Centerra Gold Files Technical Report for Mount Milligan Mine

TORONTO, ON–(Marketwired – March 22, 2017) – Centerra Gold Inc. (TSX: CG) today announces that the Company has filed on SEDAR a Technical Report, entitled „Technical Report on the Mount Milligan Mine, North-Central, British Columbia dated March 22, 2017 with an effective date of December 31, 2016. The report was prepared in compliance with National Instrument 43-101 — Standards for Disclosure for Mineral Projects.

The Technical Report supports the disclosure of the mineral reserves and resources for the Mount Milligan Mine contained in Centerra’s news release issued on February 23, 2017. The report also provides further information on the project’s mineral processing and metallurgical testing, recovery, economic analysis and an updated life-of-mine plan.

The Mount Milligan life-of-mine plan outlined in the Technical Report, using a gold price of US$1,200 per ounce, a copper price of US$2.95 per pound and a discount rate of 5%, has an estimated base case project Net Present Value (NPV5) after tax of approximately US$1.16 billion, after accounting for all operating costs and capital expenditures related to the open pit operation as well as the required tax and royalty payments and streaming arrangements.

The Technical Report was prepared for Centerra by Mr. Peter Andrews, P.Eng. and Doug Berthelsen, P.Geo (each of whom is an employee of a subsidiary of Centerra) and Mr. Ignacy (Tony) Lipiec, P.Eng. from Amec Foster Wheeler Americas Limited, who are the qualified persons for the technical report for the purposes of NI 43-101, under the supervision of Gordon Reid, Professional Engineer and Centerra’s Vice President and Chief Operating Officer.

About Centerra
Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.

Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be „forward-looking information” for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results and performance to differ materially from those expressed or implied by such forward-looking information. The words „believe”, „expect”, „anticipate”, and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things, the updated life-of-mine plan, expected tax payments, operating costs and capital expenditures.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward looking information. Factors that could cause actual results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended may include following risks relating to the Mount Milligan Project and/or Centerra: (A) strategic, legal, planning and other risks, including political risk, risks relating to aboriginal claims and consultation issues; resource nationalism including the management of external stakeholder expectations; the impact of changes in, or to the more aggressive enforcement of laws, regulations and government practices; the impact of changes to and the increased enforcement of, environmental laws and regulations; potential defects of title to the property that are not known as of the date hereof; the inability of Centerra to enforce its respective legal rights in certain circumstances; risks related to anti-corruption legislation; potential risks related to kidnapping or acts of terrorism; (B) risks relating to financial matters, sensitivity of the business to the volatility of metal prices; the imprecision of mineral reserves and mineral resources estimates, and the assumptions they rely on; the accuracy of the production and cost estimates; continued compliance with financial covenants in Centerra’s credit agreements, including the credit facility that is secured by the project’s assets, and Centerra’s access to cash flow from its subsidiaries; and (C) risks related to operational matters and geotechnical issues, including the adequacy of insurance to mitigate operational risks; mechanical breakdowns; the occurrence of any labour unrest or disturbance; the ability to accurately predict decommissioning and reclamation costs, including closure costs; and the ability to attract and retain qualified personnel. See section titled „Risk Factors” in the Company’s most recently filed MD&A for December 31, 2016 and Annual Information Form available on SEDAR at www.sedar.com.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward looking information. Forward-looking information is as of March 22, 2017. Centerra assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

Additional information on Centerra is available on the Company’s web site at www.centerragold.com and at SEDAR at www.sedar.com.

Attachment Available: http://www.marketwire.com/library/MwGo/2017/3/22/11G133814/7-Mt._Milligan_Technical_Report_filed-FINAL-4a33f797d5c4b6d3a32b63990f9675bf.pdf

Centerra Gold Files Technical Report for Mount Milligan Mine

TORONTO, ON–(Marketwired – March 22, 2017) – Centerra Gold Inc. (TSX: CG) today announces that the Company has filed on SEDAR a Technical Report, entitled „Technical Report on the Mount Milligan Mine, North-Central, British Columbia dated March 22, 2017 with an effective date of December 31, 2016. The report was prepared in compliance with National Instrument 43-101 — Standards for Disclosure for Mineral Projects.

The Technical Report supports the disclosure of the mineral reserves and resources for the Mount Milligan Mine contained in Centerra’s news release issued on February 23, 2017. The report also provides further information on the project’s mineral processing and metallurgical testing, recovery, economic analysis and an updated life-of-mine plan.

The Mount Milligan life-of-mine plan outlined in the Technical Report, using a gold price of US$1,200 per ounce, a copper price of US$2.95 per pound and a discount rate of 5%, has an estimated base case project Net Present Value (NPV5) after tax of approximately US$1.16 billion, after accounting for all operating costs and capital expenditures related to the open pit operation as well as the required tax and royalty payments and streaming arrangements.

The Technical Report was prepared for Centerra by Mr. Peter Andrews, P.Eng. and Doug Berthelsen, P.Geo (each of whom is an employee of a subsidiary of Centerra) and Mr. Ignacy (Tony) Lipiec, P.Eng. from Amec Foster Wheeler Americas Limited, who are the qualified persons for the technical report for the purposes of NI 43-101, under the supervision of Gordon Reid, Professional Engineer and Centerra’s Vice President and Chief Operating Officer.

About Centerra
Centerra is a Canadian-based gold mining company focused on operating, developing, exploring and acquiring gold properties in North America, Asia and other markets worldwide. Centerra is the largest Western-based gold producer in Central Asia. Centerra’s shares trade on the Toronto Stock Exchange (TSX) under the symbol CG. The Company is headquartered in Toronto, Ontario, Canada.

Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be „forward-looking information” for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results and performance to differ materially from those expressed or implied by such forward-looking information. The words „believe”, „expect”, „anticipate”, and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things, the updated life-of-mine plan, expected tax payments, operating costs and capital expenditures.

Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Centerra, are inherently subject to significant political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward looking information. Factors that could cause actual results, assumptions, performance, achievements, prospects or opportunities in future periods not to be as anticipated, estimated or intended may include following risks relating to the Mount Milligan Project and/or Centerra: (A) strategic, legal, planning and other risks, including political risk, risks relating to aboriginal claims and consultation issues; resource nationalism including the management of external stakeholder expectations; the impact of changes in, or to the more aggressive enforcement of laws, regulations and government practices; the impact of changes to and the increased enforcement of, environmental laws and regulations; potential defects of title to the property that are not known as of the date hereof; the inability of Centerra to enforce its respective legal rights in certain circumstances; risks related to anti-corruption legislation; potential risks related to kidnapping or acts of terrorism; (B) risks relating to financial matters, sensitivity of the business to the volatility of metal prices; the imprecision of mineral reserves and mineral resources estimates, and the assumptions they rely on; the accuracy of the production and cost estimates; continued compliance with financial covenants in Centerra’s credit agreements, including the credit facility that is secured by the project’s assets, and Centerra’s access to cash flow from its subsidiaries; and (C) risks related to operational matters and geotechnical issues, including the adequacy of insurance to mitigate operational risks; mechanical breakdowns; the occurrence of any labour unrest or disturbance; the ability to accurately predict decommissioning and reclamation costs, including closure costs; and the ability to attract and retain qualified personnel. See section titled „Risk Factors” in the Company’s most recently filed MD&A for December 31, 2016 and Annual Information Form available on SEDAR at www.sedar.com.

There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known and unknown could cause actual results, performance or achievements to vary or differ materially, from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Centerra, and prospective investors should not place undue reliance on forward looking information. Forward-looking information is as of March 22, 2017. Centerra assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.

Additional information on Centerra is available on the Company’s web site at www.centerragold.com and at SEDAR at www.sedar.com.

Attachment Available: http://www.marketwire.com/library/MwGo/2017/3/22/11G133814/7-Mt._Milligan_Technical_Report_filed-FINAL-4a33f797d5c4b6d3a32b63990f9675bf.pdf

DXI Reports Q4 and Fiscal 2016 Results

VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 22, 2017) – DXI Energy Inc. (TSX:DXI)(OTCQB:DXIEF) („DXI” or the „Company”), an upstream oil and gas exploration and production company operating in Colorado’s Piceance Basin and the Peace River Arch region in British Columbia, today announced its financial results for the three and twelve month periods ended December 31, 2016.

2016 Key Financial and Operating Highlights are:

1. Retired the Company’s bank loan and related credit facility with a Canadian bank;
2. Completed a $995,800 private placement;
3. Decreased G&A expenses for the year ended December 31, 2016 by $675,000 (30%) to $1.6 million in response to a 24% decrease in average realized prices per BOE from 2015 to 2016; and
4. Decreased the loss for the year ended December 31, 2016 to $5.5 million from $7.1 million for the comparative period ended December 31, 2015.

CORPORATE SUMMARY – THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2016

OPERATIONS Three months ended December 31, Twelve months ended December 31,
2016 2015 Change 2016 2015 Change
Production
Oil and natural gas liquids (bbls/d) 106 515 -80% 209 369 -43%
Natural gas (mcf/d) 1,327 2,773 -52% 1,666 1,764 -6%
Combined (BOE/d) 327 977 -67% 487 663 -27%
Realized sales prices
Oil and natural gas liquids ($/bbl) 57.53 46.72 23% 43.25 52.68 -18%
Natural gas ($/mcf) 3.28 2.26 45% 2.47 2.33 6%
Operating expenses
Oil operations ($/bbl) 21.63 10.62 104% 18.31 13.39 37%
Natural gas operations ($/mcf) 3.21 3.27 -2% 2.59 3.19 -19%
Operating netback
Oil operations ($/bbl) (1) 27.44 26.79 2% 17.45 29.04 -40%
Natural gas operations ($/BOE) (2) -1.77 -7.91 -78% -2.32 -6.09 -62%
General and administrative expenses ($/BOE) 10.01 6.85 46% 8.82 9.28 -5%
Notes:
(1) Decline for the year ended December 31, 2016 due to the reduction in oil production at Woodrush combined with 18% reduction in oil prices.
(2) Decline for the three and twelve months ended December 31, 2016 due to the reduction in natural gas production combined with the reduction in gas prices.
FINANCIAL (CA$ thousands, except per share) Three months ended December 31, Twelve months ended December 31,
2016 2015 Change 2016 2015 Change
Revenue 558 2,206 -75% 3,306 7,093 -53%
Royalties 396 562 -30% 1,502 1,486 1%
Cash flow(1) -207 164 -226% -1,017 860 -218%
Cash flow per share (basic) -0.00 0.00 0% -0.02 0.02 -203%
Cash flow per share (diluted) -0.00 0.00 0% -0.02 0.02 -203%
Net loss 2,366 3,827 -38% 5,486 7,108 -23%
Basic loss ($/common share) 0.05 0.10 -50% 0.13 0.19 -33%
Diluted loss ($/common share) 0.05 0.10 -50% 0.13 0.19 -33%
Capital expenditures, net of dispositions 53 1,236 -96% 530 5,738 -91%
Weighted average common shares outstanding (thousands)
Basic 44,808 36,505 23% 42,095 36,492 15%
Diluted 44,808 36,505 23% 42,095 36,492 15%
Debt, net of working capital 11,075 10,697 4%
Note 1: „Cash flow” is a non-IFRS measure calculated by adding back settlement of decommissioning liabilities and change in operating working capital to cash flows from (used in) operating activities. See „Non-IFRS Measure” below for details.

SUPPLEMENTAL FINANCIAL INFORMATION – NON-IFRS MEASURE

Three months ended December 31, Twelve months ended December 31,
(CA$ thousands) 2016 2015 2016 2015
Cash flows from (used in) operating activities (1,005) 371 (350) 1,064
Change in operating working capital 798 (207) (667) (204)
Cash flow (207) 164 (1,017) 860

RESERVES

Independent Reserves Evaluation

DXI’s reserves were evaluated by independent evaluators as at December 31, 2016 in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities („NI 51-101”). GLJ Petroleum Consultants („GLJ”) were retained by the Company to evaluate it Canadian properties and Gustavson Associates („Gustavson”) were retained by the Company to evaluate its US properties. The reserves evaluation was based on forecast pricing as outlined in the notes to the table below entitled „Forecast Prices in 2016 Reserves Report”. Additional reserves disclosures are included in the Company’s AIF for the year ended December 31, 2016.

Summary of Reserves as at December 31, 2016(1)

Oil Natural Gas NGL Oil
Equivalent
% of Proved
Plus Probable
(MBBL) (MMCF) (MBOE) (MBOE) Reserves
Proved
Developed Producing 96 1,984 71 498 4%
Developed Non-Producing 462 12 89 1%
Undeveloped 35,094 1,923 7,771 60%
Total Proved 96 37,540 2,006 8,358 65%
Total Probable 35 21,088 1,131 4,680 35%
Total Proved and Probable 131 58,628 3,137 13,038 100%
Note 1: Reserves means DXI’s working interest reserves before deduction of royalties and without including any royalty interests.

Summary of Net Present Values, Before Tax

Discounted at
(CA$ thousands) 0% 5% 10% 15% 20%
Proved
Developed Producing 4,351 3,806 3,441 3,169 2,953
Developed Non-Producing 643 540 473 427 391
Undeveloped 45,639 23,322 11,271 4,028 (661)
Total Proved 50,633 27,668 15,185 7,624 2,683
Total Probable 30,398 15,427 7,988 3,917 1,547
Total Proved and Probable 81,031 43,095 23,173 11,541 4,230

Future Development Costs

(CA$ thousands) Proved Reserves Proved plus
Probable Reserves
2017 21,146 21,146
2018 20,946 20,946
2019 10,876 20,141
2020 20,543
2021 1,209
Remainder 705 1,093
Total Undiscounted 53,673 85,078

Forecast Prices in 2016 Reserves Report

The following table summarizes the first five years of the forecast prices used by GLJ and Gustavson in preparing DXI Energy’s estimated reserve volumes and net present values of future net revenues in the 2016 reserves report.

GLJ Gustavson

Year

Natural gas
(AECO)
Cdn$ / mmbtu
NGL
(Edmonton
Pentanes Plus)
Cdn$ / bbl
Crude oil
(Edmonton Par)
Cdn$ / bbl
Natural gas
(NYMEX
Henry Hub)
US$ / mmbtu
NGL
(Williams Fork
Wellhead)
US$ / bbl
Condensate
(NYMEX)
US$ / bbl
2017 3.46 72.11 69.33 3.42 38.39 42.05
2018 3.10 74.79 72.26 2.96 33.20 42.49
2019 3.27 78.75 75.00 3.21 36.02 42.09
2020 3.49 79.80 76.36 3.33 37.37 42.01
2021 3.67 82.37 78.82 3.44 38.62 42.15
2022+ See AIF for additional details

About DXI ENERGY INC.

DXI Energy Inc. is an upstream oil and natural gas exploration and production company operating projects in Colorado’s Piceance Basin (25,684 net acres) and the Peace River Arch region in British Columbia (14,444 net acres). DXI Energy Inc. maintains offices in Calgary and Vancouver, Canada. The company is publicly traded on the Toronto Stock Exchange (DXI.TO) and the OTCQB (DXIEF).

Statements Regarding Forward-Looking Information: This news release contains statements about oil and gas production and operating activities that may constitute „forward-looking statements” or „forward-looking information” within the meaning of applicable securities legislation as they involve the implied assessment that the resources described can be profitably produced in the future, based on certain estimates and assumptions. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by DXI Energy and described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, adverse general economic conditions, operating hazards, drilling risks, inherent uncertainties in interpreting engineering and geologic data, competition, reduced availability of drilling and other well services, fluctuations in oil and gas prices and prices for drilling and other well services, government regulation and foreign political risks, fluctuations in the exchange rate between Canadian and US dollars and other currencies, as well as other risks commonly associated with the exploration and development of oil and gas properties. Additional information on these and other factors, which could affect DXI Energy Inc.’s operations or financial results, are included in DXI Energy Inc.’s reports on file with Canadian and United States securities regulatory authorities. We assume no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change unless otherwise required under securities law.

The TSX does not accept responsibility for the adequacy or accuracy of this news release.

Follow DXI Energy’s latest developments on: Facebook http://facebook.com/dxienergy and Twitter @dxienergy.

First Mining Reports Updated Gold Resource Estimate for the Cameron Gold Project in Northwestern Ontario

VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 22, 2017) – First Mining Finance Corp. („First Mining” or the „Company”) (TSX VENTURE:FF)(OTCQX:FFMGF)(FRANKFURT:FMG) is pleased to announce the release of an updated mineral resource estimate for its Cameron Gold Project („Cameron” or the „Project”) located near the town of Sioux Narrows in northwestern Ontario. First Mining acquired the Cameron Gold Project on June 9, 2016 pursuant to its acquisition of a subsidiary of Chalice Gold Mines Limited („Chalice”) that held the Project.

The updated mineral resource estimate for Cameron was prepared by Optiro Pty Limited („Optiro”) of Perth, Australia and has an effective date of January 17, 2017. A technical report for this updated resource estimate entitled „Technical Report on the Cameron Gold Deposit, Ontario, Canada” („the „Technical Report”), which was prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects („NI 43-101”), has been filed by the Company under its SEDAR profile at www.sedar.com, and is also available on the Company’s website.

Highlights of the Cameron Deposit

  • Pit constrained (0.55 g/t Au cut-off) Measured and Indicated mineral resources of 3.5 million tonnes at 2.45 grams per tonne or 274,000 ounces of gold,
  • Pit constrained (0.55 g/t Au cut-off) Inferred mineral resources of 35,000 tonnes at 2.45 grams per tonne or 3,000 ounces of gold,
  • Underground (2.00 g/t Au cut-off) Measured and Indicated mineral resources of 2.0 million tonnes at 2.90 grams per tonne or 190,000 ounces of gold, and
  • Underground (2.00 g/t Au cut-off) Inferred mineral resources of 6.5 million tonnes at 2.54 grams per tonne or 530,000 ounces of gold.

This latest mineral resource estimate replaces the previous resource estimate which defined the global in-situ resources at the property. Later this year, First Mining expects to commence a 9,000 metre drilling campaign at Cameron. The goal of the proposed drilling campaign is to upgrade the existing Inferred mineral resources into the Measured and Indicated categories and to drill exploration targets that lie outside of the main Cameron resource area. This latest mineral resource estimate for Cameron does not include mineralized material from the Dogpaw and Dubenski areas. These areas contain historic resources, and the Company plans to conduct additional exploration activities at a later date to define a current resource for these areas.

Patrick Donnelly, President of First Mining stated, „This updated mineral resource estimate for Cameron confirms our internal estimates from the Company’s due diligence review of the Project regarding the amount of recoverable gold that is hosted at Cameron. What is especially compelling is that this Project consists of a very large land package that has the potential to host additional gold mineralization. We anticipate that our proposed 9,000 metre drilling campaign should further confirm our expectations that Cameron could become a gold project of significant merit, with further upside at several of the satellite deposits.”

Table 1: Open-Pit and Underground Mineral Resource Estimates at Cameron effective January 17, 2017

Mineral Resource
Classification
Open-Pit Constraint Gold
cut-off
(Au g/t)
Tonnes Gold
g/t
Gold
(Ounces)
Measured Mineral Resource Within $1,350 open-pit shell 0.55 2,670,000 2.66 228,000
Indicated Mineral Resource Within $1,350 open-pit shell 0.55 820,000 1.74 46,000
Measured + Indicated 3,490,000 2.45 274,000
Mineral Resource
Classification
Underground Constraint Gold
cut-off
(Au g/t)
Tonnes Gold
g/t
Gold
(Ounces)
Measured Mineral Resource Below $1,350 open-pit shell 2.00 690,000 3.09 69,000
Indicated Mineral Resource Below $1,350 open-pit shell 2.00 1,350,000 2.80 121,000
Measured + Indicated 2,040,000 2.90 190,000
Total Measured + Indicated 5,530,000 2.61 464,000
Mineral Resource
Classification
Open-Pit Constraint Gold
cut-off
(Au g/t)
Tonnes Gold
g/t
Gold
(Ounces)
Inferred Mineral Resource Within $1,350 open-pit shell 0.55 35,000 2.45 3,000
Mineral Resource
Classification
Underground Constraint Gold
cut-off
(Au g/t)
Tonnes Gold
g/t
Gold
(Ounces)
Inferred Mineral Resource Below $1,350 open-pit shell 2.00 6,500,000 2.54 530,000
Total Inferred 6,535,000 2.54 533,000
  • The mineral resource estimate is classified as Measured, Indicated and Inferred mineral resources.
  • 2014 CIM Definition Standards were followed for classification of mineral resources.
  • The mineral resource has been estimated using a gold price of US$1,350/oz.
  • The mineral resource was estimated using a block model. Three dimensional wireframes were generated using geological information. The ordinary kriging estimation method was used to interpolate grades into blocks. Blocks were sub-blocked to more accurately reflect the volume of the wireframes.
  • Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is currently insufficient exploration to define these Inferred mineral resources as Indicated or Measured mineral resources and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.
  • Numbers may not add due to rounding.

The Cameron Gold deposit is a shear hosted gold deposit within a structurally complex belt of arcuate greenstones and felsic intrusive bodies. The regional controls are well documented in terms of the major structural elements and their interactions. The local geology has been mapped at the surface in trenches and outcrops and also in underground drift development. There has been extensive drilling coverage of the deposit from surface and underground and the information used in developing the estimate is exclusively from high quality diamond drilling samples and logging.

Gold is associated with disseminated pyrite with high sulphide concentration generally corresponding with higher gold grades. The mineralization is open at depth and along strike to the northwest with potential to expand the mineral resource in these directions.

The mineral resource estimate for Cameron has been updated using an additional 30,000 samples which, combined with the re-logging of approximately 771 diamond holes (103,000 metres), has increased the confidence of the geological and mineralisation interpretations. The definition of grade domains and continuity is considered to be robust and with greater confidence at a more local scale than previous estimates due to the much greater number of samples.

The interpretation of the deposit scale geological model was done in a collaborative manner, with the Cameron site geological team (who were responsible for the re-logging of the drilling) involved in the interpretation of sectional and wireframe interpretations of the geology and mineralization. These interpretations were used by Optiro as a guide to compile the 3D geological model using Leapfrog Geo 3D software. The geological modelling process was iterative with discussions and amendments made in order to validate the definition of the lithological and structural elements into an integrated model.

With respect to the tonnage and metal risk, the volumetric controls of thickness and extent of the mineralized domains are considered to be robust and well constrained by the geological interpretations. The density assignment is based on the results of 1,202 measurements that were grouped by lithology. The average values assigned are considered to be representative of the lithologies present.

A kriging neighbourhood analysis (KNA) was undertaken to determine the optimal block size, to test for the optimal search ellipse orientation and dimensions and to test the minimum and maximum numbers of samples to be used for grade estimation. This analysis used the variogram parameters and an iterative series of estimates with varying block size, search and sample number, using kriging efficiency (KE) and slope of regression (slope) values to provide a metric of estimation performance.

Discrete areas that represent well (4 to 15 m centred sampling), moderately (15 to 50 m centred sampling) and poorly (>50 m sampling) sampled areas were identified for each of the significant lodes (FW1, MID, Main and HW). The contrast in available sample density makes selection of the parent cell size and search strategy an exercise in compromise between efficiency in undertaking the estimate, reliability of the estimate and reflecting the known geology.

The mineral resources have been reported using two Au cut-off grades. The parts of the deposit considered amenable to open pit mining methods have been reported using a 0.55 g/t Au cut-off grade applied within a constraining Whittle open pit shell down to a depth of 235 metres below natural surface. Below this, the deposit has been reported at a 2.00 g/t Au cut-off grade, which is considered to be appropriate for underground mining using the longhole open stoping method. A gold price of US$1,350 and metallurgical recovery of 91.5% has been used. The parameters for the optimisation process and assumptions for open pit and underground mining are included in table 2.

Table 2: Cameron Open Pit and Underground Parameters

Parameters Open Pit Underground
Mining Cost US$/t 2.00 55.50
Milling Cost US$/t 20.00 20.00
G&A Cost US$/t 2.50 2.50
Overall Cost US$/t 24.50 78.00
Au Met. Recovery % 91.5% 91.5%
Au Price US$/oz. 1,350 1,350
Cut-off Au g/t 0.55 2.00

QUALIFIED PERSONS

Dr. Chris Osterman, P.Geo., CEO of First Mining, is a qualified person as defined by NI 43-101 and has reviewed and approved, and accepts responsibility for, the technical information contained within this press release. Mr. Mark Drabble, MAIG, MAusIMM, and Mr. Kahan Cervoj, MAIG, MAusIMM, Principal Consultants with Optiro Pty Ltd., are the authors of the Technical Report, and each of them is an independent „qualified person” within the meaning of NI 43-101.

Neither Mr. Drabble, Mr. Cervoj nor any associates employed by Optiro Pty Ltd. in the preparation of the Technical Report („Consultants”) have any beneficial interest in First Mining. These Consultants are not insiders, associates, or affiliates of First Mining. The results of this Technical Report are not dependent upon any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between First Mining and the Consultants. The Consultants are paid a fee for their work in accordance with normal professional consulting practices.

ABOUT THE CAMERON PROJECT

The Cameron Gold Project was acquired by First Mining from Chalice on June 9, 2016. The project, which covers an area of over 44,853 hectares (110,835 acres), is located in northwestern Ontario, approximately 75 kilometres southeast of Kenora and approximately 30 kilometres southeast of the Township of Pickle Lake.

ABOUT FIRST MINING FINANCE CORP.

First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The Company currently holds a portfolio of 25 mineral assets in Canada, Mexico and the United States with a focus on gold. Ultimately, the goal is to continue to increase its portfolio of mineral assets through acquisitions that are expected to be comprised of gold, silver, copper, lead, zinc and nickel.

ON BEHALF OF FIRST MINING FINANCE CORP.

Keith Neumeyer
Chairman

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain „forward-looking information” and „forward-looking statements”(collectively „forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operating or financial performance of the Company, are forward-looking statements.

Forward-looking statements are frequently, but not always, identified by words such as „expects”, „anticipates”, „believes”, „intends”, „estimates”, „potential”, „possible”, and similar expressions, or statements that events, conditions, or results „will”, „may”, „could”, or „should” occur or be achieved. Forward-looking statements in this news release relate to, among other things: commencement of expansion drilling at the Cameron project; the potential results of such drilling; any upgrade to, or expansion of, the resources on the Cameron project or the Dogpaw and Dubenski deposits; and the exploration potential and upside of the Cameron project. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, management’s discretion to refocus its exploration efforts; fluctuations in the spot and forward price of gold, silver, base metals or certain other commodities; fluctuations in the currency markets (such as the Canadian dollar versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development; results of exploration programs; accuracy of resource estimates; inability to meet future financing needs on acceptable terms; and title to properties. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, First Mining does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Franco-Nevada Reports Strong Full-Year 2016 Results

TORONTO, March 22, 2017 /PRNewswire/ – Franco-Nevada’s CEO, David Harquail, commented: „Our diversified portfolio continues to perform very well. In 2016, we exceeded our recently increased guidance ranges for both Gold Equivalent Ounces1 („GEOs”) and oil & gas revenues. The growth in 2016 is reflecting the contribution from acquisitions we made during the recent downturn and increased activity by many of the operators on our lands. Franco-Nevada has no debt and is growing its cash balances. We continue to see investment opportunities and Franco-Nevada has just agreed to acquire, for $110 million, oil & gas royalties on the Midland portion of the Permian Basin in Texas, U.S.”

2016 Q4 Financial Highlights

2016 Full Year Financial Highlights

Revenue and GEOs by Asset Categories

For Q4/2016, revenue was sourced 91.9% from precious metals (72.6% gold, 14.1% silver and 5.2% PGM) and 87.2% from the Americas (18.5% U.S., 22.3% Canada and 46.4% Latin America).  Operating costs and expenses decreased slightly year-over-year, reflecting a realized gain of $14.1 million on the partial buy back of the Kirkland Lake NSR. Oil & gas revenue increased 136%, reflecting both higher prices and production levels year-over-year.  Cash provided by operating activities was $121.9 million, an increase of 43.5% compared to Q4/2015.

Corporate Updates

2017 Guidance

In 2017, Franco-Nevada expects attributable royalty and stream production to total 470,000 to 500,000 GEOs from its mineral assets and revenue of $35 million to $45 million from its oil & gas assets. Of the royalty and stream production, 335,000 to 345,000 GEOs are expected from Franco-Nevada’s various stream agreements. For 2017 guidance, silver, platinum and palladium metals have been converted to GEOs using assumed commodity prices of $1,200/oz Au, $17.50/oz Ag, $950/oz Pt and $750/oz Pd. The WTI oil price is assumed to average $50 per barrel with a $3.50 per barrel price differential between the Edmonton Light and realized prices for Canadian oil. The Company estimates depletion expense of $265 million to $295 million. 2017 guidance and 2021 outlook below is based on assumptions including the forecasted state of operations from our assets based on the public statements and other disclosures by the third-party owners and operators of the underlying properties (subject to our assessment thereof).

2021 Outlook

Our outlook to 2021 further assumes that the Cobre Panama project will be ramping up production in 2019. At the same time, scheduled fixed ounce payments from Midas/Fire Creek, Karma and Sabodala are expected to step down to longer term royalty or stream payments. Using the same commodity price assumptions as were used for our 2017 guidance (see above) and assuming no other acquisitions, Franco-Nevada expects its existing portfolio to generate between 515,000 to 540,000 GEOs by 2021. Oil & gas revenues at the same $50 per barrel WTI oil price assumption are expected to range between $55 million and $65 million.

Q4/2016 Portfolio Updates

Shareholder Information and 2017 Asset Handbook

The complete Consolidated Annual Financial Statements and Management’s Discussion and Analysis can be found today on Franco‑Nevada’s website at www.franco-nevada.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

Management will host a conference call tomorrow, Thursday, March 23, 2017 at 11:00 a.m. Eastern Time to review Franco‑Nevada’s 2016 results, as well as discuss the 2017 and five-year outlook. In addition, Franco-Nevada will be releasing its 2017 Asset Handbook with updated disclosures on our assets and the number of gold ounces and royalty equivalent units associated with each asset.

Interested investors are invited to participate as follows:

Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and stream company with the largest and most diversified portfolio of cash-flow producing assets.  Its business model provides investors with gold price and exploration optionality while limiting exposure to many of the risks of operating companies.  Franco-Nevada is debt free and uses its free cash flow to expand its portfolio and pay dividends.  It trades under the symbol FNV on both the Toronto and New York stock exchanges.  Franco-Nevada is the gold investment that works.

For more information, please go to our website at www.franco-nevada.com or contact:

Forward Looking Statements

This press release contains „forward looking information” and „forward looking statements” within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, management’s expectations regarding Franco-Nevada’s growth, results of operations, estimated future revenues, carrying value of assets, future dividends and requirements for additional capital, mineral reserve and mineral resource estimates, production estimates, production costs and revenue, future demand for and prices of commodities, expected mining sequences, business prospects and opportunities. In addition, statements (including data in tables) relating to reserves and resources and gold equivalent ounces („GEOs”) are forward looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such reserves and resources and GEOs will be realized. Such forward looking statements reflect management’s current beliefs and are based on information currently available to management. Often, but not always, forward looking statements can be identified by the use of words such as „plans”, „expects”, „is expected”, „budgets”, „scheduled”, „estimates”, „forecasts”, „predicts”, „projects”, „intends”, „targets”, „aims”, „anticipates” or „believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions „may”, „could”, „should”, „would”, „might” or „will” be taken, occur or be achieved. Forward looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. A number of factors could cause actual events or results to differ materially from any forward looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron-ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; regulatory,  political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Corporation is determined to have „passive foreign investment company” („PFIC”) status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; actual mineral content may differ from the reserves and resources contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious diseases; and the integration of acquired assets. The forward looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Corporation’s ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward looking statements are not guarantees of future performance. Franco-Nevada cannot assure investors that actual results will be consistent with these forward looking statements and investors should not place undue reliance on forward looking statements due to the inherent uncertainty therein. For additional information with respect to risks, uncertainties and assumptions, please refer to the „Risk Factors” section of Franco-Nevada’s most recent Annual Information Form filed with the Canadian securities regulatory authorities on www.sedar.com and Franco-Nevada’s most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

NON-IFRS MEASURES:  Adjusted Net Income and Adjusted EBITDA are intended to provide additional information only and do not have any standardized meaning prescribed under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.  These measures are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS.  Other companies may calculate these measures differently. For a reconciliation of these measures to various IFRS measures, please see below or the Company’s current MD&A disclosure found on the Company’s website, on SEDAR and on EDGAR. Comparative information has been recalculated to conform to current presentation.

Reconciliation to IFRS measures:

FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions of U.S. dollars)

 

FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(in millions of U.S. dollars, except per share amounts)

 

FRANCO-NEVADA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of U.S. dollars)

 

SOURCE Franco-Nevada Corporation

TransAtlantic Petroleum Announces Fourth Quarter and Year-End 2016 Financial Results and Provides an Operations Update

HAMILTON, Bermuda, March 22, 2017 (GLOBE NEWSWIRE) — TransAtlantic Petroleum Ltd. (TSX:TNP) (NYSE-MKT:TAT) (the “Company” or “TransAtlantic”) today announced financial results for the quarter and year ended December 31, 2016 and provided an operations update. Additional information can be found on TransAtlantic’s website at www.TransAtlanticPetroleum.com.
HighlightsThe company has determined that it is appropriate to eliminate the Going Concern qualification in its consolidated financial statements effective as of December 31, 2016.
TransAtlantic successfully completed the sale of its TBNG subsidiary in February 2017.  These assets were classified as held for sale at year-end 2016. 
Net loss from continuing operations in 2016 was $22.4 million, as compared to $26.7 million in 2015.  Net loss from continuing operations for the three months ended December 31, 2016 was $5.7 million as compared to $4.6 million for the third quarter of 2016 and $32.6 million in the fourth quarter of 2015.
Adjusted EBITDAX from continuing operations for the year ended December 31, 2016 was $40.9 million, as compared to $64.7 million for the year ended December 31, 2015, which included cash settlements on commodity derivative contracts of $4.2 million and $15.3 million for 2016 and 2015, respectively. Adjusted EBITDAX from continuing operations for the three months ended December 31, 2016 decreased to $9.4 million, as compared to $12.8 million for the third quarter of 2016 and $9.5 million in the fourth quarter of 2015, which included cash settlements on commodity derivative contracts of zero, $2.7 million and $2.1 million for the three months ended December 31, 2016, September 30, 2016 and December 31, 2015, respectively. 1
Diluted net loss per common share from continuing operations improved to $0.51 in 2016 from $0.65 in 2015.
2016 general and administrative expenses and production expenses decreased 32% and 4%, respectively, from 2015.
TransAtlantic’s wellhead production from continuing operations was 1.8 million barrels of oil equivalent (“MMBOE”) in 2016, as compared to 1.9 million MMBOE in 2015.
TransAtlantic’s average net sales volumes from continuing operations were approximately 4,335 barrels of oil equivalent per day (“BOEPD”) in the fourth quarter of 2016, as compared to 4,191 BOEPD in the third quarter of 2016 and 5,019 BOEPD in the fourth quarter of 2015.
TransAtlantic’s 2017 year-to-date net wellhead production is approximately 4,491 BOEPD, comprised of 3,633 barrels of oil per day (“BOPD”) and 5.15 million cubic feet of natural gas per day (“MMCFPD”).
TransAtlantic’s management will be presenting at the IPAA New York oil and gas conference on Monday, April 3, 2017 at 3:05 p.m. Eastern time.
1 Adjusted EBITDAX is a non-GAAP financial measure. See the reconciliation at the end of this press release.
Fourth Quarter 2016 Results for Continuing OperationsTotal revenues were $18.7 million for the three months ended December 31, 2016, compared to $16.7 million for the three months ended September 30, 2016 and $15.9 million for the three months ended December 31, 2015. For the three months ended December 31, 2016, TransAtlantic had a net loss from continuing operations of $5.7 million, or $0.12 per share (basic and diluted), compared to a net loss from continuing operations of $4.6 million, or $0.10 per share (basic and diluted), for the three months ended September 30, 2016 and a net loss from continuing operations of $32.6 million, or $0.80 per share (basic and diluted), for the three months ended December 31, 2015. The net loss for the three months ended December 31, 2016 included $3.2 million of foreign exchange loss and $3.0 million of exploration, abandonment and impairment charges compared to $0.4 million of foreign exchange loss and $1.5 million of exploration, abandonment and impairment charges for the three months ended September 30, 2016.  Additionally, this compares to $1.2 million of foreign exchange gain and $13.3 million of exploration, abandonment and impairment charges for the three months ended December 31, 2015.  Capital expenditures totaled $4.6 million for the three months ended December 31, 2016 compared to $1.5 million for the three months ended September 30, 2016 and $3.9 million for the three months ended December 31, 2015.Adjusted EBITDAX from continuing operations for the three months ended December 31, 2016 was $9.4 million, compared to $12.8 million for the three months ended September 30, 2016 and $9.5 million for the three months ended December 31, 2015. The decrease in fourth quarter of 2016 Adjusted EBITDAX compared to the third quarter of 2016, was primarily due to a decrease of $2.7 million in realized cash settlements on commodity derivative contracts, an increase in general and administrative expenses of $2.3 million, which was partially offset by an increase in total revenues of $2.0 million.2016 Annual Results for Continuing OperationsRevenues for the twelve months ended December 31, 2016 were $68.6 million, compared to $85.1 million for the twelve months ended December 31, 2015.  The decrease in annual revenues was primarily attributable to a 13% decrease in the average price per BOE received for TransAtlantic’s sales volumes.  For the twelve months ended December 31, 2016, TransAtlantic had a net loss from continuing operations of $22.4 million, or $0.51 per share (basic and diluted), compared to a net loss from continuing operations of $26.7 million, or $0.65 per share (basic and diluted), for the twelve months ended December 31, 2015.  The 2016 net loss from continuing operations included $6.0 million of exploration, abandonment and impairment charges, $11.8 million of interest expense, $3.9 million of foreign exchange losses and $3.3 million of derivative losses compared to $21.5 million of exploration, abandonment and impairment charges, $13.1 million of interest expense, $5.7 million of foreign exchange losses and $27.5 million of derivative gains for the twelve months ended December 31, 2015.Adjusted EBITDAX from continuing operations for the twelve months ended December 31, 2016 was $40.9 million compared to $64.7 million for the twelve months ended December 31, 2015. The difference was a result of a decrease in revenues of $16.5 million, a decrease in TransAtlantic’s realized cash settlements on its commodity derivative contracts, excluding proceeds from the hedge unwinds, of $11.1 million, an increase in the cost of purchased natural gas of $2.3 million, which was partially offset by a decrease in general and administrative expenses of $6.5 million and a decrease in production expenses of $0.5 million.   Impact of Foreign Currency ExchangeDuring the three months ended December 31, 2016, accumulated other comprehensive loss increased $15.4 million to a total of $140.3 million, due primarily to foreign exchange rate changes in Turkey compared to the U.S. Dollar.  The financial statement impact is 100% non-cash and is reflected in other comprehensive (loss) income on the Consolidated Statement of Comprehensive (Loss) Income and in shareholder’s equity on the Summary Consolidated Balance Sheets.  This adjustment impacts the value of comprehensive income and shareholders’ equity, but does not impact net income or earnings per share.The Company records its foreign operations’ assets, liabilities and transactions in the functional currency, which for Turkey is the New Turkish Lira, for Bulgaria is the Bulgarian Lev and for Albania is the U.S. Dollar. For more information regarding the effects of foreign currency exchange on Company operations and reported financial results, please refer to the Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission on March 22, 2017.LiquidityDuring 2016, we focused on several transactions to deleverage our balance sheet, repay our Senior Credit Facility with BNP and IFC, obtain new debt financing, raise cash from asset sales and refinance our 13% Senior Convertible Notes due 2017.  Subsequent to year end, on February 24, 2017, we closed the sale of TBNG for gross proceeds of $20.9 million, and approximate net cash proceeds of $16.3 million, approximately $3.0 million of which is held in escrow pending final purchase price adjustments.  We will continue to focus on reducing our outstanding indebtedness during 2017.Operational UpdateIn January 2017, we spud the Bahar-11H well in the Bahar field in Southeastern Turkey.  We expect to start completion operations in the second quarter of 2017.  We have also continued construction of an enhanced production facility in the Bahar field and the electrification of the field via natural gas powered generators.  We expect this project to be fully completed in the first week of April.  In the Selmo field in Southeastern Turkey, we have continued with low cost workovers and facility enhancements.  We were awarded an expansion of the Molla 4845 License by approximately 27,600 acres and plan to commence 3D seismic this spring.Presentation at IPAA New YorkTransAtlantic’s management will be presenting at the IPAA New York oil and gas conference on Monday, April 3, 2017 at 3:05 p.m. Eastern time.  A live webcast of the event and slide presentation will be available on TransAtlantic’s website at www.transatlanticpetroleum.com. To access the webcast, click on „Investors”, select „Events and Presentations”, and click on „Listen to webcast” under the event listing.Conference CallThe Company has scheduled a conference call for Thursday, March 23, 2017 at 7:00 a.m. Central (8:00 a.m. Eastern) to discuss fourth quarter and year ended 2016 financial results.Investors who would like to participate in the conference call should dial toll-free (877) 878-2762 or (678) 809-1005 for international callers approximately 10 minutes prior to the scheduled start time and ask for the TransAtlantic conference call. The conference ID is 85194696. A replay will be available through March 24, 2017, at 11:00 p.m. Eastern and may be accessed by dialing (855) 859-2056 or (404) 537-3406. The conference ID is 85194696.A webcast of the conference call and replay will be available through the Company’s website at www.transatlanticpetroleum.com. To access the live webcast and replay, click on “Investors,” select “Events & Presentations,” and click on “Listen to webcast” under the event listing. The webcast requires iOS, Microsoft Windows Media Player or RealOne Player.Annual Report on Form 10-KTransAtlantic filed its Annual Report on Form 10-K for the year ended December 31, 2016, on March 22, 2017.           

Adjusted EBITDAX from continuing operations (“Adjusted EBITDAX”) is a non-GAAP financial measure that represents net loss from continuing operations plus interest and other, net, current and deferred income tax expense, exploration, abandonment and impairment, seismic and other exploration expense, foreign exchange loss (gain), share based compensation expense, loss (gain) on commodity derivative contracts, cash settlements on commodity derivative contracts, accretion of asset retirement obligation, depreciation, depletion and amortization, commodity derivative unwind gain and net other items.The Company believes Adjusted EBITDAX assists management and investors in comparing the Company’s performance on a consistent basis without regard to depreciation, depletion and amortization and impairment of oil and natural gas properties, exploration expenses and gains (losses) on commodity derivative contracts which can vary significantly from period to period. In addition, management uses Adjusted EBITDAX as a financial measure to evaluate the Company’s operating performance. Adjusted EBITDAX is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for income from continuing operations prepared in accordance with GAAP. Net income from continuing operations may vary materially from Adjusted EBITDAX. Investors should carefully consider the specific items included in the computation of Adjusted EBITDAX.About TransAtlanticTransAtlantic Petroleum Ltd. is an international oil and natural gas company engaged in the acquisition, exploration, development and production of oil and natural gas. The Company holds interests in developed and undeveloped properties in Turkey and Bulgaria and an operated interest in a joint venture in Albania.(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)Forward-Looking StatementsThis news release contains statements concerning the drilling, completion and cost of wells, the production and sale of oil and natural gas, the holding of an earnings conference call, the issuance of an operations update, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions, which may prove to be incorrect.Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include, but are not limited to, access to sufficient capital, market prices for natural gas, natural gas liquids and oil products; estimates of reserves and economic assumptions; the ability to produce and transport natural gas, natural gas liquids and oil; the results of exploration and development drilling and related activities; economic conditions in the countries and provinces in which the Company carries on business, especially economic slowdowns; actions by governmental authorities, receipt of required approvals, increases in taxes, legislative and regulatory initiatives relating to fracture stimulation activities, changes in environmental and other regulations, and renegotiations of contracts; political uncertainty, including actions by insurgent groups or other conflict; outcomes of litigation; the negotiation and closing of material contracts; and other risks described in our filings with the SEC.The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.Note on BOEBarrels of oil equivalent, or BOE, are derived by the Company by converting natural gas to oil in the ratio of six thousand cubic feet (“MCF”) of natural gas to one bbl of oil. A BOE conversion ratio of six MCF to one 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. BOE may be misleading, particularly if used in isolation.Contacts:

Chad D. Burkhardt
Vice President, General Counsel and Corporate Secretary
(214) 265-4705

TransAtlantic Petroleum Ltd.
16803 Dallas Parkway
Addison, Texas 75001
http://www.transatlanticpetroleum.com

OMA Calls Annual Shareholders’ Meeting

MONTERREY, Mexico, March 22, 2017 (GLOBE NEWSWIRE) — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ:OMAB) (BMV:OMA), today published a call for its Annual Ordinary and Extraordinary Shareholders’ Meeting to be held on April 28, 2017.
The translation of the full text of the call follows:GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V.SHAREHOLDERS’ MEETING CALLThe Board of Directors of Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (the “Company”), in compliance with articles 28, section IV and 42 of the Mexican Securities Law (“Ley del Mercado de Valores”), and in accordance with Articles 181, 183, 186, and 187 of the Mexican General Law of Corporations (“Ley General de Sociedades Mercantiles”) and articles Thirty Four, Thirty Five and Thirty Six of the Bylaws of the Company, hereby CALLS its shareholders to attend the Annual General Ordinary and Extraordinary Shareholders’ Meeting, which will be held at 10:00am on the 28th day of April, 2017, in Salon  Regency Room G, of the Hyatt Regency Hotel, Campos Elíseos No. 204, Polanco Sección V, C.P. 11560, Delegación Miguel Hidalgo, Mexico City, Mexico where the following matters will be attended:EXTRAORDINARY SHAREHOLDERS’ MEETING AGENDAI. Discussion and, in the event, approval of a proposal to cancel 6,229,027 Series B shares acquired in accordance with article 56 of the Mexican Securities Law, and thereby to reduce the minimum or fixed social capital of the Company, and, in the event, to modify the text of Article Six of the Bylaws of the Company.
II. Appointment of Special Delegates.
ORDINARY SHAREHOLDERS’ MEETING AGENDAI. Reports of the Board of Directors in accordance with Article 28, section IV, paragraphs (d) and (e) of the Mexican Securities Law, regarding the fiscal year ended as of December 31, 2016.
II. Reports of the Chief Executive Officer and External Auditor in accordance with Article 28, section IV, paragraph (b) of the Mexican Securities Law, regarding the fiscal year ended as of December 31, 2016.
III. Reports and opinion referred to in Article 28, section IV, paragraphs (a) and (c) of the Mexican Securities Law, including the Fiscal Report referred to in article 76, section XIX of the Income Tax Law.
IV. Discussion, approval, and amendment, if any, of the Reports mentioned in items I and II above. Resolutions in this regard.
V. Allocation of net income, increase in reserves, approval of the amounts for share repurchases, and declaration of dividends, if any. Resolutions in this regard.
VI. Discussion and, in the event, approval of a proposal to nominate and/or ratify members of the Board of Directors and the Chairs of the Audit and Corporate Practices, Finance, Planning and Sustainability Committees, and determine the corresponding emoluments. Resolutions in this regard.
VII. Appointment of Special Delegates.
In order to be entitled to attend the Shareholders’ Meeting, shareholders shall obtain an entry pass issued and delivered by the Secretary of the Company at the address set forth below, starting the fourth business day prior to the meeting date, in accordance with the following terms:a. Shareholders must be registered in the Share Registry of the Company or validate the ownership of their shares or certificates pursuant to Articles 290 and 293 of the Mexican Securities Law. The Share Registry will be closed to new entries three days prior to the date of the Shareholders’ Meeting and on the day of said Meeting.b. Shareholders shall deposit their share certificates as provided in paragraph (a) above, at the offices of the Company set forth below, or at S.D. Indeval Institución para el Depósito de Valores, S.A. de C.V., or at any national or foreign banking institution, and present to the Company the deposit receipt issued by the respective institution for such purposes.
c. Shareholders may attend the Shareholders’ Meeting in person or through authorized representatives, using a proxy form in accordance with Article 49, section III of the Mexican Securities Law, or any other method of representation authorized by law; therefore, the shareholders shall, as appropriate, in addition to the deposit receipt mentioned in paragraph (b) above, include the proxy form referred to herein. Said proxy form is available at the address set forth below.
d. Brokerage firms and other financial institutions shall, for purposes of obtaining an entry pass, present a list that contains the name, address, and nationality of each shareholder and the number of shares represented, duly signed by the officer responsible for the preparation of the list.
The share certificates duly deposited with the Secretary of the Board of Directors by the shareholders or their representatives for attendance purposes will be returned after the adjournment of the Meeting in exchange for the deposit receipts issued to the shareholders or their representatives.Please note that the proxy form, entry passes, and supporting documentation related to the matters listed in the Agenda shall be available to shareholders at the offices located at the 5th floor conference room, Aristoteles, No. 77, Colonia Polanco, C.P. 11560, Mexico City, from the date of the publication of this Call for a Shareholders’ Meeting, from 9:00 AM to 2:00 PM and from 4:00 PM to 7:00 PM on working days.Mexico City, on the 22d day of March 2017/s/ Diego Quintana Kawage
Chairman of the Board of Directors
                                

Parsley Energy to Participate in the Scotia Howard Weil Energy Conference

AUSTIN, Texas, March 22, 2017 /PRNewswire/ — Parsley Energy, Inc. (NYSE: PE) (the „Company”) today announced that the Company will participate in the Scotia Howard Weil Energy Conference in New Orleans on March 27-28, during which Bryan Sheffield, Chairman and Chief Executive Officer, is scheduled to make a presentation on Tuesday, March 28.

About Parsley Energy, Inc.

Parsley Energy, Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin in West Texas. For more information, visit our website at www.parsleyenergy.com.

 

SOURCE Parsley Energy, Inc.

Cub Energy Inc. Reports Year-End Reserves for 2016

HOUSTON, TEXAS–(Marketwired – March 22, 2017) – Cub Energy Inc. („Cub” or the „Company„) (TSX VENTURE:KUB) announces the results of its independent reserves evaluations as at December 31, 2016 on its oil and gas properties in Ukraine. The evaluation of Tysagaz LLC properties (100% WI) KUB-Gas LLC properties (35% WI) was conducted by Ryder Scott Petroleum Consultants („Ryder Scott„), an independent qualified reserves evaluators and auditor („Reserves Reports”).

All evaluations were prepared using guidelines outlined in the Canadian Oil and Gas Evaluation Handbook („COGE Handbook„) and are in accordance with Canadian Securities Administrators National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities („NI 51-101„). Cub’s NI 51-101 disclosure is contained in its Annual Information Form for the year ended December 31, 2016 filed on SEDAR www.sedar.com and posted on the Company’s website at www.cubenergyinc.com. All dollar amounts are expressed in United States Dollars unless otherwise noted. Highlights of the net reserves(2) are below:

  • Proved developed producing („PDP„) oil and natural gas net reserves of 489 Mboe or 2,934 MMcfe with NPV-10 (as defined herein) of $13.96 million (CAD$0.06 per share) (1)
  • Proved („1P„) oil and natural gas net reserves of 1,425 Mboe or 8,550 MMcfe with NPV-10 of $34.67 million (CAD$0.15 per share) (1)
  • Proved and probable („2P„) oil and natural gas net reserves of 1,978 Mboe or 11,868 MMcfe with NPV-10 of $47.32 million (CAD$0.20 per share) (1)
    Notes:
    (1) The per share amounts are calculated by dividing the respective NPV-10s by the number of common shares issued and outstanding shares, being 312,015,355
    (2) Reserves net to the Company’s interest after deduction of royalties

The December 31, 2016 Tysagaz LLC reserves reflect a loss of approximately 33% due to the utilization of the Nitrogen Rejection Unit („NRU”) in future periods.

Total Company Reserves Summary

The following tables summarise the total Company reserves and associated net present values discounted at 10% before tax at December 31, 2016 using forecast prices.

Table 1 Total Company Net Reserves Volumes (1)(2)

Reserves Category Natural Gas
(MMcf)
NGL’s
(Mbbls)
Mboe MMcfe
Developed producing 2,851 14 489 2,934
Developed non-produced 2,052 5 347 2,082
Undeveloped 3,463 11 589 3,534
Total Proved (1P) 8,366 31 1,425 8,550
Total Proved plus Probable (2p) 11,599 45 1,978 11,868
Notes:
(1) See „Oil and Gas Equivalents” below
(2) Reserves net to the Company’s interest after deduction of royalties

Table 2 Net Present Value at 10% discount before tax („NPV-10”) (US$ Millions)(1)(2)(3)

Reserves Category NPV-10
Proved Developed Producing (PDP) $13.96
Total Proved (1P) $34.67
Total Proved plus Probable (2P) $47.32
Notes:
(1) The forecast prices used in the calculations of the present value of future net revenue for year-end 2016 are based on the Reserves Reports of Eastern Ukraine and Western Ukraine asset forecast prices.
(2) Estimated values do not represent fair market value.
(3) The total proved NPV-10 value of the estimated future net revenues are not intended to represent the current market value of the estimated oil and natural gas reserves. NPV-10 of probable reserves represent the present value of estimated future revenues to be generated from the production of probable reserves, calculated net of estimated lease operating expenses, production taxes and future development costs, using costs as of the date of estimation and using estimated future gas prices, without giving effect to non-property related expenses such as general and administrative expenses, debt service, and depreciation, depletion, and amortization, or future income taxes and discounted using an annual discount rate of 10%. With respect to pre-tax NPV-10 amounts for probable reserves, they do not purport to present the fair value of our probable reserves.

Oil and Gas Equivalents

A barrel of oil equivalent („boe”) or units of natural gas equivalents („Mcfe”) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) or a Mcfe conversion of 1bbl: 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

Reserves Classifications

„Gross Reserves” are the Company’s working interest (operating or non-operating) share before deduction of royalties and without including any royalty interests of the Company. „Net Reserves” are the Company’s working interest (operating or non-operating) share after deduction of royalty obligations, plus the Company’s royalty interests in reserves.

Defined Terms

„Reserves” are estimated remaining quantities of oil and natural gas and related substances anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must further satisfy four criteria: they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied.

Reserves are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by development and production status.

„Proved Reserves” are reserves that can be estimated with a high degree of certainty to be recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations.

„Probable Reserves” are those additional Reserves that are less certain to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves.

About Cub Energy Inc.

Cub Energy Inc. (TSX VENTURE:KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. The Company’s strategy is to implement western technology and capital, combined with local expertise and ownership, to increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas assets within a high pricing environment.

For further information please contact us or visit our website: www.cubenergyinc.com

Reader Advisory

Except for statements of historical fact, this news release contains certain „forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as „plan”, „expect”, „project”, „intend”, „believe”, „anticipate”, „estimate” and other similar words, or statements that certain events or conditions „may” or „will” occur. Cub believes that the expectations reflected in the forward-looking information are reasonable; however, there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Ukraine, the Black Sea Region and globally; political unrest and security concerns in Ukraine; industry conditions, including fluctuations in the prices of natural gas; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other third party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realise the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cub Energy Inc. Announces Q4 2016 Financial and Operational Results

HOUSTON, TEXAS–(Marketwired – March 22, 2017) – Cub Energy Inc. („Cub” or the „Company„) (TSX VENTURE:KUB), a Ukraine-focused upstream oil and gas company, announced today its audited annual financial and operating results for the fourth quarter of 2016. All dollar amounts are expressed in United States Dollars unless otherwise noted. This update includes results from KUB-Gas LLC („KUB-Gas„), which Cub has a 35% equity ownership interest (increased from 30% effective February 8, 2016) and Tysagaz LLC („Tysagaz„), Cub’s 100% owned subsidiary.

Mikhail Afendikov, Chairman and CEO of Cub said: „2016 saw Cub Energy return to profitability with reported net income of $3.9 million or $0.01 per share. Cub’s cash position and working capital also improved in 2016 with an ending cash position of $4.6 million and positive working capital of $3.3 million as at December 31, 2016.”

Operational Highlights

  • Royalty rates for natural gas in Ukraine declined from 55% to 29% effective January 1, 2016 which materially improved the Company’s netbacks and net income.
  • Production averaged 1,152 boe/d (97% weighted to natural gas and the remaining to condensate) for the quarter ended December 31, 2016, which decreased 15% as compared to the 1,353 boe/d in the comparative 2015 quarter and relatively flat as compared to the 1,171 boe/d average for the third quarter ended September 30, 2016. The decrease in production for the quarter ended December 31, 2016 as compared to the same period in 2015 was a result of the temporary suspension of the RK field on April 1, 2016 due to the termination of a gas blending contract. The Company hopes to commission the Nitrogen Rejection Unit („NRU”) and resume production of the RK field in the second quarter of 2017.
  • Achieved average natural gas price of $6.39/Mcf and condensate price of $61.59/bbl during the quarter ended December 31, 2016 as compared to $7.22/Mcf and $42.78/bbl for the comparative 2015 quarter and $5.48/Mcf and $63.99/bbl for the third quarter ended September 30, 2016.
  • On March 11, 2016, the Company’s Ukraine subsidiary was awarded a 20-year Uzhgorod production licence covering approximately 75,000 acres in western Ukraine.
  • On December 28, 2016, the Company’s Ukraine subsidiary was awarded a 20-year Stanivske production licence covering approximately 31,000 acres in western Ukraine. The Company is exploring its alternatives for the licence, including potential joint venture partners.
  • On July 8, 2016, the Company announced that it has entered into a share purchase agreement („SPA”) and shareholders’ agreement with a third party, whereby the third party earns a 50% interest in the Company’s newly formed subsidiary, CNG Holdings Netherlands B.V, which, in turn, owns CNG LLC (Ukraine LLC), 100% owner of the Uzhgorod production licence in western Ukraine. Pursuant to the terms of the SPA, the third party is to (i) pay Cub EUR1.5 million ($1.6 million) upon transfer of the 50% shares („Closing”) (paid); (ii) fund a 100 square kilometre 3D seismic survey within 20 months of Closing; (iii) fund the drilling of first three wells within four years of Closing; and (iv) fund the tie-in costs of the first three wells up to a maximum EUR0.2 million ($0.2 million) per well within four years of Closing.

Financial Highlights

  • Netbacks of $25.60/boe or $4.27/Mcfe for the quarter ended December 31, 2016 as compared to netback of $13.13/Boe or $2.19/Mcfe for the comparative 2015 quarter. In addition, netbacks were $20.89/Boe or $3.48/Mcfe for the third quarter ended September 30, 2016. Netbacks in 2016 improved compared to 2015 as a result of the reduced royalty rate effective January 1, 2016 but somewhat offset by lower natural gas prices.
  • During the three months ended December 31, 2016, the Company received dividends of approximately $0.8 million (2015 – $Nil) from KUBGAS Holdings Limited, which owns 100% of KUB-Gas. The National Bank of Ukraine („NBU”) eased certain capital controls by allowing limited dividends. The Company expects to continue to repatriate dividends to the extent possible and allowed by the NBU, although there are no assurances the NBU will continue to ease restrictions into 2017.
  • During the three months ended December 31, 2016, the Company’s Ukraine subsidiaries, received proceeds of $3.8 million (2015 – $Nil) from KUB-Gas pursuant to unsecured, non-interest bearing loan agreements between the parties.
  • Commencing August 2016, the Company’s 100% owned subsidiary, Tysagaz, began taking possession of its 35% ownership of gas produced at KUB-Gas. Tysagaz purchased the gas from KUB-Gas at the same price that KUB-Gas sold its gas to an affiliate of the majority shareholder of KUB-Gas. During three months ended September, 2016, the Company recorded $4.8 million in gas sales and $4.5 million in cost of the sales for a net profit from gas trading of $0.3 million as compared to no such transactions during 2015.
(in thousands of US Dollars) Three Months Ended
December 31,
2016
Three Months Ended
December 31,
2015
Year Ended
December 31,
2016
Year Ended
December 31,
2015
Petroleum and natural gas revenue 923 1,456 4,210
Pro-rata petroleum and natural gas revenue(1) 4,023 5,489 17,704 22,806
Revenue from gas trading 4,793 6,915
Net income (loss) (308 ) (1,053 ) 3,931 (3,141 )
Income (loss) per share – basic and diluted (0.00 ) (0.00 ) 0.01 (0.01 )
Funds generated from operations(2) (573 ) (797 ) (2,569 ) (1,746 )
Pro-rata funds generated from operations(3) 857 (15 ) 6,219 760
Capital expenditures(4) 887 72 1,350 199
Pro-rata capital expenditures(4) 1,296 476 3,074 1,865
Pro-rata netback ($/boe) 25.60 13.13 22.40 12.74
Pro-rata netback ($Mcfe) 4.27 2.19 3.73 2.12
December 31,
2016
December 31,
2015
Working capital (deficit) 3,255 (1,722 )
Cash and cash equivalents 4,585 1,360
Long-term debt 6,332 2,000

Notes:

(1) Pro-rata petroleum and natural gas revenue is a non-IFRS measure that adds the Company’s petroleum and natural gas revenue earned in the respective periods to the Company’s 35% (2015 – 30%) equity share of the KUB-Gas natural gas sales that the Company has an economic interest in.
(2) Funds from operations is a non-IFRS measure and is defined as cash flow from operating activities, excluding changes in non-cash working capital.
(3) Pro-rata funds from operations is a non-IFRS measure that adds the Company’s funds from operations in the respective periods to the Company’s 35% (2015 – 30%) equity share of the KUB-Gas and 50% equity share of CNG Holdings funds from operations that the Company has an economic interest in.
(4) Capital expenditures includes the purchase of property, plant and equipment and the purchase of exploration and evaluation assets. Pro-rata capital expenditures is a non-IFRS measure that adds the Company’s capital expenditures in the respective periods to the Company’s 35% (2015 – 30%) equity share of the KUB-Gas and 50% equity share of CNG Holdings capital expenditures that the Company has an economic interest in.

Outlook

The Company expects KUB-Gas to drill two new Olgovskoye field wells in 2017 which will be self-funded by KUB-Gas. Site preparation is complete for the O-26 well and will be followed by the O-28 well later in the year. KUB-Gas recently commenced a 150 kilometer 2D seismic survey on the West Olgovskoye licence in eastern Ukraine.

In western Ukraine, the Company is working towards the NRU becoming operational and resuming production at the RK field. Also in western Ukraine, CNG LLC expects to complete its 118 square kilometre 3D seismic program in 2017.

Supporting Documents

Cub’s complete quarterly reporting package, including the unaudited interim financial statements and associated Management’s Discussion and Analysis, have been filed on SEDAR (www.sedar.com) and has been posted on the Company’s website at www.cubenergyinc.com.

About Cub Energy Inc.

Cub Energy Inc. (TSX VENTURE:KUB) is an upstream oil and gas company, with a proven track record of exploration and production cost efficiency in Ukraine. The Company’s strategy is to implement western technology and capital, combined with local expertise and ownership, to increase value in its undeveloped land base, creating and further building a portfolio of producing oil and gas assets within a high pricing environment.

For further information please contact us or visit our website: www.cubenergyinc.com.

Oil and Gas Equivalents

A barrel of oil equivalent („boe”) or units of natural gas equivalents („Mcfe”) is calculated using the conversion factor of 6 Mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. A boe conversion ratio of 6 Mcf: 1 bbl (barrel) or a Mcfe conversion of 1bbl: 6 Mcf is, based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

Reader Advisory

With the current cash resources, temporary suspension of the RK field, uncertainty surrounding the successful installation of the NRU, dividend restrictions, currency fluctuations, reliance on a limited number of customers, and impact on carrying values, the Company may not have sufficient cash to continue the exploration and development activities. These matters raise significant doubt about the ability of the Company to continue as a going concern and meet its obligations as they become due.

Except for statements of historical fact, this news release contains certain „forward-looking information” within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as „plan”, „expect”, „project”, „intend”, „believe”, „anticipate”, „estimate” and other similar words, or statements that certain events or conditions „may” or „will” occur. Cub believes that the expectations reflected in the forward-looking information are reasonable; however there can be no assurance those expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Ukraine, the Black Sea Region and globally; political unrest and security concerns in Ukraine; industry conditions, including fluctuations in the prices of natural gas and foreign currency; governmental regulation of the natural gas industry, including environmental regulation; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to obtain industry partner and other fourth party consents and approvals, if and when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for natural gas; liabilities inherent in natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the natural gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

This cautionary statement expressly qualifies the forward-looking information contained in this news release. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.