Signature Resources Ltd. press release
Ripper Oil and Gas Inc. releases third quarter results
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TSX VENTURE STOCK SYMBOL: RIP
CALGARY, Feb. 24 /CNW/ - Ripper Oil and Gas Inc. ("RIP") reports that for the nine months ended December 31, 2008, oil and natural gas revenue net of royalties was $6,022,424 compared to $4,086,279 for the nine months ending December 31, 2007 due to higher average commodity prices and production volumes over the period. Nine month cash flow from operations was $2,946,674 ($0.14 per share) compared to $1,874,481 ($0.10 per share) in the previous year's nine month period. Net income for the nine month period ending December 31, 2008 was $970,307 ($0.05 per share) compared to $265,782 ($0.01 per share) for the same period last year. The average sales price for natural gas increased 38% to $8.54/mcf in the nine month period, compared to $6.17/mcf for the same period last year. The average sales price for oil and natural gas liquids increased to $94.54/barrel in the nine month period, an increase of 37% compared to $68.89/barrel for the same period in 2007. Production was 429 boepd for the nine months ending December 31, 2008 as compared to 380 boepd for the nine months ending December 31, 2007.
During the quarter, the Corporation drilled and tied in three 100% working interest Coalbed Methane ("CBM") wells at Halkirk. The wells came on production in December at a restricted rate of 300 mcf/d as the Corporation's wholly owned compression facility is at capacity.
At Mikwan, the Corporation participated in three (1.5 net) CBM wells during the quarter. Completion and tie in of these wells is not expected until early summer.
In our core Halkirk/Chigwell/Mikwan area, the Corporation planned to drill an additional 11 gross (6.9 net) operated CBM wells in the third and fourth quarters. With the recent economic turmoil and sharp commodity price declines, the Corporation has deferred these capital expenditures. Other than routine maintenance and preservation of expiring petroleum and natural gas leases, free cash flow will be used primarily to reduce debt until the economic environment improves.
The corporation is in good financial shape and maintains a large inventory of drilling locations. The corporation will review its capital budget when the Province of Alberta releases its oil and gas "incentive program" subsequent to quarter end.
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