Spitfire Energy announces third quarter results

CALGARY, Feb. 23 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) is pleased to announce its financial and operating results for the third quarter of fiscal 2010 ending December 31, 2009.

    
    Highlights

    -   Total crude oil and natural gas revenues for the quarter ended
        December 31, 2009 increased to $1,745,953 from $1,423,790 the quarter
        ended December 31, 2008.

    -   Average production in the quarter was 361 boed and 394 boed in
        January 2010

    -   100% drilling success rate for the quarter and to date in fiscal 2010
        drilling a total of three wells, two of which are producing and one
        awaits pipeline

    -   Increased undeveloped leasehold 14% to 22,765 net acres with 26
        drillable well inventory

    -   The Company's Fiscal 2010 Capital Budget has been increased from
        $2 million to $3 million. The capital will be used to drill 2
        development oil wells in the Fosterton area prior to spring break-up
        to mitigate environmental impact. Drilling is subject to weather and
        rig availability.
    

The following table provides a summary of Spitfire's results for the three-month period ending December 31, 2009 and 2008. 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 www.spitfireenergy.com.

    
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                              3 Months Ended            9 Months Ended
                                December 31               December 31
                             2009         2008         2009         2008
    -------------------------------------------------------------------------
    Financial
    Petroleum and natural
     gas sales
      Crude oil and NGLs   $1,456,545     $955,044   $3,979,575   $4,871,320
      Natural gas            $289,408     $468,746     $702,518   $1,122,740
      Net revenue          $1,745,953   $1,423,790   $4,682,093   $5,994,060
    Cash flow from
     operations              $512,010      $74,891   $1,177,140   $2,286,262
      Per share basic
       and diluted              $0.01        $0.00        $0.03        $0.06
    Net earnings (loss)     ($131,487)   ($499,896)   ($582,070)    $404,001
      Per share basic
       and diluted             ($0.00)      ($0.01)      ($0.01)       $0.01
    Capital expenditures     $673,489     $862,824   $1,708,725   $6,026,772
    Working capital
     (deficit)            ($6,640,581) ($5,857,095) ($6,640,581) ($5,857,095)
    Total assets          $24,554,156  $24,426,569  $24,554,156  $24,426,569
    Common shares
     outstanding           38,797,953   40,746,582   38,797,953   40,746,582

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    Operating
    Realized prices
      Crude oil and NGLs
       ($/bbl)                 $66.57       $46.05       $63.33       $82.45
      Natural gas ($/mcf)       $4.25        $6.71        $3.61        $7.51
      Total ($/boe)            $52.57       $43.97       $49.07       $71.23
      Operating Netbacks
       ($/boe)                 $23.42       $22.48       $21.48       $41.09
    Average production
      Crude oil and NGLs
       (bbl/d)                    238          225          229          215
      Natural gas (mcfd)          740          759          708          544
    -------------------------------------------------------------------------
    Total (boed)                  361          352          347          306

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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 "SEL".

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: Keith N. Chase, President and Chief Executive Officer, [phone] x224; Danny Zivkusic, Chief Financial Officer, [phone] x228