Spry announces first quarter financial and operating results
HIGHLIGHTS
- We currently own or have control of over 19 sections (12,160 acres) of land in our new Pembina core area. We are the operator of the majority of these lands at an average working interest of approximately 60 percent. We have identified 76 (46 net) drilling locations on these lands. - We drilled four (2.0 net) successful oil wells during the quarter, placing one (0.3 net) of the four on-stream at our Wordsworth core area. The other three (1.7 net) wells were drilled at our new core area at Pembina, Alberta. Our first Pembina well was placed on production on October 6, 2009, averaging 295 barrels per day during the month. Our second well came on production on November 1, 2009 averaging 170 (57 net) barrels per day and our first well is still averaging over 200 barrels per day. The third well is scheduled to be placed on production in December. - Subsequent to the end of the quarter, we successfully drilled one (0.4 net) oil well at Pembina which is also scheduled to be placed on-stream in December. This well is expected to have production rates similar to our first two wells. We are currently drilling two additional (0.7 net) Pembina wells. - Net debt was $13.8 million which equated to 1.3 times annualized first quarter cash flow and well within our $23.0 million credit facility. Subsequent to the end of the quarter, our credit facility was renewed at the existing borrowing limit. - Production rates for the quarter averaged 1,182 boes per day, a decrease of 35 percent over the average production rates of 1,813 boes per day for the same quarter ended in 2008. The decrease was mainly attributed to our decision to shut-in the majority of our natural gas due to low commodity prices and from the decrease in heavy oil production due to the watering out of three Marwayne wells. - Funds from operations during the quarter decreased 56 percent to $2,631,000 from $5,988,000 during same period last year due mainly to the decrease in both production volumes and commodity prices. - Net loss for the quarter was $659,000 versus net earnings of $5,131,000 for the same period in 2008. Lower production volumes and commodity prices were the main contributors to the decrease. Three months ended September 30, September 30, 2009 2008 Financial ($ thousands except per share amounts) Petroleum and natural gas revenue 4,432 11,746 Funds from operations 2,631 5,988 Basic and diluted per share 0.13 0.30 Net income (loss) (659) 5,131 Basic per share (0.03) 0.26 Diluted per share (0.03) 0.25 Capital expenditures, cash based 6,360 7,019 Working capital deficit, excluding bank debt (4,055) 6,029 Bank debt (9,733) 3,368 Shares outstanding at end of period (000s) 19,974 19,812 Operations Production Natural gas (mcf/d) 3,677 6,443 Light and medium oil (bbls/d) 437 436 Heavy oil (bbls/d) 132 304 Total (boes/d) 1,182 1,813 Prices Natural gas ($/mcf) 3.04 7.86 Light and medium oil ($/bbl) 66.43 111.35 Heavy oil ($/bbl) 59.99 93.75 Operating netback ($/boe)(1) 20.30 43.62 Realized financial instrument gains (losses) ($/boe) 13.10 (3.05) Other expenses affecting funds from operations ($/boe) (9.21) (4.67) Funds from operations ($/boe) 24.19 35.90 (1) Operating netback is petroleum and natural gas revenues less; royalties, operating expenses and transportation expenses.
A complete copy of the interim report for the three months ended
For further information: For further information: Kenneth J. Bowie, President & CEO, (403) 984-6352
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