B2Gold Corp. press release
Mystique Energy Announces Financial and Operational Results for the Year 2006
TSX - Toronto Stock Exchange · Gold · Canada
CALGARY, March 27 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports significant growth in its operational results for the twelve months ended December 31, 2006. Cash flow increased for the third consecutive quarter and production more than doubled while reserves almost tripled over 2005.
Financial and operational results for 2006 include:
Cash flow for the twelve months ended December 31, 2006 was $2.07 million, a 22% increase over the cash flow of $1.69 million for 2005. Production sales for the year averaged 318 barrels of oil equivalent ("boepd"), more than double the average production rate of 143 boepd for 2005. Cash flow for the fourth quarter of 2005 was $0.72 million. Mystique has now generated three consecutive quarters of increasing cash flows. Production sales for the fourth quarter averaged 501 boepd, more than two and one-half times the average production rate of 195 boepd for the fourth quarter of 2005. Net loss of $10.3 million resulted primarily from a non-cash ceiling test impairment loss of $12.4 MM$ which resulted from high costs of finding and developing reserves and lower gas prices.
Other operational and corporate highlights for 2006 include the following:
Drilled 9 gross (8.25 net) wells in the Lochend/Bottrel/Wildcat Hills areas resulting in 8 cased wells (7.63 net) and one abandoned well (1.0 net) for an overall success rate of 89%. As a result of the successful 2006 exploration drilling program, proved plus probable ("P+P") reserves almost tripled from 905 Mboe to 2530 Mboe. Added 356 Mboe of proved reserves, replacing 2006 production of 116 Mboe by more than three times. Based on year-end production rates, P+P reserves life index increased from 11.6 years to 12.6 years. Completed private placement financings exceeding $6.8 million. Appointed Terry McCoy as a director and Nick Antonenko as Vice President - Production Operations.
Highlights so far for the first quarter of 2007 include:
Sold Garrington assets for gross proceeds of $4.05 million. Prepared right-of-way for the tie-in of Mystique's Wildcat 14-05 well.
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 is involved 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.
BALANCE SHEETS
DECEMBER 31 DECEMBER 31 2006 2005 ASSETS
Current Cash and cash equivalents $ - $ 3,366,869 Accounts receivable 1,873,645 2,956,583 Income tax receivable 165,032 50,766 Prepaid expenses and deposits 129,623 158,509 2,168,300 6,532,727
Restricted Cash 110,540 107,236 Future Income Tax 2,297,130 - Property, Plant And Equipment 28,433,017 16,355,542
$ 33,008,987 $ 22,995,505 LIABILITIES
Current Accounts payable and accrued liabilities $ 10,067,841 8,707,855 Bank indebtedness 13,444,168 - 23,512,009 8,707,855
Future Income Tax - 660,441 Advances Payable 59,354 56,050 Asset Retirement Obligation 678,975 336,283 24,250,338 9,760,629
SHAREHOLDERS' EQUITY
Share Capital 18,844,836 13,335,343
Contributed Surplus 1,031,474 733,532
Deficit (11,117,661) (833,999) 8,758,649 13,234,876
$ 33,008,987 $ 22,995,505
STATEMENTS OF OPERATIONS AND DEFICIT
YEARS ENDED DECEMBER 31 2006 2005
Revenue Oil and gas revenue $ 5,231,570 $ 3,012,918 Royalties net of ARTC (1,117,868) (466,710) Other revenue 104,844 128,666 4,218,546 2,674,874 Expenses Production 1,012,176 519,729 Transportation costs 106,797 73,891 General and administration 731,889 378,454 Depletion, depreciation and accretion 16,255,933 1,077,741 Interest 301,917 15,253 Stock-based compensation 367,962 307,557 18,776,674 2,372,625
Income (Loss) Before Income Taxes (14,558,128) 302,249
Income Taxes Current income tax expense - - Future income tax expense (recovery) (4,274,466) 126,482
Net Income (Loss) For the Year (10,283,662) 175,767
Deficit, Beginning Of Year (833,999) (1,009,766)
Deficit, End Of Year $(11,117,661) $ (833,999)
Earnings (loss) per share Basic $ (0.19) $ 0.0
Diluted (0.19) 0.0
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31 2006 2005
Operating Activities Net Income (loss) for the period $(10,283,662) $ 175,767 Add: Items not involving cash: Future income tax (4,274,466) 126,482 Stock-based compensation 367,962 307,557 Depletion, depreciation and accretion 16,255,933 1,077,741 2,065,767 1,687,547 Change in non-cash working capital items: Accounts receivable 1,082,938 (1,760,444) Accounts payable and accrued liabilities (531,220) 1,349,804 Income tax receivable (114,266) (26,085) Prepaid expenses and deposits 28,886 (101,203) 2,532,105 1,149,619
Financing Activities Advances payable 3,304 2,103 Shares issued for cash 6,756,367 5,037,391 Bank indebtedness 13,444,168 - Payable to related parties - (73,000) Restricted cash (3,304) (2,103) 20,200,535 4,964,391
Investing Activities Petroleum and natural gas interest acquisitions (27,968,643) (12,553,380) Purchase of other equipment (22,073) (40,419) Net change in non-cash working capital balances 1,891,207 1,620,931 (26,099,509) (10,972,868)
Decrease In Cash And Cash Equivalents (3,366,869) (4,858,858)
Cash And Cash Equivalents, Beginning Of Year 3,366,869 8,225,727
Cash And Cash Equivalents, End Of Year $ - $ 3,366,869
Supplemental Disclosure
Interest paid $ 289,109 $ 15,253 Income tax paid $ - $ -