CALGARY, Feb. 23 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) is pleased to announce its financial and operating results for the third quarter of fiscal 2010 ending December 31, 2009.
Highlights - Total crude oil and natural gas revenues for the quarter ended December 31, 2009 increased to $1,745,953 from $1,423,790 the quarter ended December 31, 2008. - Average production in the quarter was 361 boed and 394 boed in January 2010 - 100% drilling success rate for the quarter and to date in fiscal 2010 drilling a total of three wells, two of which are producing and one awaits pipeline - Increased undeveloped leasehold 14% to 22,765 net acres with 26 drillable well inventory - The Company's Fiscal 2010 Capital Budget has been increased from $2 million to $3 million. The capital will be used to drill 2 development oil wells in the Fosterton area prior to spring break-up to mitigate environmental impact. Drilling is subject to weather and rig availability.
The following table provides a summary of Spitfire's results for the three-month period ending December 31, 2009 and 2008. Spitfire's unaudited financial statements and Management's Discussion and Analysis can be accessed for viewing on SEDAR at www.sedar.com and on the Company website at www.spitfireenergy.com.
------------------------------------------------------------------------- 3 Months Ended 9 Months Ended December 31 December 31 2009 2008 2009 2008 ------------------------------------------------------------------------- Financial Petroleum and natural gas sales Crude oil and NGLs $1,456,545 $955,044 $3,979,575 $4,871,320 Natural gas $289,408 $468,746 $702,518 $1,122,740 Net revenue $1,745,953 $1,423,790 $4,682,093 $5,994,060 Cash flow from operations $512,010 $74,891 $1,177,140 $2,286,262 Per share basic and diluted $0.01 $0.00 $0.03 $0.06 Net earnings (loss) ($131,487) ($499,896) ($582,070) $404,001 Per share basic and diluted ($0.00) ($0.01) ($0.01) $0.01 Capital expenditures $673,489 $862,824 $1,708,725 $6,026,772 Working capital (deficit) ($6,640,581) ($5,857,095) ($6,640,581) ($5,857,095) Total assets $24,554,156 $24,426,569 $24,554,156 $24,426,569 Common shares outstanding 38,797,953 40,746,582 38,797,953 40,746,582 ------------------------------------------------------------------------- Operating Realized prices Crude oil and NGLs ($/bbl) $66.57 $46.05 $63.33 $82.45 Natural gas ($/mcf) $4.25 $6.71 $3.61 $7.51 Total ($/boe) $52.57 $43.97 $49.07 $71.23 Operating Netbacks ($/boe) $23.42 $22.48 $21.48 $41.09 Average production Crude oil and NGLs (bbl/d) 238 225 229 215 Natural gas (mcfd) 740 759 708 544 ------------------------------------------------------------------------- Total (boed) 361 352 347 306 -------------------------------------------------------------------------
Spitfire Energy Ltd. is a junior oil and gas company engaged in the exploration, development and production of natural gas and crude oil reserves. Spitfire's common shares trade on the TSX Venture Exchange under the symbol "SEL".
This press release contains forward-looking statements that are based on current expectations. There are a number of risks and uncertainties associated with the oil and gas industry that could cause actual results to differ materially from those anticipated.
A barrel of oil equivalent, derived by converting gas to oil using a ratio of six thousand cubic feet of gas to one barrel of oil, may be misleading, particularly if used in isolation. A boe conversion 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 does not accept responsibility for the adequacy or accuracy of the contents of this press release.
For further information: For further information: Keith N. Chase, President and Chief Executive Officer, (403) 205-3400 x224; Danny Zivkusic, Chief Financial Officer, (403) 205-3400 x228
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