Business
Result Files Q2 Financials; Gears Up for Significant Winter Activity in the Horn River Basin
CALGARY, Sept. 3 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE) announces that it has filed it...
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Sept. 3 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE)\nannounces that it has filed its second quarter financial statements and MD&A\non SEDAR. During the second quarter, Result closed the disposition of\nsubstantially all of its Saskatchewan properties. Proceeds of $11 million, net\nof costs and purchase price adjustments, were applied against outstanding bank\ndebt and working capital deficiency. As a result, total corporate indebtedness\nhas been significantly reduced to $9.1 million as at June 30, 2008 (which\nincludes a bank operating loan of $7.2 million and a working deficit of\n$1.8 million). Funds from operations were $2.2 million for Q2-08 ($2.4 million\nfor Q2-07), and $3.9 million for the 6-months year to date.\n\n\nDuring the second quarter, Result continued to expand its presence in\nunconventional shale gas within the Horn River Basin of northeastern British\nColumbia. At the end of Q2-08, Result had acquired 26,000 gross acres\n(40 sections) in the Horn River Basin at 100% working interest. These lands\nare highly prospective for the emerging Muskwa and Evie shale gas play, which\nis attracting major industry interest. In addition to the shale gas, Result is\nalso targeting high-deliverability gas within the underlying Keg River\nplatform.\n\n\nSubsequent to June 30, Result finalized agreements with two industry\npartners to expand its Horn River acreage position and farm-out a portion of\nthe capital risk related to drilling and completion costs. These two\nagreements resulted in the acquisition of an additional $7.2 million worth of\nundeveloped land, which Result funded by way of a share issuance totaling\n13,539,385 common shares, all at a deemed price of $0.533 per share. Following\nthese transactions, Result now holds an interest in 83 gross (44 net) sections\n(55,000 gross acres; 29,000 net acres) within the Horn River Basin.\n\n\nPlanning for the winter 2009 activities in the Horn River Basin is well\nunderway. Subject to final Board approval, the Company expects to spend a base\nbudget of $7 million in the first quarter, which will fund Result's\nparticipation in at least 4 vertical wells, plus additional 3-D seismic. In\ncommenting on the progress of the Horn River project to date, Mr. William\nMatheson, President, said "Since we began accumulating our position on this\nplay...