Spry files restatement of interim reports for periods ended December 31, 2008
and March 31, 2009

CALGARY, Oct. 23 /CNW/ - Spry Energy Ltd. ("Spry" or the "Company") today filed a restatement of its consolidated financial statements and Management's Discussion and Analysis for the three and six months ended December 31, 2008 and for the three and nine months ended March 31, 2009 to provide for certain adjustments in the balances related to our recent change in accounting for stock based compensation, options exercised for cash and the related future tax impacts. There were no changes to cash outflows or earning before taxes that were originally reported by Spry.

The interim consolidated financial statements are not reviewed by the Company's external auditors, but management has determined that it is appropriate to file a restatement of the above interim results in order to provide the users of these results with the proper classification of the above items in the consolidated financial statements.

The impact of the second quarter restatement reduced funds from operations for the three months ended December 31, 2008 from $5,294,000 to $4,798,000, and for the six months ended December 31, 2008 from $11,282,000 to $10,786,000. The restatement also adjusted the consolidated balance sheet at December 31, 2008, changing current liabilities - stock based compensation from $1,424,000 to $1,376,000; current liabilities - future income taxes from $1,151,000 to $1,143,000; long term liabilities - stock based compensation from $455,000 to $71,000; long term liabilities - future income taxes from $4,443,000 to $4,461,000; and contributed surplus from $nil to $432,000. Net earnings for the three months ended December 31, 2008 was reduced from $2,519,000 to $2,187,000 and for the six months ended December 31, 2008 from $7,650,000 to $7,318,000 due to an increase in future tax expense. Net earnings per share for the three months ended December 31, 2008 were reduced by $0.02 basic and $0.01 diluted and for the six months ended December 31, 2008 were reduced by $0.02 basic and diluted.

The impact of the third quarter restatement reduced funds from operations for the three months ended March 31, 2009 from $4,316,000 to $3,785,000, and for the nine months ended March 31, 2009 from $15,598,000 to $14,571,000. The restatement also adjusted the consolidated balance sheet at March 31, 2009, changing current liabilities - stock based compensation from $853,000 to $635,000; current liabilities - future income taxes from $992,000 to $1,051,000; long term liabilities - stock based compensation from $320,000 to $nil; long term liabilities - future income taxes from $4,930,000 to $4,881,000; and contributed surplus from $nil to $538,000. There was no impact on consolidated net earnings for the three months ended March 31, 2009. Net earnings for the nine months ended March 31, 2009 was reduced from $7,171,000 to $6,839,000 due to an increase in future tax expense. Net earnings per share for the nine months ended March 31, 2009 were reduced by $0.01 basic and $0.02 diluted.

These filings are available for review at www.sedar.com

Spry is a Calgary, Alberta based Corporation engaged in the exploration, development and production of oil and natural gas.

SOURCE SPRY ENERGY LTD.

For further information: For further information: Kenneth Bowie, President & CEO, Phone: (403) 265-7770, Fax: (403) 265-7010

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SPRY ENERGY LTD.

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