FIDDLEHEAD RESOURCES CORP. ANNOUNCES Q3 2024 FINANCIAL RESULTS

Canada NewsWire

CALGARY, AB, Nov. 28, 2024

CALGARY, AB, Nov. 28, 2024 /CNW/ - Fiddlehead Resources Corp. ("Fiddlehead") or the "Company") (TSXV: FHR), is pleased to announce the filing of its unaudited financial and operating results for the three and nine month periods ended September 30, 2024. Selected financial and operating information should be read in conjunction with Fiddlehead's unaudited consolidated financial statements and related management's discussion and analysis ("MD&A") for the three and nine months ended Sept. 30, 2024 and 2023, which are available on SEDAR+ at www.sedarplus.ca and on Fiddlehead's website at www.fiddleheadresources.com.

MESSAGE TO SHAREHOLDERS

During Q3 2024, Fiddlehead closed its transformational acquisition, completed its financing and, on September 10, the subsequent listing of its shares and warrants on the TSX Venture Exchange ("TSXV"). The successful listing was the culmination of a process undertaken through a period of low natural gas prices, and its completion is a testament to the strength of the Company strategy, board and management team, and the assets. The AECO 5A spot price on November 27 was $1.99/Gigajoule ("GJ"). This is almost four times the daily spot price on the date the Fiddlehead shares and warrants were listed on the TSXV, $0.51/GJ, and double the AECO 5A spot price of $0.95/GJ on October 28, one short month ago. Fiddlehead is optimistic about the future of commodity prices through the coming winter months, and is poised to achieve higher realized prices and operating netbacks through 2025. The Company anticipates the completion of the transfer of the licences for the acquired assets by the Alberta Energy Regulator within the next 60 days, giving Fiddlehead full control of the assets. Once the licence transfer is completed, Fiddlehead will provide an operational update and future production and cash flow guidance.

Q3 2024 HIGHLIGHTS

   -- During the third quarter, Fiddlehead completed a share consolidation of 
      one post-consolidation Common Share for every two pre-consolidation 
      Common Shares outstanding; 
 
   -- Fiddlehead closed a private placement of subscription receipts at a price 
      of $0.20 per subscription receipt for aggregate gross proceeds of $10.2 
      million; 
 
   -- Fiddlehead secured a credit facility with a private lender for $13.0 
      million; 
 
   -- The Company also completed the acquisition of the South Ferrier, Strachan 
      area assets on August 29, 2024; 
 
   -- Fiddlehead's acquired assets produced 1,641 boe/d (32% liquids) in 32 
      days of activity; and 
 
   -- Fiddlehead common shares and common share purchase warrants commenced 
      trading on the TSXV. 

The table below summarizes selected highlights from the Company's financial and operating results:

(Expressed in $000s, except per share, price and volumes amounts)

 
                      Three months            Nine months 
                      endedSeptember 30       endedSeptember 30 
                      2024(3)  2023           2024(3)  2023 
OPERATING 
HIGHLIGHTS AND 
NETBACKS(1) 
Average 
production and 
sales 
volumes(3) 
Light oil (bbls/d)        144              -      144              - 
NGLs (bbls/d)             375              -      375              - 
Natural gas (Mcf/d)     6,733              -    6,733              - 
Total (boe/d)           1,641              -    1,641              - 
Average 
realized sales 
prices(3) 
Light oil ($/bbl)       82.85              -    82.85              - 
NGLs ($/bbl)            45.67              -    45.67              - 
Natural gas ($/Mcf)      0.37              -     0.37              - 
Total oil equivalent 
 ($/BOE)                19.22              -    19.22              - 
Netbacks 
($/BOE)(1,3) 
Petroleum and 
 natural gas sales      19.22              -    19.22              - 
Royalties                6.02              -     6.02              - 
Operating expenses      11.38              -    11.38              - 
Transportation 
 expenses                0.11              -     0.11              - 
Operating 
 netback(1,3)            1.71              -     1.71              - 
General and 
 administrative 
 expenses               19.52              -    25.88              - 
Finance costs            5.10              -     5.10              - 
Adjusted Funds Flow 
 Netback(1,2,3)       (22.91)              -  (29.27)              - 
FINANCIAL 
HIGHLIGHTS 
Petroleum and 
 natural gas 
 sales(3)               1,009              -    1,009              - 
Petroleum and 
 natural gas sales, 
 net of royalties(3)      693              -      693              - 
Net loss & 
 comprehensive loss   (1,639)             58  (1,973)             60 
Basic per share        (0.06)           0.01   (0.15)           0.01 
Diluted per share      (0.06)           0.01   (0.15)           0.01 
Cash flow used in 
 operating 
 activities             (902)           (57)  (1,224)           (71) 
Funds flow from 
 operations(1)        (1,063)           (56)  (1,376)           (57) 
Basic per share        (0.04)         (0.01)   (0.10)         (0.01) 
Diluted per share      (0.04)         (0.01)   (0.10)         (0.01) 
Acquisitions           20,085              -   20,085              - 
Total assets           27,263            543   27,263            543 
Total long-term 
 debt, including 
 current portion       11,949              -   11,949              - 
Shareholders' equity    7,825            541    7,825            541 
Weighted average 
 common shares 
 outstanding (000s) 
 -- 
 basic(4)              26,730          6,921   13,596          4,720 
Weighted average 
 common shares 
 outstanding (000s) 
 -- 
 diluted(4)            26,730          6,921   13,596          4,720 
Common shares 
 outstanding (000s), 
 end of period(4)      60,521          6,921   60,521          6,921 
 
 
(1)  "Netbacks" are non-GAAP financial ratios calculated 
      per unit of production. "Operating Netback", and "Adjusted 
      Funds Flow Netback" do not have standardized meanings 
      under IFRS Accounting Standards. See " Non-GAAP Financial 
      Measures " section of the MD&A as at and for the three 
      and nine months ended September 30, 2024 and 2023. 
(2)  "Funds Flow from Operations" ("FFO") does not have 
      standardized meanings under IFRS Accounting Standards. 
      See "Non-GAAP Financial Measures" section of the MD&A 
      as at and for the three and nine months ended September 
      30, 2024 and 2023. 
(3)  The Q3-2024 information includes the results of the 
      operations of the South Ferrier, Strachan assets from 
      August 30, 2024 to September 30, 2024 (32 days). The 
      South Ferrier, Strachan assets were acquired in a 
      transaction that closed on August 29, 2024 (effective 
      April 1, 2024). 
(4)  Common Shares outstanding have been adjusted as a 
      result of the Share Consolidation. 
 

READER ADVISORIES

In this press release, all references to "$" are to Canadian dollars.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Fiddlehead Resources Corp.

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/CONTACT:

For further information concering Fiddlehead Resources Corp., please contact Brent Osmond, Chief Executive Officer and Director, Email: Bosmond@fiddleheadresources.com.

Copyright CNW Group 2024 
 

(END) Dow Jones Newswires

November 28, 2024 19:12 ET (00:12 GMT)