CALGARY, Aug. 21 /CNW/ - Eagle Rock Exploration ("Eagle Rock " or "the
Corporation") (TSXV: ERX) has filed its Unaudited Financial Statements and
Management's Discussion and Analysis (MD&A) for the second quarter ended June
30, 2009 on SEDAR. The documents can be accessed through SEDAR's website at
www.sedar.com, or on Eagle Rock's site at www.eaglerockexploration.com.
The following table provides a summary of key financial results.
Three Three Six Six
months months months months
ended ended ended ended
June 30 June 30 June 30 June 30
2009 2008 2009 2008
$000's except production
and per share amounts $ 000's $ 000's $ 000's $ 000's
Average daily production - boed 527 403 560 444
Petroleum & natural gas revenue 2,691 3,929 4,986 7,456
Cash flow - operating activities 790 2,295 3,971 3,467
Loss for the period (646) (613) (1,562) (488)
Basic and diluted loss per share (0.01) (0.01) (0.03) (0.01)
Capital expenditures 166 4,560 1,542 6,929
Total assets 50,546 35,432 50,546 35,432
Net (debt) cash (20,254) (7,290) (20,254) (7,290)
Common shares outstanding - basic 54,543 54,001 54,543 54,001
The Corporation entered terms of forbearance with its bank in April 2009
following a breach of the working capital covenant in the lending agreement.
The key term of the forbearance agreement was to cure the working capital
default by June 30, 2009. This was not accomplished.
Subsequent to the period end Eagle Rock continued to seek solutions to
the working capital issue and was successful in selling a natural gas property
for net proceeds of $1.2 million. These proceeds are to be applied to
reduction of the bank debt but are not sufficient to resolve the working
capital problem. The Corporation has continued its efforts to resolve the
working capital problem and is considering several proposed courses of action.
The capital program remains suspended until such time as additional capital
resources are available.
Lower oil prices in 2009 have generated lower netbacks and cash flow from
the sale of petroleum and natural gas compared to 2008. The operating netback
for Q2 2009 was $31.80 per boe, a decrease of 56% from $72.75 in Q2 2008. Cash
flow from operating activities was $0.8 million for Q2 2009, a decrease of 66%
from the cash flow of $2.3 million in Q2 2008. The six month cash flow from
operating activities of $4.0 million in 2009 includes $2.2 million from the
monetization of a 2009 collar on the price of WTI oil.
Average daily production was 527 boe/d in Q2 2009, a 31 % increase over
403 boe/d Q2 2008. This increased production was a result of the 2008 drilling
program and a corporate acquisition in December 2008. Current production is
approximately 430 boe/d which is 95% oil.
About Eagle Rock
Eagle Rock is a publicly traded energy company involved in the
exploration and development of low to medium risk oil and gas properties in
Western Canada. Eagle Rock's common shares trade on the TSX Venture Exchange
under the symbol "ERX".
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
This press release includes forward-looking statements and assumptions
respecting Eagle Rock's strategies, future operations, expected financial
results, financial sources, commodity prices, costs of production and quantum
of oil and natural gas reserves and discusses certain issues, risks and
uncertainties that can be expected to impact on any of such matters. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties that can significantly affect future results. Actual future
results may differ materially from those assumed or described in such
forward-looking statements as a result of the impact of issues, risks and
uncertainties whether described herein or not, which Eagle Rock may not be
able to control. The reader is therefore cautioned not to place undue reliance
on such forward-looking statements. The forward-looking statements contained
in this news release are made as of the date hereof and Eagle Rock undertakes
no obligation to update publicly or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required by applicable securities laws. The forward-looking statements
contained in this news release are expressly qualified by this cautionary
statement. In addition, the term BOE or BOE's may be misleading, particularly
if used in isolation. A BOE (barrel of oil equivalent) conversion ratio of 6
Mcf per one (1) BOE is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
For further information:
For further information: please visit the Company's website at
www.eaglerockexploration.com or contact: Jim Silye, President and Chief
Executive Officer, Tel: (403) 269-4040, Fax: (403) 261-1978, E-mail: