WINNIPEG, May 28 /CNW/ - Donald Benson, Chairman and Chief Executive Officer of Nordic Oil and Gas Ltd. ("Nordic" or "the Company") today announced the Company's financial results from operations for the three-month period ended March 31, 2010. All amounts referenced herein are in Canadian dollars.
Revenue from oil and natural gas sales (including liquids and transport revenue) during the first quarter of 2010 totaled $129,911 compared to $258,668 in Q1 2009 - a 49.7% decrease. When adding interest earned, the Q1 2010 revenue becomes $130,890, as compared to $261,220 last year - a 49.9% decrease. The decrease over last year is due to the fact that many of the heavy oil wells in Lloydminster were not producing for an extended period of time during the quarter.
Total assets, including cash, short-term investments, deposits and accounts receivable at the end of the first quarter were $16,834,451 up significantly from the $12,686,306 at the end of the first quarter in 2009, and down slightly from the 2009 year end total of $17,357,549.
The net loss for the period before taxes was higher than that recorded during Q1 2009 - $366,682 versus $293,443, while the net loss for the quarter after applying the future income tax recovery was $272,525 as opposed to $232,132 in Q1 2009. The increase in the 2010 loss can largely be attributed to the drop in revenue incurred during the quarter. Net loss per share in Q1 2010 was $0.004 compared to a net loss per share of $0.006 in Q1 2009.
Long-term liabilities at the end of March 2010 totaled $7,141,868, up from the $3,857,627 in Q1 2009, but down approximately $800,000 from the $7,903,111 reported at December 31, 2009.
Overall expenses, not including production costs for the quarter under review, decreased marginally to $284,427 from the $284,880 for the same period last year. The primary reason for the decrease in total expenses was the drop in stock option expenses to zero from $48,052. Production costs for the quarter were also down when compared to 2009 - $213,145 this year versus $269,783, a decrease of more than $36,000.
About Nordic Oil and Gas Ltd.
Nordic Oil and Gas Ltd. is a junior oil and gas company engaged in the exploration and development of oil, natural gas and Coal Bed Methane in Alberta and Saskatchewan. The Corporation is listed on the TSX Venture Exchange and trades under the symbol NOG. Nordic was one of the "2008 TSX Venture 50" companies, a ranking of the top 10 public venture capital companies in five industry sectors listed on the TSX Venture Exchange.
Neither the 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 the contents of this News Release.
This press release contains forward-looking statements with respect to Nordic Oil and Gas Ltd. properties, and matters concerning the business, operations, strategy, and financial performance of Nordic. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the negative thereof or similar variations. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including that the estimates and projections regarding the properties are realized. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press release and Nordic does not undertake any obligation to update such statements except as required by law.
SOURCE Nordic Oil & Gas Ltd.
For further information: For further information: Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 229-7751, Fax: (204) 943-1829, E-mail: email@example.com, www.nordicoilandgas.com