Amarc Resources Ltd. press release
Result Energy Inc. announces 2005 year end and Q4 highlights and 2006 activity update
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Molybdenum · Canada
TSX Venture: RTE
CALGARY, March 30 /CNW/ - Result Energy Inc. ("Result") is pleased to announce record cash flow, production and reserve additions for the 2005 fiscal year. Exploration and development activity was the focus of an extremely active year for Result, with all additions to reserves and production achieved through the drill-bit. Highlights for 2005 include:
72% year-over-year growth in total NI 51-101 proven oil and natural gas reserves, and 67% growth in total proved plus probable ("P + PA") reserves. Factoring in 2005 production, the net increases were 101% for proven and 83% for P + PA reserves.
Drilling a total of 30 wells (14.9 net), achieving an overall 80% success rate, and resulting in 23 (11.2 net) natural gas and potential natural gas producing wells, 1 (0.6 net) producing oil well, 4 (2.1 net) cased wells, and 2 (1.0 net) wells which were abandoned in 2005.
A 72% increase in average daily production for the year to 431 boed compared to 250 boed for 2004.
For the Q4 period, revenues increased by 106% to $2,800,350 compared to $1,358,779 in the Q4-04 period, and cash flow from operations increased by 102% to $939,910 compared to $466,190 for Q4-04.
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Summary financial information for 2005
year ended year ended December 31, December 31, % change 2005 2004 from 2004 Revenue, before royalties $ 8,019,864 $ 3,409,213 135.2 %
Net (loss) for the period $ (744,009) $ (107,290) (593.5)% Net (loss) per share - basic and diluted $ (0.02) $ (0.00) 0 %
Cash flow from operations $ 2,667,371 $ 1,379,720 93.3 %
Cash flow per share $ 0.08 $ 0.06 33.3 %
Total assets $ 30,645,344 $ 14,931,859 105.2 % Total number of shares outstanding: weighted average for the period 34,535,639 22,147,950 55.9 %
as at year-end 42,151,138 31,970,637 31.8 %
Summary of oil and natural gas reserves (Mmcfe)
% change
Proved developed producing 4,987.1 4,024.2 23.9 % Proved developed non-producing ("PDNP") 2,696.0 309.2 771.9 % Proved undeveloped 767.0 568.0 35.0 % Total Proved 8,450.1 4,901.4 72.4 % Probable additional reserves 4,650.6 2,968.1 56.7 % Proved plus probable additional reserves ("P + PA") 13,100.7 7,869.5 66.5 % P + PA reserves, on boe basis 2,183.5 1,311.6 66.5 %
The above noted summary of the Company's oil and natural gas reserves is based on the Company's working interest ("WI") share (before royalty interests) of estimated recoverable reserves in the Forecast prices case provided in the December 31, 2005 third party reserve reports which were prepared in accordance with National Instrument 51-101 ("NI 51-101") standards. The December 31, 2005 PDNP reserves total above relates to a total of 6 natural gas wells which are currently shut-in and / or tested and behind pipe awaiting pipeline tie-in to processing facilities in the Clear Hills and Pembina areas.
Result also reports the following update on its main exploration and operation activities for the 2006 year-to-date period:
in addition to the 2 wells that were drilled in 2005 at Clear Hills, an additional 3 (1.1 net) wells were drilled during Q1- 2006 targeting an expansion of Result's existing interests in the Charlie Lake A gas pool. Construction of a 10-mile natural gas gathering pipeline has commenced which will tie these area wells into a new third party gas plant scheduled to commence construction in Q2-06. Subject to regulatory approvals and favorable weather, we anticipate the new pipeline and facilities to be operational by mid Q3-06. We estimate this will bring on at least another 1,500 mcfd net to Result. A fourth Clear Hills area well location is anticipated to be drilled next winter.
in the Pembina area Result continues to await a regulatory ruling which will allow a third party compression facility to be commissioned, through which the Company's gas volume can flow. Result has a 50% (BPO or Before Payout) interest in two Viking natural gas wells which were drilled in 2005, which should produce at an estimated total of 3,500 mcfd (1,750 mcfd net, BPO) once on stream.
Result participated (50% WI) in drilling a deep Nisku test in January 2006 in the Pembina area. This well was not successful in the target zone; however, an uphole completion may still be pursued at a later date.
in the Worsley area, one additional Leduc gas well (36.4% WI) was drilled in Q1-06, and is planned to be completed and tested by the end of June following break-up.
in the Dodsland Saskatchewan area, an additional 3 (1.5 net) Viking gas infill wells were drilled in Q1-06, of which 2 await completion of tie-in operations.
The Corporation's audited financial statements for the year ended December 31, 2005 and the related Management Discussion and Analysis ("MD&A") should be available for review on SEDAR on or before April 3, 2006. Result's Annual General Meeting for 2005 will be held at 10:00 am on Tuesday May 23, 2006 at the Calgary Petroleum Club (Cardium Room), 319 Fifth Avenue SW, Calgary. Result's Board of Directors has also approved the granting of a total of 1,250,000 stock options at an exercise price of $1.10 per share, expiring March 24, 2011. A total of 1,000,000 of these options were granted to the Directors and Officers of Result, and will vest over a 24 month period to March 24, 2008.
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
Result Energy Inc. is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada, with a current exploration focus in the Peace River Arch region. Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release.
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