Diaz announces year end results and reserves summary



    CALGARY, April 2 /CNW/ - Diaz Resources Ltd. (TSX: DZR) ("Diaz")
announces that it has filed its 2008 MD&A, Financial Statements, and Annual
Information Form ("AIF").
    Diaz's 2008 revenue and cashflow results were improved over the prior
year resulting from strong commodity prices during the first, second and third
quarters and an overall increase in natural gas production for the year.
    Revenue for 2008 totalled $15.1 million compared with $12.1 million for
2007. Cash flow from operations increased to $7.7 million, or $0.12 per share
compared with $5.4 million or $0.08 per share in 2007. Diaz reported a loss
for the year of $4.1 million or ($0.06) per share versus a loss of $1.6
million or ($0.02) per share in 2007 as it took an impairment write down
against its oil and gas assets of $2.7 million.
    Capital expenditures for 2008 totalled $7.9 million compared with $10.9
million in 2007 and were financed primarily from cash flow.
    Diaz completed 2008 with a net current debt of $8.4 million versus $8.5
million at the beginning of the year. Diaz also had outstanding convertible
debentures of $7.1 million that mature on March 26, 2012.
    The Company's production for the year ended December 31, 2008, increased
2% to 886 BOEd compared with the prior year average of 865 BOEd; however,
fourth quarter production increased by 13% to average 871 BOEd compared with
the Q4 2007 average rate of 773 BOEd.
    In the U.S. production rates fell by 24% as mature well production
declines were partially offset by production from the Black Owl field. In
Canada, production increased 19% as new production from Leahurst, Big Bend,
Retlaw, Lloydminster and Carmangay offset production declines in mature wells.
    The independent engineering evaluation of Diaz's properties assigned
proved reserves before royalties of 1.9 million BOE and total reserves before
royalties totaled 3.7 million BOE at December 31, 2008. These reserve
estimates result in a before tax present value of estimated future net
revenues, discounted at 10%, of $59.4 million. There is no assurance that this
represents the fair value of the assets.
    Diaz plans to match capital spending to operating cashflows and has
halted the majority of new projects until gas prices improve over current
levels. Diaz's future exploration program will focus on developing its
Canadian properties which can be managed within the Company's capital budget.

    
                     SUMMARY OF OIL AND GAS RESERVES AND
                  NET PRESENT VALUES OF FUTURE NET REVENUE
                           AS OF DECEMBER 31, 2008
                          FORECAST PRICES AND COSTS

                                              RESERVES
                        -----------------------------------------------------
    COMPANY TOTAL           LIGHT AND
    -------------           MEDIUM OIL        HEAVY OIL        NATURAL GAS
                          Gross     Net     Gross     Net     Gross     Net
    RESERVES CATEGORY     (MBbl)   (MBbl)   (MBbl)   (MBbl)   (MMcf)   (MMcf)
    -------------------------------------------------------------------------
    PROVED
      Developed
       Producing            109       88        -        -    5,144    4,047
      Developed
       Non-producing         35       31        -        -    1,099      877
      Undeveloped             2        1        -        -        -    3,307
    TOTAL PROVED            146      120        -        -   10,172    8,231

    PROBABLE                 68       56        -        -    9,980    7,653

    TOTAL PROVED PLUS
     PROBABLE               214      176        -        -   20,152   15,884
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                            RESERVES      RESERVES RESERVES
                        ----------------- -------- --------
    COMPANY TOTAL          NATURAL GAS
    -------------            LIQUIDS       TOTAL    TOTAL
                          Gross     Net    Gross     Net
    RESERVES CATEGORY     (MBbl)   (MBbl)  (MBOE)   (MBOE)
    ------------------------------------- -------- --------
    PROVED
      Developed
       Producing             25       15      992      778
      Developed
       Non-producing          1        -      219      177
      Undeveloped            29       18      686      570
    TOTAL PROVED             55       33    1,897    1,525

    PROBABLE                 37       23    1,769    1,354

    TOTAL PROVED PLUS
     PROBABLE                92       56    3,666    2,879
    ------------------------------------- -------- --------
    ------------------------------------- -------- --------



                                   NET PRESENT VALUES OF FUTURE NET REVENUE
                                 --------------------------------------------
    COMPANY TOTAL                             BEFORE INCOME TAXES
    -------------                          DISCOUNTED AT (% per year)
                                      0        5       10       15       20
    RESERVES CATEGORY               (MM$)    (MM$)    (MM$)    (MM$)    (MM$)
    -------------------------------------------------------------------------
    PROVED
      Developed Producing           27.0     22.9     19.9     17.7     16.0
      Developed Non-producing        7.3      4.5      3.2      2.5      2.0
      Undeveloped                   18.6     11.6      7.8        -      3.8
    TOTAL PROVED                    52.9     39.0     30.9     25.6     21.8

    PROBABLE                        61.8     40.7     28.5     20.9     15.9

    TOTAL PROVED PLUS PROBABLE     114.7     79.7     59.4     46.5     37.7
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                   NET PRESENT VALUES OF FUTURE NET REVENUE
                                 --------------------------------------------
    COMPANY TOTAL                             AFTER INCOME TAXES
    -------------                          DISCOUNTED AT (% per year)
                                      0        5       10       15       20
    RESERVES CATEGORY               (MM$)    (MM$)    (MM$)    (MM$)    (MM$)
    -------------------------------------------------------------------------
    PROVED
      Developed Producing           26.0     21.9     19.1     16.9     15.3
      Developed Non-producing        7.3      4.5      3.2      2.5      2.0
      Undeveloped                   14.0      9.0      6.1      4.2      3.1
    TOTAL PROVED                    47.3     35.4     28.4     23.6     20.4

    PROBABLE                        41.6     27.3     19.1     14.1     10.6

    TOTAL PROVED PLUS PROBABLE      88.9     62.7     47.5     37.7     31.0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Further information regarding financial and operating results may be
obtained at www.sedar.com, where the Company's MD&A and financial statements
have been filed.
    Dias has also filed its Annual Information Form which includes the
Company's reserves data and other oil and gas information for the year ended
December 31, 2008, as mandated by National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities of the Canadian Securities
Administrators. Copies of Diaz's AIF may be obtained at www.sedar.com.


    
    Summary of Operations

    (Thousands, except per share amounts)            Years Ended December 31
                                                    -------------------------
                                                           2008         2007
    Financial
      Total revenue                                  $   15,099   $   12,082
      Cash flow from operations                           7,737        5,429
        per share, diluted                                 0.12         0.08
      Loss for the period                                (4,087)      (1,605)
        per share, diluted                                (0.06)       (0.02)
      Capital additions                                   7,778       10,853
      Dispositions                                           74          853
      Net current debt                                    8,449        8,542
      Convertible debentures(*)                           6,094        5,832
      Total assets                                       56,761       60,794
      Total shares outstanding at period end             67,178       67,239

    Operations
      Production
        Gas (MMcfd)                                         4.5          4.6
        Oil (Bopd)                                          140           97
        BOEd (6 Mcf equals 1 Bbl)                           886          865
      Product Prices
        Gas ($/Mcf)                                  $     8.32   $     7.17
        Oil ($/Bbl)                                  $    86.08   $    67.39
    -------------------------------------------------------------------------

      Reserves (proved plus probable, future
       costs and prices)
        Gas (Bcf)                                          20.2         26.7
        Oil (MBbl)                                        227.0        373.0
        BOE (Millions)                                      3.7          4.8

      Net present value of future net revenue,
       before tax ($Millions at 10%)(xx)             $     59.4   $     83.2

      Undeveloped land holdings (net acres)
        Canada                                           50,108       46,581
        United States                                     4,321        1,853
      Total net acreage                                  54,429       48,434
    -------------------------------------------------------------------------
    (*)  Convertible debentures issued in Q1 2007, have a face value of
         $7.1 million and mature on March 26, 2012. See Note 8, "Convertible
         Debentures", in the notes to the financial statements for the year
         ended December 31, 2008.

    (xx) Net present value of future net revenue does not represent fair
         market value of reserves.
    


    Diaz is an oil and gas exploration and production company based in
Calgary, Alberta. Diaz's current focus is on gas and oil development and
exploration in Alberta, Saskatchewan and Texas.

    ADVISORY: Certain information regarding the Company in this News Release
including management's assessment of future plans and operations, the use of
proceeds from the offering and the anticipated closing date of the offering,
may constitute forward-looking statements under applicable securities laws and
necessarily involve risks including, without limitation, risks associated with
oil and 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, capital expenditure costs, including drilling, completion and
facilities costs, unexpected decline rates in wells, wells not performing as
expected, incorrect assessment of the value of acquisitions, failure to
realize the anticipated benefits of acquisitions, delays resulting from or
inability to obtain required regulatory approvals and ability to access
sufficient capital from internal and external sources. As a consequence,
actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could affect the Company's operations and financial results are included
in reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com) and at the Company's
website (www.diazresources.com). 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 TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    





For further information:

For further information: Robert W. Lamond, Chairman, or Donald K. Clark,
Chief Operating Officer, Diaz Resources Ltd., Telephone: (403) 269-9889, Fax:
(403) 269-9890, Website: www.diazresources.com, Email: info@diazresources.com,
TSX: DZR

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DIAZ RESOURCES LTD.

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