Alexander Energy Ltd. is a Calgary- based crude oil and natural gas exploration and production company with producing properties in Alberta, Canada.
Alexander Energy operates one core property at Alexander, Alberta.
In Q3 2013 the Company produced an average of 805 boe/d, comprised of 495 bbl/d of oil and 1,857 mcf/d of natural gas. This represents a 4% reduction in overall corporate production but a 7% increase in average oil volumes compared to Q2 2013. The overall oil weighting increased from 55% in Q2 to 61% in Q3 2013.
Management’s corporate initiatives have resulted in dropping overall unit operating costs by 18% compared to the previous quarter. Also, overall general and administrative unit costs were reduced by 46% compared to the previous quarter.
Cash flow from operations in Q3 2013 increased to $2.4 million on revenues of $4.6 million as compared to cash flow of $1.8 million on revenues of $4.1 million in Q2 2013. Basic cash flow per share for the period was $0.035/share or $0.14/share annualized.
On September 13, 2013 the Company completed a private placement of 8,666,667 common shares at a price of $0.15/share for net proceeds of $1,272,000.
In the three months ended September 30, 2013 net debt decreased by 28% to $8.4 million, down from $11.6 million at June 30, 2013. The net debt to annualized cash flow ratio decreased to 0.86:1 at September 30, 2013 down from 1.58:1 at June 30, 2013.
Alexander plans to strengthen its financial and operating position by continuing the following near term corporate directives:
- Continue to reduce administrative and field operating costs to direct more operating cash flow to strengthening the Company’s balance sheet.
- Continue to build an inventory of drilling opportunities that fit with a company of this size.
- Seek mergers and acquisitions where the resulting entity benefits the current shareholders of Alexander.
- Evaluate the drilling of several infill oil wells.