CALGARY, May 28 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) ("Mystique") today reported its financial and operational results for the three months ended March 31, 2007. Financial and operational results for the first quarter of 2007 include:
- Cash flow of $512,833 compared to $602,470 for the first quarter of
2006.
- Net loss of $413,389 compared to $133,275 for the first quarter of
2006.
- Production sales averaged 454 barrels of oil equivalent per day
("boepd")(x) compared to an average production rate of 255 boepd in
the first quarter of 2006.
- Sold the Garrington assets for gross proceeds of 4.05 MM$. Initial
closing occurred on March 15th. Final closing and adjustments is
expected to be completed in June. The Garrington assets contributed
an average of 74 boepd to Mystique's production during the quarter.
Other developments included:
- Entered into a forbearance agreement with its lender to allow time
for Mystique to restructure its working capital deficit. The initial
term of the forbearance agreement expired on March 28th, 2007.
Developments that have occurred to date during the second quarter
include:
- Negotiated an extension of the term of the forbearance agreement with
its lender to June 30th, 2007 to allow time for Mystique to seek
strategic alternatives.
- Engaged GMP Securities L.P. to seek strategic alternatives.
- Filed for creditor protection under the Companies' Creditors
Arrangement Act ("CCAA") while seeking strategic alternatives. The
initial order for a stay of proceedings has been extended from May
24th to July 17th, 2007.
- Three independent directors, Mr. Verne Johnson, Mr. Terry McCoy and
Mr. Mike Shaikh, resigned on April 24th.
Complete financial and operating results will be filed on SEDAR and made available on Mystique's website, www.mystiqueenergy.ca, later today.
(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.
MYSTIQUE ENERGY, INC.
BALANCE SHEETS
(Unaudited)
MARCH 31 DECEMBER 31
2007 2006
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ASSETS
Current
Accounts receivable $ 1,775,847 $ 1,873,645
Other tax receivable 165,032 165,032
Prepaid expenses and deposits 97,667 129,623
-----------------------------------
2,038,546 2,168,300
Restricted Cash - 110,540
Future Income Tax 386,243 2,297,130
Property, Plant and Equipment (Note 2) 23,646,021 28,433,017
-----------------------------------
$ 26,070,810 $ 33,008,987
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LIABILITIES
Current
Accounts payable and accrued
liabilities $ 10,066,455 $ 10,067,841
Bank indebtedness (Note 5) 9,337,089 13,444,168
-----------------------------------
19,403,544 23,512,009
Advances Payable - 59,354
Asset Retirement Obligation (Note 3) 519,399 678,975
-----------------------------------
19,922,943 24,240,338
-----------------------------------
SHAREHOLDERS' EQUITY
Share Capital (Note 4) 16,547,706 18,844,836
Contributed Surplus 1,131,211 1,031,474
Deficit (11,531,050) (11,117,661)
-----------------------------------
6,147,867 8,758,649
-----------------------------------
$ 26,070,810 $ 33,008,987
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MYSTIQUE ENERGY INC.
STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2007 MARCH 31, 2006
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Revenues
Oil and gas revenue $ 1,893,386 $ 1,137,182
Royalties net of ARTC (530,081) (210,230)
Other revenue 104,436 13,598
-----------------------------------
1,467,741 940,550
-----------------------------------
Expenses
Production 361,458 180,293
Transportation 21,258 27,115
General and administration 348,894 102,332
Depletion, depreciation and
accretion 1,212,728 641,564
Interest 223,298 28,340
Stock-based compensation (Note 4) 99,737 94,180
-----------------------------------
2,267,373 1,073,824
-----------------------------------
Loss Before Income Taxes (799,632) (133,275)
Income taxes
Future income tax (386,243) 5,925
-----------------------------------
Net Loss For The Period (413,389) (139,199)
Deficit, Beginning of Period (11,117,661) (833,999)
-----------------------------------
Deficit, End Of Period $ (11,531,050) $ (973,198)
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Earnings (Loss) Per Share
Basic $ (0.01) $ 0.00
Diluted $ (0.01) $ 0.00
Weighted Average Number Of Shares
Basic 59,840,682 46,357,943
Diluted 59,840,682 48,050,733
MYSTIQUE ENERGY INC.
STATEMENTS OF CASH FLOW FLOWS
(unaudited)
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2007 MARCH 31, 2006
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Operating Activities
Net loss for the period $ (413,389) $ (139,199)
Add: Items not involving cash:
Future income tax (386,243) 5,925
Stock-based compensation 99,737 94,180
Depletion, depreciation and
accretion 1,212,728 641,564
-----------------------------------
512,833 602,470
Change in non-cash working capital
items:
Accounts receivable 89,782 (2,633,017)
Accounts payable and accrued
liabilities 452,638 2,884,762
Other tax receivable - (34,435)
Prepaid expenses and deposits 31,957 48,796
-----------------------------------
1,087,210 868,576
-----------------------------------
Financing Activities
Shares issued for cash - 2,776,275
Bank indebtedness
-----------------------------------
(4,107,080) 3,508,635
-----------------------------------
Investing Activities
Oil and gas property acquisitions 3,414,692 (7,120,808)
Purchase of capital assets - (10,180)
Net change in non-cash working
capital balances (394,822) (613,092)
-----------------------------------
3,019,870 (7,744,080)
-----------------------------------
Increase (Decrease) In Cash - (3,366,869)
Cash, Beginning Of Period - 3,366,869
-----------------------------------
Cash, End of Period $ - $ -
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Interest Paid $ 223,298 $ -
%SEDAR: 00001147E