Stratic Energy Corporation - Annual Results and Reserves for 2009

CALGARY and LONDON, April 30 /CNW/ - Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") announces its results for 2009. Full consolidated Financial Statements and accompanying Management's Discussion and Analysis (MD&A), and National Instrument 51-101 Statement of Reserves filing, can be accessed at and on the Company's website All amounts below are US dollars, unless otherwise stated.


    Disposal Program

      -  Successful disposal program has realized proceeds of over
         $110 million, mainly used to reduce indebtedness

      -  Sale of Italian business completed in April 2010 - cash
         consideration of 33.0 million ($44.1 million) received; further
         contingent consideration due of up to 6.6 million ($8.8 million)
         depending on timing of Longanesi field production commencement, with
         back cost reimbursement of an estimated $2.3 million expected later
         in 2010

      -  Sale of UK Breagh asset completed in August 2009 - net cash proceeds
         of $64.5 million received

      -  Agreement in principle reached for the sale of the Company's Turkish
         business - negotiation of a sale and purchase agreement underway

    Operations and West Don Development

      -  Production of 1,169 boepd (2008: 332 boepd) with increase due to
         commencement of West Don production in late April 2009

      -  Proved and probable reserves reduced from 14.4 mmboe to 8.3 mmboe,
         mainly reflecting the Italian disposal of 6.2 mmboe

      -  West Don gross oil production averaged 5,171 bopd (Stratic net
         892 bopd) for the year from two wells (second well since August)

      -  Water injection well brought on stream in early September, which has
         successfully re-pressured the West Don reservoir

      -  Northern Producer floating production facility on West Don
         successfully connected by pipeline in March 2010 to Brent oil export
         system, substantially reducing exposure to weather downtime

      -  Third production well to access further reserves in the southern
         part of the West Don field under evaluation for possible drilling
         later in 2010

    Exploration/Appraisal and Pre-Development Assets

      -  Crawford field development plan - new development concept utilizing
         multi-lateral wells to reduce risk and improve recovery; sanction of
         project expected in second half 2010

      -  Bowmore well suspended without testing in August as a 'tight hole'
         for commercial reasons; further well on the licence - Bugle North -
         currently operating

      -  Al Tayr 101 exploration well (Stratic operator) spudded in Syria in
         October and drilled to a depth of 3,150 m, encountering gas shows
         but failed to flow on test. Well plugged and abandoned in early 2010

      -  In Turkey, West Ayazli exploration well spudded in October and
         discovered gas which tested at 10 mmscf/d. Well completed and
         contributing to production from the main Ayazli field


      -  Oil and gas sales revenues in the UK and Turkey of $26.8 million
         (2008: $7.8 million) with increase due to West Don

      -  Net loss of $103.1 million (2008: 40.3 million). Net loss from
         continuing operations of $40.5 million (2008: loss $33.0 million),
         including recognized gains of $23.2 million mainly relating to the
         Breagh sale, and write-downs of $41.5 million (2008: $21.4 million)
         mainly in respect of assets in the Netherlands and Turkey. Net loss
         from discontinued operations of $62.6 million (2008: $7.3 million)

      -  Capital expenditure of $57.0 million (2008: $78.9 million), mainly
         on West Don and the Bowmore well in the UK, and in Turkey

      -  Cash and cash equivalents (including restricted cash) of
         $7.4 million at year end (December 31, 2008: $28.2 million); bank
         debt (excluding letters of credit) and convertible notes totaling
         $112.5 million at year end (December 31, 2008: $118.9 million),
         making net debt at year end of $105.1 million (December 31, 2008:
         $90.7 million)

      -  Net debt at April 23, 2010 reduced to $73.9 million following
         receipt of Italy sales proceeds, net of disposal and associated
         financing costs.

Kevin Watts, Stratic's President and Chief Executive Officer, commented: "I am pleased that we have pulled through a very difficult period, which has seen a radical restructuring of Stratic's business in the light of the prevailing economic environment, to reduce debt levels and commitments to enable the company to pursue alternative growth options in the future. The next steps will involve rebuilding our portfolio with lower cost opportunities while continuing to press for performance improvements on West Don, and to advance the development of Crawford. Part or full disposals of these assets to balance forward capital expenditure, eliminate bank debt and demonstrate value are also under consideration."

About Stratic: Stratic Energy Corporation is a Canadian incorporated international oil and gas business which is engaged in the appraisal, development and production of petroleum and natural gas discoveries, supplemented by an exploration program. As a result of the worldwide credit crisis, which has particularly affected the Company in view of the capital intensive nature of its strategy, Stratic has been involved in a major restructuring program over the last twelve months to reduce debt levels and create financial flexibility. In future the business will be focused on the North Sea for its cash flow generating ability (West Don) and near term development investment opportunity (Crawford), whereas its exploration effort will be increased and concentrated on lower cost areas and potential company changing opportunities. Stratic's shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.

Forward-looking statements

This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.

TSX-V and AIM notifications

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.

Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).


For further information: For further information: Kevin Watts, Chief Executive Officer, +44 20 7766 7900; John van der Welle, Chief Financial Officer, +44 20 7766 7900; Mark Bilsland, Chief Operating Officer, +44 20 7766 7900; Patrick d'Ancona, M:Communications, +44 20 7920 2347; Canadian Investor Relations, Roger Fullerton, (952) 929-7243, Email:, Website:

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