Net Cash Flow from Ops Increases 258%; Assets up 83%
WINNIPEG, April 21 /CNW/ - Nordic Oil and Gas Ltd. (TSXV: NOG), today
announced the Company's financial results from operations for its fourth
quarter and year ended December 31, 2008. All amounts referenced herein are in
2008 Financial & Operations Highlights
- Increased oil and revenue 153% to $1,487,971 compared to 2007 total
- Increased net cash flow from operations 258% to $472,803 compared to
2007 total of $131,940
- Cash, including short term investment up 20% to $2,716,110
- Total assets up 83% to $14,113,291
- Average production increased by 76% to approximately 150 BOE/d(*)
Revenue from oil and natural gas sales (including liquids and transport
revenue) in 2008 totalled $1,487,971 compared to $588,152 in 2007. Total
revenue (including interest income) was $1,564,973 as compared to $595,975 a
year ago. The revenue increase is a direct result of the start of production
in the third quarter from the Company's heavy oil wells in Lloydminster.
Net cash flow from operating activities (cash received from operators
minus cash paid to suppliers and for royalties) was up $340,863 for 2008 to
$472,803 as compared to $131,940 in 2007. This was due to the aforementioned
increase in revenue for the year.
Cash, short term investments, accounts receivable, deposits and deferred
costs for the year totalled $3,090,315 on par with the $3,128,304 at the end
of December, 2007.
Cash, including short-term investments at the end of the year was
$2,716,110, as compared to $2,248,579 at the end of 2007. This increase was
due to the rise in short term investments, which more than offset the drop in
cash, plus a substantial increase in deposits.
Total assets as at December 31, 2008 were $14,113,291, up significantly -
83% - from the 2007 total of $7,713,059. The main reasons for the increases
are the large jump in short-term investments to $2,554,938 from $204,191 and,
the nearly $6.3 million increase in property and equipment.
Overall expenses, including operating costs, increased by approximately
$913,000 on a comparative basis to $2,538,902 for the year ended December 31,
2008 compared to $1,625,752 for the year prior. The primary reason for the
increase in total expenses was the rise in operating costs to $707,268 from
$258,913, and increases in G & A expenses to $860,743 from $576,742, and in
depletion and amortization expense to $529,196 from $259,886.
The net loss for the year improved from that which was recorded in 2007 -
$995,869 versus $1,129,051. The decrease in the 2008 loss can be attributed to
the aforementioned rise in the Company's revenue. Net loss per share in 2008
also improved to $0.02 compared to a net loss per share of $0.06 in 2007.
Fourth Quarter Results
Revenue, including interest income for the three-month period ended
December 31, 2008 totalled $525,554 compared to $91,657 during the same period
a year ago and $437,694 in Q3 2008. This represents the highest three-month
total since Q4 2004. The increase in quarter over quarter revenue totals was
due mainly to new production from the Company's oil wells at Lloydminster,
along with a rise in interest income.
General and administrative expenses for the three months under review
totalled $446,644, up from the $69,915 in the same period in 2007. Overall
expenses for the fourth quarter under review totalled $1,099,197 up from the
$868,103 reported in Q4 2007.
For the quarter, the Company recorded a net loss of $358,939, as opposed
to the $1,394,530 loss reported in Q4 2007.
Average production volume for gas for the year ended December 31, 2008
was 10.71 10(3)m(3)/day or 352.34 GJ/day, as opposed to 8.32 10(3)m(3)/day, or
273.75 GJ/day last year. This equates to approximately 72 BOE/d. The Company
received $7.58/GJ as an average gas price during the year under review
compared to $6.11/GJ last year.
Average production volume for gas for the three months ended December 31,
2008 was 9.83/10(3)m(3)/day or 357.22 GJ/day, as opposed to
10.95/10(3)m(3)/day, or 400.57 GJ/day during the third quarter this year. This
equates to approximately 61 BOE/d. The Company received $6.33/GJ as an average
gas price during the fourth quarter of 2008 compared to $7.34/GJ for the third
During the latter part of August, the Company began producing heavy oil
from its wells in Lloydminster, Alberta. Average BOE per day/quarter totalled
77.8, which equates to 3.84 M(3)/day or 323.49 M(3) per month. Weighted
average price per M(3)/day for the year was $332.58.
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 is 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.
This news release contains certain statements that may be deemed
"forward-looking statements". All statements in this release, other than
statements of historical fact, that address events or developments that the
Corporation expects to occur, are forward looking statements. Forward looking
statements are statements that are not historical facts and are generally, but
not always, identified by the words "expects", "plans", "anticipates",
"believes", "intends", "estimates", "projects", "potential" and similar
expressions, or that events or conditions "will", "would", "may", "could" or
"should" occur. Although the Corporation believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such
statements are not guarantees of future performance and actual results may
differ materially from those in forward looking statements. Factors that could
cause the actual results to differ materially from those in forward-looking
statements include market prices, exploration and drilling success, continued
availability of capital and financing and general economic, market or business
conditions. Investors are cautioned that any such statements are not
guarantees of future performance and actual results or developments may differ
materially from those projected in the forward-looking statements. Forward
looking statements are based on the beliefs, estimates and opinions of the
Corporation's management on the date the statements are made. The Corporation
undertakes no obligation to update these forward-looking statements in the
event that management's beliefs, estimates or opinions, or other factors,
(*) The term BOEs may be misleading, particularly if used in isolation. A
BOE conversion ratio of 6 Mcf: 1 barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
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
For further information:
For further information: Donald Benson, Chairman & CEO, Nordic Oil and
Gas Ltd., Tel. (204) 956-5042, Fax. (204) 897-7154, E-mail: firstname.lastname@example.org;
Don Bain, Corporate Secretary, Nordic Oil and Gas Ltd., Tel. (204) 943-1810,
Fax. (204) 943-1829, E-mail: email@example.com; www.nordicoilandgas.com