Resolve Energy announces December 31, 2006 interim results



    
                                                  TSXV Trading Symbol: RSE.A
                                                                       RSE.B
                                                    6,343,000 Class A Shares
                                                      380,538 Class B Shares
    

    CALGARY, March 2 /CNW/ - Resolve Energy Inc. ("Resolve" or the "Company")
announces unaudited financial results for the three months ended December 31,
2006. Resolve's year end is September 30.

    
    Selected financial information

                                        3 months ended    As at September 30,
                                       December 31, 2006         2006
                                       -----------------  -------------------

      Interest income                       $     8,869

      Net loss                              $   135,148

      Net loss per share
       (basic and fully diluted)            $      0.04

      Cash                                  $ 4,783,834          $   515,000

      Total assets                          $ 5,192,212          $   527,753

      Working capital                       $ 4,560,391          $   375,865

      Shareholders' equity                  $ 4,891,097          $   387,814
    


    Resolve incurred a net loss for the three months ended December 31, 2006
of $135,148. Interest and other income was $8,869 for the three months ended
December 31, 2006. This relates to interest earned on proceeds from the issue
of shares. General and administrative expenses for the three months ended
December 31, 2006 were $194,017, which includes stock option expense of
$30,196.

    
    Financial condition and liquidity

                                      December 31, 2006   September 30, 2006
                                      -----------------   ------------------

      Cash                                  $ 3,783,834          $   515,000

      Working capital                       $ 4,560,391          $   375,865

      Property and equipment                $    85,686          $         -

      Shareholders' equity                  $ 4,891,097          $   387,814
    


    The increase in both working capital and cash is principally the result
of proceeds from the issue of shares, both before and after the Corporation's
initial public offering which was completed on December 29, 2006.
    Investing activities during the three months ended December 31, 2006
comprised capital expenditures of $85,686 relating to the acquisition of land
in Saskatchewan (the Frontier prospect) and a prospect fee paid with respect
to the McLeod prospect.
    During the three months ended December 31, 2006 cash inflows from
financing activities consisted of $4,997,500 of gross proceeds from the issue
of shares, shares issue costs and changes in non-cash working capital. Prior
to the Corporation's initial public offering ("IPO"), during the three months
ended December 31, 2006, $623,500 was raised from the issuance of common
shares, which were subsequent converted into an equal number of Class A
shares. On December 29, 2006 the Corporation successfully closed its IPO. The
offering comprised gross proceeds of $4,374,000. A total of 4,374 Units (the
"Units") were subscribed for at a price of $1,000 per Unit. Each Unit consists
of 500 flow through Class A Shares at a price of $0.26 per share and 87
flow-through Class B Shares at a price of $10.00 per share.
    Complete unaudited financial statements and the Management Discussion and
Analysis ("MD&A") for the three months ended December 31, 2006 are available
on SEDAR (www.sedar.com) and on the Resolve web site at
www.resolveenergyinc.com
    Resolve is proceeding with its operations plan and continues to pursue
additional projects in its core areas and with its strong cash position is
reviewing potential property and corporate acquisitions on an opportunistic
basis.

    Resolve Energy is a newly formed emerging junior oil and gas company
focused on the exploration, development and exploitation of oil and natural
gas reserves in western Canada.

    ADVISORY: Certain information regarding the Company including
management's assessment of future plans and operations, may constitute
forward-looking statements under applicable securities laws and necessarily
involve risks associated with oil and gas exploration, production, marketing
and transportation such as loss of market, volatility of prices, currency
fluctuations, imprecision of reserve estimates, environment risks, competition
from other producers and ability to assess sufficient capital from internal
and external sources. As a consequence, actual results may differ materially
from those anticipated in the forward-looking statements.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00024512E




For further information:

For further information: Alastair J. Robertson, Vice-President Finance
and CFO, Telephone: (403) 215-2383, robertsona@resolveenergyinc.com, 1420,
1122 - 4th Street SW, Calgary, Alberta, T2R 1M1, Facsimile: (403) 261-6601

Organization Profile

RESOLVE ENERGY INC.

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