Spitfire Energy announces first quarter results

    CALGARY, Aug. 28 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) is pleased to
announce its financial and operating results for the first quarter of fiscal
2009 ending June 30, 2008.

    First Quarter Fiscal 2009 Highlights

    -   Posted record revenue of $2.1 million for the quarter ending
        June 30, 2008, increasing 52% over the same period in 2007;
    -   Generated record cash flow of $0.9 million for the quarter,
        increasing 108% over the quarter ending June 30, 2007;
    -   Operational issues impacted average production for the June 30, 2008
        quarter by approximately 39 boed for an average production rate for
        the quarter of 247 boed. Subsequent to these events, the field has
        been producing at full capacity and the company tied in a significant
        new discovery well that is currently producing at a rate of
        1.0 mmcfd. The additional production from the new discovery well
        brings the company's current production to 444 barrels of oil
        equivalent ("boe") per day utilizing a conversion ratio of
        6:1 (6 mcf equals 1boe).
    -   Commenced two pipeline projects to bring on production from Bonnie
        Glen and to restore Antelope production;
    -   Completed a 3D seismic shoot in Antelope and made plans to drill a
        seismic anomaly on its 100% leasehold.

    The following table provides a summary of Spitfire's results for the
three-month period ending June 30, 2008 and 2007. Spitfire's unaudited
financial statements and Management's Discussion and Analysis can be accessed
for viewing on SEDAR at www.sedar.com and on the Company website at

                                                      Quarter Ended June 30
                                                        2008         2007
    Petroleum and natural gas sales
      Crude oil and NGLs                             $1,799,386     $982,101
      Natural gas                                      $275,030     $381,250
      Net revenue                                    $2,074,416   $1,363,351
    Cash flow from operations                          $929,458     $448,059
      Per share basic                                     $0.02        $0.02
      Per share diluted                                   $0.02        $0.02
    Net earnings (loss)                                $365,058     ($24,272)
      Per share basic and diluted                         $0.01        $0.00
    Capital expenditures                             $1,010,521     $581,584
    Working capital (deficit)                       ($1,947,152) ($7,300,203)
    Total assets                                    $20,780,683  $18,582,018
    Common shares outstanding                        40,772,582   29,461,244


    Realized prices
      Crude oil and NGLs ($/bbl)                        $100.89       $49.51
      Natural gas ($/mcf)                                 $9.91        $6.75
      Total ($/boe)                                      $92.29       $46.53
      Netbacks ($/boe)                                   $41.52       $15.30
    Average production
      Crude oil and NGLs (bbl/d)                            196          218
      Natural gas (mcfd)                                    305          621
      Total (boed)                                          247          322


    Spitfire Energy Ltd. is a junior oil and gas company engaged in the
exploration, development and production of natural gas and crude oil reserves.
Spitfire's common shares trade on the TSX Venture Exchange under the symbol

    This press release contains forward-looking statements that are based on
current expectations. There are a number of risks and uncertainties associated
with the oil and gas industry that could cause actual results to differ
materially from those anticipated.

    A barrel of oil equivalent, derived by converting gas to oil using a
ratio of six thousand cubic feet of gas to one barrel of oil, may be
misleading, particularly if used in isolation. A boe conversion 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 does not accept responsibility for the adequacy
    or accuracy of the contents of this press release.

For further information:

For further information: Keith N. Chase, President and Chief Executive
Officer, (403) 205-3400 x224; Danny Zivkusic, Chief Financial Officer, (403)
205-3400 x228

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