Winstar Reports Record Sales, Funds from Operations, Earnings, Reserves and Net Asset Value in 2007



    CALGARY, March 27 /CNW/ - Winstar Resources Ltd. ("Winstar" or the
"Company") (TSX:WIX) is pleased to announce its operating and financial
results for the fourth quarter and year ended December 31, 2007.
    Winstar, a junior oil and gas company focused on Tunisia with assets in
Canada and Hungary, generated record sales, funds from operations, earnings,
reserves and net asset value in 2007 while maintaining a better than average
finding, development and acquisition cost per barrel of oil equivalent.

    
                                                                    % Change
    2007 Highlights                  Result                         Over 2006
    ---------------                  ------                         ---------
    Sales                       2,013 boepd                         up 29%
    Funds From Operations(1)    $28.6 million ($0.84 per share)     up 81%
    Earnings(1)                 $6.0 million ($0.18 per share)      up 234%
    Reserves - Proved and
     Probable                   11.9 million boe                    up 18%
    Net Asset Value -
     Dec. 31, 2007(2)           $324.6 million ($8.95 per share)    up 50%
    2007 FD&A -Proved and
     Probable                   $21.69 per boe                      up 2%
    3 Year FD &A - Proved
     and Probable               $17.31 per boe                      N/A

    2007 Netback per boe(3)     $38.01                              up 42%

    Notes:

    (1) Using end of period outstanding shares
    (2) Before tax, forecast price deck at net present value discounted @
        10%)
    (3) Funds from Operations Netback per boe


    Operating and Financial Summary:
    --------------------------------

    -------------------------------------------------------------------------
    Highlights     Three Months Ended December 31,   Year Ended December 31,
    (CDN $         ----------------------------------------------------------
     thousands)       2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Sales  and
     Prices
    -------------------------------------------------------------------------
    Natural gas
     sales (Mcf/d)   4,884     6,048       (19)    4,275     5,564       (23)
    -------------------------------------------------------------------------
    Oil and NGL
     sales (boepd)   1,193       617        93     1,300       627       107
    -------------------------------------------------------------------------
    Average daily
     sales 6:1
     (boepd)         2,007     1,625        23     2,013     1,555        29
    -------------------------------------------------------------------------
    Average natural
     gas price
     ($/Mcf)          7.70      8.10        (5)     8.06      7.29        11
    -------------------------------------------------------------------------
    Average oil and
     NGL price
     ($/bbl)         86.34     64.22        34     74.98     67.99        10
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Financial ($)
    -------------------------------------------------------------------------
    Oil and gas
     revenue        12,932     8,156        59    48,167    30,385        59
    -------------------------------------------------------------------------
    Funds from
     operations     10,161     3,672       176    28,634    15,812        81
    -------------------------------------------------------------------------
    Per share -
      basic           0.30      0.13       131      0.94      0.55        71
    -------------------------------------------------------------------------
      diluted         0.29      0.13       123      0.92      0.55        67
    -------------------------------------------------------------------------
    Net (loss)/
     income            636       (79)     (803)    5,959     1,780       234
    -------------------------------------------------------------------------
    Per share -
     basic            0.02         -       100      0.20      0.06       233
    -------------------------------------------------------------------------
     diluted          0.02         -       100      0.19      0.06       216
    -------------------------------------------------------------------------
    Working capital
     at period end  25,391     7,371       244    25,391     7,371       244
    -------------------------------------------------------------------------
    Long term debt
     at period end       -         -         -         -         -         -
    -------------------------------------------------------------------------
    Shareholders'
     equity at
     period end     91,803    68,237        34    91,803    68,237        34
    -------------------------------------------------------------------------
    Common Shares
     (thousands)
    -------------------------------------------------------------------------
    Weighted average
     during the
     period
     - Basic        33,896    28,585        19    30,294    28,569         6
                   ----------------------------------------------------------
     - Diluted      34,816    28,585        22    30,954    28,569         8
    -------------------------------------------------------------------------
    Outstanding at
     period end     33,984    28,677        19    33,984    28,677        19
    -------------------------------------------------------------------------


    Sales  (not necessarily production)
    -----------------------------------
    Winstar realized record oil and gas sales in 2007. The Company increased
its sales from an average 1,555 boepd in 2006 to 2,013 boepd in 2007.

    -------------------------------------------------------------------------
                                                              2007      2006
                                                             boepd     boepd
    -------------------------------------------------------------------------
    Tunisia                                                  1,293       558
    -------------------------------------------------------------------------
    Hungary                                                    322       497
    -------------------------------------------------------------------------
    Canada                                                     398       500
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Average Daily Sales (boepd)                              2,013     1,555
    -------------------------------------------------------------------------

    The expected natural decline both in Hungary and Canada was more than
offset by improved performance in Tunisia.
    

    Reserves
    --------
    Winstar reports an 18% increase in its proved plus probable reserves from
2006 to 2007. The reserves were evaluated independently by McDaniel &
Associates Consultants Ltd. ("McDaniel") for Alberta and by RPS Energy ("RPS")
for Tunisia and Hungary, and are as follows (based on McDaniel's forecast
prices and gross before royalty):

    
    -------------------------------------------------------------------------
                                       Alberta   Tunisia   Hungary     TOTAL
                                        mboe(1)    mboe      mboe       mboe
    -------------------------------------------------------------------------
    As of December 31, 2006
    -------------------------------------------------------------------------
    Proved developed reserves              528     1,321       176     2,025
    -------------------------------------------------------------------------
    Proved undeveloped reserves             18     1,809         0     1,827
    -------------------------------------------------------------------------
    Total proved                           546     3,130       176     3,852
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Probable reserves                      214     5,669        79     5,962
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    TOTAL proved + probable                760     8,799       255     9,814
    -------------------------------------------------------------------------
    As of December 31, 2007
    -------------------------------------------------------------------------
    Proved developed reserves              525     1,680        44     2,249
    -------------------------------------------------------------------------
    Proved undeveloped reserves             42     1,815         0     1,857
    -------------------------------------------------------------------------
    Total proved                           567     3,495        44     4,106
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Probable reserves                      177     7,630        17     7,824
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    TOTAL proved + probable                744    11,125        61    11,930
    -------------------------------------------------------------------------

    Note:
    (1) 1 mboe = 1,000 boe

    The expected decline in reserves in Hungary and, to a very limited extent
in Canada, was more than offset by the strong performance registered in
Tunisia.

    2007 Net Asset Value
    --------------------
    Based on its independently evaluated reserves and land value and audited
financial statements, Winstar's net asset value and net asset value per share
as of December 31, 2007 and December 31, 2006 are calculated as follows:

    -------------------------------------------------------------------------
    $million
    (except per share values)                                 2007      2006
    -------------------------------------------------------------------------
    Proved developed reserves                                $70.9     $47.1
    -------------------------------------------------------------------------
    Proven undeveloped reserves                              $41.5     $40.2
    -------------------------------------------------------------------------
    Probable reserves                                       $170.0    $102.8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Total proved + probable reserves(1)                     $282.4    $190.1
    -------------------------------------------------------------------------
    Land(2)                                                   $9.2     $12.8
    -------------------------------------------------------------------------
    Working capital                                          $25.4      $7.4
    -------------------------------------------------------------------------
    Long-term debt                                               -         -
    -------------------------------------------------------------------------
    Proceeds from options                                     $7.6      $6.6
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    NET ASSET VALUE                                         $324.6    $216.8
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    NET ASSET VALUE PER DILUTED SHARE(3)                     $8.95     $7.03
    -------------------------------------------------------------------------
    NET ASSET VALUE PER DILUTED SHARE(3) - PROVED ONLY       $4.26     $3.69
    -------------------------------------------------------------------------

    Notes:

    (1) As evaluated by McDaniel (Canada) and RPS (Tunisia and Hungary).
        Discounted at 10%, before tax, using McDaniel forecast prices.
    (2) As independently evaluated by Seaton-Jordan & Associates Ltd.
        ("Seaton-Jordan"). Value includes only Canadian undeveloped acreage.
        No value was attributed to non-producing acreage in Tunisia and
        Hungary.
    (3) Fully diluted shares: 36,262,666, representing all outstanding shares
        and options as at period end December 31, 2007 (2006: 30,831,273).
    

    Since year end 2005, after the company merged with Athanor B.V. in
August 2005, the Net Asset Value of Winstar has increased by $142 million from
$182 million (2005) to $325 million currently, which is an increase of 79%.

    2007 Finding, Development and Acquisition Costs ("FD&A") (including
    -------------------------------------------------------------------
    changes in future development capital)
    --------------------------------------
    Winstar's capital expenditures in 2007 were $33.2 million for the
purposes of calculating finding and development costs (no expenditures for
acquisitions). Based on Winstar's independently evaluated reserves (based on
McDaniel's forecast prices) at year-end 2007, the Company's finding and
development costs are calculated as follows:

    
                                ---------------------------------------------
                                 Total Proved
                                Reserves Added     F&D(1) Acquisition  FD&A
                                ---------------------------------------------
                                         (mboe)   ($/boe)   ($/boe)   ($/boe)
    -------------------------------------------------------------------------
    Capex program                          965    $43.97
    -------------------------------------------------------------------------
    Acquisition                              0                  $0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                  965                        $43.97
    -------------------------------------------------------------------------

                                ---------------------------------------------
                                 Total Proved
                                  + Probable
                                Reserves Added     F&D(1) Acquisition  FD&A
                                ---------------------------------------------
                                                   $ per     $ per     $ per
                                         (mboe)      boe       boe       boe
    -------------------------------------------------------------------------
    Capex program                         2827    $21.69
    -------------------------------------------------------------------------
    Acquisition                              0                  $0
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total                                 2827                        $21.69
    -------------------------------------------------------------------------

    Proved and Probable costs per boe of $21.69 for 2007, are comparable to
our 2006 reported $21.21 per boe. Proved costs per boe for 2007 increased from
$23.99 per boe last year to $43.97 per boe. The higher 2007 Proved FD&A can be
attributed to;

    -   Strachan: 2006 & 2007 capital accrued this year with no increase of
        reserves
    -   Sabria 11: higher capital costs accrued with no increase in proved
        reserves
    -   Torokkoppany: proved reserves reduced as economic limit nears

    Three Year FD&A
    ---------------
    The year 2007 marks the third year-end since the company merged with
Athanor B.V., in August 2005, and therefore the first time that three year
FD&A costs per boe are available.

    -------------------------------------------------------------------------
                                 Capital Including
                                         Change in     Reserves         FD&A
                                    Future Capital        Added      per Boe
    -------------------------------------------------------------------------
    Proved                                 $104.6M   4.765 mboe       $21.96
    -------------------------------------------------------------------------
    Proved and Probable                    $115.6M   6.679 mboe       $17.31
    -------------------------------------------------------------------------

    2007 Reserves Replacement
    -------------------------
    Winstar replaced its 2007 production as it relates to additional Proved
Reserves by 136 % (as compared to 173% in 2006) and as it relates to
additional Proved and Probable Reserves by 398% (as compared to 154% in 2006).

    -------------------------------------------------------------------------
    Consolidated 2007         Proved Reserves           Proved + Probable
       Production            Replacement Ratio     Reserves Replacement Ratio
    -------------------------------------------------------------------------
         (mboe)                     (%)                         (%)
    -------------------------------------------------------------------------
           711                      136                         398
    -------------------------------------------------------------------------

    Between 2005 and 2007 the Company has replaced production by 153% on a
Proven Reserves basis and 273% on a Proved plus Probable Reserves basis.

    Land Base and Fair Market Value
    -------------------------------
    The majority of Winstar's 1,178 square miles of mineral rights are held as
undeveloped land and covered with 2D or 3D seismic data. The estimated fair
market value of only the Canadian undeveloped acreage is $9.2 million as of
December 31, 2007.

    -------------------------------------------------------------------------
                                                            Net          Net
                                                     Sections(1)  Sections(1)
                                                          as of        as of
                                                    December 31, December 31,
                                                           2007         2006
    -------------------------------------------------------------------------
    Canada (Alberta - Crown and freehold leases
     or licenses)                                            54           68
    -------------------------------------------------------------------------
    Tunisia (five concessions)                              236          236
    -------------------------------------------------------------------------
    Hungary (one concession and one exploration
     permit)                                                888          888
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    TOTAL sections/sq. miles                              1,178        1,192
    -------------------------------------------------------------------------
    Fair Market Value for Undeveloped Lands(2)       $9,205,000  $12,801,000
    -------------------------------------------------------------------------

    Notes:
    (1) 1 section = 1 square mile, 640 acres or 259 hectares.
    (2) As independently evaluated by Seaton-Jordan. Value includes only
        Canadian undeveloped acreage. No value was attributed to non-
        producing acreage in Tunisia and Hungary.
    

    Plans and Perspectives for 2008
    -------------------------------
    Winstar is focusing approximately 80% of its approved 2008 capital budget
in Tunisia. Capital expenditures for 2008 are expected to be between $45MM and
$50MM dependent on program success and the advancement of current
opportunities. Winstar expects to fund the program using working capital and
cash flow. This budget range should also be seen as an indication of the
inventory of opportunities within the Company.
    Drilling and re-completions are concentrated in the Hamra Ordovician
Formation at the Winstar operated Sabria Concessions (45% working interest)
and in the TAGI Triassic Formation at the Chouech Essaida Concession (100%
working interest). Geophysics are concentrated at Chouech Essaida and Ech
Chouech Concessions (100% working interest) where a 400 square kilometer three
dimensional seismic survey is currently on its way to delineate the existing
Triassic and Devonian oilfields plus explore for the deeper high potential
Silurian.
    Subject to operational success in Tunisia, which can be delayed by
unavailability of drilling equipment, and partner approval, the Company is
forecasting average daily sales (equivalent to production in this forecast)
during 2008 to be 2400 to 2700 boepd.

    BOE

    References herein to boe mean barrels of oil equivalent derived by
converting gas to oil in the ration of six thousand cubic feet (Mcf) of gas to
one barrel (bbl) of oil. Boe may be misleading, particularly if used in
isolation. A boe conversion ratio of 6 Mcf:1 bbl is based upon an energy
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.

    Non-GAAP Measures

    The Company uses the terms "funds from operations," "funds from
operations per share" and "netbacks" which are not recognized measures under
Canadian generally accepted accounting principles. The Company uses these
measures to help evaluate its performance. Management considers netbacks an
important measure as it demonstrates the Company's profitability relative to
current commodity prices. Netbacks are calculated as revenue plus
international royalty income net of royalties, operating, transportation,
general and administrative and current tax expenses. Management uses funds
from operations to analyze performance and considers it a key measure as it
demonstrates the Company's ability to generate the cash necessary to fund
future capital investments and to repay debt. Funds from operations have been
defined by the Company as cash flow from operating activities excluding the
change in non-cash working capital related to operating activities, geological
and geophysical expenses and expenditures on asset retirement obligations and
reclamation. The Company also presents funds from operations per share whereby
amounts per share are calculated using weighted average common shares
outstanding consistent with the calculation of earnings per share. Winstar's
determination of funds from operations may not be comparable to that reported
by other companies nor should it be viewed as an alternative to cash flow from
operating activities, net earnings or other measures of financial performance
calculated in accordance with Canadian GAAP.

    Sales and Seasonality

    Oil and natural gas production is not necessarily equal to sales.
Tunisian oil is transported or pipelined to a terminal for periodic offloading
onto oil tankers. Revenue from tanker sales is recognized only when the sale
occurs. Production during the period is carried in inventory until sold.
Hungarian natural gas is sold on a monthly basis into the local market.
Monthly sales are subject to local market product demand which increases
during the heating seasons of fall and winter and curtails over the warmer
spring and summer seasons.

    Forward-Looking Statements

    This press release contains certain forward-looking statements. These
statements relate to future events or future performance of the Company. When
used in this press release, the words "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "estimate", "predict", "seek",
"propose", "expect", "potential", "continue", and similar expressions, are
intended to identify forward-looking statements. These statements involve
known and unknown risks, uncertainties, and other factors that may cause
actual results or events to differ materially from those anticipated in such
forward-looking statements. Such statements reflect the Company's current
views with respect to certain events, and are subject to certain risks,
uncertainties and assumptions. Many factors could cause Winstar's actual
results, performance, or achievements to materially differ from those
described in this press release. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying forward-looking
statements prove incorrect, actual results may vary materially from those
described in this press release as intended, planned, anticipated, believed,
estimated, or expected. Specific forward-looking statements in this press
release include, among others, statements pertaining to the following: factors
upon which Winstar will decide whether or not to undertake a specific course
of action; and estimated volumes and timing of future production; business
plans for drilling, exploration and development; and other expectations,
beliefs, plans, goal, objectives, assumptions, information and statements
about possible future events, conditions, results of operations or
performance. The risks to which the Company is subject include those of the
oil and gas industry in general including operational risks in exploring for,
developing and producing crude oil and natural gas; risks and uncertainties
involving geology of oil and gas deposits; volatility in global market prices
for oil and natural gas; general economic conditions; competition; liabilities
and risks, including environmental liability and risks, inherent in oil and
gas operations; uncertainties as to the availability and cost of financing and
changes in capital markets; alternatives to and changing demand for petroleum
products; and changes in legislation and the regulatory environment, including
uncertainties with respect to the Kyoto Protocol. Furthermore, statements
relating to "reserves" or "resources" are deemed to be forward-looking
statements, as they involve the implied assessment, based on certain estimates
and assumptions that the resources and reserves described can be produced
profitably in the future. The forward-looking statements contained in this
press release are expressly qualified in their entirety by this cautionary
statement. These statements speak only as of the date of this press release.
The Company does not intend and does not assume any obligation, to update
these forward-looking statements to reflect new information, subsequent events
or otherwise, except as required by law.

    Winstar Resources Ltd. is a Calgary-based junior oil and gas company,
which explores for, develops, produces, and sells crude oil, natural gas
liquids and natural gas in Tunisia, Canada and Hungary. Winstar's common
shares trade on the Toronto Stock Exchange under the symbol WIX.





For further information:

For further information: Mr. David Monachello, President, Phone (403)
513-4200, Email dmonachello@winstar.ca or Mr. Charles de Mestral, Chief
Executive Officer, Phone: Toll-free (Canada and USA) 1-800-875-1217 (Note: Mr.
de Mestral is based in Europe, in a time zone eight hours ahead of Calgary
time), Email: cdemestral@winstar-resources.ch

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