Pjx Resources Inc. press release
Ripper Oil and Gas Inc. releases second quarter results
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TSX VENTURE STOCK SYMBOL: RIP
CALGARY, Nov. 27 /CNW/ - Ripper Oil and Gas Inc. ("RIP") reports that for the six months ended September 30, 2008, oil and natural gas revenue net of royalties was $4,660,593 compared to $2,432,302 for the six months ending September 30, 2007 due to higher commodity prices and production volumes. Six month cash flow from operations was $2,240,035 ($0.11 per share) compared to $953,896 ($0.06 per share) in the previous year's six month period. Net income for the six month period ending September 30, 2008 was $989,283 ($0.05 per share) compared to $207,170 ($0.01 per share) for the same period last year. The average sales price for natural gas increased 53% to $9.33/mcf in the six month period, compared to $6.09/mcf for the same period last year. The average sales price for oil and natural gas liquids increased to $112.52/barrel in the six month period, an increase of 72% compared to $65.53/barrel for the same period in 2007. Production was 440 boepd for the six months ending September 30, 2008 as compared to 348 boepd for the six months ending September 30, 2007.
In its core Coal Bed Methane ("CBM") area three (0.24 net) CBM wells were drilled and two (0.21 net) previously drilled CBM wells were tied in.
Subsequent to quarter end, additional activity in its core CBM area consisted of drilling and pipelining three 100% working interest wells; three more (1.5 net) wells were licensed and are scheduled to be drilled in December.
Natural gas prices peaked in the first quarter and have declined steadily with a 21% drop in the second quarter compared to the first quarter ending June 30, 2008. Subsequent to the end of the second quarter, natural gas prices have declined further. Oil prices in the third quarter could be 50% below the second quarter average. Both of these declines will negatively impact cash flow.
With recent economic turmoil and decline in commodity prices, the Corporation has adjusted capital budgets to mirror cash flow in subsequent quarters and conserve the unused portion of the Corporation's loan facility. Capital budgets may be re-adjusted if commodity prices improve and/or service costs decline.
In September, 2008 the Corporation signed a new demand revolving loan facility which was increased to $9,500,000 from $8,000,000. Bank debt at the end of the second quarter was $2,875,000.
The Corporation currently has 20,768,909 shares outstanding.
Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange. Further information is available on SEDAR at www.sedar.com.
BOEs 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 neither approved nor disapproved of the information contained herein.
%SEDAR: 00015775E