Business
Storm Cat Energy Corporation Announces 2007 Year-end Operating & Financial Results
DENVER and CALGARY, Alberta, March 17 /CNW/ -- Storm Cat Energy Corporation (Amex: SCU; TSX: SME)...
About this update from Sama Resources Inc.
[{"type":"text","content":"\n\n\n\nDENVER and CALGARY, Alberta, March 17 /CNW/ -- Storm Cat Energy\nCorporation (Amex: SCU; TSX: SME) today reported 2007 year-end financial and\noperating results.\n\n\nIn 2007, Storm Cat achieved several record financial and operating\nresults:\n\n\n-- Average daily production was 8.641 MMcf/d, a 96% increase over 2006\n average daily production;\n-- Reserve replacement ratio was 718% in 2007;\n-- Year end proved reserves were 44.5 Bcf, a 78% increase over 2006 year\n end proved reserves;\n-- Estimated discounted future net cash flow of proved reserves discounted\n at 10% was $98.4 million, an increase of 208% over 2006;\n-- Total net revenue from gas sales was $16.8 million, a 77% increase over\n 2006\n\n\nStorm Cat achieved these record results notwithstanding a very difficult\ncommodity price environment covering almost all of our operations. 2007\npresented several challenges to the Rocky Mountains producing region and,\nspecifically, our Powder River Basin (PRB) operations. Insufficient Rockies\npipeline takeaway capacity created difficult "gas-on-gas" competition\nthroughout much of the year, resulting in significant natural gas price\ndeterioration. This difficult price environment forced us to reprioritize our\ncapital budget with the goal of bringing most of our production growth on line\nat the end of 2007 rather than sequentially throughout the year.\n\n\nA September fire on the Cheyenne Plains interstate gas pipeline reduced\nRockies take-away capacity even further, deteriorating already reduced Rockies\ngas prices. As a consequence, we were forced to curtail our production in the\nthird and fourth quarters of 2007. Fortunately, our hedging allowed us to\npartially mitigate the impacts of this price collapse and deliverability\ncurtailment.\n\n\nFinally, certain pipeline interruptions and operational delays occurred\nin the fourth quarter within our operating areas of the PRB that impacted our\nability to maximize production from our properties. Impacts of interruptions\nand delays are still being experienced in the first quarter of 2008 as we\nultimately recover fully from and advance beyond these impacts.\n\n\nStorm Cat Energy Chief Executive Officer Joe Brooker commented, "2007\npresented significant pricing and associated production challenges to our\ncompany. Notwithstanding these challenge...