EMM announces 2009 Operational Results and SEDAR filing of First Quarter 2009 Financial Results, MD&A Production up 60% to 350 boe/d



    
    FOR: EMM Energy Inc.
    TSX VENTURE SYMBOL: M
    

    CALGARY, June 1 /CNW/ - EMM Energy Inc. "EMM" (TSX VENTURE: M) announces
the SEDAR Filing of the Financial Statements for the quarter ended March 31st,
2009 together with the management's discussion and analysis. The complete
reports can be viewed at www.SEDAR.com.

    
    Financial and Operations Highlights
    -----------------------------------
    

    Gross revenue for the three months ended March 31st, 2009 were $1,198,274
which was 6 percent lower than the $1,278,913 recorded in the same period of
2008.
    Cash flow from operations was $190,825 ($0.03/share) for the quarter
ended March 31st, 2009 which was 67 percent lower than the $547,512
($0.09/share) for the same quarter of 2008. The reduction in cash flow was the
result of lower oil and gas prices in 2009.
    Bank debt at March 31st, 2009 was reduced by 45% to $800,000 versus the
$1,450,000 recorded at the end of March 2008.
    The company interest expense was $ 8,572 in the first quarter of 2009
versus $27,176 in the same period of 2008. On a $/boe basis interest expense
was $0.27/boe in 2009 and $1.33/boe in the first quarter of 2008, a reduction
of 80%.
    In the quarter ended March 31st, 2009, EMM produced 350 boe/d net, a 60
percent increase from the 230 boe/d averaged in the same quarter of 2008. This
increased production is mainly from the Ricinus well.
    Gas production was up 96 percent to 1,730 mcf/d for the three months
ended March 31st, 2009 versus 883 mcf/d in the first three months of 2009.
    EMM anticipates improving commodity prices and improving cash flows in
the second half of 2009 and into 2010.
    EMM will continue to develop the potential of core properties through
drilling and re-activations in 2009.

    
    -------------------------------------------------------------------------
                               2009 HIGHLIGHTS
    -------------------------------------------------------------------------


                                               Quarter ended March 31st
    -------------------------------------------------------------------------
                                                2009        2008      Change
    -------------------------------------------------------------------------
    FINANCIAL
    Gross revenue                          1,198,274   1,278,913         (6%)
    Cash flow from operations                190,825     547,512        (65%)
    Per share (basic)                            .03         .09        (67%)
    Per share (diluted)                          .03         .09        (67%)
    Net income (loss)                       (221,009)    285,818       (177%)
    Per share (basic)                          (0.04)        .05       (180%)
    Per share (diluted)                        (0.04)        .05       (180%)
    Capital expenditures                     116,723      14,860        685%
    Bank debt                                800,000   1,450,000        (45%)
    OPERATIONAL
    Production sales
    Oil (bbls/d)                                55.1        65.9        (16%)
    Natural gas (mcf/d)                       1730.0       882.8         96%
    -------------------------------------------------------------------------
    NGL (bbls/d)                                 6.3         9.9        (36%)
    Total (boe/d @ 6 mcf: 1 bbl)            349.7       223.0         60%
    -------------------------------------------------------------------------
    Sulphur Sales (tonnes/d)                    13.3         1.1       1109%
    Average Pricing
    Natural gas ($/mcf)                         5.25        8.43        (38%)
    -------------------------------------------------------------------------
    Oil ($/bbl)                                49.31       91.10        (46%)
    NGL ($/bbl)                                42.62       61.27        (30%)
    Combined ($/boe) (excludes sulphur)        34.51       63.04        (45%)
    -------------------------------------------------------------------------
    Sulphur ($/T)                              91.74      313.36        (71%)
    -------------------------------------------------------------------------
    

    Additional information and detailed financial statements are available on
SEDAR at www.sedar.com

    
    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.
    

    This press release includes forward-looking statements and assumptions
respecting EMM's strategies, future operations, expected financial results,
financial sources, commodity prices, costs of production and oil and natural
gas reserves and discusses certain issues, risks and uncertainties that can be
expected to impact on any of such matters. By their nature, forward-looking
statements are subject to numerous risks and uncertainties that can
significantly affect future results. Actual future results may differ
materially from those assumed or described in such forward-looking statements
as a result of the impact of issues, risks and uncertainties whether described
herein or not, which EMM Energy Inc. may not be able to control. The reader is
therefore cautioned not to place undue reliance on such forward-looking
statements. The forward-looking statements contained in this news release are
made as of the date hereof and EMM undertakes no obligation to update publicly
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by applicable
securities laws.
    The forward-looking statement contained in this news release are
expressly qualified by this cautionary statement. In addition, the term BOE or
BOE's 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 wellhead.





For further information:

For further information: EMM Energy Inc., Brian Boulton, President,
phone: (403) 213-3339

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