Spry announces third quarter financial and operating results
CALGARY, May 28 /CNW/ - Spry Energy Ltd. ("Spry") is pleased to announce our financial and operating results for the three and nine months ended March 31, 2010.
HIGHLIGHTS - During the quarter we drilled seven (4.9 net) East Pembina oil wells and one (0.7 net) oil well at Wordsworth, Saskatchewan with a 100 percent success rate. Three of the East Pembina wells and the Wordsworth well were on-stream prior the end of the quarter. The four remaining East Pembina wells were placed on-stream in April and May. - For the three months ended March 31, 2010, our cash based capital expenditures increased to $20.4 million from $0.3 million for the same period last year. Last year we deferred the majority of our capital budget and we did not drill any wells between November 2008 and May 2009. Essentially all of the current quarter capital expenditures were associated with operations at our Pembina core area. - Production rates for the quarter averaged 1,541 boes per day, a decrease of ten percent over the average production rates of 1,717 boes per day for the same quarter ended in 2009. The majority of the decrease was attributed to our response to the economic downturn in late 2008. We shut-in production due to low commodity prices and we continue to have 870 mcf per day (145 boes per day) of higher operating cost natural gas production shut-in. We also experienced a 112 boe per day decrease in heavy oil production due to the watering out of three Marwayne wells. The decreases in natural gas and heavy oil production was partially offset by a 55 percent increase in light oil production as our new Pembina core area averaged 357 boes per day for the quarter. - Funds from operations during the quarter decreased eight percent to $3,469,000 from $3,785,000 during the same period last year due mainly to the decrease in realized gains from our hedging activities. Higher petroleum and natural gas revenues due to higher commodity prices and lower cash based expenses offset the majority of the decrease in the hedging activities. - Net loss for the quarter was $330,000 versus a net loss of $479,000 for the same period in 2009. Lower revenue generated from financial instruments and higher royalties were offset by higher petroleum and natural gas revenues and lower expenses. - On February 11, 2010 we closed a non-brokered private placement issuing 1,670,000 common shares at $6.00 per share for proceeds of $10 million. - Net debt was $26.4 million which equated to 1.9 times annualized second quarter cash flow. In April 2010 our credit facility was increased to a $32.0 million borrowing limit. Three months ended Nine months ended March 31, March 31, 2010 2009 2010 2009 ------------------------------------------------------------------------- Financial ($ thousands except per share amounts) Petroleum and natural gas revenue 7,426 5,309 18,783 24,274 Funds from operations 3,469 3,785 9,613 14,571 Basic per share 0.17 0.19 0.47 0.73 Diluted per share 0.16 0.19 0.47 0.72 Net earnings (loss) (330) (479) (1,194) 6,839 Basic per share (0.02) (0.02) (0.06) 0.35 Diluted per share (0.02) (0.02) (0.06) 0.34 Capital expenditure, cash based 20,431 320 34,856 12,494 Working capital surplus (deficit), excluding bank debt (10,523) 4,066 (10,523) 4,066 Bank debt (15,896) (9,907) (15,896) (9,907) Shares outstanding at end of period (000s) 21,741 19,921 21,741 19,921 Operations Production Natural gas (mcf/d) 4,454 6,253 4,042 6,303 Light/medium oil and NGLs (bbls/d) 669 433 588 447 Heavy oil (bbls/d) 130 242 130 271 Total (boes/d) 1,541 1,717 1,392 1,769 Prices Natural gas ($/mcf) 5.11 5.04 4.33 6.59 Light/medium oil and NGLs ($/bbl) 76.64 44.23 72.90 69.87 Heavy oil ($/bbl) 65.06 34.34 62.52 58.12 Operating netback ($/boe)(1) 33.10 16.60 29.22 27.55 Realized hedging gains (losses) ($/boe) (1.88) 18.26 2.82 9.86 Other expenses affecting funds from operations ($/boe) (6.21) (10.36) (6.83) (7.35) Funds from operations ($/boe) 25.01 24.50 25.21 30.06 (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 and nine months ended March 31, 2010 along with the CEO and CFO certifications of interim filings can be found on the SEDAR website at www.sedar.com. Information regarding Spry can also be found at Spry's website at www.spryenergy.ca.
For further information: Kenneth J. Bowie, President & CEO, (403) 984-6352
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