CALGARY, ALBERTA–(Marketwired – April 27, 2017) – Marksmen Energy Inc. (“Marksmen” or the “Company”) (TSX VENTURE:MAH)(OTCQB:MKSEF) and its wholly owned subsidiary Marksmen Energy USA, Inc. announces financial results for the year ended December 31, 2016. The following documents have been filed on SEDAR:
- Audited Financial Statements
- Management’s Discussion and Analysis (“MD&A”)
- Form NI 51-101F1 Statement of Reserve Data and Other Oil and Gas Information.
- Form NI 51-101F2 Report on Reserves Data by Independent Qualified Reserve Evaluator
- Form NI 51-101F3 Report of Management and Directors on Oil and Gas Disclosure
- Annual Information Form (“AIF”)
These filings may be viewed on the SEDAR website at www.sedar.com.
Highlights for fiscal years ended December 31, 2016 and 2015
Selected financial and operational information for the financial year ended December 31, 2016 is set out below and should be read in conjunction with Marksmen’s audited financial statements, the related MD&A and the report on reserves data.
| YE Dec 31 | YE Dec 31 | |||||
| Highlights | 2016 | 2015 | ||||
| Oil production ‐ bbls | 12,455 | 5,996 | ||||
| Proved Reserves ‐ Mbbls | 74.9 | 23.8 | ||||
| Probable Reserves ‐ Mbbls | 90.0 | 50.2 | ||||
| Total Proved and Probable ‐ Mbbls | 164.9 | 74.0 | ||||
| Revenue | $ | 743,976 | $ | 353,593 | ||
| Revenue ‐ bbl | $ | 59.73 | $ | 58.97 | ||
| Cash flow used in operations | $ | (390,747 | ) | $ | (773,863 | ) |
| Per share ‐ basic and diluted | $ | ‐0.01 | $ | ‐0.01 | ||
| Impairment (Recovery) | $ | (655,110 | ) | $ | 640,351 | |
| Net Loss | $ | (64,183 | ) | $ | (773,863 | ) |
| Per share ‐ basic and diluted | $ | ‐0.00 | $ | ‐0.01 | ||
| Assets | $ | 4,723,592 | $ | 3,984,231 | ||
| Liabilities | $ | 1,829,139 | $ | 2,000,119 | ||
| Weighted average shares outstanding | 72,662,453 | 60,485,588 | ||||
In 2016 Marksmen experienced significant improvements in its financial and production performance over 2015. Oil production and revenue more than doubled, proved reserves more than tripled and probable reserves almost doubled. Negative cash flow from operations was cut in half, and impairment of assets was fully reversed due to improved reserves.
Operational Update and Outlook
In June of 2016 the Company drilled the Davis-Holbrook #1 well and it was put on production in mid-July. It has contributed significantly to the revenue of the Company in the second half of 2016. The total production from this well to December 31, 2016 is 13,223 barrels (9,917 barrels net to Marksmen). As of the end of March 2017 the well has produced an additional 6,113 gross barrels (4,584 net barrels) for a total to date for the well of 19,335 barrels (14,507 barrels net).
The well at Delong Davis #1, drilled in 2015 was deepened in February 2017 at a capital cost of approximately $30,000 USD. The well has improved its production from 1 to 2 gross barrels of oil per day to over 30 gross barrels per day (net 13.5 barrels of oil per day to Marksmen).
Marksmen is currently evaluating offset drilling opportunities on its current land position as well as other land, 3D seismic and drilling opportunities in Ohio.
Marksmen also announces the granting of stock options to purchase 575,000 common shares of the Company to directors, executive officers and consultants subject to regulatory and TSX Venture Exchange approval. The options were issued with an exercise price of $0.10 per share, vest as to one-third (1/3) immediately and one-third (1/3) on each of the first and second anniversaries of the grant date and have a five year term from the date of issuance.
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 news release.
This news release may contain certain forward-looking information and statements including drilling and other opportunities available to Marksmen. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Marksmen’s disclosure documents on the SEDAR website at www.sedar.com. Marksmen does not undertake to update any forward-looking information except in accordance with applicable securities laws.
