Frequently Asked Questions
(Updated August 2011)
Q: What is Winstar's production?
A: Winstar produced an average of 1,531 barrels of oil equivalent per day during the nine months ending September 30, 2011, weighted 72% to oil and liquids and 28% to natural gas, 100% of production is from Tunisia.
Q: What is Winstar's cash flow?
A: The Company generated funds from continuing operations for the three and nine months ended Sept. 30, 2011, of $7.1 million and $25.2 million respectively.
Q: What is Winstar's debt?
A: As of Sept. 30, 2011, Winstar had working capital of $3.6 million, which included no bank debt. Winstar maintains a $10.0 million undrawn line of credit.
Q: How extensive is Winstar’s undeveloped land position?
A: Winstar has three to four years of exploration inventory on 143,081 net acres in Tunisia. In April 2008, Winstar finalized a major joint venture agreement with the Rompetrol Group of Romania. As part of the agreement, Winstar has agreed to fulfill certain commitments to earn a 60% interest in the onshore Satu Mare concession in northwestern Romania. The Satu Mare concession consists of 728,710 acres. Rompetrol holds the right to explore for and produce hydrocarbons from the Satu Mare concession through September 2033.
Q: Why should someone consider investing in Winstar?
A: Winstar offers proven drilling success in Tunisia along with high impact development and exploration opportunities in southern Tunisia, as well as exploration upside in Romania. The Company has an experienced management team and board of directors, and significant built-in opportunities.
Q: What is Winstar’s net asset value per share?
A: Winstar estimates its after tax net asset value per share at $6.25 based on December 2010 oil and natural gas reserves and financials. The reserves have been calculated after tax, using an escalated price deck at present value discounted 10%, based on an independent appraisal for total proved and probable reserves and no land value attributed to the Company’s vast acreage in Tunisia, Hungary and Romania. Following testing of the company's first silurian exploration well, CS Sil #1, an interim reserve evaluation was obtained dated March 1, 2011, which estimated an incremental value of $1.26 per share, after tax discounted at 10%.
Q: Who are Winstar’s reserves engineers?
A: Winstar’s reserves for Tunisia are independently evaluated by RPS Energy of Calgary .
Q: How many shares does Winstar have outstanding?
A: As of Sept. 30, 2011, Winstar had 35.7 million common shares outstanding.
Q: What is Winstar’s taxation rate in the countries in which it operates?
A:In Tunisia, each concession has independent tax and royalty rates. Depending on the concession, taxation rates range from 35% to 75% based on a fixed or r-factor basis. Income taxation is done at the concession level and Winstar pays no corporate income tax. Royalties in Tunisia range from 2% to 15%.
In Romania, corporate tax rates are 16%, and an oil and gas royalty of 3.5% to 13.5%. This royalty rate is volume related (must be producing more than 8,000 bopd to pay maximum 13.5%).