Business
Peyto Energy Trust announces third quarter 2006 results
Peyto Energy Trust announces third quarter 2006 results.
About this update from Peyto Exploration & Development Corp.
[{"type":"text","content":"\n\n\n\n\nSYMBOL: PEY.UN - TSX\n\nCALGARY, Nov. 8 /CNW/ - Peyto Energy Trust (\"Peyto\") is pleased to\npresent the operating and financial results for the third 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\nDuring the third quarter, Peyto invested $71.2 million into designing,\ndrilling and building new producing gas assets in the deep basin. Drilling and\ncompletions accounted for $51.5 million while wellsite equipment, pipelines\nand gas plants accounted for $18.3 million. Acquisition of new land and\nseismic made up the balance or $1.4 million. So far in 2006, we have now\ninvested $24.7 million building new gas plants in the Wildhay and Nosehill\nareas. These plants have added 40 mmcf/d of processing capacity.\nIn the third quarter, the company drilled and cased 19 gross (14.9 net)\ngas wells and completed 41 gross (37.6 net) gas zones. Average production\nincreased 530 boe/d from 22,892 boe/d in the second quarter to 23,422 boe/d in\nthe third quarter as 37 gross (31.3 net) new ga...