3rd quarter 2007: Revenues rise 6.7% while net earnings increase 24.6%



    TSX: PBC

    MONTREAL, Nov. 12 /CNW Telbec/ - PEBERCAN INC. (the "Company"),
(TSX: PBC) is pleased to disclose its results for the period ended September
30, 2007. All of the amounts referred to in this press release are in U.S.
dollars.

    
    Highlights:
    -----------

    Performance: 3rd quarter of 2007 (compared with 3rd quarter of 2006):

    - Revenues increased by 6.7%, to a total of $29,041,000.
    - Net earnings rose by 24.6%, to $9,234,000 ($0.12 per share).
    - Total production of Block 7 was 1,818,926 barrels (19,771 barrels a
      day).
    - Pebercan's net share of total Block 7 production was 647,900 barrels
      (7,042 barrels a day).
    - Payment instalment agreement.
    - One well currently being drilled in the northern zone of Canasi: second
      duplex.

                  -----------------------------------------------------------
                               Quarter ended       Nine-month period ended
                                September 30                  September 30
    -------------------------------------------------------------------------
    In thousands
     (except data
     by share and
     number of
     wells)              2007           2006           2007           2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Oil sales
     (gross) ($)       29,252         26,116         82,687         78,476
    -------------------------------------------------------------------------
    Drilling
     services ($)        -211          1,094            -25          3,091
    -------------------------------------------------------------------------
    Total
     revenue ($)       29,041         27,210         82,662         81,567
    -------------------------------------------------------------------------
    Net
     earnings ($)       9,234          7,410         26,806         23,467
    -------------------------------------------------------------------------
    Net earnings
     per share,
     basic ($)           0.12           0.10           0.36           0.32
    -------------------------------------------------------------------------
    Net earnings
     per share,
     diluted ($)         0.12           0.10           0.35           0.30
    -------------------------------------------------------------------------
    Internal
     funds
     before
     non-cash
     items ($)         21,018         21,471         63,196         61,639
    -------------------------------------------------------------------------
    Gross
     selling
     price of
     oil ($)            45.15          36.77          38.60          38.09
    -------------------------------------------------------------------------
    Total
     production
     of Block 7
     (thousands
     of barrels)        1,819          1,747          5,321          4,866
    -------------------------------------------------------------------------
    Retroactive
     production
     of Santa
     Cruz
     deposit
     (thousands
     of barrels)                                                       423(1)
    -------------------------------------------------------------------------
    Pebercan's
     share
     (thousands
     of barrels)          648            710          2,142          2,060
    -------------------------------------------------------------------------
    Number of
     wells in
     production
     (end of
     period)               40(2)          32(2)          40(2)          32(2)
    -------------------------------------------------------------------------
    Weighted
     average of
     shares in
     circulation:
    -------------------------------------------------------------------------
    Basic
     shares        74,505,563     74,102,932     74,421,101     73,252,035
    -------------------------------------------------------------------------
    Diluted
     shares        75,598,761     76,067,877     75,638,562     75,646,947
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) The Santa Cruz deposit was declared marketable on June 30, 2006 and
        its production since the 4th quarter of 2006 is included in the Block
        billing for the 2nd quarter of 2006.
    (2) Excluding two wells temporarily closed on Canasi (Canasi 4 since
        February 2004 and Canasi 2 since November 2004).

    -------------------------------------------------------------------------
    In thousands of $                                 As at          As at
     (except for current ratio)                September 30,   December 31,
                                                       2007           2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Cash and cash equivalents                        33,892         15,212
    -------------------------------------------------------------------------
    Working capital                                  86,877         58,951
    -------------------------------------------------------------------------
    Current ratio                                       5.2            2.3
    -------------------------------------------------------------------------
    Oil and gas properties                          134,629        131,123
    -------------------------------------------------------------------------
    Total assets                                    243,627        237,047
    -------------------------------------------------------------------------
    Shareholders' equity                            187,416        160,309
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Results for the 3rd quarter of 2007
    -----------------------------------

    The total production of Block 7 for the 3rd quarter of 2007 was
1,818,926 barrels (19,771 barrels a day), compared with 1,747,034 barrels
(18,990 barrels a day) for the 3rd quarter of the previous fiscal year, which
represents an increase of 4.12%.
    Pebercan's net share of Block 7 production for the 3rd quarter of 2007
was 647,900 barrels (7,042 barrels a day), compared with 710,341 barrels
(7,721 barrels a day) for the 3rd quarter of 2006, a drop of 8.8%. This drop
is in large part due to the decreased portion of recoverable costs as at the
3rd quarter of 2007 (versus the 3rd quarter of 2006), compared to total
production for the quarter.
    Pebercan's revenues rose by 6.7% during the 3rd quarter ended
September 30, 2007, to reach $29,041,000 compared with $27,210,000 for the
same period in 2006.
    These revenues are partly comprised of revenues from oil sales, which
rose by 12% to reach $29,252,000, compared with $26,116,000 in the 3rd quarter
of 2006. During the first nine months of 2006, these revenues increased as a
result of earnings from drilling activities, which totalled $1,094,000. The
Company ceased all such activity in March 2007.
    As a result of growing revenues linked to the increased recovery of oil
interests and the subsequent hike in sales of oil, combined with a sharp rise
in the selling price of oil, Pebercan posted net earnings of $9,234,000 ($0.12
per basic and diluted share) as at the 3rd quarter of 2007, compared with
$7,410,000 ($0.10 per basic and diluted share) as at the 3rd quarter of 2006.
This represents an increase of 24.6%. This increase is primarily related to
the rise in the price of oil billed, which was at $45.15 a barrel as at the
3rd quarter of 2007, compared with $36.77 a barrel for the 3rd quarter of the
previous year, and this for a total Block 7 production of 19,771 barrels per
day as at the 3rd quarter of 2007 (compared with 18,990 barrels a day as at
the same quarter in 2006).

    Results for the first nine months of 2007
    -----------------------------------------

    For the first nine months of 2007, the total production of Block 7 was
5,321,567 barrels (19,493 barrels a day), a 0.6% increase.
    Pebercan's net share of the total production of Block 7 for the first
nine months of 2007 was 2,075,450 barrels, compared with 1,985,324 for the
same period in 2006, representing an increase of 4.5%.
    For the first nine months of 2007, Pebercan grew its revenues related to
the sale of oil by 5.4% to reach $82,687,000, compared with $78,476,000 for
the first three quarters of 2006. This increase is largely due to increased
oil production, improved recovery of interests in oil on Block 7, and a
significant hike in the selling price of oil.
    Revenues from drilling services for the first nine months of 2006 were
$3,091,000. Pebercan stopped its drilling activities in March of 2007. These
services generated gross profit of $503,000 for the first nine months of 2006.
    Pebercan enjoyed net earnings of $26,806,000 ($0.36 per basic share and
$0.35 per diluted share) for the first nine months of 2007, compared with net
earnings of $23,467,000 ($0.32 per basic share and $0.31 per diluted share)
for the same period in 2006. This rise is explained by increased oil
production, additional recovery of interests in oil, and the strong hike in
the selling price of oil.

    Financial situation
    -------------------

    The Company's working capital remained high at $86,877,000, compared with
$58,951,000 at the close of the last fiscal year. The company negotiated an
agreement with Cupet for spreading out current and future payments in the
amount of US$118.9 million (including the current outstanding amount of
US$84 million) from November 2007 to November 2008. The agreement is secured
through the arrangement of letters of credit guaranteed by the Banco National
de Cuba. This agreement will provide satisfactory conditions for the Company
as it contemplates the 2008 budget.

    Major investments
    -----------------

    During the 3rd quarter of 2007, exploration and oil property development
projects were undertaken at a cost of $14,086,000 ($32,214,000 for the same
period in 2006). During the first nine months of 2007, total investments of
$38,134,000 (versus $62,604,000 for the first nine months of 2006) were made.

    Forward-looking statements
    --------------------------

    Management intends to continue developing its concessions in the Republic
of Cuba. In this regard, it is continuing to develop its Canasi, Seboruco and
Santa Cruz deposits.
    During the coming quarter, Pebercan plans to continue developing and
operating its deposits currently in production in Block 7: Santa Cruz, Canasi
and Seboruco, while also going forth with its northern expansion in the Canasi
field. Between now and the end of the year, the Company will be drilling two
additional wells (one on Santa Cruz and one on Canasi) to test the potential
of the northern zone of the deposit, referred to as the second duplex. The
drilling campaign will be financed out of the Company's working capital.
    Pebercan is also keeping abreast of any diversification opportunities,
namely the exploration, development and mining of oil and gas deposits outside
of Cuba.
    Pebercan's interim consolidated financial statements and management
report for the period ended September 30, 2007 are available on our Web site
at www.pebercan.com, as well as on SEDAR's Web site, at www.sedar.com.
    Pebercan Inc. is committed to the exploration, development and mining of
oil reserves in the Republic of Cuba. Pebercan sells all of its production to
the Cuban government, but is not bound by any restrictions regarding the sale
of its oil. The Company stock is listed on the TSX under the symbol PBC.

    Legal Notice - Forward-Looking Statements

    The forward-looking statements contained in this press release involve a
number of known and unknown risks and uncertainties as well as other factors,
the effect of which may be that the Company's actual results, performance and
accomplishments differ significantly from the future results, performance and
accomplishments stated or implied in such forward-looking statements. The
Company has no obligation to update or modify such forward-looking statements,
either as a result of new information, future events or for any other reason,
and we expressly deny any such obligation in relation thereto. The Company's
most recent annual and interim reports and other documents filed with the
relevant securities commissions and regulators in Canada contain important
additional information on such risks and uncertainties.
    %SEDAR: 00004118EF




For further information:

For further information: Renmark Financial Communications Inc.: Henri
Perron: hperron@renmarkfinancial.com; Dan Symons:
dsymons@renmarkfinancial.com; Media - Vanessa Napoli:
vnapoli@renmarkfinancial.com; (514) 939-3989, Fax: (514) 939-3717; PEBERCAN
Inc.: Christophe Ranger - cranger@pebercan.com, (514) 286-5200, Fax: (514)
286-5177

Organization Profile

PEBERCAN INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890