Spry announces second quarter financial and operating results

    CALGARY, Feb. 27 /CNW/ - Spry Energy Ltd. is pleased to announce our
financial and operating results for our second quarter ended December 31,


    -   Production rates for the quarter averaged 1,175 boes per day, an
        increase of 48 percent over production rates for the same quarter
        ended in 2006.

    -   Funds from operations increased 32 percent to $2,430,000 compared to
        the same period last year primarily due to the increase in production

    -   We recorded net earnings of $269,000 for the quarter versus net
        earnings of $336,000 for the same period in 2006. Lower natural gas
        prices and higher royalties and expenses were contributing factors
        for the lower earnings.

    -   We drilled seven (7.0 net) potential gas wells at Killam, one of
        which was placed on-stream in late November 2007, three additional
        wells were on-stream in February 2008 and three are waiting on
        completion. In December, we also tied-in one Killam gas well
        originally drilled in late 2006. At Marwayne, we drilled two
        (1.5 net) heavy oil wells that were placed on-stream in November.

    -   Subsequent to the end of the quarter, we announced the closing of the
        acquisition, by plan of arrangement, of Golden Eagle Energy Inc.
        ("Golden Eagle") on January 14, 2008. We purchased Golden Eagle for
        approximately $13.5 million, adding, at closing, approximately
        240 boes per day of production and 34,000 net acres of undeveloped
        lands. Current production from the Golden Eagle properties is
        approximately 225 boes per day.

                                                       Three months ended
                                                  December 31,   December 31,
                                                         2007           2006

    ($ thousands except per share amounts)
    Petroleum and natural gas revenue                   4,466          3,143
    Funds from operations                               2,430          1,838
      Basic per share                                    0.18           0.16
      Diluted per share                                  0.17           0.15
    Net earnings                                          269            336
      Basic and diluted per share                        0.02           0.03
    Capital expenditures, cash based                    5,392          9,086
    Working capital surplus                             2,584            854
    Shares outstanding (000s)                          13,828         11,848

                                                       Three months ended
                                                  December 31,   December 31,
                                                         2007           2006

      Natural gas (mcf/d)                               5,078          3,273
      Light and medium oil (bbls/d)                        93             95
      Heavy oil (bbls/d)                                  235            154
      Total (boes/d)                                    1,175            794
      Natural gas ($/mcf)                                6.23           7.04
      Light and medium oil ($/bbl)                      73.20          56.12
      Heavy oil ($/bbl)                                 42.28          37.07
      Total ($/boe)                                     41.22          42.91
    Royalty income ($/boe)                               0.11           0.10
    Financial instrument settlements ($/boe)             2.54           1.26
    Royalties ($/boe)                                   (8.27)         (8.62)
    Operating expenses ($/boe)                          (9.42)         (9.13)
    Transportation expenses ($/boe)                     (1.28)         (1.23)
    General & administrative expenses,
     cash based ($/boe)                                 (2.96)         (1.20)
    Interest income ($/boe)                              0.68           1.27
    Cash taxes ($/boe)                                  (0.13)         (0.21)
    Funds from operations ($/boe)                       22.49          25.15

    A complete copy of the interim report for the three and six months ended
December 31, 2007 along with the CEO and CFO certifications of interim filings
can be found on the SEDAR website at www.sedar.com

    %SEDAR: 00018775E

For further information:

For further information: Kenneth J. Bowie, President & CEO, (403)
265-7770, extension 230

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