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Ikkuma Announces Third Quarter Results

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Ikkuma Resources Corp. has reported its financial and operating results for the three and nine months ended September 30, 2014.

Highlights

• Completed the Lynx/Palliser/Minnow and Ojay/Copton/Findley Foothills acquisition on July 31, 2014 for a cost of $108.3 million, net of adjustments, adding approximately 5900 boe/d of natural gas production.
• Upon completion of the acquisition the Corporation received the $130 million of escrowed proceeds of the June 27, 2014 subscription receipts financing. Each subscription receipt holder received one common share on August 12, 2014 as the Corporation filed a final prospectus qualifying the common shares underlying the subscription receipts. Net proceeds after the 5.5% underwriter fee and other issue costs was $122.1 million.
• Completed a second acquisition of natural gas assets located in the Copton and Narraway areas of the Alberta foothills on August 6, 2014. The gross cost of this acquisition was $2.4 million ($2.4 million net of adjustments). This acquisition added approximately 120 boe/d of production on closing.
• Completed an eight for one rights offering that was agreed to in the May 6, 2014 Reorganization and Investment Agreement. The Corporation issued 344,315 common shares for proceeds of $0.258 million.
• Achieved a third quarter operating netback of $3.3 million
• Achieved third quarter funds flow from operations of $1.5 million ($0.02/share) and earnings of $1.5 million ($0.02/share) for the third quarter.
• Added 18 sections of crown land in the Foothills during the third quarter at an average price of $110/acre.
• On November 4, 2014 Ikkuma closed the acquisition of certain petroleum and natural gas assets located in several areas of the Canadian Foothills for $23.2 million ($21.8 million net of interim adjustments) that was announced in August 2014. The Corporation's credit facilities were increased today by $20 million, to $75 million, due to the acquisition.