Relentless Announces Filing of First Quarter 2018 Financial and Operating Results
CALGARY, Alberta, May 30, 2018 (GLOBE NEWSWIRE) -- Relentless Resources Ltd. (TSX-V:RRL) (“Relentless”) announces that it has issued and filed on SEDAR its March 31, 2018 condensed interim financial statements and related management’s discussion and analysis. Additional information about Relentless is available on SEDAR at www.sedar.com or on the Company's website at www.relentless-resources.com.
In the first quarter of 2018, Relentless announced a recapitalization financing and the addition of Stanley J. Swiatek to its Board of Directors. Gross proceeds of $8.25 million were realized and subsequent to the close of the financing, a new management team was appointed. Relentless appointed Stanley J. Swiatek as Chief Executive Officer, Craig Kolochuk as President, Jeff Swainson as Chief Financial Officer and Tara Johnson-Ouellette as Vice President, Compliance and Regulatory Affairs.
Mr. Swiatek is the former Chief Executive Officer and a current member of the board of directors of Sundial Growers. Mr. Swiatek was an early Applicant (78th) under Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR). Mr. Swiatek is a founder of Sundial Growers and was instrumental in building it into the second largest Licensed Producer in Alberta, with operations also in British Columbia. Mr. Swiatek is a stakeholder that worked with the Alberta Provincial Government Cannabis Roundtable, as well as the Health Canada Cannabis Roundtable and he successfully applied for and received three cultivation licenses. He has over 40 years’ experience in construction, development and commercial greenhouse agricultural operations. In December 2017, Mr. Swiatek joined the board of directors of Grunewahl Organics, a Pre-licensed Health Canada Applicant. In March 2018, Mr. Swaitek joined the board of directors of Relentless.
Mr. Kolochuk has 20 years of experience in the Canadian oil and gas industry, holding roles in land, business development, acquisitions and divestitures, and management. He was a co-founder of Cardinal Energy Ltd. and played a significant role in acquiring over $800 million of high quality oil and gas assets, ultimately building a publicly traded, dividend paying entity with a market capitalization of nearly $1 billion at its peak.
Mr. Swainson has 10 years of public company accounting, finance, business development and capital markets experience. He began his career with an international accounting firm and, after receiving his Chartered Accountant designation, transitioned into the oil and gas industry. Mr. Swainson was most recently the Chief Financial Officer and Corporate Secretary of a high growth Montney focused exploration and production company, which grew to a market capitalization of approximately $400 million at its peak.
Mrs. Johnson-Ouellette has 20 years of experience in regulatory and compliance, project execution, and business process management. She has spent most of her career in the oil and gas industry, predominantly with start-up companies. She transitioned into the cannabis space in late 2015, working as Manager of Operations for Sundial Growers.
The Company is well positioned to build and maintain a diversified portfolio of cannabis sector businesses. The Company’s growth strategy will initially include the production, distribution and sale of cannabis in all acceptable forms, through the acquisition of, or an investment in, a licensed producer or a late stage applicant to become a licensed producer under ACMPR. The Company will also work towards retail distribution, the investment and development of ancillary products and services for the fast-growing cannabis market, and the acquisition of complementary production and manufacturing facilities.
Oil and Gas
In Q1 of 2018, total production decreased 41% to 161 boe/d when compared to 272 boe/d for the same period a year ago. Oil and NGLs production averaged 107 bbl/d in Q1 2018 as compared to 159 bb/d in Q1 2017. Natural gas production averaged 325 mcf/d in the first quarter of 2018 compared to 675 mcf/d in the same period a year ago.
Due to continued low natural gas prices, the Company shut in about 120 boe/day of production during the quarter.
Due to a 5% increase in average commodity prices and a 41% decrease in production volumes, production revenues decreased by 38% to $578,539 in the first quarter of 2018 compared to $925,887 in the same period in 2017. Oil and NGL revenues decreased by 30% and natural gas revenues decreased by 65%.
For the three months ended March 31, 2018, production, operating and transportation expenses decreased 45% to $188,067 as compared to $344,679 for the same period a year ago due to 41% decrease in production volumes. On a per boe basis, production and operating expenses decreased by 8% to $12.96 per boe, down from $14.10 per boe for the same period in 2017.
At March 31, 2018 net surplus was $5,429,296 compared to net debt of $2,502,798 at December 31, 2017. The improved net surplus achieved during Q1 of 2018 was mainly the result of the March, 2018 private placement discussed above. Relentless’ line of credit remains undrawn and has a limit of $3 million.
Relentless is well positioned with a strong balance sheet, a strong team and an improving commodity price environment.
About Relentless Resources Ltd.
Relentless is a Calgary based emerging oil and natural gas company engaged in the development, acquisition and production of natural gas and crude oil reserves in Alberta. Relentless’ common shares trade on the TSXV under the symbol RRL.