Spry announces release of year end financial and operating results and reserve information



    CALGARY, Oct. 23 /CNW/ - Spry Energy Ltd. is pleased to announce the
release and filing on SEDAR of our financial and operating results and our
corporate reserve information for our fiscal year ended June 30, 2007.

    
    HIGHLIGHTS

    -   We drilled 26 (20.9 net) wells, that resulted in 16 (14.3 net)
        natural gas wells, six (3.6 net) oil wells and four (3.0 net) dry
        holes.

    -   Our year-end proved plus probable reserves increased 78 percent from
        1,768,000 to 3,146,000 boes.

    -   Proved plus probable finding and on-stream costs (including future
        capital) were $15.71 per boe before technical revisions and
        $17.46 per boe after technical revisions.

    -   We maintained capital expenditure discipline as cash based
        expenditures for the year were $24.5 million as compared to our
        budget of $22.0 million. Our expenditures included $2.8 million in
        unbudgeted capital to participate in the Utikuma farm-in.

    -   Our average production rates for the fiscal year increased 60 percent
        to 973 boes per day, up from 609 boes per day.

    -   Production growth more than offset an 18 percent decline in natural
        gas prices to increase cash flow by 15 percent to $8.1 million for
        the current fiscal year, as compared to $7.1 million for the previous
        year.

    -   We increased undeveloped land holdings 60 percent to 24,945 net acres
        at June 30, 2007 from 15,621 net acres at June 30, 2006. We also have
        control over an additional 3,800 net acres as result of farm-in
        agreements with industry partners.

    -   We expanded gas gathering and compression facilities at our Killam
        core area and constructed gas gathering facilities at our new Utikuma
        core area.

    -   We completed an equity financing in March 2007 that raised
        $5.3 million, net of issue costs.

    -   We have approved a base budget for our next fiscal year ending
        June 30, 2008 with $17 million of planned capital expenditures that
        includes a drilling program of 22 wells of which 20 are planned in
        existing core areas.


                                      Three months   Year ended   Year ended
                                           June 30,     June 30,     June 30,
                                              2007         2007         2006

    Financial

    ($ thousands except
     per share amounts)

    Petroleum and natural gas revenue        4,972       15,553       11,349

    Funds from operations                    2,356        8,136        7,068
      Basic per share                         0.18         0.67         0.69
      Diluted per share                       0.18         0.65         0.67

    Net earnings                               925        1,210        1,642
      Per share, basic and diluted            0.07         0.10         0.16

    Capital expenditures, cash based         2,483       24,534       10,666

    Working capital surplus                  1,363        1,363       11,888

    Shares outstanding (000s)               12,772       12,772       11,829
    Weighted average shares
     outstanding (000s)
      Basic                                 12,772       12,109       10,211
      Diluted                               13,253       12,543       10,529

    Operations

    Reserves, proved plus probable
      Crude oil & liquids (mbbls)                           791          459
      Natural gas (mmcf)                                 14,128        7,857
      Total (mboes)                                       3,146        1,768

    Production
      Light/medium oil (bbls/d)                 88           97           97
      Heavy oil (bbls/d)                       159          161          108
      Natural gas (mcf/d)                    5,994        4,291        2,428
      Total (boes/d)                         1,246          973          609

    Prices
      Light/medium oil ($/bbl)               62.48        60.51        62.58
      Heavy oil ($/bbl)                      39.86        41.28        38.86
      Natural gas ($/mcf)                     7.13         7.00         8.56
      Total ($/boe)                          43.79        43.73        50.91

    Royalty income ($/boe)                    0.07         0.08         0.11

    Royalties ($/boe)                       (10.12)       (9.28)      (10.02)

    Hedging income (expense) ($/boe)         (0.67)           -         3.68

    Operating expenses ($/boe)               (8.65)       (8.68)       (8.03)

    Transportation expenses ($/boe)          (1.26)       (1.23)       (1.25)

    General & administrative expenses,
     cash based ($/boe)                      (2.42)       (2.32)       (4.01)

    Interest income, net ($/boe)              0.16         0.78         0.64

    Cash taxes ($/boe)                       (0.11)       (0.16)       (0.25)

    Cash flow netback ($/boe)                20.79        22.92        31.78
    

    Our year-end consolidated financial statements and Management's
Discussion and Analysis and our corporate reserve information (National
Instrument 51-101 Forms F1, F2 and F3) have been filed on SEDAR. These
documents, along with a complete copy of our annual report for the year ended
June 30, 2007 can be found on the SEDAR website at www.sedar.com

    %SEDAR: 00018775E




For further information:

For further information: Kenneth J. Bowie, President & CEO, (403)
265-7770, extension 230

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SPRY ENERGY LTD.

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