WesCan Energy Corp. press release
Blackpool 2006 year end results
TSXV - TSX Venture Exchange · Oil · Natural Gas · Natural Gas Liquids · Canada
CALGARY, AB, May 10 /CNW/ - Blackpool Exploration Ltd. ("Blackpool" or the "Company") has released its 2006 results. Blackpool's year end 2006 audited financial statements with management's discussion and analysis have been filed on SEDAR and can be viewed at the Company's website: www.blackpoolexploration.com.
Of specific interest are the following:
Year end 2006 audited financial statements reveal positive working capital and compliance with all banking covenants. The Company elected to write off $797,000 of goodwill from the 2005 acquisition of C2 Energy Inc. Negative cash flow of approximately $87,000 was primarily the result of interest costs associated with bridge financing that was repaid in full by August 2006.
The Company divested of 6 properties during 2006 for total proceeds of approximately $2.85 million which were applied to repayment of bridge financing and incursion of qualifying flow through share expenditures.
During 2005, Blackpool raised $4.5 million in flow through share proceeds which was to have been spent by December 31, 2006. At year end 2006, however, only $3.4 million of this total had been spent resulting in a shortfall of $1.1 million. Qualifying expenditures in the amount of $1.1 million were incurred during the first four months of 2007 and so the 2005 flow through expenditure requirement has now been fully satisfied.
In December 2006, the Company raised $760,000 in additional flow through funding at a price of $0.25 per share. Qualifying expenditures totaling one third of this amount have already been incurred in 2007.
Net of the aforementioned property dispositions, Blackpool's reserve base increased in 2006 by approximately 9%. Although there was a 25% erosion of gas pricing forecasting of the Company's third party engineering firm, Blackpool is pleased to note that the total reserve value decreased by only 10%.
The problems arising after the Company's May-June 2005 financing have been remedied. Looking ahead, Blackpool has working interests in nine wells awaiting completion and/or tie-in to gas gathering and processing facilities. Management anticipates that these wells will be evaluated and on production by the beginning of the third quarter 2007.
Blackpool Exploration Ltd. is a junior resource company focused on conventional oil and gas exploration and production in Alberta and trades on the TSX Venture Exchange under the symbol "BPX.A".
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.