Viking Energy Royalty Trust Announces Nine Month and Third Quarter Results.Business Editors CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta--(BUSINESS WIRE)--Nov. 26, 2001 Viking Viking Either of two unmanned U.S. spacecraft launched by NASA in 1975. After nearly yearlong journeys, Vikings 1 and 2 entered orbits around Mars and released landers that touched down on the planet and relayed measurements of properties of its atmosphere and soil, as well Energy Royalty Trust royalty trust An ownership interest in certain assets, generally crude oil or gas production and real estate. Unlike the usual corporate organization, a trust arrangement permits income and tax benefits to flow through to the individual owners. (the "Trust")(VKR VKR Vertical Knee Raise VKR Vojenska Kontrarozviedka (military counterintelligence in former Czechoslovakia) .UN) announces its results for the third quarter of 2001 with comparatives. The highlights are as follows: FINANCIAL AND OPERATIONAL HIGHLIGHTS For all BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip figures, gas has been converted to an oil equivalent at a ratio of 6 to 1 unless otherwise stated
Nine months ended September 30
($000s, except per unit %
and per BOE(1) amounts) 2001 2000 change
FINANCIAL
----------------------------------------------------------------
Revenue $ 107,876 $ 66,824 61
Funds from Operations 54,749 35,969 52
Net Income 29,965 21,768 38
Cash Available for Distribution 56,190 35,619 58
Cash Available for Distribution
per Unit 1.58 1.49 6
Distributions 57,296 25,737 123
Distributions per Unit 1.59 1.08 47
Investor Netback per BOE 17.45 16.96 3
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OPERATIONAL
----------------------------------------------------------------
Daily Production
Oil and Liquids (bbls/d) 7,901 5,768 37
Natural Gas (Mcf/d) 20,769 11,375 83
----------------------------------------------------------------
Total (BOE/d at 6:1) 11,363 7,664 48
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Average Prices
Crude Oil ($/bbl, before hedging) $ 35.99 $ 40.58 (11)
Crude Oil ($/bbl, after hedging) 36.08 34.44 5
Liquids ($/bbl) 31.29 29.99 4
Natural Gas ($/Mcf) 5.30 4.05 31
----------------------------------------------------------------
Total ($/BOE) $ 34.78 $ 31.82 9
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(1) BOE: barrels of oil equivalent - 6 Mcf of natural gas equals
one barrel of oil
(table continued)
Three months ended September 30
($000s, except per unit and %
per BOE(1) amounts) 2001 2000 change
FINANCIAL
----------------------------------------------------------------
Revenue $ 34,676 $ 24,853 40
Funds from Operations 15,953 13,659 17
Net Income 6,134 8,843 (31)
Cash Available for Distribution 15,709 13,518 16
Cash Available for Distribution
per Unit 0.37 0.55 (33)
Distributions 19,681 9,719 103
Distributions per Unit 0.45 0.40 13
Investor Netback per BOE 12.84 19.21 (33)
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OPERATIONAL
----------------------------------------------------------------
Daily Production
Oil and Liquids (bbls/d) 7,859 5,665 39
Natural Gas (Mcf/d) 32,682 11,895 175
----------------------------------------------------------------
Total (BOE/d at 6:1) 13,306 7,648 74
----------------------------------------------------------------
Average Prices
Crude Oil ($/bbl, before hedging) $ 34.64 $ 43.89 (21)
Crude Oil ($/bbl, after hedging) 35.15 37.35 (6)
Liquids ($/bbl) 27.61 31.85 (13)
Natural Gas ($/Mcf) 3.14 5.02 (37)
----------------------------------------------------------------
Total ($/BOE) $ 28.33 $ 35.33 (20)
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(1) BOE: barrels of oil equivalent - 6 Mcf of natural gas equals
one barrel of oil
Viking Energy Royalty Trust reports record quarterly production levels, and continued solid results for the nine months ended September September: see month. 30, 2001. For the quarter, daily production averaged 13,306 barrels of oil equivalent (BOE), 74% higher than in the same period last year and an increase of 30% over the levels achieved in the second quarter this year. These production levels reflect the impact of two significant transactions - Viking's purchase of BXL BXL Bruxelles (French: Brussels, Belgium) Energy Ltd. and its subsequent acquisition of related properties in BXL's core area of Tweedie Tweedie is a Scottish clan name. The tweedie clan does not have a chief therefore it is considered an Armigerous clan. The Clan Tweedie is however a sept of the Clan Fraser. (Wappau). The BXL acquisition, which closed June June: see month. 22, 2001, added approximately 2,500 BOE per day of production. The Wappau acquisition, which closed in the third quarter and was effective July July: see month. 1st, added approximately 5.0 million cubic feet (MMcf) per day of gas production at a total cost of $23.5 million. It also provided the Trust with a 100% ownership in production facilities with excess capacity, allowing for production growth in the area. Additional development throughout the entire Tweedie area is planned over the next six months, where the Trust has entered into a farm-out agreement for the drilling of 54 shallow-gas wells by an industry partner. Immediately after closing the acquisition of BXL Energy, Viking announced it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have offering of 4.0 million Trust Units in a bought deal to a syndicate Syndicate organized crime unit throughout major cities of the United States. [Am. Hist.: NCE, 2018] See : Gangsterism of underwriters. This transaction raised $31.2 million and closed in mid-July n. 1. the middle part of July. Noun 1. mid-July - the middle part of July period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . The proceeds were used to fund the Wappau acquisition and Viking's capital development program. In October October: see month. , Viking closed a financing which raised $26.0 million through a private placement of 4.4 million Trust Units to a group of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . These Units have a mandatory hold period of six months. On November November: see month. 1, 2001, Viking also announced the offering of 2.4 million Trust Units at a price of $6.35 per Unit. The Units were offered through a bought deal with a syndicate of underwriters led by Scotia Scotia (skō`shə), originally the Latin name for Ireland. In the Middle Ages, it was used to refer to Scotland, to which the Scots had migrated from Ireland. Today it is used poetically. Capital Inc. and including CIBC World Markets CIBC World Markets is the investment banking division of the Canadian Imperial Bank of Commerce. It helps governments, large companies, and other large institutions obtain capital and credit and is a primary dealer in U.S. Treasury securities. Inc., BMO Nesbitt Burns  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Inc., Merrill Lynch Merrill Lynch & Co., Inc. (NYSE: MER TYO: 8675 ), through its subsidiaries and affiliates, provides capital markets services, investment banking and advisory services, wealth management, asset management, insurance, banking and related products and services on a global basis. Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of Inc., National Bank Financial Inc., TD Securities Inc. and Raymond James This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . Ltd. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this issue, which closed on November 22, 2001, were $14.5 million. The ability to access the capital markets during and subsequent to the third quarter has allowed Viking to strengthen its balance sheet during a period of general uncertainty in the marketplace. After the closing of November's financing, Viking's debt is approximately 1.3 times its estimated 2002 cash flow. This compares to debt of approximately 1.9 times estimated 2002 cash flow at the end of the third quarter. Commodity prices have been weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. throughout 2001, with recent
WTI WTI West Texas IntermediateWTI Western Transportation Institute (Montana State University) WTI World Tribunal on Iraq WTI With The Idea (used in chess to point to the idea behind a specific move) oil prices dropping below US$18.00 per barrel and spot AECO AECO Aeromedical Evacuation Control Officer AECO Advance Engineering Change Order AECO Architecture, Engineering, Construction and Owner-operated gas under Cdn$3.00 per thousand cubic feet (Mcf). Should lower prices persist, opportunities may become available for the Trust to acquire additional assets, but only if they are at extremely attractive prices. In the interim, however, Viking has the capital to continue with its asset development program for the balance of 2001 and 2002. In the third quarter of 2001, the Trust completed its 134-well drilling and tie-in tie-in n. One thing that is related to or connected with another. Noun 1. tie-in - a fastener that serves to join or connect; "the walls are held together with metal links placed in the wet mortar during construction" program at the shallow gas field in Channel Lake. The Trust expects to commence drilling, by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , an additional 30 wells in this area related to the 2002 program. A 14-well in-fill-drilling program at the Bellshill
Bellshill is a town in North Lanarkshire, Scotland, two miles north of Motherwell. oil field was also completed and will be on production for the fourth quarter. Total spending for Viking's capital development program was $18 million for the nine-months ended September 30, 2001. On October 1, 2001 Viking sold its non-operated interest in the Wilder gas field in northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography for $2.0 million. Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial Production increased in late June, which contributed to solid results for the three and nine-month periods ending September 30, 2001. This increase in production was offset by lower prices. For the quarter, cash available for distribution was $15.7 million or $0.37 per Unit compared with $13.5 million or $0.55 per Unit in the same period last year. Distributions totaled $19.7 million or $0.45 per Unit compared with $9.7 million or $0.40 per Unit in 2000. For the nine-month period, cash available for distributions was $56.2 million or $1.58 per Unit compared with $35.6 million or $1.49 per Unit last year. Distributions were $57.3 million or $1.59 per Unit compared with $25.7 million or $1.08 per Unit in 2000. Third-quarter production this year was 13,306 BOE per day compared with 7,648 BOE per day in the same period last year. For the nine-month period, production was 11,363 BOE per day this year compared with 7,664 BOE per day in 2000. At Channel Lake, 134 shallow-gas wells were drilled by late September and the majority of these were tied in by the end of the third quarter. Incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. production increases are expected through the fourth quarter in the Channel Lake area as a result of the drilling program. Continued drilling should result in stable production in this area. Additional compression was also added to the infrastructure to maintain the production rates of existing producing properties in the field. Additional production from the 14 well in-fill drilling program in Bellshill was not tied in until late September, therefore the production impact of that drilling program will not be felt until the last quarter of this year. Commodity prices continued to fall with third quarter realized gas prices averaging $3.14 per Mcf compared to $5.02 in the same period last year and $6.05 in the second quarter of 2001. Average realized oil prices after hedging decreased to $35.15 per barrel, down 6% this year compared with $37.35 last year, and down 3% compared with $36.35 in the second quarter. Oil prices in Bellshill have been lower than expected as a result of the continued wide spread between conventional crude and light sours sour adj. sour·er, sour·est 1. Having a taste characteristic of that produced by acids; sharp, tart, or tangy. 2. Made acid or rancid by fermentation. 3. . This spread was expected to narrow as oil prices decreased.
INVESTOR NETBACK PER BOE
YTD YTD % Q3 Q3 %
2001 2000 change 2001 2000 change
--------------------------------------------
Sales $34.78 $31.82 9 $28.33 $35.33 (20)
Royalties & Taxes 5.47 4.91 11 4.37 5.68 (23)
Operating Expenses 8.24 6.88 20 7.84 7.29 8
Abandonment Reserve 0.20 0.17 18 0.20 0.20 0
---------------------------------------------------------------
Operating Netback 20.87 19.86 5 15.92 22.16 (28)
G & A 0.94 0.91 3 0.98 0.92 7
Management Fees 0.78 0.69 13 0.58 0.79 (27)
Interest Expense 1.70 1.30 31 1.52 1.24 23
---------------------------------------------------------------
Investor Netback $17.45 $16.96 3 $12.84 $19.21 (33)
---------------------------------------------------------------
Netbacks Investor netback net·back n. Linkage of the price of crude oil to the market price of products refined from it. for the quarter was $12.84 per BOE, a decrease of $6.37 or 33% compared with last year. Lower prices resulted in sales decreasing by $7.00 per BOE. The negative-price impact was cushioned somewhat by lower royalty rates per BOE on the acquired Bellshill properties and lower operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. per BOE on the acquired BXL properties. This has had an overall beneficial impact on the cost structure of the Trust. For the nine-month period, investor netbacks have increased by $0.49 per BOE to $17.45, up 3% compared with last year. Operating costs operating costs npl → gastos mpl operacionales per BOE are still in excess of 2000 levels, but costs per BOE are decreasing, a trend that should continue in the future. Electricity costs, in particular, remain in excess of 2000, however these costs are expected to decrease in 2002 as a result of lower rates and the effects of power hedges. Hedging The Trust recorded a hedging gain of $349,000 for the quarter and a $198,000 gain for the nine-month period ended September 30th. Viking currently has 2,500 barrels of oil hedged for the last quarter of this year at an average WTI price of US$28.31 per barrel, which is an average Cdn price of $43.32. For the last two months of 2001 the Trust has hedged an average of 11,000 Mcf per day of natural gas at an average price of $4.18 per Mcf. Viking has also been active in its hedging program for 2002. Roughly 45% or 3,500 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of its estimated 2002 oil production is hedged at an average price of Cdn $38.32 per barrel, and 35% or 11,000 Mcf per day of estimated 2002 gas production is locked in at $4.19 per Mcf. Outlook As Viking completes its fifth year of operation, it has a strong balance sheet, increased production levels and a substantial inventory of development opportunities. The Trust has provided some stability to the volatile and unpredictable commodity price environment through its hedging activities, with which Viking has secured favourable prices on 40% of its production until the end of 2002. This price security protects not only a portion of the Trust's cash flow but also the reserve value to support the Trust's borrowing limits. During times of uncertainty it is important that the Trust maintains financial flexibility. For 2002, Viking estimates that it will generate cash flow of about $1.30 per Unit and distribute 94% of that amount, or $1.22 per Unit. This estimate is based on WTI oil prices averaging US$23.00 per barrel and AECO natural gas prices averaging Cdn $3.50 per Mcf for the year, and includes the effect of hedges currently in place. If prices average US$19.00 per barrel and $3.00 per Mcf, cash flow is expected to be $1.08 per Unit and distributions would be $1.02 per Unit. Production is forecast to remain in the range of 13,000 BOE per day based on a planned capital development program of $15 million. The initiatives that Viking has undertaken throughout the first nine months of the year have had a substantial impact on the Trust. Viking expects to exit the year with production at 13,000 BOE per day, an increase of 80% over the December December: see month. 2000 production rate of 7,240 BOE per day. Going forward, Viking is very well positioned to provide strong results and to continue to focus on the goal of providing superior returns in all cycles of the market. Viking has been successful to date in its objective of increasing its asset base, and continues to focus on managing its properties to create efficiencies and optimize optimize - optimisation production. Through the continued successful mix of acquisitions and prudent management, Viking strives to deliver on its goal of managing for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. returns.
Consolidated Statements of Income and Accumulated Earnings and
(Deficit)
Nine months Three months
ended ended
(unaudited - thousands September 30 September 30
of dollars) 2001 2000 2001 2000
---------------------------------------------------------------
REVENUE
Oil and natural gas $ 107,876 $ 66,824 $ 34,676 $ 24,853
Royalties (16,931) (10,262) (5,338) (3,989)
---------------------------------------------------------------
90,945 56,562 29,338 20,864
---------------------------------------------------------------
EXPENSES
Operating 25,545 14,442 9,603 5,129
General and administrative 2,919 1,919 1,194 644
Management fee 2,404 1,457 715 552
Interest (Note 6) 5,277 2,733 1,863 870
Capital and other taxes 51 42 10 10
Depletion, depreciation
and amortization 26,544 14,201 11,579 4,816
Future income tax
recovery (1,760) - (1,760) -
---------------------------------------------------------------
60,980 34,794 23,204 12,021
---------------------------------------------------------------
Net income for the period 29,965 21,768 $6,134 $8,843
---------------------------------------------------------------
Accumulated deficit
- opening (3,393) (36,769)
Unit Option Repurchase (222) -
---------------------------------------------------------------
Accumulated earnings
(deficit) - closing $26,350 $(15,001)
---------------------------------------------------------------
Consolidated Statements of Unitholder Distributions
Nine months Three months
ended ended
(unaudited - thousands September 30 September 30
of dollars) 2001 2000 2001 2000
---------------------------------------------------------------
Net income $ 29,965 $ 21,768 $ 6,134 $ 8,843
Depletion,
depreciation and
amortization 26,544 14,201 11,579 4,816
Future income tax
recovery (1,760) - (1,760) -
---------------------------------------------------------------
Funds from operations 54,749 35,969 15,953 13,659
Contributions to
reclamation fund (620) (350) (244) (141)
Disposal of royalty
interest 2,061 - - -
---------------------------------------------------------------
Cash available
for distribution 56,190 35,619 15,709 13,518
---------------------------------------------------------------
Unitholder
distributions 57,296 25,737 19,681 9,719
---------------------------------------------------------------
Cash under (over)
distributed $ (1,106) $ 9,882 $ (3,972) $ 3,799
---------------------------------------------------------------
Unitholder
distributions, per
unit $ 1.59 $ 1.08 $ 0.45 $ 0.40
---------------------------------------------------------------
Number of units
outstanding at
period end 43,867,864 24,778,250 43,867,864 24,778,250
---------------------------------------------------------------
Consolidated Balance Sheets
September 30 December 31
2001 2000
(thousands of dollars) (unaudited) (audited)
---------------------------------------------------------------
ASSETS
Current assets
Accounts receivable $ 14,357 $ 18,598
Prepaid expenses 2,139 1,088
---------------------------------------------------------------
16,496 19,686
---------------------------------------------------------------
Capital assets (Note 2 and 3) 380,094 144,577
Reclamation fund 1,801 1,181
Other investments 1,002 1,000
---------------------------------------------------------------
Total assets $ 399,393 $ 166,444
---------------------------------------------------------------
LIABILITIES
Current liabilities
Unitholder distributions payable $ 5,703 $ 5,828
Accounts payable 26,920 9,581
---------------------------------------------------------------
32,623 15,409
---------------------------------------------------------------
Bank loan (Note 4) 105,130 35,422
Future income taxes 34,505 -
Provision for site restoration 2,363 784
---------------------------------------------------------------
Total liabilities $ 174,621 $ 51,615
---------------------------------------------------------------
UNITHOLDERS' EQUITY
Unitholders' capital (Note 5) 358,541 221,045
Accumulated earnings (deficit) 26,350 (3,393)
Accumulated Unitholder distributions (160,119) (102,823)
---------------------------------------------------------------
Total Unitholders' equity 224,772 114,829
---------------------------------------------------------------
Total Liabilities and
Unitholders' Equity $ 399,393 $ 166,444
---------------------------------------------------------------
Consolidated Statements of Cash Flows
Nine months Three months
ended ended
(unaudited - thousands September 30 September 30
of dollars) 2001 2000 2001 2000
---------------------------------------------------------------
OPERATING ACTIVITIES
Net income $ 29,965 $ 21,768 $ 6,134 $ 8,843
Add items not
involving cash:
Depletion, depreciation
and amortization 26,544 14,201 11,579 4,816
Future income tax recovery (1,760) - (1,760) -
---------------------------------------------------------------
Funds from operations 54,749 35,969 15,953 13,659
Changes in working capital 18,166 4,443 6,126 6,071
---------------------------------------------------------------
72,915 40,412 22,079 19,730
---------------------------------------------------------------
FINANCING ACTIVITIES
Issuance of Trust Units 34,483 8,889 34,104 6,878
Issue costs (2,012) - (1,922) -
Unit Options Repurchased (222) - - -
Bank loan (net) 54,589 (3,390) 2,407 (8,878)
---------------------------------------------------------------
86,838 5,499 29,775 (2,000)
---------------------------------------------------------------
INVESTING ACTIVITIES
Acquisition of Sedpex
Partnership (Note 2) (42,379) - - -
Acquisition of
BXL (Note 2) (18,839) - 1,467 -
Acquisition of
Tweedie Property (24,065) - (24,065) -
Other acquisitions and
capital expenditures (18,511) (17,613) (7,148) (7,963)
Disposal of royalty
interest (Note 3) 2,082 - - -
Contributions to
reclamation fund (620) (350) (244) (141)
---------------------------------------------------------------
(102,332) (17,963) (29,990) (8,104)
---------------------------------------------------------------
UNITHOLDER DISTRIBUTIONS (57,421) (27,948) (21,864) (9,626)
---------------------------------------------------------------
Change in cash - - - -
---------------------------------------------------------------
Cash at beginning and
end of period $ - $ - $ - $ -
---------------------------------------------------------------
Notes to the Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge Nine months ended September 30, 2001 1. ACCOUNTING POLICIES These financial statements have been prepared based on the same accounting policies as the most recent financial statements, except as noted below and should be read in conjunction with such statements. 2. BUSINESS ACQUISITIONS
(i) Effective June 22, 2001, Viking Energy Ltd. ("VEL"), a wholly
owned subsidiary of the Trust acquired 100% of the outstanding
shares of BXL Energy Ltd. ("BXL"). BXL shares were tendered to
the Trust's offer pursuant to which the Trust issued 7,224,964
Trust Units for a total value of $65,024,676. VEL also paid
$15,213,466, which was financed through debt, plus acquisition
costs of $3,625,618.
This acquisition was accounted for using the purchase method. The
Trust has recorded the assets and liabilities acquired at their
net book value creating an excess purchase price of approximately
$62 million which has been assigned to the intangibles acquired.
Future income taxes reflect the difference between the purchase
price and the tax basis acquired. Since June 22, 2001, 100% of
BXL's results of operations have been included in the Trust's
consolidated financial statements.
(ii) On December 15, 2000, Viking Holdings Trust ("VHT") and the Trust
entered into a purchase agreement (the "Purchase Agreement")
pursuant to which Viking Holdings Inc. ("VHI"), on behalf of VHT,
agreed to acquire the remaining 50%, direct and indirect,
interest in the Sedpex Partnership (the "Partnership") not
already owned by VHT for a total purchase price of $81 million.
The acquisition cost was funded through a cash payment of $41
million and the issuance by the Trust of 4.7 million Trust Units
valued at $40 million. The transaction was completed on February
12, 2001 and was effective January 1, 2001. The excess of the
purchase price of $45 million over the net assets of the
Partnership was assigned to the intangibles acquired.
The determination of the purchase price of the acquisitions and
allocations to the net assets and liabilities of the acquired
companies are as follows:
BXL Sedpex
(thousands of dollars) Energy Ltd. Partnership Total
---------------------------------------------------------------
Value of Viking Trust
Units issued $ 65,025 $ 40,000 $ 105,025
Cash consideration 15,213 41,000 56,213
Related expenses and fees 3,626 1,379 5,005
---------------------------------------------------------------
Total Purchase Price $ 83,864 $ 82,379 $ 166,243
---------------------------------------------------------------
Purchase price allocation:
---------------------------------------------------------------
Cash $ - $ 80 $ 80
Net working capital deficit (958) 4,358 3,400
Debt assumed (14,449) - (14,449)
Future site restoration (670) - (670)
Future income taxes (36,636) - (36,636)
Capital assets 136,577 77,941 214,518
---------------------------------------------------------------
Total Purchase Price $ 83,864 $ 82,379 $ 166,243
---------------------------------------------------------------
3. ACQUISITIONS AND DISPOSAL OF ROYALTY INTEREST royalty interest The proportional ownership interest by the owner of oil and gas rights in income produced by the asset. See also overriding royalty interest. Effective June 1, 2001, the Trust disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of its royalty interest in the Plato Plato (plā`tō), 427?–347 B.C., Greek philosopher. Plato's teachings have been among the most influential in the history of Western civilization. Life After pursuing the liberal studies of his day, he became in 407 B.C. area for net proceeds of $2.1 million. Effective July 1, 2001, the Trust acquired a gas processing facility and a royalty interest in gas wells in the Tweedie area for $23.5 million plus acquisition fees of $352,500. 4. BANK LOAN In connection with the acquisition of BXL the Trust now has a committed $110 million revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and a $10 million operating credit facility from a syndicate of Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. chartered banks Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission . The facility bears interest at prime plus 25 basis points and is secured by a security interest and a floating charge debenture debenture (dəbĕn`chər), document acknowledging indebtedness. In Great Britain a debenture is practically the same as a bond, and debenture stock is similar to preferred stock. over the Trust's interests in oil and natural gas properties. The borrowing base is subject to review by the banks semi-annually. No repayments are required as long as borrowings under the credit facility are less than the Trust's borrowing base. 5. UNITHOLDERS' CAPITAL Authorized Unlimited number of Trust Units. Issued No. of Units (000s) ($000s) --------------------------------------------------------------- Balance, December 31, 2000 27,753 221,045 Public Offering 4,000 33,200 Issued on acquisition of the Partnership (Note 2 (ii)) 4,700 40,000 Less: Unit issue costs - (2,012) Employee options 190 1,283 Issued on acquisition of BXL (Note 2 (i)) 7,225 65,025 --------------------------------------------------------------- Balance, September 30, 2001 (Note 9) 43,868 358,541 --------------------------------------------------------------- During the nine months ended September 30, 2001, the Trust granted 1,473,000 rights to employees and directors of the Trust to purchase Trust Units at a weighted average price of $8.33 per unit and repurchased 95,000 Trust Unit Options with a weighted average exercise price of $6.25 per option for a total cost of $222,000. At September 30, 2001 there were 2,249,550 options outstanding of which 439,150 had vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) and were exercisable at an average exercise price of $7.56. 6. INTEREST EXPENSE Interest expense for the nine months ended September 30 is comprised of $4,083,000 for the Trust's ongoing interest obligations on the revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. and $1,194,000 of interest expense incurred in relation to the holding period between the effective and closing dates for the Partnership acquisition. 7. NET INCOME AND FUNDS FROM OPERATIONS Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. PER UNIT Net income per unit for nine months ended September 30, was $0.84 (2000 - $0.91) and funds from operations per unit for the same period was $1.53 (2000 - $1.51). Net income per unit for three months ended September 30, was $0.14 (2000 - $0.26) and funds from operations per unit for the same period was $0.37 (2000 - $0.56). Net income and funds from operations per unit are calculated using the weighted average number of Units outstanding for the period, which was 35,677,700 (2000 - 23,838,338). Net income and funds from operations per unit for the three months ended September 30, 2001 are calculated using a weighted average number of Units of 42,952,270 (2000 - 24,385,063). Effective January January: see month. 1, 2001, the Trust has adopted the treasury stock method to calculate the diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per unit amounts in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the new CICA CICA Competition In Contracting Act of 1984 (USA) CICA Canadian Institute of Chartered Accountants CICA Competition In Contracting Act CICA Criminal Injuries Compensation Authority (UK) handbook
This article is about reference works. For the subnotebook computer, see .
In the legal sense, the term imputed is used to describe an action, fact, or quality, the knowledge of which is charged to an individual based upon the actions of another for whom the individual is responsible rather than on the individual's earnings method basic and fully diluted net income per unit and funds from operations would have been $0.80 (2000 -$0.87) and $1.46 (2000 - $1.39) respectively for the nine months ended September 30. For the three months ended September 30 fully diluted net income and funds from operations per unit would have been $0.14 (2000 - $0.35) and $0.36 (2000 -$0.52) respectively. 8. FINANCIAL INSTRUMENTS The Trust uses commodity swap Commodity Swap A swap where exchanged cash flows are dependent on the price of an underlying commodity. This is usually used to hedge against the price of a commodity. Notes: contracts to manage its exposure to commodity price fluctuations related to a portion of its future oil and gas sales. The Trust has recognized a gain for the nine months ended September 30, 2001 of $198,000 and a gain of $349,000 for the quarter ended September 30, 2001. This amount is included in oil and natural gas revenue. At September 30, 2001, the Trust had the following swap contracts in place, which are settled monthly. The oil contracts outlined below are based on the monthly NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). WTI oil price and the gas contracts are based on the monthly AECO gas price:
Commodity Quantity Period Price
---------------------------------------------------------------
Oil 500 bbl/d Jan. 1/01 - Dec. 31/01 US 31.00
Oil 1,000 bbl/d Mar. 1/01 - Dec. 31/01 US 27.09
Oil 1,000 bbl/d Jul. 1/01 - Dec. 31/01 US 28.20
Oil 3,500 bbl/d Jan. 1/02 - Dec. 31/02 US 24.80
Gas 6,000 GJ/d Nov. 1/01 - Dec. 31/02 Cdn 3.70
Gas 4,000 GJ/d Nov. 1/01 - Oct. 31/02 Cdn 4.33
Gas 2,000 GJ/d Dec. 1/01 - Jun. 30/02 Cdn 4.10
Gas collared
contract 2,000 GJ/d Nov. 1/ 01 - Oct. 31/02 Cdn 3.00
floor- 4.75
ceiling
Power 5 mw/d Jan. 1/02 - Dec. 31/02 Cdn 41.02
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In addition, the Trust hedges its foreign exchange risk associated with these contracts as detailed in the table below to arrive at the floating Canadian price:
Average
Monthly
Contract Type Amount (US) Period Contract
---------------------------------------------------------------
Rate Fixed rate
foreign exchange 471,000 Jan. 1/01 - Dec. 31/01 1.4950
829,000 Mar. 1/01 - Dec. 31/01 1.4915
864,647 Jul. 1/01 - Dec. 31/01 1.5474
2,639,720 Jan. 1/02 - Dec. 31/02 1.5579
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9. SUBSEQUENT EVENTS In late October, 2001 the Trust issued 4,400,000 Trust units for net proceeds of $26.0M pursuant to a private placement with a group of institutional investors. On November 22, 2001 the Trust issued 2,400,000 Trust Units resulting in net proceeds of $14.5M. The units were offered to the public through a syndicate of underwriters. Viking Energy Royalty Trust is an open-end o·pen-end adj. 1. Having no definite limit of duration or amount: an open-end contract. 2. investment trust that generates income from long-life long-life Adjective (of milk, batteries, etc.) lasting longer than the regular kind Adj. 1. long-life - (of perishable goods) treated to stay fresh longer than usual; "long-life milk" oil and natural gas producing properties in Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. and Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. . The beneficiaries of the Trust are the holders of the Trust Units who receive monthly distributions of the cash flow from the income. The Trust currently has 50,682,284 Trust Units outstanding which are listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol "VKR.UN". The Trust is managed by Viking Management Ltd., a Calgary based company. For further information contact: A. Kirk Purdy Purdy is a surname, and may refer to
President and Chief Executive Officer or Wayne Wayne, city (1990 pop. 19,899), Wayne co., SE Mich., a suburb of Detroit, on the Lower Rouge River; inc. as a village 1869, and with surrounding areas as a city 1960. It has automobile and aircraft industries and other varied manufactures. King Senior Vice-President vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. and Chief Financial Officer Viking Energy Royalty Trust c/o Viking Management Ltd. Suite 400 Calgary Place 330 - 5th Avenue S.W. Calgary, Alberta T2P T2P Type-Two Phaser (Star Trek) T2P Transition to Production (computer systems development) 0L4 (403) 268-3175 Toll free: 1-877-292-2527 e-mail: vikingin@viking-roy.com Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the : www.vikingenergy.com Investor Relations Investor relations The process by which the corporation communicates with its investors. Coordinator: Andrea Andrea ghost returns to the Spanish court to learn of the events that followed his death. [Br. Drama: The Spanish Tragedy in Magill II, 990] See : Ghost Watkins Watkins may refer to:
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