Fourth Quarter and Year-End 2013 Financial Results and Operating Highlights

-The Company’s entitlement sales volumes from production for its net interest in the Bahar Project averaged 522 bbl/d and 7,352 mcf/d or 1,747 boe/d in the fourth quarter 2013 and 523 bbl/d and 5,428 mcf/d or 1,428 boe/d for fiscal year 2013, an improvement of 12% over the prior quarter, 53% over the fourth quarter 2012 and 31% over fiscal year 2012 when compared on a barrels of oil equivalent basis.

 

-The Company recorded net income of $66,000 and EPS of $0.00 for the fourth quarter 2013 and a net loss of $3.3 million and EPS of ($0.19) for fiscal year 2013 as compared to a net loss of $5.9 million and EPS of ($0.28) in the fourth quarter 2012 and a net loss of $16.1 million and EPS of ($1.04) for fiscal year 2012.

 

-Through its interest in Bahar Energy, the Company realized average netback oil prices of $102.10/bbl for the fourth quarter 2013 and $101.28/bbl for fiscal year 2012. Realized gas prices have remained constant during 2013 at $3.96/mcf.

 

-The Gum Deniz 774 well commenced drilling on December 12, 2013. At year end 2013, the well was drilling at a total depth of 1,588 meters and subsequently reached total depth of 2,566 meters on January 23, 2104. After testing non-commercial rates in the X reservoir, the well is under evaluation for further testing in the V-VIII reservoirs and/or possible sidetracking.

 

-During 2013, the Company completed two separate equity transactions for aggregate gross proceeds of CAD$9.6 million. On June 25, 2013, the Company completed a non-brokered private placement of 2,000,000 Common Shares at a price of CAD$3.40 per Common Share for gross proceeds of CAD$6.8 million or the USD equivalent of $6.5 million. On July 9, 2013, the Company completed a brokered offering of 821,800 Common Shares at a price of CAD$3.40 per Common Share for gross proceeds of approximately CAD$2.8 million or the USD equivalent of $2.65 million.

 

-On November 25, 2013, the Company secured a $25 million loan facility through an arm’s length third party. Pursuant to the terms of the loan agreement, the Company is entitled to draw up to the aggregate of $25 million in tranches based upon the achievement of certain operational milestones. As at December 31, 2013, the Company had drawn down $5 million of the loan facility.

"We are very pleased to see the substantial improvements in year-over-year production rates from the ERDPSA and its impact on Bahar Energy’s income for 2013. The income improvement is attributable to the higher revenues and savings in operating and administrative expenses. The increases in production and reductions in expenses are clearly the result of a focus on drilling and workover activities in the Gum Deniz Oil and Bahar Gas fields and the organization’s efforts to improve its overall cost structure," stated A. Wayne Curzadd, Senior Vice President and Chief Financial Officer of the Greenfields.