TSX VENTURE STOCK SYMBOL: RIP
CALGARY, Aug. 26 /CNW/ - Ripper Oil and Gas Inc. (TSX: RIP) ("Ripper" or the "Corporation") presents its first quarter 2010/2011 financial results for the three months ended June 30, 2010, and operational activities to date. Corporate highlights include:
- average production for the first quarter of 370 boe/day, up slightly
from 362 boe/day in the fourth Quarter.
- first quarter operating netbacks of $17.14/boe on sales averaging
$33.81/boe, down from the fourth quarter due to a decease in natural
- natural gas prices averaging $4.07/mcf for the quarter, down 22% over
the fourth quarter price of $5.19/mcf, and up 14% from the price of
$3.57/mcf in the first quarter of last year.
- funds from operations were $400,256 for the first quarter as compared
to $668,821 for the previous quarter. The decline is due to the
decrease in the price of natural gas
- as previously announced, the corporation has entered into a physical
gas hedge in the form of a costless collar effective from April 1,
2010, to November 30, 2010. The hedge is for 900GJ/day at a floor
price of $4.25/GJ Canadian and a ceiling price of $4.85/GJ Canadian,
settling against the NGX AB-NIT Month Ahead Index. The realized gain
on the instrument was $45,812 for the first quarter.
- the Corporation has agreed to drill a 750m well prospective for Belly
River and Horseshoe Canyon/Coalbed Methane (CBM), to earn 100%
working interest in 640 acres of P&NG rights subject to a non
convertible gross overriding royalty. Subsequent to the first
quarter, the farm-in well was drilled in July, and is waiting on
completion. If successful, the well will be tied in to existing
operated facilities. Three additional 100% working interest infill
CBM wells could be drilled in the future.
- subsequent to June 30, 2010, the Corporation entered into an
agreement to sell its Halkirk, Mikwan, Chigwell and Twining assets to
an arm's length party in consideration for $13.2 million, effective
August 1, 2010. The agreement is conditional on negotiation of a
binding purchase and sale agreement, and upon completion of due
diligence. Ripper's production from these assets averages
244 boe/day. Additionally, the Corporation entered into an agreement
to sell two small assets to two arm's length parties for aggregate
consideration of $983,000, effective August 1, 2010. Both deals are
subject to standard closing conditions. The Corporation intends to
use the cash it expects to receive to pay off its bank indebtedness
and to increase its drilling activities on its remaining assets. If
there is excess cash, Ripper's board may also declare a dividend on
its common shares
Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange. Further information is available on SEDAR at www.sedar.com. BOEs may be misleading, particularly if used in isolation.
A BOE conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.
SOURCE RIPPER OIL AND GAS INC.
For further information: For further information: Mr. R.G. (Jerry) Ball, President and Chief Executive Officer at (403) 662-2020 or Fax (403) 662-2029, RIPPER OIL AND GAS INC., Suite 1150, 606 - 4 Street S.W., Calgary, Alberta, T2P 1T1