B2Gold Corp. press release
Mystique Energy Announces 2006 Third Quarter Results - Year-to-Date Average Production More Than Doubled
TSX - Toronto Stock Exchange · Gold · Canada
CALGARY, Nov. 29 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV:MYS) today reported its financial and operational results for the three month and nine month periods ending September 30, 2006. Production sales for the nine months ending September 30, 2006 averaged 257 barrels of oil equivalent per day ("boepd")(x), more than double the average production rate of 126 boepd for the same period of 2005. For the third quarter, production sales averaged 285 boepd an increase of 85 percent over the average production rate of 154 boepd for the third quarter of 2005, and an increase of 23 per cent over the average production rate of 232 boepd for the second quarter of 2006. Production averaged 318 boepd during September 2006 and continues to grow, with present production over 550 boepd, split approximately 60% gas and 40% light oil and natural gas liquids (NGL's). Other financial and operational highlights for the three and the nine months ending September 30, 2006 include:
<< Cash flow of $427 thousand and $1.347 million for the three and nine months ending September 30, 2006 respectively, compared to $493 thousand for the third quarter of 2005, $317 thousand for the second quarter of 2006, and $1.113 million for the first nine months of 2005. Cash flow for the third quarter of 2006 was less than that of the third quarter of 2005 because of lower gas prices.
Drilled and cased five (4.625 net) wells and nine (8.25 net) wells during the three and nine months ending September 30, 2006 respectively on Mystique's farm-in lands located northwest of Calgary. Of the five wells drilled during the third quarter, four wells (3.625 net) were cased and one well (1.0 net) was abandoned. For the nine month period ending September 30, eight wells (7.25 net) were cased and one well (1.0 net) was abandoned, for an overall year-to-date success rate of 88%.
Highlights to date for the fourth quarter of 2006 include:
Tied-in one (1.0 net) well in the Bottrel area.
Applied for a permit to construct a flowline to tie-in a well (1.0 net) to a gathering system in the Wildcat Hills area.
Based on its successful 2006 drilling program, Mystique has identified 25 development drilling locations. Five new wells have been licensed to-date and eight more locations are in the process of being licensed.
Based on the addition of new reserves and production as a result of its 2006 drilling program, and a covenant to implement a program to hedge 50% of its gas production, Mystique has negotiated an increase in the secured banking facility from $8 million to $14.5 million.
Mystique has engaged Kobayashi Partners Limited to sell its Garrington producing assets. These assets are not material to Mystique's future growth. Production from this asset is approximately 90 boepd. >>
The foregoing disclosure is qualified in its entirety by the more detailed information contained in the unaudited financial statements for the three and nine months ended September 30, 2006, including the notes thereto and the related MD&A, copies of which will be available for viewing on the SEDAR website www.sedar.com. Based in Calgary, Mystique is involved in the exploration and exploitation of petroleum reserves in western Canada.
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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.
<< BALANCE SHEETS (Unaudited)
SEPTEMBER 30 DECEMBER 31 2006 2005 ASSETS
Current Cash and cash equivalents $ - $ 3,366,869 Accounts receivable (Note 2) 1,449,272 2,956,583 Other tax receivable 99,135 50,766 Prepaid expenses and deposits 143,014 158,509 1,691,421 6,532,727 Restricted Cash 107,236 107,236 Property, Plant and Equipment (Note 2) 40,157,942 16,355,542 $ 41,956,599 $ 22,995,505 LIABILITIES
Current Accounts payable and accrued liabilities (Note 2) $ 14,834,455 $ 8,707,855 Bank indebtedness (Note 5) 6,341,571 - 21,176,026 8,707,855 Future Income Taxes 1,631,888 660,441 Advances Payable 56,050 56,050 Asset Retirement Obligation (Note 3) 512,547 336,283 23,376,511 9,760,629 SHAREHOLDERS' EQUITY
Share Capital (Note 4) 18,819,946 13,335,343 Contributed Surplus 945,102 733,532 Deficit (1,184,960) (833,999) 18,580,088 13,234,876
$ 41,956,599 $ 22,995,505
STATEMENTS OF OPERATIONS AND DEFICIT (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2006 2005 2006 2005 Revenues Oil and gas revenue $ 1,126,095 $ 827,001 $ 3,265,811 $ 1,875,053 Royalties net of ARTC (206,498) (111,828) (604,710) (253,746) Other revenue 10,494 29,440 31,779 85,369 930,091 744,613 2,692,880 1,706,676
Expenses Production 233,739 184,234 601,100 333,096 Transportation 31,196 35,636 78,579 56,332 General and administration 130,265 30,479 426,514 191,537 Depletion, depreciation and accretion 598,583 281,419 1,786,466 670,069 Interest 107,530 833 239,930 12,415 Stock-based compensation (Note 4) 60,869 37,632 256,700 280,707 1,162,182 570,233 3,389,289 1,544,156
Income (Loss) Before Income Taxes (232,091) 174,380 (696,409) 162,520
Income taxes Future income tax (150,305) (4,661) (345,448) (145,729)
Net Income (Loss) For The Period (81,786) 169,719 (350,961) 16,791
Deficit, Beginning of Period (1,103,174) (1,162,694) (833,999) (1,009,766)
Deficit, End Of Period $ (1,184,960) $ (992,975) $ (1,184,960) $ (992,975)
Earnings (Loss) Per Share Basic $ (0.00) $ 0.00 $ (0.01) $ 0.00 Diluted $ (0.00) $ 0.00 $ (0.01) $ 0.00
Weighted Average Number Of Shares Basic 58,287,965 44,009,054 51,483,834 38,412,474 Diluted 58,490,006 47,037,722 52,179,824 43,543,825
STATEMENTS OF CASH FLOWS (Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2006 2005 2006 2005 Operating Activities Net Income (loss) for the period $ (81,786) $ 169,719 $ (350,961) $ 16,791 Add: Items not involving cash: Future income tax (150,305) 4,661 (345,448) 145,729 Stock-based compensation expense 60,869 37,632 256,700 280,707 Depletion, depreciation and accretion 598,583 281,419 1,786,466 670,069 427,361 493,431 1,346,757 1,113,296
Change in non-cash working capital items: Accounts receivable 3,710,612 (1,004,400) 1,505,350 (1,431,443) Accounts payable and accrued liabilities (990,824) 1,006,163 (1,215,864) 533,601 Other tax receivable 19,375 11,944 (46,408) 11,944 Prepaid expenses and deposits 20 7,761 15,495 (22,821) 3,166,544 514,899 1,605,330 204,577
Financing Activities Shares issued for cash 3,984,690 252,555 6,756,367 4,892,751 Bank indebtedness (1,217,790) - 6,341,571 - 2,766,900 252,555 13,097,938 4,892,751
Investing Activities Oil and gas property acquisitions (14,526,083) (4,077,640) (25,391,764) (7,161,067) Purchase of capital assets (7,125) (3,674) (20,836) (17,644) Net change in non-cash working capital balances 8,599,764 3,972,682 7,342,463 1,500,068 (5,933,444) (108,632) (18,070,137) (5,678,643)
Increase (Decrease) In Cash - 658,822 (3,366,869) (581,315)
Cash, Beginning Of Period - 6,985,590 3,366,869 8,225,727
Cash, End of Period $ - $ 7,644,412 $ - $ 7,644,412
Interest Paid $ 81,895 $ 552 $ 134,158 $ 3,121 >>
%SEDAR: 00001147E