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Bengal Energy Announces Fiscal 2020 Third Quarter Results
Calgary, Alberta--(Newsfile Corp. - February 13, 2020) - Bengal Energy Ltd. (TSX: BNG) ("Ben...
About this update from Bengal Energy Ltd.
[{"type":"text","content":"Bengal Energy Announces Fiscal 2020 Third Quarter ResultsCalgary, Alberta--(Newsfile Corp. - February 13, 2020) - Bengal Energy Ltd. (TSX: BNG) (\"Bengal\" or the \"Company\") today announces its financial results for the third quarter of fiscal 2020 ended December 31, 2019.THIRD QUARTER FISCAL 2020 SUMMARY: The following is an overview of the financial and operational results during the three and nine month periods ended December 31, 2019: Financial Summary: ● Sales Revenue - Crude oil sales revenue was $2.4 million in the third quarter of fiscal 2020, which is 20% higher than the $2.0 million recorded in Q3 fiscal 2019. Higher sales volume in Q3, fiscal 2020 compared to Q3 fiscal 2019 was the main driver for the improved revenue performance despite a lower weighted average 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 the current quarter, forward fixed-price contracts were placed on 50% of Q3 fiscal 2021 estimated production for October 2020 at US$59.27/bbl, November 2020 at US$58.95/bbl and December 2020 at US$58.63/bbl.● Cash from Operations -Bengal generated cash from operations of $0.3 million during Q3 fiscal 2020 compared to $0.4 million of cash from operations in Q3 fiscal 2019. Cash flow generated from operations for the nine months ended December 31, 2019 was $1.1 million compared to $2.1 million in the nine months ended December 31, 2018. The primary reason for the lower cash from operations in YTD Q3 fiscal 2020 is due to lower sales volumes and lower weighted average US Brent pricing.● Net Income - Bengal reported net income of $0.6 million for the current quarter compared to net income of $0.9 million in the third quarter of fiscal 2019. Higher sales volume and the disposition of the drilling rig which was previously written off contributed to the positive quarterly net income in Q3 fiscal 2020. Net income for the current quarter is lower as compared to Q3 fiscal 2019 due to a substantial reduction in the value of the unrealized gain on financial instruments.● Credit Facility Extension - On November 5, 2019, Westpac Institutional Bank and the Company executed an agreement to extend the maturity date of the Company's bank debt of US$12.5 million to October 31, 2020. ...