TORONTO, Aug. 14 /CNW/ - Pacific Stratus Energy Ltd. (TSX: PSE) announced
today results for the three and six-month periods ended June 30, 2007. For the
quarter, Pacific Stratus reported a loss of US$17.2 million or US$0.45 per
share as compared to a loss of US$0.6 million or US$0.04 per share in the
second quarter of last year. For the six months ended June 30, 2007 the
company reported a loss of $22.6 million or $0.51 per share as compared to a
loss of $1.0 million or $0.08 per share in the same period last year. Oil
production in the quarter averaged 1,860 barrels per day, and the average
price received for sales in the quarter amounted to US$60.30 per barrel. The
loss in the quarter is primarily attributable to a $10.6 million non-cash
charge for stock-based compensation and $4.1 million non-cash loss on the
redemption of the Cdn$32.5 million senior unsecured notes in the quarter. The
company changed its reporting currency to United States dollars effective
January 1, 2007 to improve investor's ability to evaluate the company's
results with comparable companies in the industry.
At La Creciente-2 well located on Prospect A (LCA-2), three gas bearing
intervals were defined totaling 156 feet of Net Reservoir, for a Net to Gross
ratio of 32% and porosities of 15% to 18%. The Company is now preparing to do
an open hole production test to jointly test the sandstones from 11,330 to
11,650 feet. Following the test, the well will be completed with a 5-inch
liner to selectively test the three intervals at 11,327-11,368, 11,397-11,411
and 11,426-11,513 feet respectively.
A water-gas contact was encountered in the basal sandstone at 11,740 feet
measured depth or 11,030 feet true vertical depth sub-sea level. This contact
is located 33 feet below the bottom of the reservoir column at the
previously-drilled La Creciente-1 well and it represents the lower limit of
the reservoir at Prospect A. Using average parameters for the reserve
calculation, this represents a potential increase of 25% of the existing
reserves attributed to Prospect A.
Commenting on these results, Jose Francisco Arata, Chief Executive
Officer stated, "Now that we have defined the lower limit of the reservoir at
Prospect A, not only are we ready to fully develop this field, but also to
actively explore the other prospects located at La Creciente, especially
Prospect D whose structural closing area is 22% larger than Prospect A.
Drilling will commence on this target after completing the production tests at
LCA-2. Recently acquired seismic data has also produced three additional
prospects and one lead."
At the La Creciente 3 well, also located on Prospect A (LCA-3), drilling
has reached a depth of 8,000 feet. Given that the water-gas contact was found
at a true vertical depth of 11,030 feet sub-sea level, the company has decided
to deviate this well toward the crest of the structure to reach the Cienaga de
Oro formation at a depth of 10,292 feet.
The company also announced today that its subsidiary, Stratus Oil and
Gas, has reached a Settlement Agreement, the terms of which shall remain
confidential, with respect to the ICC Arbitration against Hocol S.A, and that
the company holds no interest in the oil and gas fields of the Doima Contract
or the Ortega Contract.
The company also announced that it has renegotiated its rights to the
Puli-B block in Colombia and that its sole interest in Puli-B is in the Puli-7
well, which produces 70 bopd (net).
A conference call will be held on Wednesday, August 15, 2007, at 11:30 am
Eastern Daylight Time to discuss the quarterly results, as well as the
drilling results and the company's outlook for the remainder of 2007.
Call-in details are as follows:
Toronto & International: (416) 644-3432
North America: (800) 595-8550
We are inviting participants in the conference call to download the
Technical Presentation that will be posted on the company's website
www.pacificstratus.com under "Investor Info" one hour prior to the
commencement of the conference call.
Complete financial statements are available on the company's website or
on SEDAR at www.sedar.com.
Pacific Stratus Energy is a Canadian-based oil and gas company that
initiated operations in 2004. The company is focused on identifying attractive
opportunities primarily within the upstream Sub Andean basins. Pacific Stratus
has a current net production of 2,200 barrels of oil per day, with working
interests in the Caguan, Dindal, Rio Seco, Puli B, La Creciente, Moriche and
Guama blocks in Colombia and blocks 135, 137 and 138 in Peru. The company has
offices in Toronto, Caracas and Bogota. Further information is available on
our website at www.pacificstratus.com.
For further information:
For further information: Manfred Kruger, Vice President Investor
Relations, (416) 362-7735, firstname.lastname@example.org