CALGARY, Sept. 3 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE)
announces that it has filed its second quarter financial statements and MD&A
on SEDAR. During the second quarter, Result closed the disposition of
substantially all of its Saskatchewan properties. Proceeds of $11 million, net
of costs and purchase price adjustments, were applied against outstanding bank
debt and working capital deficiency. As a result, total corporate indebtedness
has been significantly reduced to $9.1 million as at June 30, 2008 (which
includes a bank operating loan of $7.2 million and a working deficit of
$1.8 million). Funds from operations were $2.2 million for Q2-08 ($2.4 million
for Q2-07), and $3.9 million for the 6-months year to date.
During the second quarter, Result continued to expand its presence in
unconventional shale gas within the Horn River Basin of northeastern British
Columbia. At the end of Q2-08, Result had acquired 26,000 gross acres
(40 sections) in the Horn River Basin at 100% working interest. These lands
are highly prospective for the emerging Muskwa and Evie shale gas play, which
is attracting major industry interest. In addition to the shale gas, Result is
also targeting high-deliverability gas within the underlying Keg River
Subsequent to June 30, Result finalized agreements with two industry
partners to expand its Horn River acreage position and farm-out a portion of
the capital risk related to drilling and completion costs. These two
agreements resulted in the acquisition of an additional $7.2 million worth of
undeveloped land, which Result funded by way of a share issuance totaling
13,539,385 common shares, all at a deemed price of $0.533 per share. Following
these transactions, Result now holds an interest in 83 gross (44 net) sections
(55,000 gross acres; 29,000 net acres) within the Horn River Basin.
Planning for the winter 2009 activities in the Horn River Basin is well
underway. Subject to final Board approval, the Company expects to spend a base
budget of $7 million in the first quarter, which will fund Result's
participation in at least 4 vertical wells, plus additional 3-D seismic. In
commenting on the progress of the Horn River project to date, Mr. William
Matheson, President, said "Since we began accumulating our position on this
play, undeveloped land values in the area have increased more than 10-fold.
During this time, Result has assembled a large, highly prospective position
and attracted two key partners to assist in the development of these assets.
The Company's strategy of moving from conventional western Canadian
exploration into a large scale resource play is developing on schedule and we
are gearing up for an active winter season."
Investors are cautioned that this news release contains forward looking
information. Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward-looking information. Readers are
cautioned not to place undue reliance on forward-looking information, as no
assurances can be given as to future results, levels of activity or
Result Energy Inc. is a publicly traded Canadian energy company involved
in the exploration and development of oil and gas properties in western
Canada. Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.
For further information:
For further information: William Matheson, President & CEO, Result
Energy Inc., Suite 2010, 355 4th Avenue SW, Calgary, T2P 0J1, (403) 777-0007