Business
Peyto Energy Trust announces second quarter 2006 results
Peyto Energy Trust announces second quarter 2006 results.
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\n\nSYMBOL: PEY.UN - TSX\n\nCALGARY, Aug. 9 /CNW/ - Peyto Energy Trust (\"Peyto\") is pleased to\npresent the operating and financial results for the second quarter of the 2006\nfiscal year. Peyto has a solid foundation made up of high quality, long life,\nnatural gas assets, and a business with an eight year track record of\nsuccessfully achieving premium returns on the capital we invest. We continue\nto design, drill and build our own assets in Alberta's premier gas exploration\narea, the Deep Basin.\n\n>\n\nManagement uses funds from operations to analyze the operating\nperformance of its energy assets. In order to facilitate comparative analysis,\nfunds from operations is defined throughout this report as earnings before\nperformance based compensation, non cash and non recurring expenses. We\nbelieve that funds from operations is an important parameter to measure the\nvalue of an asset when combined with reserve life. Funds from operations is\nnot a measure recognized by Canadian generally accepted accounting principles\n(\"GAAP\") and does not have a standardized meaning prescribed by GAAP.\nTherefore, funds from operations, as defined by Peyto, may not be comparable\nto similar measures presented by other issuers, and investors are cautioned\nthat funds from operations should not be construed as an alternative to net\nearnings, cash flow from operating activities or other measures of financial\nperformance calculated in accordance with GAAP. Funds from operations cannot\nbe assured and future distributions may vary.\n\nQuarterly Review\n\nIn the second quarter, $67.2 million of capital was invested in building\nnew gas assets. Well related activity in the quarter accounted for\n$59.2 million or 88% of the total. Seismic and land acquisitions made up\n$4.5 million bringing the total investment in future drilling inventory to\n$20.2 million for the first six months of 2006. We will begin to capitalize on\nthis inventory over the next 12 months. Costs associated with the new 20\nmmcf/d Nosehill Gas Plant were $3.5 million of the total capital spent in the\nquarter.\nPeyto drilled and cased 15 gross (13.4 net) gas wells and completed 26\ngross (20.5 net) gas zones in the quarter. A normal spring breakup restricted\naccess and thus, limited the number of new zones brought on production to 30\ngross (19.7 net). Average pr...