Business
Kroes Energy announces 2005 results; Cash from operations increases by 25%
Kroes Energy announces 2005 results; Cash from operations increases by 25%.
About this update from Verisante Technology, Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, April 28 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced\ntoday that its net profit for 2005 amounted to $806,414 compared to $756,834\nin 2004. Cash from operations was $1,289,545, a gain of 25% from the prior\nyear.\nAverage production in 2005 was up slightly at 246 barrels per day (bpd);\nhowever, Kroes' share of volumes grew through 2005 to exit the year at 267 bpd\ncompared with 223 bpd at year-end 2004.\nPetroGlobe Canada Ltd. recalculated the Company's reserves volumes at\nDecember 31, 2005 for its 45% interest in the Ukrainian joint venture Kashtan\nPetroleum Ltd. The volume of proved and probable reserves totaled 10.2 million\nbarrels, some 20% lower than a year ago due to lower than anticipated\nproduction from wells in the northwest part of the field and reduced oil\nsaturation in the K1 zone attic oil. Despite the decline in reserves volumes\nand the significant new royalty imposed by the Ukrainian Government, the value\nof Proved and Probable reserves, using a constant price and a discount rate of\n10%, amounted to $67.8 million. This is only 14% lower than at year-end 2004,\nyet still represents more than $2.00 per share of value.\nPresident of Kroes Energy, Fred Callaway, said \"Despite the decrease in\nour reserves volumes, our production numbers are steady while net profit and\ncash from operations continue to increase. In other encouraging news, activity\nis now underway on our first shallow gas prospect in western Canada and we\nlook forward to positive results in 2006.\"\nKroes Energy also advises that it has filed its Annual Information Form\n(\"AIF\"), Financial Statements and Management's Discussion and Analysis for the\nyear ended December 31, 2005 on the System for Electronic Document Analysis\nand Retrieval (\"SEDAR\"). The AIF contains the supplemental disclosure,\nincluding detailed reserves information, as mandated and required by Canadian\nSecurities Administrators National Instrument 51-101. A copy of the AIF as\nwell as the Statements and Reports mandated by NI51-101 can be viewed on the\nCompany's documents page at www.sedar.com and will be posted on the Company's\nwebsite www.kroesenergy.com.\nIn other news, at a meeting on April 25, 2006, the Directors appointed\nStewart D. Gossen as Secretary of the Company to augment his duties as Vice\nPresident, Corporate Developme...