Spry announces release of year end financial and operating results

CALGARY, Oct. 26 /CNW/ - Spry Energy Ltd. is pleased to announce the release and filing on SEDAR of our financial and operating results for our fiscal year ended June 30, 2009.

    
    HIGHLIGHTS

    -   Our average production rate for the fiscal year increased 23 percent
        to 1,672 boes per day, up from 1,357 boes per day.

    -   Although commodity prices on a boe basis were 12 percent lower,
        production growth and realized gains on financial instruments led to
        an increase in our funds flow from operations of 20 percent to $17.8
        million for the current fiscal year, as compared to $14.8 million for
        the previous year.

    -   Cash based expenditures for the year were $17.0 million as compared
        to our budget of $24 million. Spending was scaled back in response to
        the economic downturn and collapse in crude oil and natural gas
        commodity prices.

    -   We drilled 16 (12.5 net) wells, that resulted in seven (7.0 net)
        natural gas wells, eight (5.0 net) oil wells and one (0.5 net) dry
        holes. All but two gas wells have been placed on-stream either prior
        to or subsequent to year end.

    -   Our year-end proved plus probable reserves decreased eight percent
        from 5,747,000 to 5,273,000 boes due in part to our reduction in
        capital expenditures and negative technical revisions.

    -   Proved plus probable finding and on-stream costs (including future
        capital) were $26.21 per boe before technical revisions and $138.93
        per boe after technical revisions.

    -   We have approved a base budget for our fiscal year ended June 30,
        2010 with approximately $24 million of planned capital expenditures
        that includes a drilling program of 17 wells.



                                  Three months ended  Year ended  Year ended
                                             June 30,    June 30,    June 30,
                                                2009        2009        2008

    Financial
    ($ thousands except per share amounts)
    Petroleum and natural gas revenue          4,388      28,662      26,445
    Funds from operations                      3,250      17,821      14,827
      Basic per share                           0.16        0.90        1.01
      Diluted per share                         0.16        0.88        0.98
    Net earnings (loss)                       (3,627)      3,212       3,071
      Basic per share                          (0.18)       0.16        0.21
      Diluted per share                        (0.18)       0.16        0.20
    Capital expenditures, cash based           4,496      16,990      16,489
    Business combinations                          -           -      41,528
    Working capital deficit,
     before bank debt                          1,269       1,269       4,688
    Bank debt                                  8,510       8,510       7,480
    Shares outstanding at year end (000s)     19,894      19,894      19,812
    Weighted average shares
     outstanding (000s)
      Basic                                   19,920      19,869      14,705
      Diluted                                 19,920      20,157      15,183

    Operations
    Reserves, proved plus probable
      Crude oil & liquids (mbbls)                          2,799       2,760
      Natural gas (mmcf)                                  14,843      17,923
      Total (mboes)                                        5,273       5,747
    Production
      Light/medium oil (bbls/d)                  361         426         142
      Heavy oil (bbls/d)                         155         242         232
      Natural gas (mcf/d)                      5,168       6,021       5,900
      Total (boes/d)                           1,378       1,672       1,357
    Prices
      Light/medium oil ($/bbl)                 60.26       67.84       91.62
      Heavy oil ($/bbl)                        54.95       57.61       60.98
      Natural gas ($/mcf)                       3.46        5.92        7.61
      Total ($/boe)                            34.95       46.95       53.07
    Royalty income ($/boe)                      0.04        0.03        0.17
    Royalties ($/boe)                          (1.91)      (6.94)     (10.23)
    Financial instruments ($/boe)              15.36       10.99        1.82
    Operating expenses ($/boe)                (15.48)     (13.44)     (10.20)
    Transportation expenses ($/boe)            (1.42)      (1.37)      (1.23)
    General & administrative expenses,
     cash based ($/boe)                        (4.09)      (4.17)      (3.84)
    Interest income (expense), net ($/boe)     (0.71)      (0.68)       0.28
    Options surrendered for cash ($/boe)       (0.11)      (1.71)          -
    Abandonment costs incurred ($/boe)         (0.71)      (0.45)          -
    Cash flow netback ($/boe)                  25.92       29.21       29.84
    

Our year-end consolidated financial statements and Management's Discussion and Analysis have been filed on SEDAR. These documents, along with a complete copy of our annual report for the year ended June 30, 2009 can be found on the SEDAR website at www.sedar.com

SOURCE SPRY ENERGY LTD.

For further information: For further information: Kenneth J. Bowie, President & CEO, (403) 984-6352

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SPRY ENERGY LTD.

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