Calgary, Alberta--(Newsfile Corp. - April 23, 2025) - Tuktu Resources Ltd. (TSXV: TUK) ("Tuktu" or the "Company") is pleased to announce its financial and operating results for the three months and year ended December 31, 2024 and an operations update on its recently drilled and completed well.
The audited financial statements, related management's discussion and analysis ("MD&A") and annual information form for the year ended December 31, 2024 ("AIF") are available on SEDAR+ at www.sedarplus.ca. Select financial and operating information for the three months and year ended December 31, 2024 appear below and should be read in conjunction with the related financial statements and MD&A.
Financial and Operating Highlights
($, except share #'s)
Three months ended,
Year ended,
December 31,
December 31,
2024
2023
change
2024
2023
change
Financial Highlights
Petroleum and natural gas sales
2,438,647
536,548
355%
6,104,874
1,590,787
284%
Cash flow used in operating activities
(361,910
)
(84,444
)
329%
(1,750,212
)
(1,015,544
)
72%
Per share - basic & diluted
(0.00
)
(0.00
)
0%
(0.01
)
(0.01
)
0%
Adjusted funds flow from (used in) operations (1)
281,500
(59,477
)
573%
(1,021,772
)
(978,089
)
4%
Per share - basic & diluted
0.00
(0.00
)
0%
(0.01
)
(0.01
)
0%
Net income (loss)
396,709
925,119
(57)%
(2,659,562
)
1,193,531
(323)%
Per share - basic & diluted
0.00
0.01
(100)%
(0.02
)
0.01
(300)%
Total capital expenditures (1)
343,640
4,415
7,683%
2,204,568
2,072,988
6%
Adjusted working capital (1)
8,831,092
887,469
895%
8,831,092
887,469
895%
Number of common shares outstanding
Common shares outstanding, end of period
259,813,919
114,944,858
126%
259,813,919
114,944,858
126%
Weighted average basic & diluted
259,181,423
84,395,181
207%
145,162,939
81,301,773
79%
Operating Highlights
Average production volumes
Crude oil (bbls/d)
271
2
13,450%
156
1
15,500%
Natural gas (mcf/d)
2,236
2,381
(6)%
2,102
1,686
25%
Total (boe/d)
644
399
61%
506
282
80%
% natural gas
58%
99%
(42)%
69%
99%
(30)%
Average realized prices
Crude oil ($/bbl)
85.14
75.34
13%
85.85
85.37
1%
Natural gas ($/mcf)
1.54
2.39
(36)%
1.56
2.51
(38)%
Petroleum and natural gas sales ($/boe)
41.18
14.62
182%
32.94
15.43
113%
Operating netback ($/boe)
Petroleum and natural gas sales
41.18
14.62
182%
32.94
15.43
113%
Royalties
(9.40
)
(1.32
)
612%
(7.92
)
(2.34
)
238%
Operating expenses
(16.93
)
(5.61
)
202%
(15.10
)
(7.38
)
105%
Transportation expenses
(1.83
)
(1.25
)
46%
(1.23
)
(1.23
)
0%
Operating netback (1)
13.02
6.44
102%
8.69
4.48
94%
(1) See Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures
2024 Highlights
Production volumes averaged 506 boe/d (31% crude oil, 69% natural gas), an increase of 80 percent from 2023. The acquisition of southern Alberta oil assets, which closed on May 27, 2024, contributed 73 bbl/d for the year. The light oil discovery well in the southern Alberta Deep Basin, which came on production on August 8, 2024, contributed 81 bbl/d for the year. The Company's low decline natural gas assets contributed 2,102 mcf/d (350 boe/d for the year).
2024 capital expenditures were $2.2 million, including $1.3 million related to the acquisition of the southern Alberta oil assets and $414 thousand for the recompletion on the light oil discovery well in the southern Alberta Deep Basin.
Operating netbacks increased to $8.69/boe from $4.48/boe in 2023. Tuktu's realized sales price increased to $32.94/boe, due to the oil production growth and realized crude oil price of $85.85/bbl in the year.
Adjusted working capital on December 31, 2024 was $8.8 million after successfully closing the marketed equity offering on November 21, 2024 which positioned Tuktu to commence its $6.85 million initial 2025 capital program approved by the board of directors on January 27, 2025.
Q4 2024 Highlights
Production volumes averaged 644 boe/d (42% crude oil, 58% natural gas), an increase of 61 percent from the same period of 2023. The light oil discovery well in the southern Alberta Deep Basin contributed 148 bbl/d for the fourth quarter while only being on production for 39 days as the Company was required to shut in the well from October 9, 2024 to December 1, 2024 to comply with the Alberta Energy Regulator's mandated Good Production Practices (GPP). The Company's natural gas assets produced 2,236 mcf/d (373 boe/) in the fourth quarter down 6% from the comparable period in 2023 due to natural declines and production being shut-in for a few days due to low natural gas prices.
Adjusted funds flow from operations was $282 thousand, an increase of 573% from the fourth quarter of 2023.
Q4 2024 capital expenditures were $344 thousand; approximately $90 thousand of these expenditures was for the installation of a plunger lift on the Company's Pincher Creek oil well and the remainder was for seismic acquisitions, pre-drill costs and capitalized G&A and stock-based compensation.
Operating netbacks increased to $13.02/boe from $6.44/boe in the comparable period of 2023. Tuktu's realized sales price increased to $41.18/boe, due to the oil production growth and realized crude oil price of $85.14/bbl in the fourth quarter of 2024.
Operations Update
The Company's new horizontal well in the southern Alberta Deep Basin was brought on production on April 16, 2025, after the installation of an electric submersible pump. The Company expects to have an update when production rates have stabilized for an adequate period of time.
About Tuktu Resources Ltd.
Tuktu is a publicly traded junior oil and gas development company headquartered in Calgary, Alberta with producing oil and gas properties in southern Alberta. For additional information about Tuktu please contact:
Attention: Tim de Freitas, President and Chief Executive Officer (phone 403-478-0141); or Mark Smith, CFO and VP Finance (phone 403-613-9661)
ADVISORIES
Forward-Looking and Cautionary Statements
Certain information contained in the press release may constitute forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities legislation that involve known and unknown risks, assumptions, uncertainties and other factors. Forward-looking statements may be identified by words like "anticipates", "estimates", "expects", "indicates", "intends", "may", "could" "should", "would", "plans", "target", "scheduled", "projects", "outlook", "proposed", "potential", "will", "seek" and similar expressions (including variations and negatives thereof). Forward-looking statements in this press release include statements regarding, among other things: Tuktu's business, strategy, objectives, strengths and focus; the Company's 2025 drilling program; the performance and other characteristics of the Company's properties; and expected results from its assets. Such statements reflect the current views of management of the Company with respect to future events and are subject to certain risks, uncertainties and assumptions that could cause results to differ materially from those expressed in the forward-looking statements.
With respect to forward-looking statements contained in this press release, the Company has made assumptions regarding, among other things: the timing and success of future drilling; future commodity prices, price volatility, price differentials and the actual prices received for Tuktu's products; future exchange and interest rates; supply of and demand for commodities; inflation; the availability of capital on satisfactory terms; the availability and price of labour and materials; the impact of increasing competition; conditions in general economic and financial markets; access to capital; the receipt and timing of regulatory, exchange and other required approvals; the ability of the Company to implement its business strategies and complete future acquisitions; the Company's long term business strategy; and effects of regulation by governmental agencies.
Factors that could cause actual results to vary from forward-looking statements or may affect the operations, performance, development and results of the Company's businesses include, among other things: risks inherent in the Company's future operations; the Company's ability to generate sufficient cash flow from operations to meet its future obligations; increases in maintenance, operating or financing costs; the realization of the anticipated benefits of future acquisitions, if any; the availability and price of labour, equipment and materials; competitive factors, including competition from third parties in the areas in which the Company intends to operate, pricing pressures and supply and demand in the oil and gas industry; stock market and financial system volatility; fluctuations in currency and interest rates; inflation; risks of war, hostilities, civil insurrection, pandemics, political and economic instability overseas and its effect on commodity pricing and the oil and gas industry (including ongoing military actions between Russia and Ukraine and the crisis in Israel and Gaza); determinations by the Organization of Petroleum Exporting Countries and other countries (collectively referred to as OPEC+) regarding production levels; the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for the Company's products and/or otherwise adversely affects the Company; risks with respect to unplanned pipeline outages; severe weather conditions and risks related to climate change, such as fire, drought and flooding and extreme hot or cold temperatures, including in respect of safety, asset integrity and shutting-in production; terrorist threats; risks associated with technology; changes in laws and regulations, including environmental, regulatory and taxation laws, and the interpretation of such changes to the management team's future business; availability of adequate levels of insurance; difficulty in obtaining necessary regulatory approvals and the maintenance of such approvals; general economic and business conditions and markets; and such other similar risks and uncertainties. The impact of any one assumption, risk, uncertainty or other factor on a forward-looking statement cannot be determined with certainty, as these are interdependent and the Company's future course of action depends on the assessment of all information available at the relevant time. For additional risk factors relating to Tuktu, please refer to the Company's AIF for the year ended December 31, 2024 and its most recent MD&A, which are available on the Company's SEDAR+ profile at www.sedarplus.ca.
The forward-looking statements contained in this press release are made as of the date hereof and the parties do not undertake any obligation to update 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.
Disclosure of Oil and Gas Information
Unit Cost Calculation: The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6 Mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions in this press release are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil. This conversion conforms with National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
Product types: References to "oil" or "crude oil" in this press release include light crude oil, medium crude oil, heavy oil and tight oil product types combined as defined in NI 51-101. References to "gas" or "natural gas" relate to conventional natural gas as defined in NI 51-101.
Non-IFRS Measures, Non-IFRS Financial Ratios and Capital Management Measures
This press release includes various specified financial measures, including non-IFRS financial measures, non-IFRS financial ratios, capital management measures and capital management ratios as further described herein. These measures do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and, therefore, may not be comparable with the calculation of similar measures by other companies.
Total capital expenditures includes capital expenditures on exploration and evaluation assets, property, plant and equipment and property acquisition and proceeds on property disposition. Management uses the term "capital expenditures" as a measure of capital investment in exploration and production activity, as well as property acquisitions and dispositions. See the MD&A for a detailed calculation and reconciliation of capital expenditures to cash flow used in investing activities, which is the most directly comparable measure presented in accordance with IFRS.
Operating Netback is a non-IFRS financial measure calculated as petroleum and natural gas sales, less royalties, operating costs and transportation expenses. This metric can also be calculated on a per boe basis, which results in a non-IFRS financial ratio. The Company uses this measure to evaluate its operational performance. See the MD&A for a detailed calculation and reconciliation of operating netback and operating netback per boe to the most directly comparable measures presented in accordance with IFRS.
Adjusted Funds Flow from (used in) Operations is a capital management measure calculated by taking cash flow from (used in) operating activities and adding back changes in non-cash working capital, decommissioning costs incurred and transaction costs. Management considers adjusted funds flow from (used in) operations to be a key measure to assess the performance of the Company's oil and gas properties and the Company's ability to fund future capital investment. Adjusted funds flow from (used in) operations is an indicator of operating performance as it varies in response to production levels and management of costs. Changes in non-cash working capital, decommissioning costs incurred and transaction costs vary from period to period and management believes that excluding the impact of these provides a useful measure of the Company's ability to generate the funds necessary to manage the capital needs of the Company. See the MD&A for a detailed calculation and reconciliation of adjusted funds flow from (used in) operations to cash flow from (used in) operating activities, which is the most directly comparable measure presented in accordance with IFRS.
Adjusted working capital is a capital management measure calculated by taking working capital (current assets less current liabilities) and adding back the warrant liability and decommissioning obligations. Management believes that adjusted working capital assists management and investors in assessing Tuktu's short-term liquidity. See the MD&A for a detailed calculation and reconciliation of adjusted working capital to working capital, which is the most directly comparable measure presented in accordance with IFRS.
Abbreviations
bbl
barrels of oil
bbl/d
barrels of oil per day
boe
barrels of oil equivalency
boe/d
barrels of oil equivalency per day
mcf
one thousand cubic feet
mcf/d
one thousand cubic feet per day
TSXV
TSX Venture Exchange
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