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Bengal Energy Announces Fiscal 2020 First Quarter Results
Calgary, Alberta--(Newsfile Corp. - August 12, 2019) - Bengal Energy Ltd. (TSX: BNG) ("Benga...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"Bengal Energy Announces Fiscal 2020 First Quarter ResultsCalgary, Alberta--(Newsfile Corp. - August 12, 2019) - Bengal Energy Ltd. (TSX: BNG) (\"Bengal\" or the \"Company\") today announces its financial results for the first quarter of fiscal 2020 ended June 30, 2019FIRST QUARTER FISCAL 2020 SUMMARY: The following is an overview of the financial and operational results during the three month period ended June 30, 2019: Financial Summary:Sales Revenue - Crude oil sales revenue was $2.0 million in the first quarter of fiscal 2020, which is 39% lower than the $3.2 million recorded in Q1 fiscal 2019. The lower sales revenue is due to a 22% decline in production quarter over quarter and an 8% lower $US Brent price.Hedging - The Company's credit facility requires that a minimum of 50% of oil production be hedged forward by a minimum of 12 months. During Q1 fiscal 2020, the realized gain on financial instruments was $0.1 million while the unrealized loss on financial instruments was $0.08 million. Subsequent to June 30, 2019, hedges were placed on 50% of Q1 fiscal 2021 estimated production for April 2020 at US$59.49/bbl, May 2020 at US$59.27/bbl and June 2020 at US$59.08/bbl.Cash from Operations - Bengal generated cash from operations of $0.3 million during Q1 fiscal 2020 compared to $1.0 million of cash from operations in Q1 fiscal 2019. The primary reason for the decrease in cash from operations during fiscal 2020 as compared to fiscal 2019 was the lower sales revenue in Q1 fiscal 2020.Net Loss - Bengal reported a net loss of $0.8 million for the first quarter of fiscal 2020 compared to a net loss of $0.5 million in the first quarter of fiscal 2019. The primary driver for the net loss for Q1 fiscal 2020 was the lower sales revenue.Adjusted Net Income - Bengal reported adjusted net loss of $0.5 million for the first quarter of fiscal 2020 and adjusted net income of $0.4 million for Q1 fiscal 2019. Net income is adjusted for unrealized gain (loss) on financial instruments, the unrealized foreign exchange gain (loss) for the period and the non-cash impairment of non-current assets.Operational Summary:Production Volumes - The Company's share of total production in the first quarter of fiscal 2020 was 22,688 bbls, which is a 22% decline from the 28,965 bbls produced in the first quarter of fiscal 2019. The current quarter production aver...