CALGARY, ALBERTA — (Marketwire) — 03/30/12 — Shoreline Energy Corp. (“Shoreline” or the “Company”) (TSX: SEQ) announces its 2011 audited financial statements and management–s discussion and analysis (“MD&A”) and information relating to its 2011 fourth quarter as well as its year-end financial results. Shoreline–s 2011 year-end financial statements, MD&A, and Annual Information Form (“AIF”) may be obtained at or via the Company–s website at , and should be read in conjunction with the contents of this press release.
2011 Overview
Shoreline has delivered on its business plan throughout 2011 by executing on a number of fronts, including; its initial public offering; first production acquisition; implementation of a shareholder dividend policy; completion of a successful phase one capital program which added oil weighted production and reserves with top quartile capital efficiency. In addition the Company acquired three private companies in the fourth quarter, significantly increasing its production and land base in the Peace River Arch area of northwestern Alberta.
These operations doubled the Company–s production levels in the eight months since the IPO, and have begun to balance the Company–s product mix, while increasing Shorelines project inventory from which the company plans to create shareholder value. Shoreline will continue to focus on increasing its oil weighting, cash flow, and dividend coverage through deployment of capital into lower risk oil weighted development opportunities, and by employing horizontal drilling technology to increase light oil recovery from existing reservoirs on Shoreline–s land base.
2011 Financial Highlights
Shoreline is pleased to report the following financial highlights during 2011:
2011 Year End Financial Summary
Summary of 2011 Quarterly Results
2012 Outlook
The Company is pleased with oil development activities performed to date in its– core Peace River Arch operating area, and intends to continue to deploy capital into similar lower risk oil projects. In response to the drop in natural gas prices, Shoreline is shifting more of its capital expenditures towards internally generated oil opportunities. While the Company is susceptible to continued weakness in natural gas prices, the increases in oil reserves and production coupled with Shoreline–s relatively low operating costs on a large portion its natural gas production serve to partially mitigate this effect. With continued strength in oil pricing, as well as success in the field, and despite weak natural gas prices Shoreline anticipates that its 2012 net operating income will exceed 2011 levels. The Company continues to evaluate acquisition opportunities in its core area, as well as accretive transactions which could see an expansion outside of our existing core area.
Annual Meeting of Shareholders
Shoreline–s Annual General Meeting of Shareholders is scheduled for Thursday June 14, 2012 at 2:30 p.m., Calgary Time, at the Calgary Petroleum Club, 319-5 Avenue S.W., Calgary, Alberta.
Investor Information
Currently, Shoreline has 5,640,882 common shares outstanding. Shoreline is a Calgary, Alberta based company engaged in the exploration, development and production of petroleum and natural gas. Shoreline offers investors a combination of value growth via lower risk development of additional oil and gas reserves and production on its current lands, as well as through a quarterly dividend. The Company–s common shares are currently listed on the TSX under the trading symbol “SEQ.” Additional information regarding Shoreline is available under the company–s profile at or at the company–s website, .
Forward Looking and Cautionary Statements
This news release contains forward-looking statements relating to the Company–s plans and other aspects of the Company–s anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management–s assessment of value, reserves, future plans and operations.
Forward-looking statements typically use words such as “will,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “project,” “should,” “plan,” and similar expressions suggesting future outcomes, and include statements that actions, events or conditions “may,” “would,” “could,” or “will” be taken or occur in the future. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Company–s ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Company to access capital and credit. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.
Although Shoreline believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Shoreline does not undertake any obligation to publicly update or revise any forward-looking statements.
Note Regarding BOEs
The term barrel of oil equivalent (“BOE”) or MCFe may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 MCF : 1 BOE is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Note Regarding Non-GAAP Financial Measures
Funds from operations and operating netback are not recognized measures under IFRS as issued by the International Accounting Standards Board. Management believes that in addition to net earnings, funds from operations and operating netback are useful supplemental measures as they demonstrate the Company–s ability to generate the cash necessary to fund future growth through capital investment or repay debt if incurred in future periods. Investors are cautioned, however, that these measures should not be construed as an alternative to cash flow from operating activities or net earnings determined in accordance with IFRS as an indication of the Company–s performance. The Company–s method of calculating these measures may differ from other entities and, accordingly, they may not be comparable to measures used by other entities. For these purposes, the Company defines funds from operations as cash flow from operations before changes in non-cash operating working capital, financing expenditures related to the costs of acquisitions and decommissioning expenditures and defines operating netback as revenue less royalties, operating and transportation expenses. Net debt is defined as current assets less current liabilities.
Contacts:
Shoreline Energy Corp.
Mr. Trevor Folk
Chief Executive Officer
Shoreline Energy Corp.
Mr. Kevin Stromquist
President & Chief Operating Officer
Shoreline Energy Corp.
Mr. Daniel Grisdale
Chief Financial Officer
Shoreline Energy Corp.
Mr. Shaun E. Alspach
Executive Vice-President, Business Development
Shoreline Energy Corp.
Calgary Office
c/o Suite 400, 209-8th Ave SW
Calgary, Alberta, T2P 1B8
(403) 767.9066
Shoreline Energy Corp.
Toronto Office
Suite 103, 145 King Street West
Toronto, Ontario, M5H 1J8
1-866-773-1562