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Calgary, Alberta- November 29, 2019 – Briko Energy Corp. (“Briko” or the “Corporation”) is pleased to report its financial and operating results for the three and nine months ended September 30, 2019. Financial and operational information is set out below and should be read in conjunction with Briko’s September 30, 2019 condensed unaudited interim financial statements and the related management’s discussion and analysis (“MD&A”). Briko’s condensed unaudited interim financial statements and MD&A are available for review at and on the Corporation’s website at


  • Achieved average daily production of 678 boe per day for the nine months ended September 30, 2019, compared to 739 boe per day for the nine months ended September 30, 2018.
  • Generated an operating netback of $8.53 per boe for the nine months ended September 30, 2019, compared to the $8.82 per boe for the nine months ended September 30, 2018.
  • Generated adjusted funds flow for the nine months ended September 30, 2019 of $885,000 ($0.08/share) and cash provided by operating activities of $946,000 ($0.08/share).
  • No debt outstanding at September 30, 2019.
(Expressed in thousands of Canadian dollars except per boe and share amounts) Three Months Ended September 30 Nine Months Ended September 30
2019 2018 2019 2018
Average daily production
Light oil (bbl/d) 155 193 170 209
Natural gas (mcf/d) 2,639 3,242 2,675 2,788
NGLs (bbl/d) 57 88 62 65
Total equivalent (boe/d) 652 821 678 739
Average prices
Light oil ($/bbl) $ 66.94 $ 80.42 $ 67.06 $ 75.38
Natural gas ($/mcf) 0.93 1.50 1.51 1.52
NGLs ($/bbl) 39.32 59.41 47.08 59.79
Operating netback
Revenue ($/boe) $ 23.11 $ 31.18 $ 27.11 $ 32.33
Realized loss on risk management
contracts ($/boe) (0.27 ) (2.52 ) (0.15 ) (1.59 )
Royalties ($/boe) (3.86 ) (6.53 ) (4.60 ) (7.32 )
Net operating expenses(1) ($/boe) (11.03 ) (10.69 ) (11.50 ) (12.53 )
Transportation expenses ($/boe) (2.61 ) (2.42 ) (2.33 ) (2.07 )
Operating netback (1) ($/boe) $ 5.34 $ 9.02 $ 8.53 $ 8.82
Oil and natural gas revenues (2) $ 1,386 $ 2,355 $ 5,021 $ 6,523
Operating income(1) 321 679 1,580 1,780
Cash provided by operating activities 181 309 946 1,085
    Per share – basic and diluted 0.02 N/A 0.08 N/A
Adjusted funds flow (1) 110 619 885 1,613
    Per share – basic and diluted 0.01 N/A 0.08 N/A
Net income (loss) and comprehensive
income (loss) (407 ) 21 (371 ) (672 )
    Per share – basic and diluted (0.04 ) N/A (0.03 ) N/A
Capital expenditures 406 39 559 313
Net working capital(1) 19 274 19 274
Shares outstanding (‘000s) 11,207 N/A 11,207 N/A
Weighted average shares outstanding
basic and diluted (‘000s) 11,207 N/A 11,206 N/A

(1)Operating netback, operating income, net operating expenses, adjusted funds flow and net working capital are non-IFRS measures. See “Non- IFRS Measures”.
(2) Before royalties.
(3) N/A is defined as Not Applicable.


Briko’s average production for 2019 is expected to be in the range of 625 – 675 boe/d. Based on these production estimates, combined with the Corporation’s hedge position and its current cost structure, adjusted funds flow for 2019 is expected to be in excess of $1.0 million, representing approximately $0.09 per share in 2019.

About Briko Energy Corp.

Briko Energy Corp. is an Alberta Foothills Cardium light oil focused company with undeveloped land, crude oil and natural gas reserves and a production base with associated infrastructure. Corporate information can be found at:

For additional information, please contact:

Briko Energy Corp.
1710 736 6th Ave. SW
Calgary, Alberta
T2P 3T7
(587) 392-6317

John H. Van de Pol
President & CEO

Kim Benders
Vice President & CFO

Forward-Looking Statements and Information and Cautionary Statements

This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws including, without limitation, those listed under “Risk Factors” and “Forward-looking Statements and Information” in its filings available on SEDAR at The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking statements or information. Forward-looking statements and information in this press release includes, but is not limited to, Briko’s estimated production for 2019 and its anticipated funds flow for 2019. In addition, management’s assessment of future plans and operations, drilling plans, and the timing thereof, capital expenditures, timing of capital expenditures, and methods of financing capital expenditures and the ability to fund financial liabilities, production estimates, expected commodity mix and prices, future operating costs, future transportation costs, expected royalty rates, general and administrative expenses, interest rates, debt levels, funds flow from (used in) operations and the timing of and impact of implementing accounting policies, estimates regarding undeveloped land position and estimated future drilling, completion, recompletion or reactivation locations may constitute forward-looking statements and information under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefit of acquisitions, the inability to fully realize the benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and inability to access sufficient capital from internal and external sources. As a consequence, the Corporation’s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information is based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Briko believes that the expectations and assumptions on which the forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Briko cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include but are not limited to the risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses; failure to obtain necessary regulatory approvals for planned operations; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures; volatility of commodity prices, currency exchange rate fluctuations; imprecision of reserve estimates; and competition from other explorers) as well as general economic conditions, stock market volatility, and the ability to access sufficient capital. We caution that the foregoing list of risks and uncertainties is not exhaustive.

In addition, the reader is cautioned that historical results are not necessarily indicative of future performance. The forward-looking statements and information contained in this press release are made as of the date hereof and Briko undertakes no obligation to update publicly or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Non-IFRS Measures

This press release provides certain financial measures that do not have a standardized meaning prescribed by IFRS. These non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Adjusted funds flow, operating netback, operating income,net operating expenses and net working capital (deficiency) are not recognized measures under IFRS. Management believes that in addition to net income (loss), adjusted funds flow, operating income and operating netback are useful supplemental measures that demonstrate the Corporation’s ability to generate the cash necessary to fund future capital investment. Investors are cautioned, however, that these measures should not be construed as an alternative to net income (loss), determined in accordance with IFRS, as an indication of Briko’s performance. Adjusted funds flow is calculated by adjusting net income (loss) for depletion and depreciation, exploration and evaluation expense, impairment, gain (loss) on sale of property, plant and equipment, share-based payments, unrealized gain (loss) on risk management contracts, accretion and expenditures on decommissioning obligations. Operating netback equals the total of oil and natural gas sales, realized gains or losses on risk management contracts, less royalties, transportation and net operating expenses as calculated on a boe basis. Operating income is calculated in the same method as the operating netback, but is presented on a total basis rather than on a boe basis. Net operating expense is a non-IFRS measure calculated as operating expenses less other income. Other income includes gas processing income earned from fees charged to third parties at facilities where Briko has an ownership interest. Net working capital (deficiency) includes total current assets and current liabilities excluding current lease obligations and short-term derivative assets and liabilities related to the Corporation’s risk management activities.

Oil and Gas Advisory

In this press release, the abbreviation BOE means a barrel of oil equivalent derived by converting gas to oil in the ratio of 6 Mcf of gas to 1 bbl of oil (6 Mcf:1 bbl). BOE may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf:1 bbl, utilizing a conversion ratio on a 6 Mcf of gas to 1 bbl of oil basis may be misleading as an indication of value.