CALGARY, Aug. 27 /CNW/ - Tuscany is pleased to report on its operations
and financial results for the three and six months ended June 30, 2008.
Production from the new well in the Wildwood area, increased production
from the Saskatchewan properties and increased prices for both oil and natural
gas combined to result in increased cash flow and earnings, as well as reduced
debt levels. Reduced general and administrative expenses, stronger production,
a management change and an exploration and development program planned for the
fall should provide excellent results for the remainder of the year and into
Summary of Financial and Operating Results
Six Months ended June 30,
Total revenue $ 2,170,017 $ 958,931
Cash flow from operations 905,182 (62,119)
per share, diluted 0.03 (0.00)
Earnings (loss) for the period 177,864 (377,372)
per share, diluted 0.01 (0.01)
Capital additions 244,448 459,219
Net debt 2,444,508 3,125,242
Total assets $ 8,939,621 $ 9,140,995
Total shares outstanding 36,550,836 26,550,836
Natural gas (Mcfd) 419 232
Heavy oil and NGLs (Bopd) 107 97
BOEd (6 Mcf equals 1 Bbl) 176 135
Natural gas ($/Mcf) 9.31 6.92
Heavy oil and NGLs ($/Bbl) 90.15 44.83
Revenue for the first half of 2008 totaled $2,170,000 compared with
$959,000 in 2007. The Company reported cash flow from operations of $905,000
compared with a cash flow deficiency of $62,000 for the comparative period in
2007. Tuscany's net earnings also increased to $178,000 versus a net loss of
$377,000 for the same period in 2007.
The Company's net debt totaled $2.4 million as at June 30, 2008 compared
with $3.3 million as at June 30, 2007.
Exploration and Development
Tuscany's new well at Wildwood (30% working interest) commenced
production in January 2008 and the well continues to produce at excellent
rates. Tuscany has acquired additional land in the area to expand the play and
purchased 2-D trade seismic data in addition to the acquisition of proprietary
2-D seismic. Additional exploration and development prospects in the area are
being investigated, some of which could be drilled later this year.
In the Evesham and Macklin areas of Saskatchewan, remedial work on the
producing heavy oil well in the second quarter of 2008 has resulted in
increased production. Further optimization of surface facilities and some
additional down-hole work is planned for the fall to maximize production and
reduce both operating and long-term capital costs.
In the same area, the Company is investigating the possibility of
drilling a horizontal well into a new formation which is producing from nearby
fields and has been mapped over our 100% working interest acreage.
Although energy commodity prices have declined somewhat in the past
weeks, management remains optimistic that the relatively higher prices and
solid production base, coupled with careful cash management, will provide the
Company the opportunity to continue to improve its financial position. Growth
will come from optimization of existing reserves and exploration and
development of new opportunities.
Additional information concerning Tuscany's financial statements and
associated Management's Discussion and Analysis for the period ended June 30,
2008 can be found on the SEDAR website at www.sedar.com.
Forward-looking statements - statements included in this press release
that are not historical facts may be considered "forward-looking statements."
Actual results could differ materially from the conclusions, forecasts or
projections in the forward-looking information. Certain material factors and
assumptions were applied in drawing the conclusions or making the forecasts or
projection in the forward-looking information and the material factors or
assumptions that were applied in drawing the conclusion or making the forecast
or projection as reflected in the forward-looking information is contained in
the press release.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: John G. F. McLeod, President, TUSCANY ENERGY
LTD., Telephone: (403) 264-2398, Fax: (403) 264-2399, TSX Venture: TUS; Robert
W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax:
(403) 264-2399, TSX Venture: TUS