Marksmen Announces Consolidated Financial Results for the Year Ended December 31, 2016 and Operational Update
Marksmen Energy Inc. ("Marksmen" or the "Company") (TSX VENTURE:MAH)(OTCQB:MKSEF) and its wholly owned subsidiary Marksmen Energy USA, Inc. announces financial results for the year ended December 31, 2016. The following documents have been filed on SEDAR:
Highlights for fiscal years ended December 31, 2016 and 2015
Selected financial and operational information for the financial year ended December 31, 2016 is set out below and should be read in conjunction with Marksmen's audited financial statements, the related MD&A and the report on reserves data.
In 2016 Marksmen experienced significant improvements in its financial and production performance over 2015. Oil production and revenue more than doubled, proved reserves more than tripled and probable reserves almost doubled. Negative cash flow from operations was cut in half, and impairment of assets was fully reversed due to improved reserves.
Operational Update and Outlook
In June of 2016 the Company drilled the Davis-Holbrook #1 well and it was put on production in mid-July. It has contributed significantly to the revenue of the Company in the second half of 2016. The total production from this well to December 31, 2016 is 13,223 barrels (9,917 barrels net to Marksmen). As of the end of March 2017 the well has produced an additional 6,113 gross barrels (4,584 net barrels) for a total to date for the well of 19,335 barrels (14,507 barrels net).
The well at Delong Davis #1, drilled in 2015 was deepened in February 2017 at a capital cost of approximately $30,000 USD. The well has improved its production from 1 to 2 gross barrels of oil per day to over 30 gross barrels per day (net 13.5 barrels of oil per day to Marksmen).
Marksmen is currently evaluating offset drilling opportunities on its current land position as well as other land, 3D seismic and drilling opportunities in Ohio.
Marksmen also announces the granting of stock options to purchase 575,000 common shares of the Company to directors, executive officers and consultants subject to regulatory and TSX Venture Exchange approval. The options were issued with an exercise price of $0.10 per share, vest as to one-third (1/3) immediately and one-third (1/3) on each of the first and second anniversaries of the grant date and have a five year term from the date of issuance.
Marksmen is an emerging energy company with an initial focus on exploring and developing light oil assets in Ohio.
SOURCE: Marksmen Energy Inc.
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