Ripper Oil and Gas Inc. releases year end results


CALGARY, June 21 /CNW/ - Ripper Oil and Gas Inc. (TSX: RIP) ("Ripper" or the "Corporation") presents its financial results for year ended March 31, 2010.

Corporate Highlights:

    For the years ended March 31,                        2010        2009
    Financial ($)
    Petroleum and natural gas sales                    4,403,415   8,506,711
    Other income                                          34,704         944
    Royalties                                           (409,856) (1,337,189)
    Production expenses (including transportation)    (1,885,483) (2,175,440)
    General and administrative (cash expenses)          (852,606)   (878,753)
    Interest                                            (135,183)   (182,524)
    Current tax (expense) recovery                       327,680    (338,676)
    Asset retirement expenditures                         15,445    (202,553)
    Funds flow from operations                         1,498,116   3,392,520
    Asset retirement expenditures                        (15,445)    202,553
    Depletion and depreciation                        (2,482,864) (2,826,348)
    Accretion                                           (118,334)   (107,987)
    Future income tax (expense) recovery                 185,951     (32,106)
    Net income                                          (932,576)    628,632
    Outstanding shares
    Weighted average           - basic                20,699,776  20,768,909
                               - diluted              20,699,776  20,768,909
    At March 31                - basic                20,568,909  20,768,909
                               - diluted              20,568,909  20,768,909
    Cash flow from operations  - basic and
                                 diluted ($/share)          0.07        0.16
    Net income                 - basic and
                                 diluted ($/share)         (0.05)       0.03
    Oil and liquids (bbls/d)                                  76          95
    Natural gas (mcf/d)                                    1,811       1,987
    Boe/d at 6:1                                             377         426
    Realized prices
    Oil and liquids ($/bbl)                                62.63       83.33
    Natural gas ($/mcf)                                     4.04        7.71
    Field netback ($/boe)                                  15.30       32.10
    Oil and NGL's
      Proved (mbbls)                                         277         297
      Proved plus Probable (mbbls)                           376         389
    Natural Gas
      Proved (mmcf)                                        8,894       8,055
      Proved plus Probable (mmcf)                         12,608      12,251
    Total boe (6:1) proved plus probable (mboe)            2,478       2,431
    Undeveloped land (acres)
      Gross                                               10,102      55,100
      Net                                                  4,827      16,280

    (1) Includes royalty interest reserves and is prior to royalties paid

    Highlights for the year include:

    -   production in the fourth quarter averaged 362 boe/day down from
        382 boe/day mainly due to the sale of the Corporation's properties in
        Saskatchewan in December, 2010.

    -   third quarter operating netbacks of $17.41/boe on sales averaging
        $39.29/boe; for the year, netbacks of $15.30/ boe on sales averaging

    -   received natural gas prices averaging $5.19/mcf for the quarter, up
        19% over the third quarter price of $4.36/mcf, and up slightly from
        the price of $5.18/mcf in the fourth quarter of last year.

    -   tax pools for the year ended March 31, 2010, are $8.2 million (2009 -
        $9.1 million). Included in the balance sheet under accounts
        receivable is an amount for over $300,000 in income tax recoveries.

    -   as of March 31, 2010, the Corporation held 10,102 gross (4,827 net)
        acres of undeveloped as compared to 55,100 gross (16,280 net) acres
        of undeveloped land. The change in undeveloped land holdings was due
        to the sale of all the Corporation's Saskatchewan properties. The
        Saskatchewan undeveloped lands were not prospective or profitable to

    -   Ripper has entered into a physical gas hedge in the form of a
        costless collar effective from April 1, 2010, to November 30, 2010,
        for 900GJ/ day with a floor price of $4.25/GJ Canadian and a ceiling
        price of $4.85/GJ Canadian, settling against NGX AB-NIT Month Ahead
        Index. The costless collar was not used in the price forecast by GLJ
        in the March 31, 2010, reserve report.

    -   Ripper's year end reserves were evaluated by the independent firm GLJ
        Petroleum Consultants Ltd. ("GLJ") in accordance with National
        Instrument 51-101 for the year ending March 31, 2010, utilizing GLJ's
        April, 2010 escalated price forecasts. Total company proved reserves
        are 1,759 mboe as compared to 1,640 mboe for March 31, 2009, and
        total proved plus probable reserves are 2,478 mboe as compared to
        2,431 mboe for March 31, 2009. Our reserve life index is 10.9 years
        for total proved reserves and 14.9 years for total proved plus
        probable reserves. Total proved corporate reserves using the
        aforementioned price forecasts, and a before tax present value
        discounted at 10%, were valued at $19.3 million for 2009, and
        $22.9 million for 2009. Total proved plus probable corporate reserves
        were valued at $26.2 million (using the same 10% discount) as
        compared to $31.1 million from 2008. Corporate reserve values
        declined due to the decrease in forecasted natural gas sales prices
        at April, 2010, as compared to the forecasted natural gas sales
        prices at April, 2009.

Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange. Further information is available on SEDAR at

BOEs 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 neither approved nor disapproved of the information contained herein.

%SEDAR: 00015775E


For further information: For further information: Mr. R.G. (Jerry) Ball, President and Chief Executive Officer at (403) 662-2020 or Fax (403) 662-2029, RIPPER OIL AND GAS INC., Suite 1150, 606 - 4 Street S.W., Calgary, Alberta, T2P 1T1

Organization Profile


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