Mystique Energy Announces Financial and Operational Results for Second Quarter of 2007



    CALGARY, Aug. 29 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture)
("Mystique") today reported its financial and operational results for the
three month and six month periods ended June 30, 2007.

    
    Financial and operational results for the second quarter of 2007 include:

    -  Cash flow of $(1,431,530) compared to $316,926 for the second quarter
       of 2006.

    -  Net loss of $1,464,104 compared to $129,976 for the second quarter of
       2006.

    -  Production sales averaged 336 barrels of oil equivalent per day
       ("boepd")(*) compared to an average production rate of 232 boepd in
       the first quarter of 2006.

    -  Accepted an offer to purchase the remainder of its oil and gas assets
       and tax pools, effective 2007-06-01, for gross proceeds of
       $19.2 million.

    Other developments included:

    -  Obtained creditor protection under the Companies' Creditors
       Arrangement Act (Canada) ("CCAA") pursuant to an Order from the
       Alberta Court of Queen's Bench (the "Court") effective 2007-04-24.

    Developments that occurred during the third quarter included:

    -  Closed the sale of the remainder of its oil and gas assets and tax
       pools, effective 2007-06-01, for gross proceeds of $19.2 million.

    -  The initial Court order granting creditor protection under CCAA was
       extended until 2007-10-15.

    -  Effective 2007-08-28, Mr. Nick Antonenko has been appointed a director
       of Mystique. He has resigned his position as Vice President,
       Production Operations.

    Complete financial and operating results will be filed on SEDAR and made
available on Mystique's website, www.mystiqueenergy.ca, later today.

    (*)  Use of the term barrels of oil equivalent "boe" may be misleading,
         particularly if used in isolation. A boe conversion ratio of
         6 mcf: 1 bbl is based on an energy equivalency conversion method
    	     primarily applicable at the burner tip and does not represent a
         value equivalency at the wellhead.
    

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. This news
    release may contain forward-looking information. Actual future results
    may differ materially from those contemplated. The risks, uncertainties,
    and other factors that could influence actual results are described in
    documents filed with regulatory authorities.



    
                               BALANCE SHEETS
                                 (Unaudited)

                                                     JUNE 30     DECEMBER 31
                                                       2007          2006
    -------------------------------------------------------------------------
    ASSETS

    Current
      Accounts receivable                         $  1,605,284  $  1,873,645
      Other tax receivable                             165,032       165,032
      Prepaid expenses and deposits                    108,006       129,623
                                                  ---------------------------
                                                     1,878,322     2,168,300
    Restricted Cash                                          -       110,540
    Future Income Tax                                1,231,583     2,297,130
    Oil and Gas Properties (Note 2)                 23,365,014    28,433,017
                                                  ---------------------------

                                                  $ 26,474,919  $ 33,008,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES

    Current
      Accounts payable and accrued liabilities    $ 11,612,629  $ 10,067,841
      Bank indebtedness (Note 5)                     9,558,986    13,444,168
                                                  ---------------------------
                                                    21,171,615    23,512,009

    Advances Payable                                         -        59,354
    Asset Retirement Obligation (Note 3)               519,805       678,975
                                                  ---------------------------
                                                    21,691,420    24,240,338
                                                  ---------------------------
    SHAREHOLDERS' EQUITY

    Share Capital (Note 4)                          16,547,706    18,844,836
    Contributed Surplus                              1,230,947     1,031,474
    Deficit                                        (12,995,154)  (11,117,661)
                                                  ---------------------------
                                                     4,783,499     8,758,649
                                                  ---------------------------

                                                  $ 24,474,919  $ 33,008,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Approved by the Directors:

    "Victor Luhowy"                               "Brent Walter"
    -----------------                             -----------------
    Director                                      Director



                     STATEMENTS OF OPERATIONS AND DEFICIT
                                 (Unaudited)

                           THREE MONTHS ENDED           SIX MONTHS ENDED
                                 JUNE 30                     JUNE 30
                           2007          2006          2007          2006
    -------------------------------------------------------------------------
    Revenues
      Oil and gas
       revenue        $  1,395,224  $  1,002,534  $  3,288,610  $  2,139,716
      Royalties net
       of ARTC            (376,405)     (187,982)     (906,486)     (398,212)
      Other revenue         72,543         7,687       176,979        21,285
                      -------------------------------------------------------
                         1,091,362       822,239     2,559,103     1,762,789
                      -------------------------------------------------------

    Expenses
      Production           249,566       187,068       611,024       367,361
      Transportation        18,245        20,268        39,503        47,383
      General and
       administration    2,041,642       193,917     2,390,536       296,249
      Depletion,
       depreciation
       and accretion       778,178       546,319     1,990,906     1,187,883
      Interest             213,439       104,060       436,737       132,400
      Stock-based
       compensation
       (Note 4)             99,736       101,651       199,473       195,831
                      -------------------------------------------------------
                         3,400,806     1,153,283     5,668,179     2,227,107
                      -------------------------------------------------------

    Income (Loss)
     Before Income
     Taxes              (2,309,444)     (331,044)   (3,109,076)     (464,318)

    Income taxes
      Future income
       tax                (845,340)     (201,068)   (1,231,583)     (195,143)
                      -------------------------------------------------------

    Net Income (Loss)
     For The Period     (1,464,104)     (129,976)   (1,877,493)     (269,175)

    Deficit, Beginning
     of Period         (11,531,050)     (973,198)  (11,117,661)     (833,999)
                      -------------------------------------------------------

    Deficit, End Of
     Period           $(12,995,154) $ (1,103,174) $(12,995,154) $ (1,103,174)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings Per Share
    Basic             $     ( 0.03) $       0.00  $      (0.03) $      (0.01)
    Diluted           $     ( 0.03) $       0.00  $      (0.03) $      (0.01)

    Weighted Average
     Number Of Shares
    Basic               59,840,682    49,678,208    59,840,682    48,025,381
    Diluted             59,840,682    50,076,636    59,840,682    49,184,489



                           STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                           THREE MONTHS ENDED           SIX MONTHS ENDED
                                 JUNE 30                     JUNE 30
                           2007          2006          2007          2006
    -------------------------------------------------------------------------
    Operating Activities
    Net Income (loss)
     for the period   $ (1,464,104) $   (129,976) $ (1,877,493) $   (269,175)
      Add: Items not
       involving cash:
        Future income
         tax              (845,340)     (201,068)   (1,231,583)     (195,143)
        Stock-based
         compensation
         expense            99,736       101,651       199,473       195,831
        Depletion,
         depreciation
         and accretion     778,178       546,319     1,990,906     1,187,883
                      -------------------------------------------------------
                        (1,431,530)      316,926      (918,697)      919,396
      Change in
       non-cash
       working capital
       items:
        Accounts
         receivable        170,836       427,758       260,618    (2,205,262)
        Accounts
         payable and
         accrued
         liabilities     1,457,659    (3,109,802)    1,910,297      (225,040)
        Other tax
         receivable              -       (31,348)            -       (65,783)
        Prepaid
         expenses and
         deposits          (10,340)      (33,321)       21,617        15,475
                      -------------------------------------------------------
                           186,625    (2,429,787)    1,273,835    (1,561,214)
                      -------------------------------------------------------

    Financing Activities
    Shares issued for
     cash                        -        (4,598)            -     2,771,677
    Bank indebtedness      221,897     6,827,001    (3,885,183)    7,559,361
                      -------------------------------------------------------
                           221,897     6,822,403    (3,885,183)   10,331,038
                      -------------------------------------------------------

    Investing Activities
    Oil and gas
     property
     acquisitions         (496,764)   (3,744,873)    2,917,928   (10,865,681)
    Purchase of
     capital assets              -        (3,531)            -       (13,711)
    Net change in
     non-cash working
     capital balances       88,242      (644,212)     (306,580)   (1,257,301)
                      -------------------------------------------------------
                          (408,522)   (4,392,616)    2,611,348   (12,136,693)
                      -------------------------------------------------------

    Increase (Decrease)
     In Cash                     -             -             -    (3,366,869)
    Cash, Beginning Of
     Period                      -             -             -     3,366,869
                      -------------------------------------------------------

    Cash, End of
     Period           $          -  $          -  $          -  $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Interest Paid     $    206,439  $     52,263  $    429,737  $     52,263
    

    %SEDAR: 00001147E




For further information:

For further information: on Mystique, please contact: Victor Luhowy,
President & Chief Executive Officer, Mystique Energy, Inc., Tel: (403)
261-3634, Fax: (403) 265-3348, vic@mystiqueenergy.ca, www.mystiqueenergy.ca

Organization Profile

MYSTIQUE ENERGY, INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890