EMM announces 2009 Operational update and SEDAR filing of 2008 Financial Results, MD&A and Year-End Reserves



    
    2008 Net Income 15 cents per share up over 600%

    Cash flow increased 139% to 55 cents per share

    TSX VENTURE SYMBOL: M
    

    CALGARY, April 30 /CNW/ - EMM Energy Inc. "EMM" (TSX VENTURE:M) is
pleased to announce SEDAR Filing of the 2008 Annual Financial report,
Management Discussion and Analysis. The complete reports can be viewed at
www.SEDAR.com
    Cash flow from operations was $3.48 million for 2008 up 128% from 2007.
Field net backs improved by 75% to $41.39/boe in 2008 over $23.62 /boe in
2007.
    Cash flow from operations was 55 cents per share in 2008. The improved
cash flow resulted from improved operating net backs, with the strong
commodity pricing through most of 2008. EMM's production was 230 boe/d for
2008 up 30% from the 177 boe/d produced in 2007. EMM's exit production rate
was 329 boe/d for December 2008.
    2008 net income was $970 thousand a jump of over 500% from the $141
thousand recorded in 2007. On a per share basis net income was 15 cents per
share versus 2 cents per share in 2007.
    Bank debt and working capital deficiency was reduced by 29% to $1.019
million at year end 2008 compared to $1.436 million in 2007.

    
    2009 Operations Update
    ----------------------
    
    EMM is currently producing about 350 boe/d net, a 52% increase from the
230 boe/d averaged in 2008. This increased production is mainly from the
Ricinus well.
    The Ricinus well attained payout in the fourth quarter of 2008 and EMM
Energy Inc. converted the 3.5% GORR to a 20% working interest. EMM's net
production from the Ricinus well is now approximately 190 boe/d.
    EMM anticipates improving commodity prices and a recovery to cash flows
in the second half of 2009. EMM will continue to develop the potential of core
properties through drilling and re-activations in 2009.
    EMM plans to maintain a prudent capital expenditure program in 2009 given
the current commodity price uncertainty. The Corporation's forecast for 2009
includes a capital spending program of $0.65 million on low risk re-entries,
development drilling opportunities identified at Queenstown and Lomond.

    
    -------------------------------------------------------------------------
                        2 0 0 8   H I G H L I G H T S
    -------------------------------------------------------------------------

                                                      Year Ended December 31
    -------------------------------------------------------------------------
    (Thousands unless otherwise noted)                2008     2007   Change
    -------------------------------------------------------------------------

    FINANCIAL
    Gross revenue                                    6,072    3,254      86%
    Cash flow from operations                        3,480    1,522     128%
      Per share (basic)                               0.55     0.24     139%
      Per share (diluted)                             0.55     0.24     139%
    Net income                                         970      141     588%
      Per share (basic)                               0.15     0.02     650%
      Per share (diluted)                             0.15     0.02     650%
    Capital expenditures                             1,885      756     149%
    Bank debt                                          350    1,750     (80%)
    Bank debt and working capital deficiency         1,019    1,436     (29%)
    Shares outstanding (weighted average)
      Basic                                          6,292    6,344      (1%)
      Diluted                                        6,292    6,344      (1%)

    OPERATIONAL
    Natural gas sales (mcf/d)                          934      682      37%
      Average sales price ($/mcf)                     8.09     6.62      22%
    -------------------------------------------------------------------------
    Oil sales (bbls/d)                                  65       53      22%
      Average sales price ($/bbl)                   101.54    72.55      40%
    -------------------------------------------------------------------------
    NGL sales (bbls/d)                                   9       10     (12%)
      Average sales price ($/bbl)                    71.74    52.98      35%
    -------------------------------------------------------------------------
    Total sales (boe/d 6:1)                            230      177      30%
      Average sales price ($/boe)                    72.21    50.33      43%
      Field netback ($/boe)                          41.39    23.62      75%
    -------------------------------------------------------------------------

    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 forwardlooking 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

Organization Profile

EMM ENERGY 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