CALGARY, Nov. 30 /CNW/ - Tuscany is pleased to report that it has filed on SEDAR the Company's Financial Statements and Management's Discussion and Analysis for the nine months ended September 30, 2009.
Subsequent to the end of the third quarter of 2009, Tuscany completed two transactions which placed the Company in a sound financial position to continue the development of its oil and gas assets in Saskatchewan and Alberta.
- On October 1, 2009 the Company closed a previously announced rights
offering, raising a total of $521,000 through the issuance of
8.7 million shares
- On October 8, 2009 the Company completed the acquisition of Goldmark
Minerals Ltd. through the issuance of 12.1 million shares. Goldmark's
assets consisted mainly of cash.
Upon completion of these two transactions, net of the transaction costs, Tuscany reduced its net debt by approximately $1.6 million to approximately $1.6 million.
Tuscany is now in sound financial condition and has commenced work on its exploration and development programs to build a base for future growth.
Tuscany has made application for a drilling license for a second horizontal well on its Evesham property. The HZ16-16-39 27W3 well is planned to be drilled early in December 2009. Tuscany has a 60% working interest in the well.
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Tuscany will also participate for 20% of the cost of the drilling and completion of an exploration well on the Wildwood property. It is expected that the well will be drilled in the first week of December and the Company will retain 40% interest in the well following completion.
Revenue for the first nine months of 2009 totalled $1.3 million compared with $3.5 million in 2008. The Company reported cash flow from operations of $144,000 for the nine month period ended September 30, 2009 compared with $1,574,000 in the nine months ended September 30, 2008. Tuscany reported a loss of $182,000 for the period versus earnings of $397,000 for the same period in 2008.
Cash used for capital expenditures for the nine months ended September 30, 2009 was $505,000 compared with $326,716 during the same period in 2008. General and Administrative costs were reduced to $281,000 for the period compared to $570,000 for the similar period in 2008.
ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).
NEITHER THE TORONTO STOCK EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TORONTO STOCK EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
SOURCE TUSCANY ENERGY LTD.
For further information: For further information: John G. F. McLeod, President, TUSCANY ENERGY LTD., Telephone: (403) 264-2398, Fax: (403) 261-4072; Robert W. Lamond, Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax: (403) 261-4072; TSX Venture: TUS