CALGARY, Alberta, Nov. 30, 2019 (GLOBE NEWSWIRE) — Cuda Oil and Gas Inc. (“Cuda” or the “Company”) (TSXV: CUDA) is pleased to announce its financial and operating results for the three and nine months ended September 30, 2019.  The unaudited interim condensed consolidated financial statements and related management’s discussion and analysis (“MD&A”) are available under the Company’s profile on the SEDAR website at www.sedar.com.  Selected financial and operating information for the three and nine months ended September 30, 2019 appear below and should be read in conjunction with the related financial statements and MD&A.
Financial and Operational Results⁽¹⁾Notes:⁽¹⁾ Results related to the sale of the Company’s oil and gas assets and related decommissioning liabilities in Quebec, Canada, (the “Quebec Assets”), completed on September 4, 2019, have been excluded, and comparative periods have been represented.
⁽²⁾ Results contributed since the asset acquisitions in Wyoming, United States on August 14, 2018, and October 5, 2018.
⁽³⁾ See “Non-GAAP Measures”.Third Quarter 2019 HighlightsOn July 30, 2019, Cuda issued 14,282,000 units for gross proceeds of $7,141,000; net proceeds of $6,680,696 after share issuance costs of $460,304.  Each unit consists of one common share plus one-half of a common share purchase warrant. Each share purchase warrant is exercisable for one common share at a price of $0.60 per share for a term of 24 months from closing.
 On September 4, 2019, Cuda closed Asset Purchase Agreements and disposed of all its Quebec Assets for cash consideration of $4,290,003; net proceeds of $3,760,493 after costs to sell of $529,610.  The purchaser also caused the Company to be released and discharged, from a claim associated with the obligation to purchase shares from a dissenting shareholder in the amount of $3,116,750. 
 On September 13, 2019, the Wyoming Oil and Gas Conservation Commission approved the Shannon secondary recovery and unitization application at the Barron Flats Shannon unit, a miscible gas flood project in the Cretaceous Shannon Sand in Converse County, Wyoming, United States.
 Cuda’s average operating netback (see Non-GAAP measures) decreased to $22.67/boe for the third quarter, from $24.31/boe for the second quarter of 2019, primarily due to lower realized crude oil selling prices, partially offset by lower operating and transportation expenses. 
 Third quarter crude oil production averaged 264 boe/d, down 14% from 306 boe/d for the second quarter of 2019.  Production was affected by natural declines as no new wells were brought on production in the quarter. In 2019, Cuda continued to invest capital into oil field development and associated infrastructure in the Barron Flats (Deep) Unit in the Powder River Basin of Wyoming, United States, to create liquids production and build out the facilities from a planned miscible flood in the Shannon formation.
 In 2019, interest expense on the Cuda’s credit facilities, convertible debentures and lease obligations, were partially offset by higher average operating netbacks realized by the Company, driven by added crude oil production volumes from the asset acquisitions in Wyoming, resulted in adjusted funds flows used in operations (see Non-GAAP measures) of $3,768,124 for the nine months ended September 30, 2019.Subsequent to Third Quarter 2019
On October 1, 2019, Cuda closed the acquisition of certain undeveloped lands in the Shannon Secondary Recovery Unit (SSRU) and the Barron Flats (Deep) Federal Unit in Wyoming, United States, for total consideration of USD $384,772 (CAD $509,554).  The consideration is comprised of USD $341,217 (CAD $451,874) in cash, and exploration and evaluation assets with an attributed value of USD $43,555 (CAD $57,680).
 Cuda announced on November 27, 2019, that the miscible gas flood facility and central delivery point has been commissioned and brought on-line at the Company’s Barron Flats Shannon unit in the Powder River Basin of Wyoming, United States.
 On November 29, 2019, the Company amended its Additional Facility whereby the maturity of the Additional Facility has been extended from December 31, 2019 to March 31, 2020, and $4.5 million of additional funding will be made available to the Company by the Lender.  The Company will issue 885,000 common share purchase warrants to the Lender and each warrant will entitle the holder to purchase one COGI share at price of $0.45 per share for a period of 12 months, subject to regulatory approval.About Cuda Oil and Gas Inc.Cuda Oil and Gas Inc. is engaged in the business of exploring for, developing and producing oil and natural gas, and acquiring oil in Wyoming, United States, and Alberta, Canada properties. The Cuda management team has worked closely together for over 20 years in both private and public company environments and has an established track record of delivering strong shareholder returns.  Cuda will continue to implement its proven strategy of exploring, acquiring, and exploiting with a long-term focus on large, light oil resource- based assets across North America including significant operational experience in the United States.  The Cuda management team brings a full spectrum of geotechnical, engineering, negotiating and financial experience to its investment decisions.For further information please contact:
Glenn Dawson
President and Chief Executive Officer
Cuda Oil and Gas Inc.
(403) 454-0862   
               
Non-GAAP MeasuresThis news release contains the terms “adjusted funds flow from (used in) operations”, and “operating netback”, which do not have standardized meanings prescribed by IFRS and therefore may not be comparable with the calculation of similar measures presented by other issuers.Adjusted funds flow from (used in) operations denotes cash flow from (used in) operating activities as it appears on the Company’s consolidated statement of cash flows before decommissioning expenditures, if any, and changes in non-cash operating working capital.Operating netback denotes total revenue less royalty and production tax expenses, and operating and transportation costs calculated on a per boe basis.  Management uses operating netback on a per boe basis in operational and capital allocation decisions.BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6Mcf:1bbl) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  Given that the value ratio based on the current price of crude oil, compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.Forward-Looking InformationThis news release contains forward-looking information. All statements other than statements of historical fact included in this release are forward-looking statements that involve various risks and uncertainties and are based on forecasts of future operational or financial results, estimates of amounts not yet determinable and assumptions of management. In particular, this news release includes forward-looking information relating to the Company’s miscible gas facility and central delivery point, and exploration and development activities in Wyoming.  Risk factors that could prevent forward-looking statements from being realized include market conditions, third party and regulatory approvals, ongoing permitting requirements, the actual results of current exploration and development activities, operational risks, risks associated with drilling and completions, uncertainty of geological and technical data, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future oil and gas prices.  Although Cuda has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 
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