CALGARY, ALBERTA — (Marketwired) — 11/25/14 — Border Petroleum Limited (“Border” or the “Corporation”) (TSX VENTURE: BOR) announces financial results for its second quarter ended September 30, 2014. The unaudited condensed consolidated interim financial statements and management–s discussion & analysis (“MD&A”) have been filed on SEDAR and can be viewed at .
HIGHLIGHTS
The following represent the highlights of Border–s operations for the quarter ended September 30, 2014.
On August 25, 2014 the Corporation completed a private placement of 30,000,000 units of the Corporation at a price of $0.05 per unit for aggregate gross and net proceeds of $1,500,000. Each unit was comprised of one common share of the Corporation and one-half of a share purchase warrant. Each full warrant entitles the holder to acquire one additional common share at a price of $0.06 per share for a period of 2 years.
On August 28, 2014 the Corporation acquired oil and gas assets from a private, arm–s length Calgary based junior oil and gas company, for a purchase price of $2.4 million subject to adjustments which was paid in cash. These producing assets are located in the Chip Lake, Royce, Mulligan and Blueridge areas of North/North Central Alberta. As of the effective date of June 1, 2014 the properties produced approximately 160 bbls of oil equivalent per day comprised of 40 bbls/day of light oil, 25 bbls/d of NGL–s and approximately 575 mcf/d of natural gas . Additional oil and gas assets in the Royce area that were subject to a preferential first right of refusal, were subsequently acquired on October 10, 2014 for $314,604 cash.
Mr. Russell Tracy, P. Eng. was appointed to the position of Vice President Production of the Corporation. Mr. Tracy was recently the Production Engineer of CanEra Energy and prior thereto had roles in Production & Operations at NAL Resources and Canadian Forest Oil Ltd. Mr. Tracy brings a total of 10 years of direct, field and production related experience to Border.
Mr. William R. Slipp was appointed as a Director of the Corporation. Mr. Slipp brings a total of 40 years of experience as a Landman and an executive at various oil and gas companies. Mr. Slipp is currently the President and a Director of First Mountain Exploration Inc. (“First Mountain”) a public oil and gas company listed on the TSX Venture Exchange. Prior to First Mountain, he was the President of Redbury Resources Ltd. (a private oil and gas company) and prior to that Vice President Land at Ranchmens Resources Ltd.
Border is pleased to announce that Mr. Jake Pronk was elected as a Director of the Corporation at the annual and special meeting of the shareholders held on September 26, 2014 Mr. Pronk is currently a consulting Professional Geologist through his private company Promat Resources Ltd. He was Vice-President Exploration and a director of Panterra Resource Corp. from January, 2011 until May 2014 upon the successful recapitalization and restructuring of that corporation. Prior to that, Mr. Pronk was the Vice-President Exploration and a director of G2 Resources Inc. and a senior executive and director for Yangarra Resources Ltd., Glacier Ridge Resources Inc. and Goose River Resources Ltd. Prior to this, Mr. Pronk was a senior officer at Blue Range Resources Ltd. and Diamond Shamrock Corp.
FINANCIAL OVERVIEW
Certain selected financial and operational information for the quarter ended September 30, 2014 is set out below and should be read in conjunction with the Corporation–s unaudited consolidated financial statements and related MD&A. The following table provides a summary of key financial results for the three months ended September 30, 2014 and 2013:
OUTLOOK
The Corporation completed important initiatives during the six months ended September 30, 2014, including a sale of non-core assets, a private placement financing and the acquisition of new core assets in the Chip Lake, Royce, Mulligan, and Blueridge areas of North/North Central Alberta. As a result, the Corporation is now positioned to begin optimization and development activities on those new core assets.
Management will report on the results of these activities in subsequent reporting periods.
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 release.
Forward-Looking Statements
The forward-looking statements contained in this document are based on certain key expectations and assumptions made by Border. Although Border believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Border can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the failure to obtain necessary regulatory approvals, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price and exchange rate fluctuations and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. 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 Border–s disclosure documents on the SEDAR website at .
The forward-looking statements contained in this document are made as of the date hereof and Border undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
BOE
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: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.
Contacts:
Border Petroleum Limited
Al Kroontje
Interim President & CEO
(403) 538-8448
Border Petroleum Limited
John Aihoshi
Chief Financial Officer
(403) 538-8445