Tuscany Energy Ltd. announces results and updates operations for the three months ended March 31, 2009



    CALGARY, June 1 /CNW/ - Tuscany Energy LTD (TUS - TSX-V) is pleased to
report the financial and operating results for the three months ended March
31, 2009.

    Financial

    The Company reported lower revenues and cash flows on similar production
levels for the first quarter of 2009 compared with the same period in 2008. An
increase in oil and NGL production of 28 Bbls/d was offset by a decrease in
gas production of 165 Mcf/d, and the overall production remains virtually
unchanged at 164 BOE/d compared with 161 BOE/d in Q1 2008. Production levels
from the recently drilled Evesham Dina well were restricted during the
evaluation of the well, and oil production from the Evesham wells was reduced
as a result of the Company's decision to minimize additional well workovers
until oil prices recover.
    Revenue for the first three months of 2009 totaled $455,000 compared with
$841,000 in 2008. The Company reported cash flow from operations of $73,000
for the quarter compared with $375,000 in the three months ended March 31,
2008. Tuscany reported a loss of $146,000 for the quarter versus earnings of
$69,000 for the same period in 2008.
    Capital expenditures for the three months ended March 31, 2009 were
$86,000 compared with $105,000 during the same period in 2008. General
Administrative costs were also reduced to $78,000 for the quarter.
    At March 31, 2009 Tuscany had a net debt of $3.0 million.

    Operations

    The horizontal well drilled for the Dina formation in the Evesham area in
the fourth quarter of 2008 commenced production in January. The producing well
has been produced at restricted rates to fully evaluate its commerciality and
is being pumped at increasing rates, currently averaging 45 Bbls/d, to
determine the optimal production rate. Tuscany is very optimistic regarding
the potential for a substantial development at Evesham involving the drilling
of further horizontal wells into the Dina formation.
    With improving oil prices, and a higher stabilized oil production rate
from the discovery well, Tuscany anticipates that a significant development
program, similar to other Dina pools in the immediate area, could be commenced
in the late summer or early fall of 2009. With a 60% working interest, this
project could be very significant to the company potentially resulting in
Tuscany drilling over 30 new wells, which could transform the Company.
    A project of this magnitude would require substantial additional capital.

    Business Outlook

    Energy commodity prices rebounded significantly in the last few weeks,
but are below prices received in mid 2008, and remain volatile. The Company
plans to maintain its production base and carefully manage cash during what
could be an extended period of lower prices. This plan will put the company in
a position to benefit from the inevitable upturn in pricing.
    The Company is relatively small and the Board of Directors continues to
examine strategic alternatives to add shareholder value, such as an
acquisition or a corporate transaction. To date no such opportunities have
been approved by the Board of the Company.
    The Company, with a solid production base, excellent relatively low risk
exploration and development projects and a smaller, compact management team is
ideally suited to weather the current financial crisis.

    Appointment of Director

    Tuscany also announces the appointment of Roger W. Hume to the Company's
Board of Directors. Mr. Hume brings to Tuscany over 30 years of experience in
the oil and gas industry. He is currently Vice President, Exploration,
Northern Hunter Energy Inc., a private oil and gas company, previous to which
he was President and Chairman of the Board and Chief Executive Officer, Castle
Rock Petroleum Ltd, a public oil and gas company, from April 2004 to October
2007.

    Forward-looking statements - statements included in this press release
that are not historical facts may be considered "forward-looking statements."
Actual results could differ materially from the conclusions, forecasts or
projections in the forward-looking information. Certain material factors and
assumptions were applied in drawing the conclusions or making the forecasts or
projection in the forward-looking information and the material factors or
assumptions that were applied in drawing the conclusion or making the forecast
or projection as reflected in the forward-looking information is contained in
the press release.

    Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil at six thousand
cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly
if used in isolation. A boe conversion of six thousand cubic feet per barrel
is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead.
References to oil in this discussion include crude oil and natural gas liquids
(NGLs).

    
    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.


    Summary of Financial Operating Results

    -------------------------------------------------------------------------
                                                          Three Months Ended
                                                                    March 31,
                                                          2009          2008
    -------------------------------------------------------------------------
    Financial                                                      (restated)
      Total revenue                               $    455,284  $    840,948
      Cash flow from operations                   $     72,873  $    375,331
        per share, diluted                        $          -  $       0.01
      Earnings (loss) for the period              $   (145,735) $     69,295
        per share, diluted                        $          -  $          -
      Capital expenditures                        $     86,229  $    105,216
      Net Debt                                    $ (3,035,434) $ (2,861,346)

      Total shares outstanding at period end        34,767,836    35,394,836

    Operations
      Production
        Gas (Mcf/d)                                      226.7         380.0
        Oil (Bbl/d)                                      124.6          97.0
        NGL (Bbls/d)                                       1.6           1.0
        BOE/d (6 Mcf = 1 Bbl)                 164.1         161.3

      Product Prices
        Gas ($/Mcf)                               $       4.95  $       8.02
        Oil ($/Bbl)                               $      41.59  $      75.34
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For further information:

For further information: John G. F. McLeod, President, TUSCANY ENERGY
LTD., Telephone: (403) 264-2398, Fax: (403) 264-2399, TSX Venture: TUS; Robert
W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax:
(403) 264-2399

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TUSCANY ENERGY LTD.

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