August 29, 2018 - 6:49 PM EDT
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Tanager Energy Announces Second Quarter 2018 Results

CALGARY, Alberta , Aug. 29, 2018 (GLOBE NEWSWIRE) -- Tanager Energy Inc. (“Tanager” or the “Corporation”) (TSX-V: TAN, OTCQB: TANEF) announces its financial and operating results for the three and six months ended June 30, 2018.  This press release contains forward looking statements.  Please refer to our cautionary language on forward-looking statements and other matters set forth at the end of this press release and the end of the Management’s Discussion and Analysis (the “MD&A”) for the three and six months ended June 30, 2018 and 2017.  Tanager’s unaudited interim condensed consolidated financial statements and notes, and the MD&A for the three and six months ended June 30, 2018 and 2017 are filed on SEDAR at www.sedar.com

Second Quarter 2018 Highlights

  Three months ended
 June 30,
Six months ended
 June 30,
   2018  2017  2018  2017 
Selected Financial Results (Unaudited)    
(CDN$ except share and per share amounts)    
Revenue 249,787  44,089  561,882  80,970 
Royalties 75,358  10,281  143,358  14,475 
Production taxes 16,071  -  40,081  - 
Operating expenses 78,956  34,297  151,358  74,231 
General and administrative expenses 342,450  389,525  651,907  689,040 
Finance expenses   87,087    358,020  491,705  769,582 
Gain on unrealized embedded derivatives -    210,841    818,338  369,107 
Foreign exchange loss (gain) 3,757  (150,186)   179,012  (192,376)
Net loss (514,146) (481,867) (626,178) (1,031,329)
  Per share – basic and fully diluted$(0.00)$(0.01)$(0.00)$(0.01)
Comprehensive loss (380,666) (761,377) (307,436) (1,404,665)
Cash flow from operating activities (298,122)   (403,667) (476,249) (1,309,812)
  Per share – basic and fully diluted$(0.00)$(0.00)$(0.00)$(0.01)
Total capital expenditures (excluding acquisitions) 48,101  1,232,866  188,818  2,733,041 
Total assets 16,522,573  16,393,940  16,522,573  16,393,940 
Total liabilities 10,124,304  14,393,314  10,124,304  14,393,314 
Shareholders’ equity (deficiency) 6,398,269  1,970,626  6,398,269  1,970,626 
Common shares    
Common shares outstanding 235,286,816  107,716,388  235,286,816  107,716,388 
Weighted average number of    
  common shares outstanding 235,286,816  107,716,388  183,417,361  107,716,388 
TSX Venture Share Trading Statistics    
(CDN$/share except volumes based on intra-day trading)    
High 0.135  0.200  0.135  0.200 
Low 0.045  0.135  0.045  0.085 
Close 0.045  0.160  0.045  0.160 
Average daily volume 29,746  72,166  26,312  110,625 

Financial highlights


 Three months ended June 30
Operations by operating segment20182017
 Canada  U.S.TotalCanadaU.S.Total
Crude oil  38,080  -  38,080  36,530  -  36,530
Natural gas liquids  2,870  -  2,870  3,657  -  3,657
Natural gas  994  207,507 208,501  3,839  -  3,839
Petroleum and natural gas sales  41,944  207,507 249,451  44,026  -  44,026
Other income  336  -  336  63  -  63
Total revenue  42,280  207,507 249,787  44,089  -  44,089
Royalties  8,065  67,293  75,358  10,821  -  10,821
Production taxes  -  16,071  16,071  -  -  -
Operating expenses  35,647  43,309  78,956  34,297  -  34,297
       
Sales volumes      
Light oil and natural gas liquids (bbls)  543  -  543  720-  720
  Natural gas (mcf)  69460,15360,847  1,242-  1,242
Total sales volumes (boe)  65910,02510,684  927-  927


 Six months ended June 30
Operations by operating segment20182017
 Canada  U.S.TotalCanadaU.S.Total
Crude oil  78,005  -  78,005  64,600  -  64,600
Natural gas liquids  6,419  -  6,419  6,802  -  6,802
Natural gas  3,122  473,630 476,752  6,722  -  6,722
Petroleum and natural gas sales  87,546  473,630 561,176  78,124  -  78,124
Other income  706  -  706  2,846  -  2,846
Total revenue  88,252  473,630 561,882  80,970  -  80,970
Royalties  14,778  128,580 143,308  14,475  -  14,475
Production taxes  -  40,081  40,081  -  -  -
Operating expenses  78,195  73,164 151,359  74,231  -  74,231
       
Sales volumes      
Light oil and natural gas liquids (bbls)  1,222  -  1,222  1,242- 1,242
  Natural gas (mcf)  1,757  130,922  132,679  2,165-  2,165
Total sales volumes (boe)  1,51521,82023,335  1,603- 1,603

Upcoming Changes in Issuer’s GAAP / Foreign Private Issuer Status

Under the US Securities Exchange Act of 1934, a foreign private issuer (“FPI”) is an entity incorporated or organized under the laws of a jurisdiction outside of the US, unless:

  • more than 50% of its outstanding voting securities are directly or indirectly owned of record by US residents; and
  • any of the following applies: (i) the majority of its executive officers or directors are US citizens or residents; (ii) more than 50% of its assets are located in the United States; or (iii) its business is administered principally in the United States.

A company’s ongoing FPI status is tested annually at the end of the most recently completed second fiscal quarter.  If an issuer fails to qualify as a FPI at the end of its second fiscal quarter, it remains eligible to use the forms and rules applicable to FPIs until the end of that financial year.

As of June 30, 2018, Tanager has determined that it no longer qualifies as a FPI.  Therefore, Tanager must transition to U.S. domestic company reporting status and become subject to SEC reporting requirements applicable to a U.S. domestic company, beginning in 2019.  These reporting requirements will require that the Company’s financial statements and selected financial data be recast into US GAAP and US dollar reporting currency for all periods presented, which will include the 2018 annual filings.  The extent of the impact of adoption of these standards has not yet been determined.  In addition, Tanager will be required to file annual, quarterly and current report filing with the SEC, comply with US insider filing requirements under the Exchange Act, and follow Regulation FD for “fair disclosure” of materially non-public information through public disclosure that is broadly available to all members of the public at the same time. 

Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Tanager Energy Inc. is an oil and natural gas and mineral exploration company headquartered in Calgary, Alberta, with executive offices in Houston, Texas. The Corporation’s common shares are listed on the TSX Venture Exchange under the trading symbol “TAN” and on the OTCQB as “TANEF”.  

For further information please contact:

Tom M. Crain, Jr. 
Chairman of the Board and Chief Executive Officer
Phone: 713-922-1219
Email: [email protected]

Forward Looking Statements

This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation.  All statements, other than statements of historical fact, included herein are forward-looking information.  Generally, forward-looking information may be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “proposed”, “is expected”, “budgets”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved.  In particular, this news release contains forward-looking information regarding: the business of Tanager.  There can be no assurance that such forward-looking information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such forward-looking information.  This forward-looking information reflects Tanager’s current beliefs and is based on information currently available to Tanager and on assumptions Tanager believes are reasonable.  These assumptions include, but are not limited to: market acceptance and approvals, and future costs and expenses being based on historical costs and expenses. 

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Tanager to be materially different from those expressed or implied by such forward-looking information.  Such risks and other factors may include, but are not limited to: volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas reserves; geological, technical, drilling and processing problems; general business, economic, competitive, political and social uncertainties; general capital market conditions and market prices for securities; delay or failure to receive board or regulatory approvals; the actual results of future operations; competition; changes in legislation, including environmental legislation, affecting Tanager; the timing and availability of external financing on acceptable terms; and lack of qualified, skilled labour or loss of key individuals.  A description of additional assumptions used to develop such forward-looking information and a description of additional risk factors that may cause actual results to differ materially from forward-looking information can be found in Tanager’s disclosure documents on the SEDAR website at www.sedar.com.  Although Tanager has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.  Readers are cautioned that the foregoing list of factors is not exhaustive.  Readers are further cautioned not to place undue reliance on forward-looking information as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur.  Forward-looking information contained in this news release is expressly qualified by this cautionary statement.  The forward-looking information contained in this news release represents the expectations of Tanager as of the date of this news release and, accordingly, is subject to change after such date.  However, Tanager expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.

 

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Source: GlobeNewswire (August 29, 2018 - 6:49 PM EDT)

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