Business
Result Energy Inc. Year End Review and Operations Update
CALGARY, May 2 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is pleased to provide a year end...
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, May 2 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) is\npleased to provide a year end 2007 summary and an update on 2008/09\nexploration plans:\n\n\n2007 Review\n\n\nResult's average daily production increased for the 6th consecutive year\nto 1,119 boed from 823 boed in 2006, a 36% year over year increase. Production\nis currently 90% weighted to natural gas and following the April 30, 2008\ndisposition of Saskatchewan assets, the Company's current productive capacity\nis now estimated at 950 boed.\n\n\nFunds from operations increased by over 52% for the year; to $6.2 million\nfrom $4.1 million in 2006. Fourth quarter funds from operations was\n$0.86 million, down 37% from the same period last year.\n\n\nThe proved plus probable additional ("P+PA") reserves at December 31,\n2007 increased to 3.55 million boe, up 3% from a year earlier. However the\nP+PA reserve value discounted at 10% was down 5% from the prior year. This was\ndue primarily to a low price forecast used by the Company's independent\nreserves engineers.\n\n\nIt should be noted that the December 31, 2007 reserve report was based on\nforecasted future gas prices averaging $6.53/mcf for 2008 and $7.26 for 2009.\nThe winter draw-downs in North American natural gas storage levels have caused\nsignificant increases in spot and forecast natural gas prices. A NI 51-101\ncompliant reserve report update, based on a revised gas price forecast,\nincreases Result's December 31, 2007 NPV 10% P+PA reserve values by\napproximately $5.3 million.\n\n\nFinding and development ("F&D") costs for P+PA reserves were $24.13/boe\nexcluding future capital. Result's 3 year average F&D costs were $15.80/ boe.\nWhen taken over the 3 year average, they are comparable to industry standards.\n\n\nIn 2007, we participated in 22 wells (10.6 net), resulting in 16\n(7.3 net) cased and potential gas wells, 4 (1.8 net) suspended and 2 (1.5 net)\ndry and abandoned wells for an overall 86% (net) success rate.\n\n\nThe full MD&A and audited financial statements for 2007 are available for\nreview on SEDAR and the Company's website.\n\n\nThe recent royalty changes in Alberta have made it difficult for Result\nto justify the same levels of capital investment in the Province that the\nCompany has committed over the past 3 years. Unlike many juniors with no...