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Canadian Company Spotlight
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Iteration Energy Ltd. Website:
Click Here |
Information As Of
January 22,
2009 |
| Exchange:
TSX |
Market Cap:
182.6 Million |
| Outstanding Shares:
166
Million |
52 Low / High:
$1.02
/ $9.08 |
|
Price
January 22,
2009:
$1.10 |
ITX Stock Quote and News:
Click Here |
"To date
in 2008 the Company has closed or successfully negotiated 15
property acquisitions, with a combined production of 1,650
boed at a total cost of $60 million."
Overview
Iteration Energy Ltd. is a intermediate oil
and gas company which trades on the Toronto Stock Exchange
under the symbol ITX.
The Company operates
a number of oil and natural gas properties in Western Canada
with production of approximately 20,000 boed.
They are actively exploring for
additional oil and gas reserves while continuing to exploit
their existing properties.
For the balance of 2008 and
into 2009, the largest focus areas for the Company will
be in the Deep Basin and Peace River Arch areas of Western
Alberta and North East British Columbia. These two areas
currently account for approximately two thirds of the
Company's production and are prospective for liquids rich gas
and light oil. Production from these areas will be
complemented by exploration and exploitation opportunities for
dry gas and heavy oil in Eastern Alberta, as well as
additional light oil prospects in North West and South East
Alberta.
Investment
Highlights
-
Major Acquisition Highlight. The Company acquired 100% of Cyries
Energy Inc. in March, 2008. Cyries Energy, since its
inception in July 2004 has grown production from
approximately 1,000 boed to approximately 11,400 boed and
increased the undeveloped land base from 100,000 net acres
to 450,000 net acres. This acquisition provided for the
combination of Iteration and Cyries to form a new growth
focused, intermediate oil and gas exploration and
development company with an enterprise value of
approximately $1 billion (figures as of March, 2008).
-
Large Land Base. As of December 2008, the Company
had a combined undeveloped and developed land base of over
1.3 Million net acres.
-
Growth Through Acquisitions. To date in 2008
the Company has closed or
successfully negotiated 15 property acquisitions, with a
combined production of 1,650 boed at a total cost of $60
million (approximately $36,000/boed).
-
Production Increase In Q3, 08. Increased quarter
over quarter average production by 2% to approximately
18,500 boed, in line with guidance, despite reducing
exploration and development spending by $14 million. This
represents a 194% increase over the corresponding quarter of
2007.
-
Q3,
08 Earnings Growth. Net earnings for the quarter
of $26.7 million as opposed to net earnings of $0.7 million
for the second quarter of 2008.
-
Q3,
08 Drilling Results. Drilled 22.0 net wells with
a 90% success record in the third quarter of 2008.
Profile
As a result of the global credit crisis and deteriorating
expectations for global economic growth, commodity prices have
fallen sharply over the last several months.
As a result, many companies are forced to
cut back on costs and exploration and weather the economic
storm. One such Company that finds themselves in that
situation is Iteration Energy Ltd.
(TSX: ITX). The Company is an intermediate oil and gas company
that operates a number of oil and natural gas properties in
Western Canada with production of approximately 20,000 boed.
The Company along with thousands of
other ones are in the middle of this economic storm, but the
Company finds itself in a better shape than most companies to
deal with it. First off, the Company has a
combined undeveloped and developed land base of over 1.3
Million net acres, which provides for
plenty more exploration potential once economic conditions
improve. In the third quarter of 2008, the Company
drilled 22.0 net wells with a 90% success record,
showing that they were definately drilling in the right areas.
In 2008,
the Company also closed or successfully negotiated 15
property acquisitions, with a combined production of 1,650
boed at a total cost of $60 million (approximately
$36,000/boed).
Setting aside the positive developments
from the Company, the main catalyst for hope should be that
the Company has a plan to deal with this financial crisis.
Should realized
prices for commodities such as oil strengthen, the Company has an inventory of high grade
exploration opportunities that can be undertaken. However,
should realized prices weaken even further, the Company will scale
back its proposed program to ensure that the projected annual
capital program remains in line with projected annual
cashflow.
Iteration has a large inventory of both oil and gas drilling
locations that remain very economic even
at current commodity
prices and can readily high-grade between these locations as
commodity prices change. The Company expects the 2009 drilling program
to result in considerable production growth and added reserve
value from a capital program that will be approximately equal
to cash flow. In 2008, the Company was able to divert funds from
drilling and exploration into lucrative asset acquisitions
when they provided attractive business opportunities.
As a result of earlier acquisitions, the Company has a large undeveloped land base and
sufficient access to capital through a credit facility with
four major Canadian banks to allow it to carry out its growth
program.
Even with all the negative news of late
in the economy, Iteration Energy Ltd.
(TSX: ITX) looks like it will be able to handle everything
thrown its way and is paving a good path for strong expansion
when the economy along with commodity prices head back up.
Operations
Recent News and
Press Releases
•Iteration Energy Ltd. Announces Updated Guidance
CNW Group (Fri, Dec 12)
•Iteration Energy Ltd. to present at the FirstEnergy/Société
Générale Montreal Energy Conference, Montreal, QC
CNW Group (Fri, Dec 5)
•Iteration Energy (ITX) announces September 30, 2008 quarter
end results
CNW Group (Thu, Nov 13)
•Iteration Energy Ltd. to present at the FirstEnergy/Société
Générale EnergyGrowth Conference in Toronto
CNW Group (Wed, Nov 12)
Management Team
Iteration Energy Ltd.'s new management and
technical team is based on a group of professionals who worked
together at CNRL and were instrumental in its growth from
35,000 boe/d to over 450,000 boe/d. They are technically
focused people who generated their own prospects and
evaluations throughout their careers as well as taking on
technical management roles. The officers of the Company had
joined together to form Iteration Energy Inc., which was then
bought by Hawker Resources.
Brian Illing, President & CEO
As Executive VP he led the CNRL exploration department from
1993 to late 2003 and was the hands-on technical leader for
growth projects in the Company during that time. He oversaw
the drilling of more than 6000 Western Canada wells with a
success rate of over 90%. The first 17 years of his career
were at Gulf Canada Resources after completing his Geology
BSc. and Geophysics MSc. in England.
Mark Ariss, VP Exploration East
Mark spent the past 12 years at CNRL as an Area Geologist and
then Exploration Manager. He generated and reviewed over 1700
wells together with countless land sales and acquisitions. His
prior career was at Gulf Canada Resources after completing his
BSc. at the University of Western Ontario.
Sean Johnson, CFO
Sean has worked as a CFO for several corporations in Oil and
Gas, Real Estate and Transportation. He has also been an
auditor with KMPG, and his principle focus is corporate
structure and taxation.
Contacts
Iteration Energy Ltd.
700, 700 - 2nd Street SW
Calgary, Alberta T2P 2W1
T. (403) 261-6883
F. (403) 266-1814
SEDAR Filings
ITX filings with SEDAR can be found
here. All
Fillings are current and the Company is fully reporting.
FORWARD
LOOKING STATEMENTS
This report includes
forward-looking statements that reflect Iteration Energy Ltd. current expectations about its future results,
performance, prospects and opportunities. Iteration Energy
Ltd. has tried to identify these forward-looking statements
by using words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to a
number of risks, uncertainties and other factors that could
cause Iteration Energy Ltd.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these forward-looking
statements. These risks, uncertainties and other factors
include, without limitation, the Company's growth expectations
and ongoing funding requirements, and specifically, the
Company's growth prospects with scalable customers, and those
outlined above. Other risks include the Company's limited
operating history, the Company's history of operating losses,
consumers' acceptance, the Company's use of licensed
technologies, risk of increased competition, the potential
need for additional financing, the terms and conditions of any
financing that is consummated, the limited trading market for
the Company's securities, the possible volatility of the
Company's stock price, the concentration of ownership, and the
potential fluctuation in the Company's operating results.
Disclaimer
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It is crucial that you at least look at current SEC filings
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this report was extracted from current documents filed with
the SEC, the company web site and other publicly available
sources deemed reliable. For more information see our
disclaimer section, a link of which can be found on our web
site. This document contains forward-looking statements,
particularly as related to the business plans of the Company,
within the meaning of Section 27A of the Securities Act of
1933 and Sections 21E of the Securities Exchange Act of 1934,
and are subject to the safe harbor created by these sections.
Actual results may differ materially from the Company's
expectations and estimates. This is an advertisement for
Iteration Energy Ltd. The purpose of this advertisement,
like any advertising, is to provide coverage and awareness for
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