CALGARY, Nov. 29 /CNW/ - Mystique Energy, Inc. ("Mystique") (TSXV:MYS)
today reported its financial and operational results for the three month and
nine month periods ending September 30, 2006. Production sales for the nine
months ending September 30, 2006 averaged 257 barrels of oil equivalent per
day ("boepd")(x), more than double the average production rate of 126 boepd for
the same period of 2005. For the third quarter, production sales averaged 285
boepd an increase of 85 percent over the average production rate of 154 boepd
for the third quarter of 2005, and an increase of 23 per cent over the average
production rate of 232 boepd for the second quarter of 2006. Production
averaged 318 boepd during September 2006 and continues to grow, with present
production over 550 boepd, split approximately 60% gas and 40% light oil and
natural gas liquids (NGL's).
Other financial and operational highlights for the three and the nine
months ending September 30, 2006 include:
<<
- Cash flow of $427 thousand and $1.347 million for the three and
nine months ending September 30, 2006 respectively, compared to
$493 thousand for the third quarter of 2005, $317 thousand for the
second quarter of 2006, and $1.113 million for the first nine months
of 2005. Cash flow for the third quarter of 2006 was less than that
of the third quarter of 2005 because of lower gas prices.
- Drilled and cased five (4.625 net) wells and nine (8.25 net) wells
during the three and nine months ending September 30, 2006
respectively on Mystique's farm-in lands located northwest of
Calgary. Of the five wells drilled during the third quarter, four
wells (3.625 net) were cased and one well (1.0 net) was abandoned.
For the nine month period ending September 30, eight wells (7.25 net)
were cased and one well (1.0 net) was abandoned, for an overall
year-to-date success rate of 88%.
Highlights to date for the fourth quarter of 2006 include:
- Tied-in one (1.0 net) well in the Bottrel area.
- Applied for a permit to construct a flowline to tie-in a well
(1.0 net) to a gathering system in the Wildcat Hills area.
- Based on its successful 2006 drilling program, Mystique has
identified 25 development drilling locations. Five new wells have
been licensed to-date and eight more locations are in the process of
being licensed.
- Based on the addition of new reserves and production as a result of
its 2006 drilling program, and a covenant to implement a program to
hedge 50% of its gas production, Mystique has negotiated an increase
in the secured banking facility from $8 million to $14.5 million.
- Mystique has engaged Kobayashi Partners Limited to sell its
Garrington producing assets. These assets are not material to
Mystique's future growth. Production from this asset is approximately
90 boepd.
>>
The foregoing disclosure is qualified in its entirety by the more
detailed information contained in the unaudited financial statements for the
three and nine months ended September 30, 2006, including the notes thereto
and the related MD&A, copies of which will be available for viewing on the
SEDAR website www.sedar.com.
Based in Calgary, Mystique is involved in the exploration and
exploitation of petroleum reserves in western Canada.
<<
(x) Use of the term barrels of oil equivalent "boe" may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf:
1 bbl is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the wellhead.
>>
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This news
release may contain forward-looking information. Actual future results
may differ materially from those contemplated. The risks, uncertainties,
and other factors that could influence actual results are described in
documents filed with regulatory authorities.
<<
BALANCE SHEETS
(Unaudited)
SEPTEMBER 30 DECEMBER 31
2006 2005
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ASSETS
Current
Cash and cash equivalents $ - $ 3,366,869
Accounts receivable (Note 2) 1,449,272 2,956,583
Other tax receivable 99,135 50,766
Prepaid expenses and deposits 143,014 158,509
-----------------------------
1,691,421 6,532,727
Restricted Cash 107,236 107,236
Property, Plant and Equipment (Note 2) 40,157,942 16,355,542
-----------------------------
$ 41,956,599 $ 22,995,505
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-------------------------------------------------------------------------
LIABILITIES
Current
Accounts payable and accrued
liabilities (Note 2) $ 14,834,455 $ 8,707,855
Bank indebtedness (Note 5) 6,341,571 -
-----------------------------
21,176,026 8,707,855
Future Income Taxes 1,631,888 660,441
Advances Payable 56,050 56,050
Asset Retirement Obligation (Note 3) 512,547 336,283
-----------------------------
23,376,511 9,760,629
-----------------------------
SHAREHOLDERS' EQUITY
Share Capital (Note 4) 18,819,946 13,335,343
Contributed Surplus 945,102 733,532
Deficit (1,184,960) (833,999)
-----------------------------
18,580,088 13,234,876
-----------------------------
$ 41,956,599 $ 22,995,505
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STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2006 2005 2006 2005
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Revenues
Oil and gas
revenue $ 1,126,095 $ 827,001 $ 3,265,811 $ 1,875,053
Royalties net
of ARTC (206,498) (111,828) (604,710) (253,746)
Other revenue 10,494 29,440 31,779 85,369
-------------------------------------------------------
930,091 744,613 2,692,880 1,706,676
-------------------------------------------------------
Expenses
Production 233,739 184,234 601,100 333,096
Transportation 31,196 35,636 78,579 56,332
General and
administration 130,265 30,479 426,514 191,537
Depletion,
depreciation
and accretion 598,583 281,419 1,786,466 670,069
Interest 107,530 833 239,930 12,415
Stock-based
compensation
(Note 4) 60,869 37,632 256,700 280,707
-------------------------------------------------------
1,162,182 570,233 3,389,289 1,544,156
-------------------------------------------------------
Income (Loss)
Before Income
Taxes (232,091) 174,380 (696,409) 162,520
Income taxes
Future income
tax (150,305) (4,661) (345,448) (145,729)
-------------------------------------------------------
Net Income (Loss)
For The Period (81,786) 169,719 (350,961) 16,791
Deficit, Beginning
of Period (1,103,174) (1,162,694) (833,999) (1,009,766)
-------------------------------------------------------
Deficit, End Of
Period $ (1,184,960) $ (992,975) $ (1,184,960) $ (992,975)
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-------------------------------------------------------------------------
Earnings (Loss)
Per Share
Basic $ (0.00) $ 0.00 $ (0.01) $ 0.00
Diluted $ (0.00) $ 0.00 $ (0.01) $ 0.00
Weighted Average
Number Of Shares
Basic 58,287,965 44,009,054 51,483,834 38,412,474
Diluted 58,490,006 47,037,722 52,179,824 43,543,825
STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2006 2005 2006 2005
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-------------------------------------------------------------------------
Operating Activities
Net Income (loss)
for the period $ (81,786) $ 169,719 $ (350,961) $ 16,791
Add: Items not
involving cash:
Future income
tax (150,305) 4,661 (345,448) 145,729
Stock-based
compensation
expense 60,869 37,632 256,700 280,707
Depletion,
depreciation
and accretion 598,583 281,419 1,786,466 670,069
-------------------------------------------------------
427,361 493,431 1,346,757 1,113,296
Change in
non-cash working
capital items:
Accounts
receivable 3,710,612 (1,004,400) 1,505,350 (1,431,443)
Accounts
payable and
accrued
liabilities (990,824) 1,006,163 (1,215,864) 533,601
Other tax
receivable 19,375 11,944 (46,408) 11,944
Prepaid expenses
and deposits 20 7,761 15,495 (22,821)
-------------------------------------------------------
3,166,544 514,899 1,605,330 204,577
-------------------------------------------------------
Financing Activities
Shares issued
for cash 3,984,690 252,555 6,756,367 4,892,751
Bank indebtedness (1,217,790) - 6,341,571 -
-------------------------------------------------------
2,766,900 252,555 13,097,938 4,892,751
-------------------------------------------------------
Investing Activities
Oil and gas
property
acquisitions (14,526,083) (4,077,640) (25,391,764) (7,161,067)
Purchase of
capital assets (7,125) (3,674) (20,836) (17,644)
Net change in
non-cash working
capital balances 8,599,764 3,972,682 7,342,463 1,500,068
-------------------------------------------------------
(5,933,444) (108,632) (18,070,137) (5,678,643)
-------------------------------------------------------
Increase (Decrease)
In Cash - 658,822 (3,366,869) (581,315)
Cash, Beginning
Of Period - 6,985,590 3,366,869 8,225,727
-------------------------------------------------------
Cash, End of
Period $ - $ 7,644,412 $ - $ 7,644,412
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Interest Paid $ 81,895 $ 552 $ 134,158 $ 3,121
>>
%SEDAR: 00001147E
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