CALGARY, ALBERTA — (Marketwire) — 03/04/13 — Santonia (TSX: STE) is pleased to provide this summary of its financial and operating results for the 2012 year. A complete copy of the Company–s consolidated financial statements for the years ended December 31, 2012 and 2011, along with management–s discussion and analysis in respect thereof will be filed on SEDAR and is available on the Company–s website at . Complete reserve disclosure as required under National Instrument 51-101 will be included in the Company–s Annual Information Form which will be filed on SEDAR by March 31, 2013.
2012 FINANCIAL AND OPERATING HIGHLIGHTS
Fourth Quarter 2012 Highlights
2012 Year End Reserves
SUMMARY OF RESERVES
The Company–s independent engineering evaluation, effective December 31, 2012, was prepared by the independent engineering firm of GLJ Petroleum Consultants Ltd. (“GLJ”) in accordance with the definitions set out under National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). Additional reserve disclosure required under NI 51-101 will be included in the Company–s Annual Information Form which will be filed on SEDAR by March 31, 2013.
OUTLOOK
Santonia looks forward to a successful year in 2013 focused on realizing value for its shareholders. With the conclusion of the strategic review process in 2012, the Company moves forward with the ability to focus on an exciting inventory of opportunities on its Harlech property while maintaining much needed financial flexibility with a minimal debt position.
Santonia is a crude oil and natural gas exploration, development and production company headquartered in Calgary, Alberta, Canada. Santonia–s shares trade on the Toronto Stock Exchange under the symbol “STE”.
FORWARD-LOOKING STATEMENTS
Certain information set forth in this press release, contain forward-looking statements including management–s assessment of future plans and operations, drilling plans, expected activity levels, and expected timing of filing of the Annual Information Form. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Santonia–s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, delays resulting from or the inability to obtain required regulatory approvals, inability to retain and delays in retaining drilling rigs and other services, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions and ability to access sufficient capital from internal and external sources. The foregoing list is not exhaustive. Additional information on these and other risks that could affect Santonia–s operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (), or at Santonia–s website (). Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The actual results, performance or achievement of Santonia could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Santonia will derive therefrom. Santonia disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
BARRELS OF OIL EQUIVALENCY
Natural gas volumes are converted to barrels of oil equivalent (BOE) on the basis of 6,000 cubic feet (Mcf) of gas for 1 barrel (Bbl) of oil. The term “barrels of oil equivalent” may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf to 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. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1; utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
NON-GAAP AND ADDITIONAL GAAP MEASURES:
This document contains funds generated from operations which is an additional GAAP measure presented in the consolidated financial statements. The Company uses funds generated from operations as a key measure to demonstrate the Company–s ability to generate funds to repay debt and fund future capital investment. This document contains the terms “funds generated from operations per share”, “cash flow from operations per share”, “net debt” and “netbacks” which are non-GAAP financial measures. The Company uses these measures to help evaluate its performance. These non-GAAP financial measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. The Company uses net debt (bank indebtedness plus negative working capital or less positive working capital) as an alternative measure of outstanding debt. The Company considers corporate netbacks a key measure as it demonstrates its profitability relative to current commodity prices. Netbacks which have no GAAP equivalent are calculated on a BOE basis by deducting royalties, operating costs, and transportation from petroleum and natural gas sales. Santonia also presents funds generated from operations per share and cash flow from operations per share and such per share amounts are calculated using weighted average shares outstanding consistent with the calculation of profit (loss) per share.
Contacts:
Santonia Energy Inc.
Steven R. VanSickle
President and Chief Executive Officer
(403) 290-7759
(403) 290-7724 (FAX)
Santonia Energy Inc.
Aaron G. Grandberg
Chief Financial Officer
(403) 290-3217
(403) 290-7724 (FAX)