Spry announces third quarter financial and operating results

    CALGARY, May 28 /CNW/ - Spry Energy Ltd. is pleased to announce our
financial and operating results for our third quarter ended March 31, 2009.


    -   Production rates for the quarter averaged 1,717 boes per day, an
        increase of 16 percent over production rates for the same quarter
        ended in 2008.

    -   Funds from operations increased ten percent to $4,316,000 compared to
        the same period last year due to the increase in production volumes
        and realized gains on financial instruments.

    -   We recorded a net loss of $479,000 for the quarter versus a net loss
        of $578,000 for the same period in 2008. Operating income for the
        current quarter decreased as compared to the same quarter last year
        primarily due to substantially lower commodity prices. However, the
        operating income decrease was largely offset by higher financial
        instrument gains.

    -   Due to the collapse in commodity prices we deferred the majority of
        our planned capital expenditures for the third quarter. As a result,
        we only placed one new natural gas well on-stream at Killam and
        reactivated one shut-in gas well at Sakwatamau.

    -   As a result of the interim review of our letter agreement on May 22,
        2009, our credit facility with our banker was decreased to $23
        million. The decrease was due entirely to the collapse in commodity
        prices as our banker's price forecast was substantially lower for our
        interim review than it was for our annual review in November 2008.
        This decrease poses no issues for Spry as we have forecasted our net
        debt to only reach $14 million by December 2009.

                                                         Three months ended
                                                         March 31,  March 31,
                                                             2009       2008

    ($ thousands except per share amounts)
    Petroleum and natural gas revenue                       5,309      7,528
    Funds from operations                                   4,316      3,936
      Basic per share                                        0.22       0.26
      Diluted per share                                      0.22       0.25
    Net loss                                                  479        578
      Basic and diluted per share                            0.02       0.04
    Capital expenditures, cash based, excluding
     corporate acquisitions                                   320      3,444
    Corporate acquisition                                       -     13,705
    Working capital surplus (deficit), excluding bank debt  3,907       (603)
    Bank debt                                              (9,907)      (403)
    Shares outstanding at end of period (000s)             19,921     15,676

      Natural gas (mcf/d)                                   6,253      6,347
      Light and medium oil (bbls/d)                           433        170
      Heavy oil (bbls/d)                                      242        248
      Total (boes/d)                                        1,717      1,476
      Natural gas ($/mcf)                                    5.04       8.10
      Light and medium oil ($/bbl)                          44.23      87.25
      Heavy oil ($/bbl)                                     34.34      65.50
      Total ($/boe)                                         34.34      55.90
    Royalty income ($/boe)                                   0.03       0.16
    Realized financial instrument gains ($/boe)             18.26       0.11
    Royalties ($/boe)                                       (3.53)    (10.26)
    Operating expenses ($/boe)                             (12.82)    (11.43)
    Transportation expenses ($/boe)                         (1.42)     (1.22)
    Asset retirement expenses                               (1.20)         -
    General & administrative expenses, cash based ($/boe)   (4.91)     (4.04)
    Interest income (expense) ($/boe)                       (0.84)      0.09
    Foreign exchange gain ($/boe)                            0.03          -
    Funds from operations ($/boe)                           27.94      29.31

    A complete copy of the interim report for the three and nine months ended
March 31, 2009 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)

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