Gemini Energy Corp. Reports Year-end Financial Results



    VANCOUVER, March 30 /CNW/ - Gemini Energy Corp. (GNI-TSX) announces the
results of its audited year-end financial statements for the fiscal year
ending December 31, 2006. Any reference in this news release to any dollar
amount is in U.S. dollars unless otherwise stated.

    SUMMARY

    
    -  Cash flow decreased 28% to $11,979,130

    -  EBITDA decreased 32% to $13,695,672

    -  Total revenues decreased 24% to $19,254,575

    -  Net income before taxes decreased 52% to $5,978,656
    

    Gemini's cash flow (1) for the twelve-month period ended December 31,
2006 decreased 28% to $11,979,130 compared to $16,675,743 in 2005. Earnings
before interest, taxes, depreciation and amortization (EBITDA) (2) decreased
32% to $13,695,672 from $20,185,560 in 2005. Total revenue decreased 24% to
$19,254,575 compared to $25,399,547 for the same period in 2005, while net
income decreased 80% to $1,437,358 compared to $7,182,957 for the same period
in 2005. Net income before taxes decreased 52% to $5,978,656 in 2006 from
$12,493,401 in 2005 primarily as a result of decreased revenue resulting from
lower commodity prices, increased professional fees, foreign exchange losses
and interest expenses.
    Net production for the twelve-month period ended December 31, 2006
totaled 3,017 million cubic feet (MMcf) of natural gas and 22.6 thousand
barrels of natural gas liquids, or 3,153 million cubic feet of natural gas
equivalent (MMcfe) averaging 8.64 MMcfe/day. This compares with 3,533 MMcfe
averaging 9.68 MMcfe/day for the same period in 2005.
    Average natural gas prices realized for the twelve months ended
December 31, 2006 decreased 19% to $5.74 per Mcf compared to $7.08 per Mcf
during the same period in 2005. Average condensate prices realized for the
twelve months ended December 31, 2006 increased 18% to $65.59 per barrel
compared to $55.81 during the same period in 2005.
    Direct operating expenses for the twelve-month period ended December 31,
2006 decreased to $8,127,844 ($4,699,985 in non-cash depreciation and
depletion costs, $2,051,074 in State taxes and $1,376,785 in operating
expenses) compared to $9,052,305 ($5,143,551 in depreciation and depletion
costs, $3,188,171 in State taxes and $720,583 in operating expenses) for the
same period in 2005.
    Other expenses and costs for the twelve-month period ended December 31,
2006 increased to $5,148,075 compared to $3,853,841 in the same period 2005.
General and administration expenses decreased to $279,993 compared to $457,680
in 2005. Foreign exchange loss increased to $960,302 compared to a loss of
$543,624 in the same period in 2005. Gemini does not currently hedge its
foreign exchange exposures. Interest expense increased to $3,017,031 compared
to $2,548,608 for the same period in 2005. Cash interest in 2006 was
$1,779,420 and additional interest on the accretion of the convertible
debentures was $1,237,611 compared to cash interest of $1,656,649 and
accretion of $891,959.

    
    Note (1) Cash flow meaning cash flow from operations before net change in
             non-cash working capital is not a recognized measure under
             Canadian GAAP and is offered as a commonly used industry metric
             for comparative purposes only.

    Note (2) EBITDA is defined as earnings before interest, taxes,
             depreciation and amortization and other items. EBITDA is not a
             recognized measure under and is offered as a commonly used
             industry metric for comparative purposes only.


    Reconciliation of cash flow              Twelve Months Ended December 31
    from operations before change
    in net working capital                             2006          2005

    Net cash provided by operating
    activities                                      $8,866,112   $20,817,708

      Accounts payable and
       accrued liabilities                           1,119,469    (2,240,714)
      Prepaid expenses                                  18,492        12,600
      Accounts receivable                           (1,035,926)      253,916
      Income taxes                                   3,010,983    (2,167,767)

    Cash flow from operations
    before change in net working                   $11,979,130   $16,675,743




    Reconciliation of EBITDA                 Twelve Months Ended December 31
    to net income
                                                       2006          2005


    EBITDA                                         $13,695,672   $20,185,560

    Less   Depletion, depreciation and
            accretion                               (4,699,985)   (5,143,551)
           Interest on long-term debt               (3,017,031)   (2,548,608)
           Income taxes-current                       (773,396)   (2,567,767)
           Income taxes - future                    (3,767,902)   (2,742,677)

    Net Income                                      $1,437,358    $7,182,957
    


    Gemini's 2006 Audited Financial Statements, Management Discussion and
Analysis, and Annual Information Form (AIF) are available on SEDAR at
www.sedar.com.

    Gemini Energy Corp. is a public company listed on the Toronto Stock
Exchange with 24,608,642 shares issued. The company's business is focused on
the exploration, development, and production of natural gas and natural gas
liquids at its Pinedale Anticline properties in southwest Wyoming.





For further information:

For further information: Gordon Nielsen at (604) 669-1400 or visit the
Company website at www.GeminiEnergy.com

Organization Profile

GEMINI ENERGY CORP.

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