Business
Drilling Success and New Facilities Boost Result's Production and Cash Flow
Drilling Success and New Facilities Boost Result's Production and Cash Flow.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Sept. 5 /CNW/ - Result Energy Inc. (TSX Venture:RTE) delivered\nmuch higher production, cash flow and field activity for the second quarter\nand first half of 2006 versus the same periods last year.\nProduction averaged 567 boed in the second quarter, up over 49% from\n380 boed a year earlier. For the first half, production averaged 584 boed, a\n45% increase over the same period in 2005. Result has continued to bring on\nadditional volumes and, as of August 31, 2006, production was 921 boed on a\nsustained basis. The Corporation expects a further 350 to 500 boed to come on\nstream through September and October.\nSecond quarter cash flow was up 47% to $665,477 from $451,617 for the\nsame period last year. First half cash flow was up over 100%, to $1,658,449\nfrom $815,326 in 2005. Result declared a net loss of $416,350 for the quarter\ncompared to a net loss of $456,034 for Q2 2005. For the half, the loss was\n$751,404 versus $493,612 for the same period last year.\nOver 90% of Result's current production has come through the drill bit\nand the Company intends to stick with this strategy of organic growth. Result\nwill focus on its three core areas over the remainder of 2006 and into 2007\nexploiting the 80 prospects currently in inventory.\nResult is pleased to provide the following update on recent exploration,\ndevelopment, facility and related pipeline tie-in operations:\n\n>\n\nResult's current field estimated production volume is approximately\n921 boed. As noted above, additional productive capability from the Clear\nHills (330 boed) is anticipated to be fully on stream by the end of September,\nwith Pembina gradually building over the next two months. At that time Result\nexpects to be producing in excess of 1,400 boed weighted 98% towards natural\ngas.\nThe Company's existing bank revolving credit facility has been expanded\nto $9.2 million and is scheduled to be increased to $10.2 million by the end\nof Q3 as the existing backlog of production is brought on stream.\nBill Matheson noted \"Even with soft gas prices and facilities delays, we\nmanaged to deliver record growth in the second quarter. As the Pembina and\nClear Hills projects come on-stream, we expect all financial and operating\nresults to strengthen even further. This, in turn will lead to increased field\nactivity for the balance of 2006 a...