CALGARY, March 27 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports significant growth in its operational results for the twelve months ended December 31, 2006. Cash flow increased for the third consecutive quarter and production more than doubled while reserves almost tripled over 2005.
Financial and operational results for 2006 include:
- Cash flow for the twelve months ended December 31, 2006 was
$2.07 million, a 22% increase over the cash flow of $1.69 million for
2005.
- Production sales for the year averaged 318 barrels of oil equivalent
("boepd"), more than double the average production rate of 143 boepd
for 2005.
- Cash flow for the fourth quarter of 2005 was $0.72 million. Mystique
has now generated three consecutive quarters of increasing cash
flows.
- Production sales for the fourth quarter averaged 501 boepd, more than
two and one-half times the average production rate of 195 boepd for
the fourth quarter of 2005.
- Net loss of $10.3 million resulted primarily from a non-cash ceiling
test impairment loss of $12.4 MM$ which resulted from high costs of
finding and developing reserves and lower gas prices.
Other operational and corporate highlights for 2006 include the following:
- Drilled 9 gross (8.25 net) wells in the Lochend/Bottrel/Wildcat Hills
areas resulting in 8 cased wells (7.63 net) and one abandoned well
(1.0 net) for an overall success rate of 89%.
- As a result of the successful 2006 exploration drilling program,
proved plus probable ("P+P") reserves almost tripled from 905 Mboe to
2530 Mboe.
- Added 356 Mboe of proved reserves, replacing 2006 production of
116 Mboe by more than three times.
- Based on year-end production rates, P+P reserves life index increased
from 11.6 years to 12.6 years.
- Completed private placement financings exceeding $6.8 million.
- Appointed Terry McCoy as a director and Nick Antonenko as Vice
President - Production Operations.
Highlights so far for the first quarter of 2007 include:
- Sold Garrington assets for gross proceeds of $4.05 million.
- Prepared right-of-way for the tie-in of Mystique's Wildcat 14-05
well.
Complete financial and operating results will be filed on SEDAR and made
available on Mystique's website, www.mystiqueenergy.ca, later today.
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
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DECEMBER 31 DECEMBER 31
2006 2005
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ASSETS
Current
Cash and cash equivalents $ - $ 3,366,869
Accounts receivable 1,873,645 2,956,583
Income tax receivable 165,032 50,766
Prepaid expenses and deposits 129,623 158,509
-----------------------------
2,168,300 6,532,727
Restricted Cash 110,540 107,236
Future Income Tax 2,297,130 -
Property, Plant And Equipment 28,433,017 16,355,542
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$ 33,008,987 $ 22,995,505
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LIABILITIES
Current
Accounts payable and accrued liabilities $ 10,067,841 8,707,855
Bank indebtedness 13,444,168 -
-----------------------------
23,512,009 8,707,855
Future Income Tax - 660,441
Advances Payable 59,354 56,050
Asset Retirement Obligation 678,975 336,283
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24,250,338 9,760,629
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SHAREHOLDERS' EQUITY
Share Capital 18,844,836 13,335,343
Contributed Surplus 1,031,474 733,532
Deficit (11,117,661) (833,999)
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8,758,649 13,234,876
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$ 33,008,987 $ 22,995,505
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STATEMENTS OF OPERATIONS AND DEFICIT
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YEARS ENDED
DECEMBER 31
2006 2005
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Revenue
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Oil and gas revenue $ 5,231,570 $ 3,012,918
Royalties net of ARTC (1,117,868) (466,710)
Other revenue 104,844 128,666
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4,218,546 2,674,874
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Expenses
Production 1,012,176 519,729
Transportation costs 106,797 73,891
General and administration 731,889 378,454
Depletion, depreciation and accretion 16,255,933 1,077,741
Interest 301,917 15,253
Stock-based compensation 367,962 307,557
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18,776,674 2,372,625
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Income (Loss) Before Income Taxes (14,558,128) 302,249
Income Taxes
Current income tax expense - -
Future income tax expense (recovery) (4,274,466) 126,482
-----------------------------
Net Income (Loss) For the Year (10,283,662) 175,767
Deficit, Beginning Of Year (833,999) (1,009,766)
-----------------------------
Deficit, End Of Year $(11,117,661) $ (833,999)
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Earnings (loss) per share
Basic $ (0.19) $ 0.0
Diluted (0.19) 0.0
STATEMENTS OF CASH FLOWS
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YEARS ENDED
DECEMBER 31
2006 2005
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Operating Activities
Net Income (loss) for the period $(10,283,662) $ 175,767
Add: Items not involving cash:
Future income tax (4,274,466) 126,482
Stock-based compensation 367,962 307,557
Depletion, depreciation and accretion 16,255,933 1,077,741
-----------------------------
2,065,767 1,687,547
Change in non-cash working capital items:
Accounts receivable 1,082,938 (1,760,444)
Accounts payable and accrued liabilities (531,220) 1,349,804
Income tax receivable (114,266) (26,085)
Prepaid expenses and deposits 28,886 (101,203)
-----------------------------
2,532,105 1,149,619
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Financing Activities
Advances payable 3,304 2,103
Shares issued for cash 6,756,367 5,037,391
Bank indebtedness 13,444,168 -
Payable to related parties - (73,000)
Restricted cash (3,304) (2,103)
-----------------------------
20,200,535 4,964,391
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Investing Activities
Petroleum and natural gas interest
acquisitions (27,968,643) (12,553,380)
Purchase of other equipment (22,073) (40,419)
Net change in non-cash working capital
balances 1,891,207 1,620,931
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(26,099,509) (10,972,868)
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Decrease In Cash And Cash Equivalents (3,366,869) (4,858,858)
Cash And Cash Equivalents, Beginning
Of Year 3,366,869 8,225,727
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Cash And Cash Equivalents, End Of Year $ - $ 3,366,869
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Supplemental Disclosure
Interest paid $ 289,109 $ 15,253
Income tax paid $ - $ -