joint Venture) | (1,311) | (1,707) | (3,776) | (2,945) | 28% | |
Share of Thailand Joint Venture (Note 1 & 9) | 5,731 | 3,235 | 20,466 | 12,492 | 64% | |
Total corporate adjusted funds flow from operations | 4,420 | 1,528 | 16,690 | 9,547 | 75% | |
Per share – basic and diluted | 84% | |||||
Capital Expenditures – | ||||||
Consolidated capital expenditures (excl. Thailand Joint Venture) | - | - | - | 85 | -100% | |
Share of Thailand Joint Venture capital expenditures | 853 | 1,644 | 5,803 | 10,248 | -43% | |
Total capital expenditures (incl. Thailand Joint Venture) | 853 | 1,644 | 5,803 | 10,333 | -44% | |
Investment in | ||||||
Beginning of period | 24,636 | 26,809 | 28,329 | 34,127 | -17% | |
Net income from Joint Venture | 4,259 | 1,294 | 12,146 | 1,906 | 537% | |
Other comprehensive gain (loss) from Joint Venture | 332 | 201 | (2,635) | (635) | 315% | |
Dividend paid | (5,141) | - | (13,715) | (7,112) | 93% | |
Amounts advanced to (from) Joint Venture | 8 | 25 | (31) | 43 | -172% | |
End of period | 24,094 | 28,329 | 24,094 | 28,329 | -15% |
Three Months Ended | Year Ended | % Change | ||||
(thousands of Canadian dollars except where indicated) | 2021 | 2020 | 2021 | 2020 | ||
Thailand Operations | ||||||
Economic Results – Including 50.01% Interest in | ||||||
Oil sales (bbls) | 131,207 | 137,137 | 509,195 | 444,020 | 15% | |
Average daily oil sales (BOPD) by Concession L53 | 1,426 | 1,491 | 1,395 | 1,213 | 15% | |
Average oil sales price, before transportation (CDN$/bbl) | $ 98.03 | $ 56.95 | $ 84.69 | $ 54.18 | 56% | |
Reference Price (volume weighted) and differential | ||||||
Crude oil (Brent $US/bbl) | $ 79.73 | $ 44.62 | $ 70.78 | $ 41.73 | 70% | |
Exchange Rate $US/$Cdn | 1.27 | 1.32 | 1.27 | 1.35 | -6% | |
Crude oil (Brent $Cdn/bbl) | $ 101.41 | $ 58.71 | $ 89.61 | $ 56.16 | 60% | |
Sale price / Brent reference price | 97% | 97% | 95% | 96% | -2% | |
Adjusted funds flow from (used in) operations (Note 5) | ||||||
Crude oil sales | 12,862 | 7,810 | 43,123 | 24,055 | 79% | |
Government royalty | (688) | (419) | (2,308) | (1,252) | 84% | |
Transportation expense | (316) | (314) | (1,208) | (1,005) | 20% | |
Operating expense | (766) | (1,094) | (2,883) | (3,424) | -16% | |
Field netback | 11,092 | 5,983 | 36,724 | 18,374 | 100% | |
General and administrative expense (Note 8) | (283) | (306) | (911) | (968) | -6% | |
Interest income | - | 1 | 2 | 7 | -71% | |
Foreign exchange gain (loss) | 2 | 4 | (36) | 46 | -178% | |
Current income tax | (5,097) | (2,456) | (15,360) | (4,997) | 207% | |
5,714 | 3,226 | 20,419 | 12,462 | 64% | ||
Adjusted funds flow from (used in) operations / barrel (CDN$/bbl) (Note 5) | ||||||
Crude oil sales | $ 98.03 | $ 56.95 | $ 84.69 | $ 54.18 | 56% | |
Government royalty | (5.24) | (3.06) | (4.53) | (2.82) | 61% | |
Transportation expense | (2.41) | (2.29) | (2.37) | (2.26) | 5% | |
Operating expense | (5.84) | (7.98) | (5.66) | (7.71) | -27% | |
Field netback | $ 84.54 | $ 43.63 | $ 72.12 | $ 41.38 | 74% | |
General and administrative expense (Note 8) | (2.16) | (2.22) | (1.79) | (2.18) | -18% | |
Interest Income | - | 0.01 | 0.00 | 0.02 | -75% | |
Foreign exchange gain (loss) | 0.02 | 0.03 | (0.07) | 0.10 | -168% | |
Current income tax | (38.85) | (17.91) | (30.17) | (11.25) | 168% | |
$ 43.56 | $ 23.54 | $ 40.10 | $ 28.07 | 43% | ||
Government royalty as percentage of crude oil sales | 5.3% | 5.4% | 5.4% | 5.2% | 0% | |
Income tax & SRB as percentage of crude oil sales | 40% | 31% | 36% | 21% | 15% | |
As percentage of crude oil sales | ||||||
Expenses - transportation, operating, G&A and other | 11% | 22% | 12% | 22% | -11% | |
Government royalty, SRB and income tax | 45% | 37% | 41% | 26% | 15% | |
Adjusted funds flow from operations, before interest income | 44% | 41% | 47% | 52% | -4% | |
Wells drilled | ||||||
Gross | - | 1 | 3 | 8 | -63% | |
Net | - | 0.5 | 1.5 | 4.0 | -63% | |
Financial Statement Presentation Results – Excl. 50.01% Interest in | ||||||
General and administrative expense (Note 8) | (17) | (9) | (47) | (30) | 57% | |
Adjusted funds flow used in consolidated operations | (17) | (9) | (47) | (30) | 57% | |
Adjusted fund flow included in Investment in | ||||||
Net income from Thailand Joint Venture | 4,259 | 1,294 | 12,146 | 1,906 | 537% | |
Add back non-cash items in net income | 1,472 | 1,941 | 8,320 | 10,586 | -21% | |
Adjusted funds flow from Thailand Joint Venture | 5,731 | 3,235 | 20,466 | 12,492 | 64% | |
5,714 | 3,226 | 20,419 | 12,462 | 64% |
Three Months Ended | Year Ended | % Change | ||||
(thousands of Canadian dollars except where indicated) | 2021 | 2020 | 2021 | 2020 | ||
Canada Operations | ||||||
Interest income | 13 | 19 | 48 | 220 | -78% | |
General and administrative expenses (Note 8) | (564) | (546) | (2,036) | (2,070) | -2% | |
Operating expense (Note 10) | (59) | (54) | (279) | (210) | 33% | |
Stock based compensation on restricted share units (note 11) | (375) | (156) | (1,001) | (383) | 161% | |
Realized foreign exchange gain (Note 12) | 53 | 1 | 53 | 2 | 2550% | |
Unrealized foreign exchange loss (loss) (Note 12) | (123) | (1,009) | (114) | (869) | -87% | |
(1,055) | (1,745) | (3,329) | (3,310) | 1% | ||
Add back | (17) | (9) | (47) | (30) | 57% | |
Add back changes in non-cash working capital, continuing operations | (263) | 148 | 212 | 529 | -60% | |
Add back unrealized foreign exchange loss | 123 | 1,009 | 114 | 869 | -87% | |
Cash flow used in operating activities, continuing operations | (1,212) | (597) | (3,050) | (1,942) | -57% | |
| ||||||
General and administrative expense (Note 8) | (45) | (61) | (212) | (284) | -25% | |
Impairment recovery (expense) (Note 13) | (164) | 1 | (165) | 675 | -124% | |
Foreign exchange gain (loss) | (30) | 107 | (23) | 4 | -675% | |
(239) | 47 | (400) | 395 | -201% | ||
Add back changes in non-cash working capital, discontinued operations | 366 | (93) | 383 | (1,079) | -135% | |
Settlement of decommissioning provision | (136) | - | (136) | - | ||
Cash flow used in operating activities, discontinued operations | (9) | (46) | (153) | (684) | -122% |
Year Ended | % Change | ||||||||||||||
(thousands of Canadian dollars except where indicated) | 2021 | 2020 | |||||||||||||
RESERVES AND CONTINGENT RESOURCES | |||||||||||||||
Onshore | (Note 15) | (Note 14) | |||||||||||||
Proved oil reserves (thousands of barrels) | 1,540 | 1,418 | 9% | ||||||||||||
Proved plus probable oil reserves (thousands of barrels) | 2,313 | 2,377 | -3% | ||||||||||||
Net present value of proved + probable reserves, after tax discounted at 10% | 54,095 | 38,888 | 39% | ||||||||||||
Per Pan Orient share – basic (Note 16) | $ 1.09 | $ 0.75 | 45% | ||||||||||||
(Note 17) |
INTERNATIONAL INTERESTS AT | ||||||||
All amounts reflect Pan Orient's economic | Status | Net Square Kilometers | December 31, 2021 Financial Commitments (Cdn thousands) | 2021 Avg. Production | P+P | |||
Onshore Thailand Concession (Recorded in Investment in Joint | ||||||||
L53/48 (Pan Orient 50.01% ownership in | Partially developed | 13.66 | - | 1,395 | 2,313 | |||
Onshore Indonesia PSC (Consolidated subsidiary) | ||||||||
East Jabung PSC, | Expired | |||||||
(1) | Pan Orient holds a 50.01% equity interest in |
(2) | As set out in the Consolidated Statements of Cash Flows in the Consolidated Financial Statements of Pan Orient Energy Corp. |
(3) | The East Jabung Production Sharing Contract ("PSC") expired in |
(4) | Refer to Commitments note disclosure of the |
(5) | Total corporate adjusted funds flow from operations is cash flow from operating activities prior to changes in non-cash working capital, |
(6) | Cost of capital expenditures excluded decommissioning costs and the impact of changes in foreign exchange. |
(7) | In |
(8) | General & administrative expenses excluding non-cash accretion expense. The nominal amount of G&A shown in the three months and |
(9) | For the purpose of providing more meaningful economic results from operations for |
(10) | Operating expense related to Andora's suspended demonstration project facility and wellpair at Sawn Lake Central. These expenses |
(11) | The Company granted 1,050,000 and 520,000 restricted share units ("RSUs") to directors, senior management, employees and |
(12) | Realized and unrealized foreign exchange gain or loss mainly related to the |
(13) | Adjustment to previously booked capital expenditures at East Jabung PSC. |
(14) |
|
(15) |
|
(16) | Per share values calculated based on 49,793,907 and 51,744,007 Pan Orient Shares outstanding at |
(17) | The evaluation of Andora's contingent resources of the oil sands project at Sawn Lake Alberta, Canada as at |
(18) | At |
(19) | Tables may not add due to rounding. |
SOURCE
© Canada Newswire, source