TORONTO, Nov. 14 /CNW/ - Pacific Stratus Energy Ltd. (TSX: PSE) announced
today results for the three and nine-month periods ended September 30, 2007.
For the quarter, Pacific Stratus reported net income of US$1.6 million or
US$0.03 per share as compared to a loss of US$2.5 million or US$0.08 per share
in the third quarter of last year. For the nine months ended September 30,
2007 the company reported a loss of US$21.0 million or US$0.50 per share as
compared to a loss of US$4.5 million or US$0.16 per share in the same period
last year. Oil production in the quarter averaged 1,950 barrels per day, and
the average price received for sales in the quarter amounted to US$71.50 per
barrel for a total revenue of US$10.9 million. Net income in the quarter is
primarily due to increased revenues attributable to higher price achieved on
sales. The company changed its reporting currency to United States dollars
effective January 1, 2007 to improve investor's ability to evaluate the
company's results with comparable companies in the industry.
The company recently announced that it has entered into an agreement by
which, subject to shareholder approval, Petro Rubiales Energy Corp. will
combine on a market to market basis with Pacific Stratus through a court
approved plan of arrangement, with the combined entity to be renamed "Pacific
Rubiales Energy Corp." Pacific Stratus shareholders will receive 8.85 common
shares of Petro Rubiales for each share in Pacific Stratus. The exchange ratio
represents a market to market transaction based on the agreed 10, 15 and
20 day volume weighted average price of the two companies.
During the quarter the company completed the auction to sell
34,807 million British Thermal Units per day (MBTUD) of natural gas that will
be produced at the La Creciente Field from the extended well tests at Prospect
A. The price for the total amount of gas negotiated through the auction
averaged US$ 3.72/MBTUD.
At the La Creciente block, the drilling of the third exploratory well was
completed reaching a Final Depth of 12,950 feet. The well was tested through
two Drill Stem Tests which indicated a production potential of 32.7 million
cubic feet per day (mmcfd) with a 32/64 inch choke, slightly higher that that
measured at the LCA-1 well, which measured 29.1 mmcfd with the same choke.
In this quarter the Company started the seismic acquisition programs at
the Guama Block in the Lower Magdalena Basin and at the Moriche Block in the
Llanos Basin of Colombia. As well, at the Arauca Technical Evaluation Area,
2,000 kms of existing seismic have been sent to be reprocessed.
Finally, the company spudded well LCD-1, located at La Creciente on
Prospect D, and it is planning to reach the top of the Cienaga de Oro
reservoir at 10,583 feet toward mid-December 2007.
Complete financial statements are available on the company's website or
on SEDAR at www.sedar.com.
Pacific Stratus Energy is a Canadian-based oil and gas company that
initiated operations in 2004. The company is focused on identifying attractive
opportunities primarily within the upstream Sub Andean basins. Pacific Stratus
has a current net production of 1,900 barrels of oil per day, with working
interests in the Caguan, Dindal, Rio Seco, Puli B, La Creciente, Moriche,
Guama and Arauca blocks in Colombia and blocks 135, 137 and 138 in Peru. The
company has offices in Toronto, Caracas and Bogota. Further information is
available on our website at www.pacificstratus.com.
This press release contains forward-looking statements based on
assumptions, uncertainties and management's best estimates of future events.
Actual results may differ materially from those currently anticipated.
Investors are cautioned that such forward-looking statements involve risks and
uncertainties. Important factors that could cause actual results to differ
materially from those expressed or implied by such forward looking statements
are detailed from time to time in the company's periodic reports filed with
the British Columbia Securities Commission and other regulatory authorities.
The company has no intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Nelson Lee, Chief Financial Officer, (416)