B2Gold Corp. press release
Mystique Energy Continues to Generate Major Production and Cash Flow Growth During the First Quarter of 2006
TSX - Toronto Stock Exchange · Gold · Canada
CALGARY, May 25 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) ("Mystique") today reported significant growth in its financial and operational results during the three months ended March 31, 2006. Mystique has now achieved record cash flows for six consecutive quarters.
Financial and operational highlights for the first quarter of 2006 include:
Cash flow of $602,470, more than three times the cash flow of $170,764 for the first quarter of 2005. Production sales averaged 255 barrels of oil equivalent per day ("boepd")(x), more than five times the average production rate of 47 boepd in the first quarter of 2005, and an increase of more than 30% over the average production rate of 195 boepd for the fourth quarter of 2005. Brought new production of 65 boepd on stream as a result of drilling completed in the latter part of 2005, an increase of 30% over production rates during December of 2005. Drilled three gross (1.5 net) wells on Mystique's extensive farm-in lands strategically located northwest of Calgary. All three wells were cased and are in various stages of being completed and evaluated. Completed a $2.5 million financing.
Highlights for the second quarter of 2006 to date include:
Completed the drilling of one well (0.5 net), which had started at the end of the first quarter. The well has been cased and will be completed after spring break-up. Road bans are expected to be lifted this week. Licensed seven new wells to continue Mystique's drilling program after spring break-up, and is preparing eight additional locations for licensing. Mr. Terry McCoy was elected as a new member of the board of directors. Mr. McCoy is the President and Director of TRAFINA Energy, a publicly-traded natural gas producer. Mr. McCoy has over 34 years experience with major, senior intermediate and junior oil & gas companies within Canada. Increased bank facility from $5.5 million to $10.7 million.
Complete financial and operating results will be filed on SEDAR and made available on Mystique's website, www.mystiqueenergy.ca, later today. Based in Calgary, Mystique Energy, Inc. is a growing company engaged in the exploration and exploitation of petroleum reserves in western Canada.
(x) Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities.
<< MYSTIQUE ENERGY, INC.
BALANCE SHEETS (Unaudited)
MARCH 31, DECEMBER 31, 2006 2005
ASSETS
Current Cash and cash equivalents $ - $ 3,366,869 Accounts receivable 5,589,600 2,956,583 Income tax recoverable 85,201 50,766 Prepaid expenses and deposits 109,713 158,509 5,784,514 6,532,727
Restricted Cash 107,236 107,236 Property, Plant And Equipment (Note 2) 22,915,443 16,355,542
$ 28,807,193 $ 22,995,505
LIABILITIES
Current Accounts payable and accrued liabilities $ 10,979,526 8,707,855 Bank indebtedness (Note 6) 732,360 - 11,711,886 8,707,855
Future Income Tax 2,104,878 660,441 Advances Payable 56,050 56,050 Asset Retirement Obligation (Note 3) 406,759 336,283 14,279,573 9,760,629
SHAREHOLDERS' EQUITY
Share Capital (Note 4) 14,697,016 13,335,343
Contributed Surplus 803,802 733,532
Deficit (973,198) (833,999) 14,527,620 13,234,876
$ 28,807,193 $ 22,995,505
MYSTIQUE ENERGY, INC.
STATEMENTS OF OPERATIONS AND DEFICIT (Unaudited)
THREE MONTHS ENDED MARCH 31 2006 2005
Revenue Oil and gas revenue $ 1,137,182 $ 232,353 Royalties net of ARTC (210,230) (20,415) Other revenue 13,598 35,982 940,550 247,920 Expenses Production 180,293 48,175 Transportation costs 27,115 2,440 General and administration 102,332 20,285 Depletion, depreciation and accretion 641,564 49,162 Interest 28,340 6,256 Stock-based compensation (Note 4) 94,180 243,075 1,073,824 369,393
Loss Before Income Taxes (133,274) (121,473)
Income Taxes Future income tax 5,925 103,826
Net Loss for the Period (139,199) (225,299)
Deficit, Beginning Of Period (833,999) (1,009,766)
Deficit, End Of Period $ (973,198) $ (1,235,065)
Earnings per share Basic $ 0.0 $ (0.01) Diluted $ 0.0 $ (0.01)
Weighted average number of shares Basic 46,357,943 36,147,067 Diluted 48,050,733 44,477,379
MYSTIQUE ENERGY, INC.
STATEMENTS OF CASH FLOWS (Unaudited)
THREE MONTHS ENDED MARCH 31 2006 2005
Operating Activities Net loss for the period $ (139,199) $ (225,299) Add: Items not involving cash: Future income tax 5,925 103,826 Stock-based compensation 94,180 243,075 Depletion, depreciation and accretion 641,564 49,162 602,470 170,764 Change in non-cash working capital items: Accounts receivable (2,633,017) 10,132 Accounts payable and accrued liabilities 2,884,762 (643,655) Income tax recoverable (34,435) (4,112) Prepaid expenses and deposits 48,796 (486,976) 868,576 (953,847)
Financing Activities Shares issued for cash 2,776,275 178,919 Bank indebtedness 732,360 - 3,508,635 178,919
Investing Activities Petroleum and natural gas interest acquisitions (7,120,808) (1,312,660) Purchase of other equipment (10,180) (6,927) Net change in non-cash working capital balances (613,092) (2,937,796) (7,744,080) (4,257,383)
Decrease In Cash And Cash Equivalents (3,366,869) (5,032,311)
Cash And Cash Equivalents, Beginning Of Period 3,366,869 8,225,727
Cash And Cash Equivalents, End Of Period $ - $ 3,193,416
SUPPLEMENTAL DISCLOSURE :
Interest paid $ - $ 6,256 Income tax paid $ - $ - %SEDAR: 00001147E