Greenfields Petroleum Corporation Announces Financial Results and Operating Highlights for the Quarter and Year-Ended December 31, 2017

HOUSTON, April 13, 2018 (GLOBE NEWSWIRE) — Greenfields Petroleum Corporation (the “Company” or “Greenfields”) (TSX VENTURE:GNF), an independent exploration and production company with producing assets in Azerbaijan, announces its financial results and operating highlights for the fourth quarter and year-ended December 31, 2017.  Selected financial and operational information is set out below and should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2017, with the notes thereto and related management’s discussion and analysis (“MD&A”), which can be found on Greenfields’ website at www.Greenfields-Petroleum and on SEDAR at www.sedar.  Bahar Energy Limited (“BEL”) and Bahar Energy Operating Company Limited (“BEOC”) are wholly owned subsidiaries of the Company.  Except as otherwise indicated, all dollar amounts referenced herein are expressed in United States dollars.

Fourth Quarter and 2017 Fiscal Year Financial Results and Recent Highlights

Operating Highlights and Plans 

Statement from the Chief Executive Officer (“CEO”)

John W. Harkins, CEO, stated: “the Company has made good progress throughout 2017 with further workovers completed, revenues increasing in-line with strengthening oil prices, and operating costs continuing well within budget.  The fourth quarter was a particular highlight for Greenfields as we restructured our senior debt with Vitol Energy, our senior lender and major shareholder, to extend its maturity to January 2020.  The debt restructuring and continued support from our major shareholders provides us with additional resources to continue the redevelopment of highly prospective, near-term producing wells, initiate redrilling of gas wells in the NKP reservoir of the Bahar Gas Field and start implementing secondary recovery projects in the Gum Deniz with water injection by year end.”

Selected Financial Information

The revenues and operating results described below have been adjusted to reflect the Company’s share of BEL.  Upon the closing of the acquisition of Baghlan Group Limited’s 66.67% interest in BEL on August 9, 2016 (the “Baghlan Acquisition”), BEL became a wholly-owned subsidiary of the Company and the Company began consolidating 100% of the revenues and operating results from BEL on a going forward basis.  For comparative purposes, revenues, entitlement sales volumes and operating results presented below have been adjusted to include the Company’s 33.33% share of petroleum, natural gas and transportation revenues from BEL, previously included in the “Income or Loss on Investment in Joint Venture” under the equity method of accounting through August 8, 2016, combined with the Company’s 100% share of BEL consolidated from the Baghlan Acquisition’s date. The combined financial and operating results are presented only for comparative purposes and do not reflect proper accounting practices under IFRS.

Greenfields Petroleum Corporation

(US$000’s, except as noted) Year ended

December 31,   2017  2016 Financial       Revenues (1)  29,446  21,592 Net income (loss) (2)  (9,068) 99,193 Per share, basic and diluted ($0.05)$1.52     Capital items       Cash and cash equivalents  741  1,361 Total assets  200,597  199,341 Working capital  (5,873) (1,444)Long term debt   46,946  46,163 Shareholders’ equity  133,900  139,486 (1) For comparative purposes, during 2016, revenues represent the Company’s 33.33% share of BEL’s entitlement production until the Acquisition on August 9, 2016; and 100% of BEL’s entitlement production for periods subsequent to the Acquisition.(2) For the 2016 fiscal year, net income includes $113.6 million of one-time net realized gains attributable to the Acquisition and Restructuring Transactions.        

Bahar Energy Limited

  Company’s share(US$000’s, except as noted)Year ended December 31,  2017  2016  2017  2016 Financial         Revenues 29,446  33,507  29,446  20,783      Operating         Average Entitlement Sales Volumes (1)    Crude Oil (bbl/d) 626  764  626  443 Natural gas (mcf/d) 16,628  15,691  16,628  9,833 Barrel oil equivalent (boe/d) 3,397  3,379  3,397  2,082 % of gross production

volumes (2) 86% 86% 86% 56%     Average Oil Price    Oil price ($/bbl)$48.79 $38.44 $48.79 $38.44 Net realization price ($/bbl) (3)$47.81 $37.52 $47.81 $37.52 Brent oil price ($/bbl)$54.12 $43.67 $54.12 $43.67      Natural gas price ($/mcf)$3.02 $3.96 $3.02 $3.96      (1) Daily volumes represent the Company’s share of entitlement production marketed by SOCAR after in-kind production volumes delivered to SOCAR as compensatory petroleum and the government’s share of profit petroleum.  Compensatory petroleum represents 10% of gross production from the ERDPSA and continues to be delivered to SOCAR, at no charge, until specific cumulative petroleum and natural gas production milestones are attained.  Daily production entitlement volumes prior to the Acquisition of BEL on August 9, 2016, include the Company’s 33.33% share of BEL’s entitlement production and 100% of BEL’s entitlement production for periods subsequent to the Acquisition. (2) Represents the percentage of BEL’s entitlement production volume relative to gross production volumes from the ERDPSA.(3) Net Realization Price results from deducting associated transportation and marketing expenses from crude oil sales price.     

About Greenfields Petroleum Corporation

Greenfields is a junior oil and natural gas company focused on the development and production of proven oil and gas reserves principally in the Republic of Azerbaijan.  More information about the Company may be obtained on the Greenfields’ website at .

Forward-Looking Statements

This press release contains forward-looking statements.  More particularly, this press release includes forward-looking statements concerning, but not limited to: operational and development plans of the Company and of BEL; the completion of refurbishments and the anticipated timing thereof; the completion of workovers and anticipated timing thereof; the completion of recompletions and reactivations and the anticipated timing thereof; the Bahar Gas Field and Gum Deniz field studies and plan of development and the expectations in relation thereto; production; the completion of waterflood injectivity tests; the timing of secondary recovery projects; and programs initiated by BEOC.  In addition, the use of any of the words “anticipated”, “scheduled”, “will”, “prior to”, “estimate”, “believe”, “should”, “future”, “continue”, “expect”, “plan” and similar expressions are intended to identify forward-looking statements.  The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including, but not limited to, expectations and assumptions concerning the success of optimization and efficiency improvement projects, the availability of capital, current legislation and regulatory regimes, receipt of required regulatory approval, the success of future drilling and development activities, the performance of existing wells, the performance of new wells, general economic conditions, availability of required equipment and services, weather conditions and prevailing commodity prices. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties most of which are beyond the control of Greenfields.  Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information.  These risks include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; and health, safety, political and environmental risks), commodity price and exchange rate fluctuations, changes in legislation affecting the oil and gas industry and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Additional risk factors can be found under the heading “Risk Factors” in Greenfields’ Management Discussion and Analysis which may be viewed on www.sedar.

The forward-looking statements contained in this press release are made as of the date hereof and Greenfields 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.  The Company’s forward-looking information is expressly qualified in its entirety by this cautionary statement.


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Notes to Oil and Gas Disclosures

Barrels of oil equivalent or “boe” may be misleading, particularly if used in isolation.  The volumes disclosed in this press release use a 6 mcf: 1 boe, as such is typically used in oil and gas reporting and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  The Company uses a 6 mcf: 1 boe ratio to calculate its share of entitlement sales from the Bahar project for its financial reporting and reserves disclosure.

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.

For more information, please :

Greenfields Petroleum Corporation
  John W Harkins (CEO)+1 Jose Perez-Bello (CFO)+1   Yellow Jersey (Media Relations)
  Charles Goodwin+44 7747 788 221Harriet Jackson+44 7544 275 882


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