VIK:CC - Avila Energy Corporation is pleased to announce its $0.06 per share earnings as stated in its Financial Report for the Three and Nine months ended September 30 2022 and Provides a Corporate Update
(TheNewswire)
Calgary, Alberta – TheNewswire - November 21, 2022 – Avila EnergyCorporation (“Avila” or the “Company” or “Avila Energy”),trading symbol ( CSE:VIK.CN ) , is pleased toannounce its Financial Results for the Three andNine months ended September 30, 2022, and to provide its CorporateUpdate.
Currency used herein is CDN$.
REVENUE:
Avila Energy Corporation’s revenues year overyear for the nine months ended September 30, increased to $2,190,991 from $210,883; an increase of 1,139%.
The Company’s focus on sustainable growth deliveredthis growth in earnings of $0.06 per share for the 3months ended September 30, 2022, and $0.07 per shareearnings for the nine months ended September 30,2022 .
The average price received for the Company’s oilnatural gas and liquids sales for the 9 months of 2022 was a blendedprice of $46.71/BOE, based on an average price of CDN $5.06/mcf fornatural gas with oil and condensate sales averaging$101.89/BOE.
EXPENSES:
Operating expenses for the nine months averaged$14.05/ BOE resulting innet operating income (“NOI”) of $ 27.29/ BOE . In accordance with the Company’s focus,operating expenses in the 3 rd quarter continue to trend down now to $10.47/ BOE from $14.81/ BOE in the2 nd Quarter, resulting in NOI of $ 28.59/ BOE in the 3 rd Quarter.
CORPORATE FOCUS:
The Company’s continuing focus on sustainable growthhas resulted in production blend and improving operating expenses(currently at $10.47/ BOE ) towards its targetof less than $7.50/BOE, resulting in net margins of 66.01%, year to date .
COMPANY & ASSETEVALUATION:
On September 30, 2022, the Company’s Class A shareswere outstanding at 86,572,562, having a book value of $0.38 pershare and an enterprise value of $0.52 per share.
“The NI 51-101 compliant evaluation completed by theCompany’s QRE (Deloitte LLP) was completed on August 18, 2022. Thisreport valued the Company’s assets on a 10% discounted Net Present Value (NPV10%) at $209,841,500, or as of September 30, 2022, on aper share basis, $2.41 per share , based on86,983,586 basic shares then outstanding.” said Leonard B. VanBetuw, President & CEO.
“The efforts to date continue to advance (asanticipated) with the closing of the current acquisition and thefurther consolidation of its businesses as per the NI 51-101 compliantevaluation completed by the Company’s QRE, Deloitte LLP, on August18, 2022.” said President & CEO Leonard B. Van Betuw.
Further, our asset base and our established landpositions in Canada along with the plans we have for their current andfuture un-booked potential are generating an air of excitement withinthe Company’s engineering and operational teams. Our shareholdersshould look forward to participating in therealization of our past efforts and the fruits of our employees’ andcontractors’ future efforts going forward into 2023 through to2027”, said President & CEO Leonard B. Van Betuw.
For further details shareholders and other interestedparties are encouraged to review the Company’s financial results andthe Management Discussion and Analysis, available on the Company’s website at www.avilaenergy.com .
FUTURE GROWTH:
“The Company is extremely focused on theintegration of the assets owned by the Company for future growth. Inaccordance therewith, these reported results are a reflection of theincreased earnings made effective from September 1, 2022 (post-closingof, and the result of, the consolidation of the acquisition of 100% ofthe assets in West Central Alberta), as recently approved by theshareholders of the Company at a Special Meeting of the Company heldon August 31, 2022. The Company’s extreme focus remains onincreasing earnings and as a result increasing the value of theCompany for the future.” said President & CEO Leonard B. VanBetuw.
Avila Energy’s financial position on September 30,2022, remains strong.
Avila Energy is focused on obtaining our first goal ofreaching consistent production of 6,000 BOE/d; followed by incrementalsteps to increase production to 8,000 BOE/d and thereafter to 12,000BOE/d.
The continuing creation of shareholder value is thefoundation of the business which is being built by Avila Energy. AvilaEnergy is pleased to report the envisioned plan is progressivelyevolving.
CURRENT FINANCIAL POSITION:
The Company’s financial position is asfollows.
Working Capital $ 1,902,424
Total Assets $ 59,823,671
Drawn lines of Credit Nil
Long Term Debt and AccruedLabilities $ 12,657,064
Decommissioning Provisions $ 14,160,967
Total Shareholder’s Equity $ 32,572,562
“The current rate of growth in revenues are projectedto continue (upstream) for the next 24 months as we progress with thedevelopment, firstly, of our proven developed non-producing assets(PDNP), in parallel with the development of our proven reserves (TP)in Alberta and British Columbia in 2023.
LONG TERM BUSINESS PLAN:
Further additional complementary revenues are to bederived from the development of Company’s Vertically IntegratedEnergy Business (downstream) as announced onNovember 14, 2022, which are anticipated to commence in 2024.
Avila Energy’s teams continue to focus on theexecution of its long-term corporate plan.
“The successful execution on the sustainabledevelopment of Avila’s vertically integrated business is part of itsplan of becoming a material part of the sustainable energytransition with an established and growing pipeline of business inplac e. This in will to provide shareholders the assurance that Avilahas an established, diversified and a socially responsible pathforward in place and is on its way to becoming a long-term producer of CarbonNeutral Energy Producer well beyond 2030 ” . said President& CEO Leonard B. Van Betuw.
“The efforts to date continue to advance (asanticipated) with the closing of the current acquisition and thefurther consolidation of its businesses as per the NI 51-101 compliantEvaluation completed by the Company’s QRE, Deloitte LLP, on August18, 2022.” said President & CEO Leonard B. Van Betuw.
CORPORATE UPDATE:
The Company is pleased to announce the appointment ofMs. Jennifer Ottosen as Chief Financial Officer (CFO) effectiveNovember 7, 2022, of Avila Energy Corporation.
“The Directors of the Company are pleased with theaddition of Ms. Jennifer Ottosen a CPA as our CFO, in her in newcapacity after initially taking the position of controller for thelast 12 months. As CFO, she brings with her an extensive background,in Rental Equipment, Engineering and Construction.” said Leonard B.Van Betuw, President & CEO, “All important attributes whichreflect on the Company’s future and will become important based onwhere the Company and the world is going in the next 10 to potentiallymore than 25 years.”
Ms. Jennifer Ottosen CPA
Ms. Ottosen as Controller (initially as a consultantfor the Company in 2020) brings to Avila over 10 years of experiencein Financial Reporting and Analysis, Cost and Project Accounting,Performance Management, Variance Analysis, Internal Controls, Asset Management, Tax Filings, Budgets and Forecasting in the engineering, safety compliance and construction industries.
Over the course of hercareer, Ms. Ottosen has advised as a consultant and held various roles in accounting,focused on billing, project management and financial reporting, working for Enbridge Inc., Finning Canada, The Inspections Group Inc., SEKO Construction, Ledcor Fabricationand Stantec Engineering .
The Company wishes to thank Mr. Lars Glimhagen, theprevious CFO, for his efforts over the past ten years in variouscapacities. We are also pleased to confirm that Lars will remain insupporting role as the Company continues to execute on its focusedBusiness Plan. Lars is pleased to congratulate Jennifer on her recent appointment as CFO.
About Avila Energy Corporation
The Company is an emerging CSE listed corporationtrading under the symbol (‘VIK’), and in combination with anexpanding portfolio of 100% Owned and Operated oil and natural gasproduction, pipelines and facilities is a licensed producer, explorer,and developer of Energy in Canada. The Company through theimplementation of a closed system of carbon capture and sequestrationand an established path underway towards the material reduction of Tier 1, Tier 2 and Tier 3 emissions continues to work towardsbecoming a VerticallyIntegrated Carbon NeutralEnergy Producer. The Company continues to grow and achieve its results by focusingon the application of a combination of proven geological, geophysical,engineering, and production techniques.
For further information, please contact:
Peter Nesveda, Vice President of Corporate Affairs, andInvestor Relations peter@intuitiveaustralia.com.au , or
Leonard B. Van Betuw, President & CEO
leonard.v@avilaexpl.com .
Leonard B. Van Betuw
President & CEO
Abbreviations
bbls/d - barrels per day
BOE/d - barrels oil equivalent per day
NGLs - Natural Gas Liquids
Mboe - Thousands of barrels of oil equivalent
MMboe - Millions of barrels of oil equivalent
PDP - Proved Developed Producing
TP - Total Proved Reserves
TPP - Total Proved and Probable Reserves
IFRS - International Financial Reporting Standards as issued by theInternational Accounting Standards Board
WTI - West Texas Intermediate, the reference price paid in U.S.dollars at Cushing, Oklahoma for the crude oil standard grade
Forward-LookingStatements
Certain information in this newsrelease, including the operations at the Company’s properties,constitute forward-looking statements under applicable securitieslaws. Although Avila Energy Corporation believes that the expectationsreflected in these forward-looking statements are reasonable, unduereliance should not be placed on them because Avila Energy Corporationcan give no assurance that they will prove to be correct. Sinceforward looking statements address future events and conditions, bytheir very nature they involve inherent risks and uncertainties. Theforward-looking statements contained in this news release are made asat the date of this news release and the Company does not undertakeany obligation to update publicly or to revise any of the includedforward-looking statements, whether as a result of new information,future events or otherwise, except as may be required by applicablesecurities laws. This release includes certain statements that may bedeemed “forward-looking statements.” All statements in thisrelease, other than statements of historical facts, that addressfuture production, reserve potential, exploration drilling,exploitation activities and events or developments that the Companyexpects are forward looking statements. Although the Company believesthe expectations expressed in such forward-looking statements arebased on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differmaterially from those in the forward-looking statements. Factors thatcould cause actual results to differ materially from those in forwardlooking statements include market prices, exploitation, andexploration successes, continued availability of capital andfinancing, and general economic, market or business conditions. Itshould not be assumed that the estimates of net present value offuture net revenue attributable to the Company's reserves presentedabove represent the fair market value of the reserves. The recoveryand reserve estimates of the Company's oil, NGL, and natural gasreserves provided herein are estimates only and there is no guaranteethat the estimated reserves will be recovered. Further, there is noassurance that the forecast prices and costs assumptions will beattained, and variances could be material. Investors are cautionedthat any such statements are not guarantees of future performance andthose actual results or developments may differ materially from thoseprojected in the forward-looking statements. Barrel ("bbl")of oil equivalent ("boe") amounts may be misleadingparticularly if used in isolation. All boe conversions in this reportare calculated using a conversion of six thousand cubic feet ofnatural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is basedon an energy conversion method primarily applicable at the burner tipand does not represent a value equivalency at the well head. This newsrelease shall not constitute an offer to sell or the solicitation ofany offer to buy, nor shall there be any sale of these securities inany jurisdiction in which such offer, solicitation or sale would beunlawful. The securities offered have not been and will not beregistered under the U.S. Securities Act of 1933, as amended, and maynot be offered or sold in the United States absent registration orapplicable exemption from the registration requirements of the U.S.Securities Act and applicable state securities laws. Trading in thesecurities of Avila Energy Corporation should be considered highlyspeculative. Neither the Canadian Stock Exchange nor its RegulationServices Provider (as that term is defined in the policies of theCanadian Stock Exchange) accepts responsibility for the adequacy oraccuracy of this release. For more information on the Company,Investors should review the Company’s registered filings which areavailable at www.sedar.com .
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