AltaCanada Energy Corp. announces Q2 results



    TSX-V SYMBOL: ANG

    CALGARY, Aug. 28 /CNW/ - AltaCanada Energy Corp. is pleased to present
operating and financial highlights for the second quarter of 2009. Complete
details in the Report to Shareholders are available on our website
(www.altacanada.com), on SEDAR at www.SEDAR.com, or from the Corporation.
    AltaCanada is operating in a challenging environment as a gas producer
with a relatively high amount of leverage at a low point in the commodity
price cycle.
    A year ago we reported $10.69/mcf as the average gas price received for
the 2nd quarter of 2008. This quarter our gas price averaged $3.41/mcf and
continues to soften. The combination of falling US industrial demand, and
abundant unconventional gas sources developed by new technologies has changed
the natural gas business. Fortunately, AltaCanada remains a low cost producer
and we have hedged a significant amount of gas production for 2009. Although
the Corporation's production and cash flow continues to decline with the
absence of new capital investment, the prospects on the Corporation's lands
remain excellent. AltaCanada has a substantial land base of 270,000 net acres
in Montana, a very substantial number of undrilled gas prospects and the
infrastructure to bring new production to market. New gas developments are
predicted to yield neutral economics at natural gas prices of between $3.00
and $3.50 per MMBTU.
    Our Corporation's Montana acreage is highly prospective for oil, offering
both Jurassic and Bakken targets on trend with major oil developments that
have attracted considerable interest in Canada. Land and transaction values
continue to climb immediately north of the border in southwest Saskatchewan
for the same Shaunavon oil play we have in Montana.
    AltaCanada is fortunate to have had strong gas hedges in place through to
the first quarter of 2010. Twenty-nine percent of our revenue in this quarter
is from net hedging gains. However the declining price for the past quarter
has severely reduced our revenues. A 68 percent decline in price over Q2 2008
resulted in a decline in sales revenues of $0.9 million in Q2 2009 compared to
Q2 2008. Our hedging program offset some of this decline but the corporation
still experienced a negative cash flow of $0.3 million in the quarter. We will
reduce operating and administrative expenses in order to return to a positive
cash flow position.
    No drilling or other exploration expense occurred in this quarter and the
only capital expenditure related to Q1 activity tying in wells on Fort
Belknap. Capital spending for gas will be minimal. If gas prices recover in
2010, our shallow depth lower cost gas will benefit first. Low cost additions
such as fracturing additional zones in presently producing wells could be
completed quickly.
    Our challenge in the coming months will be to fund the oil and gas
opportunities in AltaCanada through new equity, a farmout, or some form of
business combination with another entity that is appropriately capitalized. We
have a strategy of pursuing these opportunities and have reasonable prospects
for success in the near term. Our oil prospects offer considerable upside to
our stakeholders in the short-term and our long-term risk is backstopped by
our inventory of natural gas projects. The activities of the Corporation are
clearly scalable and our prospects are good despite current challenges.

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

       BOES MAY BE MISLEADING, PARTICULARLY IF USED IN ISOLATION. A BOE
    CONVERSION RATIO OF 6 MCF : 1 BBL IS BASED UPON AN ENERGY EQUIVALENCY
    CONVERSION METHOD PRIMARILY APPLICABLE AT THE BURNER TIP AND DOES NOT
               REPRESENT A VALUE EQUIVALENCY AT THE WELLHEAD.
    

    The corporate information contained in this news release may contain
forward-looking forecast information. The reader is cautioned that assumptions
used in the preparation of such information, although considered reasonably
accurate by AltaCanada Energy Corp. at the time of preparation, may prove to
be incorrect. The actual results achieved during the forecast period will vary
from the information provided herein and the variations may be material.
Consequently there is no representation by AltaCanada Energy Corp. that actual
results achieved during the forecast period will be the same in whole or in
part as those forecast.

    
    HIGHLIGHTS
                                      Three Months             Six Months
    Period Ended June 30
     (unaudited)                    2009        2008        2009        2008
    -------------------------------------------------------------------------
    FINANCIAL
    Total Revenue ($)            904,211   1,459,680   2,275,334   2,584,550
    Cash Flow (Deficit)
     from Operations ($)        (275,646)    253,467    (721,316)    754,743
    Per Common Share ($) -
     Basic/Diluted                  0.00        0.00       (0.01)       0.01
    Net Loss and
     Comprehensive Loss ($)   (1,053,067) (1,360,164) (1,948,229) (2,549,060)
    Per Common Share ($) -
     Basic/Diluted                 (0.01)      (0.02)      (0.03)      (0.04)
    Capital Expenditures ($)     438,708   2,696,811   1,884,067   3,260,875
    Net Debt at June 30 ($)                           15,792,731  11,408,365
    Shareholders' Equity at
     June 30 ($)                                      22,843,161  25,221,454
    Total Assets at June 30 ($)                       41,388,412  41,780,695
    Common Shares - (weighted
     average for the period)
      Basic                   74,381,538  69,680,989  74,381,538  67,957,912
      Diluted                 74,381,538  69,680,989  74,381,538  67,957,912
    Common Shares -
     (outstanding June 30)                            74,381,538  74,381,538
    -------------------------------------------------------------------------
    OPERATIONS
    Average Daily Sales:
      Natural Gas (Mcf/d)          2,004       2,482       2,043       2,823
      Oil and NGL (Bbls/d)             6           6           5           6
      Total (BOE/d)                  340         420         346         476
      % Gas/Oil Ratio               99/1        99/1        99/1        99/1
    Average Prices:
      Natural Gas ($/Mcf)           3.41       10.69        4.23        9.00
      Oil and NGL ($/Bbl)          38.24       55.90       31.64       55.44
      Total ($/BOE)                20.75       64.03       25.46       54.03
    -------------------------------------------------------------------------
    WELLS DRILLED
      Gross                            -           -           5           1
      Net                              -           -         2.7        0.25
    Gross Success Rate (%)                                   100
    -------------------------------------------------------------------------
    





For further information:

For further information: Don Foulkes, President, Telephone: (403)
265-9091 (ext 248), Fax: (403) 256-9021, Email: info@altacanada.com

Organization Profile

ALTACANADA ENERGY CORP.

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