Vital Energy Inc. Q1 2022 Results. Ending March 31, 2022 (All Information Available On Sedar) Ticker Symbol: VUX Price: $0.435 Common Shares: 82,249,971 Warrants: Nil Options: 1,250,000 @ $0.25 Market Cap: $34.5 million Insider Holdings: 55,311,353 or 67.3% of the float Tax Pools: $51 million (Less Q1 2022 earnings. Available in 2021 audited results) Financials (Ending March 31, 2022)
ASSETS Cash: $2,487,862 Short Term Investments: $2,705,022 Trade & Receivables: $2,499,958 Prepaid Expenses: $68,321 Deposits: $564,797 Exploration & Evaluation Assets: $80,013 Right Of Use Assets: $177,419 Property & Equipment: $11,029,479 Total Assets: $19,612,871
LIABILITIES Accounts Payable: $1,068,494 Contract Liabilities: $848,300 Current Lease Liability: $50,523 Current Decommissioning Liability: $258,574 Bank Loan: $60,000 Lease Liability: $130,339 Decommissioning Liability: $1,538,934 Total Liabilities: $3,955,164
Asset/Debt Ratio – 4.96:1 Q1 2022 Performance Revenue: $5,854,810 Net Income: $3,521,015 Earnings per share: $0.043 2021 Performance Revenue: $15,066,687 Net Income: $8,945,770 Earnings per share: $0.11 2021 Reserves (51-101) Available On Sedar – Oil Pricing under $70 & Gas Under $4 Light Oil – 537,400 Barrels NET Heavy Oil – 306,900 Barrels NET Natural Gas – 493,700 Barrels NET Natural Gas Liquids – 2,100 Barrels NET Total Net Barrels: 1,340,100 (Less Q1 2022 sales)
Q1 2022 Management Discussion Highlights (Available on Sedar) Overall Performance Highlights • The Company reported net income of $3,521,015 in Q1 2022 as compared to net income of $136,839 in Q1 2021. • Revenue was $5,854,810 in Q1 2022 as compared to Q1 2021 revenue of $1,655,257, an increase of $4,199,553. • The Q1 2022 realized oil price was $97.73 as compared to $54.59 in Q1 2021. • Production increased to 666 boe/d in Q1 2022 from 337 boe/d in Q1 2021 with the increase being mainly attributable to improvements in operations at Sullivan Lake and the production of three horizontal wells at Lampman Outlook The Company plans to continue to acquire crown lands from upcoming crown land sales. The Company will continue to optimize production from the existing properties and plans to drill seven (7) horizontal wells in SE Saskatchewan that are expected to increase production by approximately 500 bbl/d in 2022. Core Properties Lampman The Company purchased a quarter section of crown land in Saskatchewan in Q3 2020. In order to confirm the Frobisher reservoir quality and the potential in the deeper Winnipegosis zone, a vertical pilot hole 1-4- 6-5-W2 was designed and drilled. The results indicated the Frobisher reservoir was promising and the Winnipegosis zone was uneconomic. The pilot hole was abandoned in the deeper section and was plugged back. This existing vertical well bore was utilized to drill Hz C7-4-6-5W2 in the Frobisher zone from 1-4 to 7-4 (second event for the pilot well 1-4). The other two Frobisher horizontal wells were drilled in July 2021 from the same surface pad as the pilot hole and were completed in August 2021. The Company produced 318 bbls/d of sweet light oil (API ranging from 32.5 -36.0) from these multiple well projects in Q1 2022. Sullivan Lake The successful appraisal development well, 10-1, was drilled in the Banff limestone reservoir in December 2019 and two additional horizontal wells were drilled in 2020 and all are on production. As the Sullivan Lake desulfurization tower was replaced with a larger desulfurization tower in 2021 with more capacity, the Company believes it has resolved the long-standing production and operating issues. This area produced 102 boe/d in Q1 2022 compared to 99 boe/d in Q4 2021. The Company has built production facilities at Sullivan Lake with a capacity of 300 boe/d Gull Lake In one of the Company’s core areas of operations, Gull Lake, Saskatchewan, Vital is the designated operator and maintains a 50% working interest. The property is covered with 3D seismic data and has 9 wells producing, or capable of producing, crude oil from the Roseray , Cantuar and Upper Shaunavon formations. This project has a salt-water disposal facility and a gas collection pipeline system. In the Company’s opinion, future drilling opportunities remain on these lands. At Gull Lake, Vital’s net daily oil and natural gas production in Q1 2022 was 192 boe/d (Q1 2021 – 240 boe/d). The decrease in production was attributable to natural declines in the property. In order to better evaluate the oil development potential, the Company has utilized the 3D seismic survey which covers all of its Gull Lake lands. As of December 31, 2021, the reserves evaluator, Trimble Engineering, assigned 160,400 boe of proven oil and natural gas reserves net to the Company and 79,400 boe of probable oil reserves net to the Company. Pennant Vital is the Operator and maintains a 100% working interest in 12 contiguous sections of land. To date one (1) vertical well and six (6) horizontal wells have been drilled. Four of the hor
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New video on Vital Energy Inc. with a summary on Q1 2022 results:
Canadian Energy Penny Stock Exceeds Expectations - Q12022 Update on Vital Energy
www.youtube.com
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Average monthly prices for WTI in Apil and May were $101.78 and $109.55 ( https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RWTC&f=M ). As per VUX's last presentation from May, average production was around 650 barrels per day. Let's do a rough calculation to what they've should of earned over the last 60 days, assuming no additional costs from drilling, land acquisitions, workovers, etc. Rounding WTI price to $100, dropping production to 600bopd average for 60 days, using similar cost metrics from Q1, which was $13 all in ($100-$13=$87 net) $87 WTI X 60 Days X 600 bpd = $3,132,000 profit (round down to $3 million). I always like to go worse case on pricing, production and profit.
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VUX has the highest rating 94 out of 100 by Market grader Investorline BMO.
Pretty hard to go when there is no updates. Their website says in like 2012 new presentation coming but nothing. Can’t find any information on them. I put them on my watchlist when they drilled 3 SE Sk wells which are good and could have made 300% but hard to invest when they can’t be bothered to update???
Ticker Symbol: VUX
Price: $0.435
Common Shares: 82,249,971
Warrants: Nil
Options: 1,250,000 @ $0.25
Market Cap: $34.5 million
Insider Holdings: 55,311,353 or 67.3% of the float
Tax Pools: $51 million (Less Q1 2022 earnings. Available in 2021 audited results)
Financials (Ending March 31, 2022)
ASSETS
Cash: $2,487,862
Short Term Investments: $2,705,022
Trade & Receivables: $2,499,958
Prepaid Expenses: $68,321
Deposits: $564,797
Exploration & Evaluation Assets: $80,013
Right Of Use Assets: $177,419
Property & Equipment: $11,029,479
Total Assets: $19,612,871
LIABILITIES
Accounts Payable: $1,068,494
Contract Liabilities: $848,300
Current Lease Liability: $50,523
Current Decommissioning Liability: $258,574
Bank Loan: $60,000
Lease Liability: $130,339
Decommissioning Liability: $1,538,934
Total Liabilities: $3,955,164
Asset/Debt Ratio – 4.96:1
Q1 2022 Performance
Revenue: $5,854,810
Net Income: $3,521,015
Earnings per share: $0.043
2021 Performance
Revenue: $15,066,687
Net Income: $8,945,770
Earnings per share: $0.11
2021 Reserves (51-101) Available On Sedar – Oil Pricing under $70 & Gas Under $4
Light Oil – 537,400 Barrels NET
Heavy Oil – 306,900 Barrels NET
Natural Gas – 493,700 Barrels NET
Natural Gas Liquids – 2,100 Barrels NET
Total Net Barrels: 1,340,100 (Less Q1 2022 sales)
Q1 2022 Management Discussion Highlights (Available on Sedar)
Overall Performance Highlights
• The Company reported net income of $3,521,015 in Q1 2022 as compared to net income of $136,839 in Q1 2021.
• Revenue was $5,854,810 in Q1 2022 as compared to Q1 2021 revenue of $1,655,257, an increase of $4,199,553.
• The Q1 2022 realized oil price was $97.73 as compared to $54.59 in Q1 2021.
• Production increased to 666 boe/d in Q1 2022 from 337 boe/d in Q1 2021 with the increase being mainly attributable to improvements in operations at Sullivan Lake and the production of three horizontal wells at Lampman
Outlook
The Company plans to continue to acquire crown lands from upcoming crown land sales. The Company will continue to optimize production from the existing properties and plans to drill seven (7) horizontal wells in SE Saskatchewan that are expected to increase production by approximately 500 bbl/d in 2022.
Core Properties
Lampman
The Company purchased a quarter section of crown land in Saskatchewan in Q3 2020. In order to confirm the Frobisher reservoir quality and the potential in the deeper Winnipegosis zone, a vertical pilot hole 1-4- 6-5-W2 was designed and drilled. The results indicated the Frobisher reservoir was promising and the Winnipegosis zone was uneconomic. The pilot hole was abandoned in the deeper section and was plugged back. This existing vertical well bore was utilized to drill Hz C7-4-6-5W2 in the Frobisher zone from 1-4 to 7-4 (second event for the pilot well 1-4). The other two Frobisher horizontal wells were drilled in July 2021 from the same surface pad as the pilot hole and were completed in August 2021. The Company produced 318 bbls/d of sweet light oil (API ranging from 32.5 -36.0) from these multiple well projects in Q1 2022.
Sullivan Lake
The successful appraisal development well, 10-1, was drilled in the Banff limestone reservoir in December 2019 and two additional horizontal wells were drilled in 2020 and all are on production. As the Sullivan Lake desulfurization tower was replaced with a larger desulfurization tower in 2021 with more capacity, the Company believes it has resolved the long-standing production and operating issues. This area produced 102 boe/d in Q1 2022 compared to 99 boe/d in Q4 2021. The Company has built production facilities at Sullivan Lake with a capacity of 300 boe/d
Gull Lake
In one of the Company’s core areas of operations, Gull Lake, Saskatchewan, Vital is the designated operator and maintains a 50% working interest. The property is covered with 3D seismic data and has 9 wells producing, or capable of producing, crude oil from the Roseray , Cantuar and Upper Shaunavon formations. This project has a salt-water disposal facility and a gas collection pipeline system. In the Company’s opinion, future drilling opportunities remain on these lands. At Gull Lake, Vital’s net daily oil and natural gas production in Q1 2022 was 192 boe/d (Q1 2021 – 240 boe/d). The decrease in production was attributable to natural declines in the property. In order to better evaluate the oil development potential, the Company has utilized the 3D seismic survey which covers all of its Gull Lake lands. As of December 31, 2021, the reserves evaluator, Trimble Engineering, assigned 160,400 boe of proven oil and natural gas reserves net to the Company and 79,400 boe of probable oil reserves net to the Company.
Pennant
Vital is the Operator and maintains a 100% working interest in 12 contiguous sections of land. To date one (1) vertical well and six (6) horizontal wells have been drilled. Four of the hor
https://www.youtube.com/watch?v=5s5WBTwW6U0