CALGARY and LONDON, May 28 /CNW/ - Stratic Energy Corporation (TSX Venture: 'SE', AIM 'SE.') ("Stratic" or the "Company") has today filed its Interim Financial Statements and accompanying Management's Discussion and Analysis for the quarter ended March 31, 2010. This filing can be accessed at www.sedar.com and on the Company's website www.straticenergy.com. All amounts below are US dollars, unless otherwise stated.
Operations and West Don Development
- Production from continuing operations of 731 bopd (2009: nil) with
increase due to commencement of West Don production in late April
2009. Production from discontinued operations in Turkey of 293
boepd (2009: 240 boepd)
- 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; further work underway to optimize production
- Plans under discussion for drilling a third production well in the
southern part of the West Don field, potentially later in 2010
- Revised operator mid case production forecast for remaining three
quarters of the year of 6,000 bopd (Stratic share: 1,035 bopd)
Exploration/Appraisal and Pre-Development Assets
- Crawford oil field development plan - new development concept
utilizing multi-lateral wells to reduce risk and improve
recovery; preliminary partner approval expected in third quarter
2010 with final development sanction expected in late 2010
- Bugle North appraisal well drilled to total depth of 15,145ft and
plugged and abandoned after encountering minor quantities of
hydrocarbons; Bowmore appraisal well drilled last year also to be
plugged and abandoned
- Farm-out agreement signed in respect of F Quad licences in Holland
- Oil sales revenues from continuing operations in the UK of $4.3
million (2009: nil) with increase due to commencement of West Don.
Gas revenues from discontinued operations in Turkey of $1.3
million (2009: $1.4 million)
- Net loss of $10.8 million (2009: $6.8 million). Net loss from
continuing operations of $10.0 million (2009: loss $5.7 million).
Net loss from discontinued operations of $0.8 million (2009: $1.1
- Capital expenditure of $5.5 million (2009: $16.1 million), mainly
on West Don and the Bugle North well in the UK, and on the block
17 exploration well in Syria
- Cash and cash equivalents (including restricted cash) of $2.2
million at quarter end (December 31, 2009: $7.4 million); bank
debt (excluding letters of credit) of $49.0 million and
convertible notes of $64.5 million totaling $113.5 million at
quarter end (December 31, 2009: $112.5 million), making net debt
at quarter end of $111.3 million (December 31, 2009: $105.1
- Net debt at May 21, 2010 reduced to $70.6 million following
receipt of proceeds from the sale of our Italian and Turkish
- Sale of the Company's Turkish business agreed and completed in May
- FirstEnergy Capital appointed to advise on the sale of all or part
of the Company's interest in the Crawford field with a target
completion date before year end
Kevin Watts, Stratic's President and Chief Executive Officer, commented: "As outlined in our annual results issued last month, we are continuing our disposal program in order to eliminate bank debt and balance future capital commitments. We continue to manage our capital extremely carefully, as we shift the strategy of the company away from existing high cost areas to lower cost areas in which we can acquire and exploit new growth opportunities".
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 the planned sale of the undeveloped Crawford interest, 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.
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).
SOURCE STRATIC ENERGY CORPORATION
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: email@example.com, Website: www.straticenergy.com