Ripper Oil and Gas Inc. releases year end results
TSX VENTURE STOCK SYMBOL: RIP
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
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Financial ($)
Petroleum and natural gas sales 4,403,415 8,506,711
Other income 34,704 944
Royalties (409,856) (1,337,189)
Production expenses (including transportation) (1,885,483) (2,175,440)
General and administrative (cash expenses) (852,606) (878,753)
Interest (135,183) (182,524)
Current tax (expense) recovery 327,680 (338,676)
Asset retirement expenditures 15,445 (202,553)
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Funds flow from operations 1,498,116 3,392,520
Asset retirement expenditures (15,445) 202,553
Depletion and depreciation (2,482,864) (2,826,348)
Accretion (118,334) (107,987)
Future income tax (expense) recovery 185,951 (32,106)
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Net income (932,576) 628,632
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Outstanding shares
Weighted average - basic 20,699,776 20,768,909
- diluted 20,699,776 20,768,909
At March 31 - basic 20,568,909 20,768,909
- diluted 20,568,909 20,768,909
Cash flow from operations - basic and
diluted ($/share) 0.07 0.16
Net income - basic and
diluted ($/share) (0.05) 0.03
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Production
Oil and liquids (bbls/d) 76 95
Natural gas (mcf/d) 1,811 1,987
Boe/d at 6:1 377 426
Realized prices
Oil and liquids ($/bbl) 62.63 83.33
Natural gas ($/mcf) 4.04 7.71
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Field netback ($/boe) 15.30 32.10
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Reserves(1)
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
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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
$31.96/boe
- 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
develop.
- 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 www.sedar.com.
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: 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
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