Exploration & Production | Quarterly / Earnings Reports | First Quarter (1Q) Update | Deals - Acquisition, Mergers, Divestitures | Drilling Program

Toro Increases Viking Acreage, Production Doubled

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Toro Oil & Gas Ltd. has announced its financial and operating results for the three months ended March 31, 2015.

Highlights

• Average production of 561 boe/d of which 47% represents oil and liquids compared to 234 boe/d of production in Q1 2014. Q1 2015 production reflects a full quarter of production from Toro's Hamilton Lake property and taken together with other corporate production, represents over a three-fold increase in production compared to the preceding fourth quarter;
• Closed three property acquisitions contributing 50 boe/d and 29 net sections of Viking light oil acreage bringing total Viking acreage to 122 net sections;
• Closed a $15 million bought deal public equity offering enabling the Company to entirely eliminate its outstanding bank debt. Resulting surplus cash combined with a fully undrawn credit facility with National Bank provides Toro with over $30 million in liquidity;
• Generated $0.4 million in operating cash flow, excluding cash flow from assets held for sale and prior to corporate overhead expenditures. Toro anticipates commencing an active drilling program on its Viking lands resulting in growing production and cash flow, lower costs ($/boe) and positive cash netbacks.

Operational Update

• During the quarter, Toro concentrated its activities in consolidating a growing Viking light oil production and land base, developing enhanced internal operational efficiencies and laying the ground work to become drill ready in the field. Commodity prices during the quarter continued to languish and based on previous guidance by the Company, capital programs in the midst of that commodity price weakness were curtailed. The Company integrated the operations of three separate Viking light oil acquisitions which added 50 boe/d of production and 29 net sections for total consideration of $2.4 million making Toro one of the fastest growing Viking acreage position companies in the Western Canadian Sedimentary Basin. 
• Upon review of go-forward commodity prices, availability and rates for services and access to capital, Toro will provide its second half 2015 guidance and capital programs over the course of the next few months. Maintaining financial flexibility with a pristine balance sheet continues to be a priority objective for Toro. With a cash position of nearly $6 million and an undrawn credit facility, the Company's liquidity remains robust for a junior oil and gas company of this size.