Gemini Energy Corp. Reports Second Quarter Financial Results



    VANCOUVER, Aug. 14 /CNW/ - Gemini Energy Corp. (GNI-TSX) announces the
results of its second quarter financial statements for the period ending
June 30, 2007. Any reference in this news release to any dollar amount is in
U.S. dollars unless otherwise stated.

    SUMMARY

    
    -   Cash flow decreased to $3,214,292

    -   EBITDA decreased to $2,750,064

    -   Total revenues decreased to $5,108,894

    -   Net income before taxes decreased to a loss $1,270,495
    

    Gemini's cash flow(1) for the six-month period ended June 30, 2007
decreased to $3,214,292. Earnings before interest, taxes, depreciation and
amortization (EBITDA)(2) for the second quarter of 2007 decreased to
$2,750,064 from $8,798,269 in 2006. Total revenue for the second quarter of
2007 decreased 45% to $6,331,665 compared to $11,440,559 for the same period
in 2006, while net income decreased to a loss of $2,771,648 compared to a
profit of $3,724,370 for the same period in 2006. Net income before taxes for
the second quarter of 2007 decreased to a loss of $1,270,495 from a profit of
$4,924,370 for the same period in 2006 primarily as a result of decreased
revenue resulting from lower commodity prices, increased professional fees and
interest expenses and foreign exchange fluctuation.
    Net production for the six-month period ended June 30, 2007 totaled
1,222 million cubic feet (MMcf) of natural gas and 4.5 thousand barrels of
natural gas liquids, or 1,279 million cubic feet of natural gas equivalent
(MMcfe) averaging 7.1 MMcfe/day. This compares with 1,663 MMcfe averaging
9.2 MMcfe/day for the same period in 2006.
    Average natural gas prices realized for the six months ended June 30,
2007 decreased 29% to $4.78 per Mcf compared to $6.38 per Mcf during the same
period in 2006. Average condensate prices realized for the six months ended
June 30, 2007 decreased 12% to $58.76 per barrel compared to $66.48 during the
same period in 2006.
    Direct operating expenses for the six-month period ended June 30, 2007
decreased to $3,378,749 ($2,304,247 in non-cash depreciation and depletion
costs, $561,589 in State taxes and $512,913 in operating expenses) compared to
$4,829,642 ($2,989,076 in depreciation and depletion costs, $1,335,791 in
State taxes and $504,775 in operating expenses) for the same period in 2006.
    Other expenses and costs for the six-month period ended June 30, 2007
increased to $4,223,412 compared to $1,686,547 in the same period 2006.
General and administration expenses were $227,442 compared to $154,457 in
2006. Foreign exchange loss increased to $1,635,294 compared to a loss of
$357,221 in the same period in 2006. Gemini does not currently hedge its
foreign exchange exposures. Interest expense increased to $1,716,312 compared
to $884,823 for the same period in 2006. Cash interest for the second quarter
in 2007 was $1,035,772 and additional interest on the accretion of the
convertible debentures was $680,539 compared to cash interest of $884,823 and
accretion of $17,372 for the same period in 2006.

    
    Note (1) Cash flow meaning cash flow from operations before net change
             in non-cash working capital is not a recognized measure under
             Canadian GAAP and is offered as a commonly used industry metric
             for comparative purposes only.

    Note (2) EBITDA is defined as earnings before interest, taxes,
             depreciation and amortization and other items. EBITDA is not a
             recognized measure under and is offered as a commonly used
             industry metric for comparative purposes only.

    -------------------------------------------------------------------------
    Reconciliation of cash flow
     from operations before change                  Six Months Ended June 30
     in net working capital                             2007          2006

    Net cash provided by operating
     activities                                     $2,337,522    $5,253,400

      Accounts payable and
       accrued liabilities                            (213,096)      876,153
      Prepaid expenses                                  45,175        39,636
      Accounts receivable                             (455,309)     (978,461)
      Income taxes                                   1,500,000     1,200,000

    Cash flow from operations
     before change in net working
     capital                                        $3,214,292    $4,747,888
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Reconciliation of EBITDA                        Six Months Ended June 30
     to net income                                      2007          2006

    EBITDA                                          $2,750,064    $8,798,269

    Less      Depletion, depreciation and
               accretion                             2,304,247    $2,989,076
              Interest on long-term debt             1,716,312    $  884,823
              Income taxes - current                     1,154    $        0
              Income taxes - future                  1,500,000    $1,200,000

    Net Income                                     ($2,771,649)   $3,724,370
    -------------------------------------------------------------------------
    

    Gemini's 2006 Audited Financial Statements, Management Discussion and
Analysis, and Annual Information Form (AIF) are available on SEDAR at
www.sedar.com.
    Gemini Energy Corp. is a public company listed on the Toronto Stock
Exchange with 24,608,642 shares issued. The company's business is focused on
the exploration, development, and production of natural gas and natural gas
liquids at its Pinedale Anticline properties in southwest Wyoming.





For further information:

For further information: Gordon Nielsen at (604) 669-1400 or visit the
Company website at www.GeminiEnergy.com

Organization Profile

GEMINI ENERGY CORP.

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