CALGARY, Aug. 6 /CNW/ - Synenco Energy Inc. (TSX: SYN) today released its
interim financial results and operating highlights for the second quarter and
six-month period ended June 30, 2008.
Synenco reported a net loss for the six-month period ended June 30, 2008
of $5.3 million ($0.10 per share) compared with a net loss of $0.9 million
($0.02 per share) for the same period in 2007. The net loss for the six-months
ended June 30, 2008 is mainly due to restructuring costs of $5.3 million
resulting from the phased workforce reduction plan announced March 12, 2008
and professional fees of $2.8 million relating to the acquisition agreement
with Total E&P Canada Ltd.
Synenco reported a second quarter net loss of $2.5 million ($0.05 per
share) compared with a net loss of $0.5 million ($0.01 per share) for the same
period in 2007. The net loss is mainly attributable to professional fees of
$2.8 million relating to the acquisition agreement with Total E&P Canada Ltd.
Synenco's Financial Statements and Management's Discussion and Analysis
for the second quarter and six-month period ended June 30, 2008 can be found
electronically on SEDAR at www.SEDAR.com.
About Synenco Energy
Synenco Energy is a Calgary-based oil sands company which, with a
60-percent interest, is the managing partner of the Northern Lights
Partnership and operator of the Northern Lights mineable oil sands project.
(SinoCanada Petroleum Corporation, an indirect wholly owned subsidiary of
China-based Sinopec, owns the remaining 40 percent of the partnership and
project.) Synenco also holds a 100-percent interest in the McClelland oil
sands lease adjacent to the Northern Lights project lands. Visit Synenco's
website at www.synenco.com.
About Northern Lights
The Northern Lights project consists of a planned oil sands mining and
bitumen extraction project about 100 kilometres northeast of Fort McMurray,
Alberta and a proposed heavy oil upgrader project in Sturgeon County near
Edmonton. The project is designed to produce 114,500 barrels per day of
bitumen for an estimated 28 years. Regulatory applications for the project
were first filed with the Alberta Energy and Utilities Board (now the Energy
Resources Conservation Board) and Alberta Environment in 2006.
The Northern Lights Partnership also holds coal lease applications in the
Athabasca region of northeastern Alberta.
Cautionary note regarding forward-looking statements
This news release contains forward-looking statements that are expressly
qualified, in their entirety, by this cautionary statement. Forward-looking
statements are often, but not always, identified by words such as "believe",
"expect", "estimate", "intend", "plan", "seek", "anticipate", "projected",
"scheduled", "continue", "potential", "will", "may", "might", "should",
"would", "could" and similar expressions. Undue reliance should not be placed
on forward-looking statements, which are inherently uncertain, are based on
estimates and assumptions, and are subject to known and unknown risks and
uncertainties. There can be no assurance that the plans, intentions or
expectations upon which forward-looking statements are based will in fact be
realized. Actual results may differ from those expressed or implied in the
As the Northern Lights project is only in the early stages of engineering
and design and has not yet received regulatory approvals or sought or obtained
project financing, all statements about the proposed project and anticipated
production are forward-looking statements. Specific forward-looking statements
contained in this news release include, among others, statements regarding:
- the intended design, construction and future capabilities of the
Northern Lights project, including anticipated bitumen production and
estimated project life.
All other statements suggesting future plans and outcomes, including
without limitation any statements regarding possible transactions, are
With respect to forward-looking statements contained in this news release,
Synenco has made assumptions regarding, among other things:
- future natural gas and crude oil prices;
- the viability of the current project design (which is subject to
change), including the successful application of the technologies
proposed to be used in the Northern Lights project;
- its ability to obtain all required regulatory approvals on a timely
basis and subject to satisfactory terms and conditions;
- its ability to obtain qualified staff, equipment and supplies in a
timely and cost-efficient manner;
- the prevailing regulatory framework within which Synenco will operate
and conduct its business, including with respect to royalties, taxes
and environmental matters;
- the impact of increasing competition and escalating costs;
- and its capital requirements in the near, medium and long term.
Factors that cause actual results to differ materially from those
expressed or implied in the forward-looking statements contained herein
include, without limitation:
- further significant increases in capital and/or operating costs;
- the impact of market competition for equipment, labour and materials
necessary to advance the Northern Lights project, and any unexpected
increases in the cost of, or delays in obtaining, such items;
- changes to project design or execution strategy;
- unforeseen engineering, environmental or geological problems;
- the ability to obtain all required regulatory approvals on a timely
basis and subject to satisfactory terms and conditions;
- changes in laws and governmental regulations;
- materially lower than expected bitumen resources;
- and the effectiveness of the technology contemplated for use in the
Northern Lights project.
Readers should also review the risk factors and uncertainties described
in Synenco's annual information form dated March 12, 2008 and annual MD&A for
the year ended December 31, 2007, copies of which are available electronically
at www.sedar.com and at www.synenco.com.
The forward-looking statements contained herein are made as of the date
of this news release and are not guarantees of future performance or outcomes.
Synenco undertakes no obligation to update or revise any forward looking
statements, except as may be required by law.
For further information:
For further information: Mike Supple, Chairman, President and CEO,
Telephone: (403) 261-1990