CALGARY, Nov. 26 /CNW/ - Spry Energy Ltd. is pleased to announce our financial and operating results for the three months ended September 30, 2009.
- 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
$5,131,000 for the same period in 2008. Lower production volumes and
commodity prices were the main contributors to the decrease.
Three months ended
September 30, September 30,
($ 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
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
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 September 30, 2009 along with the CEO and CFO certifications of interim filings can be found on the SEDAR website at www.sedar.com
SOURCE SPRY ENERGY LTD.
For further information: For further information: Kenneth J. Bowie, President & CEO, (403) 984-6352