/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, April 6 /CNW/ - Paris Energy Inc. ("Paris" or the "Company")
(TSXV: PI) is pleased to announce its financial and operating results for the
twelve months ended November 30, 2008.
Fiscal 2008 was a challenging year for the Company. The Company's results
were overshadowed by the precipitous decline in product prices and the global
economic crisis which affected the entire industry.
During the year the management of the Company changed and was downsized,
resulting in a steady reduction of overhead costs throughout the year. The
resulting structure should permit the Company to keep its affairs in order
until the recovery of the energy business.
Paris reported an increase in revenue and cashflow for the year with
production remaining constant at 35 BOE per day. Revenue was $845,000 compared
with $801,000 a year earlier. A significant reduction in overhead cost
resulted in cashflow of $48,000 for the year end November 30, 2009 compared
with a cashflow deficiency of $415,000 in 2007. A writedown of the carrying
value of the Company's assets resulted in a loss of $1.9 million in 2008
compared with a loss of $119,000 in the prior year. The Company exited the
year with a working capital deficiency of $388,000.
As a result of the decline in natural gas prices and the company's year
end working capital deficiency, Paris has a cautionary note in its financial
statements with respect to its ability to continue as a going concern.
Exploration and Development Activities
Activity during the early part of 2008 was concentrated on placing wells
drilled late in the previous year, on production. Natural gas production
commenced from wells at Craigmyle and Enchant, and an oil well in the Killam
area was also placed on production.
Production from the Killam oil well was disappointing however, and
following resolution of lease issues, the well was recompleted as a gas well
in the Lower Glauconite formation in early December 2008. Production from the
well has averaged over 300 Mcfd since the recompletion.
3-D seismic was acquired over a prospect in the Turin area of southern
Alberta and an exploration well was drilled. Unfortunately the target
structure was wet and the Company elected not to pursue an option well on a
separate structure within the farm-in area.
At the end of 2008, the Company had control over several exploration and
development prospects, but as none have imminent drilling commitments,
management plans to wait out the current cycle of low commodity prices and
scarce investment capital. These projects will be re-evaluated when project
Management continues to investigate opportunities to grow the Company to
increase value to the shareholders. Options include asset or corporate
acquisitions, mergers or a combination with other entities, additional
financings or use of the Company as a platform for an international project.
Most of the opportunities available would require the addition of new capital,
which could be difficult in the current environment. Management will therefore
concentrate on those opportunities which could provide both capital and growth
opportunities for the company, and increased value for shareholders.
Paris also wishes to announce that Charles A. (Tony) Teare has been
appointed Chief Financial Officer of the Company.
Further information regarding financial and operating results may be
obtained at www.sedar.com, where the Company's MD&A and financial statements
have been filed.
Reserves Data Report
Paris has also filed its Reserves Data Report which includes the
Company's reserves data and other oil and gas information for the year ended
November 30, 2008, as mandated by National Instrument 51-101 Standards of
Disclosure for Oil and Gas Activities of the Canadian Securities
Administrators. Copies of Paris' Reserves Data Report may be obtained at
Paris Energy Inc.
Summary of Results
Total revenue $ 845,428 $ 800,676
Cash flow from (used for) operations $ 48,169 $ (414,661)
per share, basic and diluted $ 0.01 $ (0.04)
Net loss $ (1,903,762) $ (119,051)
per share, basic and diluted $ (0.20) $ (0.01)
Capital expenditures $ 2,113,338 $ 2,101,414
Working capital surplus (deficiency) $ (388,612) $ 1,640,260
Total shares outstanding 9,552,347 9,552,347
Natural gas (Mcf/d) 150 228
Crude oil (Bbl/d) 7 7
NGL (Bbl/d) 3 (1)
BOE/d (6 Mcf equals 1 Bbl) 35 35
Natural gas ($/Mcf) $ 9.02 $ 7.23
Oil ($ / Bbl) $ 102.25 $ 55.02
Reserves(proven plus probable)
Gas (mmcf) 369 1110
Oil & NGLs(MBbls) 10 71
BOE(thousands) 72 258
Net present value of reserves before tax
(10% discount rate)(1) $ 1,211,900 $ 3,258,700
1. Net present value may not represent fair value of the reserves
Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil at six thousand
cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly
if used in isolation. A boe conversion of six thousand cubic feet per 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.
References to oil in this discussion include crude oil and natural gas liquids
Forward Looking Statements
Certain statements contained in this press release constitute
forward-looking statements. The use of any of the words "anticipate",
"continue", "estimate", "expect", "may", "will", "project", "should",
"believe" and "confident" and similar expressions are intended to identify
forward-looking statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or events to
differ materially from those anticipated in such forward-looking statements.
Paris believes that the expectations reflected in those forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking statements
included in this press release should not be unduly relied upon. These
statements speak only as of the date of this press release. Paris undertakes
no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
expressly required by applicable securities laws.
Further information relating to Paris may be found on www.sedar.com
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
OR ACCURACY OF THIS RELEASE.
TSX Venture : PI
For further information:
For further information: John G. F. McLeod, President - or - Robert W.
Lamond, Chairman, PARIS ENERGY INC., 2000, 633 - Sixth Avenue S.W., Calgary,
Alberta, T2P 3M3, Telephone: (403) 264-5545, Fax: (403) 261-4072