TSXV Symbols: AE.A and AE.B
46,466,259 Class A Shares
753,014 Class B Shares
CALGARY, Aug. 27 /CNW/ - Anterra Energy Inc. ("Anterra" or the "Company")
today released its financial and operating results for the three months and
six month periods ending June 30, 2009. The full text of the Company's
unaudited interim financial statements and related management's discussion and
analysis ("MD&A") can be found at: www.sedar.com and on the Company's website
- Funds flow from operations for the quarter of $25,315 reflected an
improvement on the negative ($143,458) in the first quarter but was
significantly lower than the $690,022 reported in the second quarter
of 2008. The effect of stronger oil prices during the quarter was
offset by reduced gas prices and declines in production. The average
commodity price for the quarter was $48.62/boe compared to $38.76/boe
in the first quarter and $100.62/boe in the second quarter of 2008.
- Average production for the quarter of 177 barrels of oil equivalent
per day (boepd) compared to average production of 184 boepd in the
first quarter of 2009, and 225 boepd in the second quarter of 2008.
- Net loss was $439,964 for the quarter compared to a loss of $52,764
for the same quarter a year earlier. Net loss for the six month
period ended June 30, 2009 was $985,945, compared to a loss of
$33,771 for the same period in 2008.
- The midstream business delivered second quarter operating margin of
$131,628, compared to $101,246 for the same period in 2008.
At current prices, funds flow from operations is expected to be minimal
in the third quarter.
Anterra continues to see improvement in its working capital with over $1
million in creditor settlements finalized to date. Funds flow remains minimal
as demonstrated in the second quarter due to the difficulty in maintaining
production with limited free cash available for maintenance and well
improvements. Management continues to work with the Company's lender with the
bank credit line currently established at $5.25 million; however the Company
remains in default of its credit facility due primarily to its working capital
deficit currently estimated at approximately $1 million. Management is
negotiating a forbearance agreement with its lender.
The Company continues to pursue development of its 10,000 acres of Lower
Shaunavon lands in SW Saskatchewan. There is no value attributed to these
lands either in the Company's reserve report or in the market value of the
Company's shares. Management continues to target the drilling of at least one
horizontal well on these lands prior to year end 2009. The $1 million required
to fund this project will need to be raised through the sale of equity or
through industry or financial partnerships.
Despite difficult industry conditions combined with financial
difficulties for the Company, the board of directors and management are
confident that the Company's focus on pursuing resource projects in
Saskatchewan will eventually provide a pathway to value recognition for
Anterra shareholders. The Company appreciates the continued support of its
major shareholders who recently invested a further $400,000 in a small equity
offering of the Company's shares.
About Anterra Energy
Anterra Energy is an independent exploration, development and production
company with an emerging focus on the use of advanced technologies including
3-D imaging, horizontal drilling and multi-stage completions to systematically
develop its portfolio of conventional and non-conventional oil and gas
projects. Complementing this strong exploitation and development focus, the
Company owns and operates fee-based midstream facilities in western Canada.
Anterra is a public Canadian company listed on the TSX Venture Exchange under
the symbols AE.A and AE.B. More information about Anterra is available on the
internet at www.anterraenergy.com.
This news release contains certain forward-looking statements, which
include assumptions with respect to (i) production; (ii) future capital
expenditures; (iii) funds flow from operations; (iv) debt levels; (v) working
capital; and (vi) commodity prices. The reader is cautioned that assumptions
used in the preparation of such information may prove to be incorrect. All
such forward-looking statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond the Company's control. Such
risks and uncertainties include, without limitation, the ability of the
Company to reach settlement with certain of its creditors, risks associated
with oil and natural gas exploration, development, exploitation, production,
marketing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada and the United
States, industry conditions, changes in laws and regulations (including the
adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability
of qualified personnel or management, fluctuations in foreign exchange or
interest rates, and stock market volatility. The Company's actual results,
performance or achievements could differ materially from those expressed in,
or implied by, these forward-looking statements and, accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do, what
benefits, including the amount of proceeds, the Company will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
All subsequent forward-looking statements, whether written or oral,
attributable to the Company or persons acting on its behalf are expressly
qualified in their entirety by these cautionary statements. Furthermore, the
forward-looking statements contained in this news release are made as at the
date of this news release and the Company does not undertake any obligation to
update publicly or to revise any of the included forward-looking statements,
whether as a result of new information, future events or otherwise, except as
may be required by applicable securities laws.
The term BOE or BOEs may be misleading, particularly if used in
isolation. A BOE (barrel of oil equivalent) conversion ratio of 6 mcf per one
(1) BOE is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
Funds flow from operations is not a recognized measure under Canadian
generally accepted accounting principles (GAAP). However, management believes
that funds flow from operations is a useful measure of financial performance
as management believes it is a commonly accepted measure in the industry which
is useful for knowledgeable investors for comparison purposes. For the
purposes of funds flow from operations calculations, funds flow is defined as
"Funds flow from operations" before changes in non-cash operating working
capital. Anterra's determination of funds flow from operations may not be
comparable to that reported by other companies. Operating margin is not a
recognized measure under GAAP; however management believes it is a useful
measure of financial performance for assessing the operations of the Company.
Operating margin is defined as revenue less operating costs, both of which are
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Owen C. Pinnell, Chairman and Chief Executive
Officer, Anterra Energy Inc., Telephone: (403) 215-2427, Facsimile: (403)
261-6601, E-mail: firstname.lastname@example.org; Bill Johnson, President and
Chief Operating Officer, Anterra Energy Inc., Telephone: (403) 215-2384,
Facsimile: (403) 261-6601, E-mail: email@example.com