CALGARY, May 30 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports its financial results for the twelve months ended December 31, 2007.
Financial results for 2007 include:
- Cash flow for the twelve months ended December 31, 2007 was
($1.66) million compared to $2.07 million for 2006.
- Production sales for the year averaged 195 barrels of oil equivalent
("boepd"), compared to 318 boepd for 2006.
- Net loss for the twelve months ended December 31, 2007 was
$8.07 million compared to a net loss of $10.28 million for 2006.
Corporate events for 2007 include the following:
- Obtained creditor protection under the Companies' Creditors
Arrangement Act ("CCAA") effective 2007-04-24.
- Sold all petroleum assets for gross proceeds of $23.25 million.
- Eliminated all bank debt from proceeds of asset sales.
- Executed a letter of intent with Petro Energy Corp. whereby Mystique
and Petro Energy Corp. would merge by means of an amalgamation or
other business arrangement.
- Filed a plan of arrangement ("Plan") with Alberta Court of Queen's
Bench.
- Obtained approval of the Plan by unsecured creditors.
Additional corporate events so far in 2008 include:
- Completed the initial cash distribution to unsecured creditors.
- Obtained approval for the extension of the Plan until 2008-09-15 to
provide additional time for the anticipated business combination with
Petro Energy Corp to be completed and to make a final cash
distribution to unsecured creditors.
Complete financial results will be filed on SEDAR 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.
BALANCE SHEETS
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DECEMBER 31 DECEMBER 31
2007 2006
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ASSETS
Current
Cash and cash equivalents $ 8,300,964 $ -
Accounts receivable 272,398 1,873,645
Income tax receivable - 165,032
Refundable deposits 93,133 27,956
Prepaid expenses 135,934 101,667
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8,802,429 2,168,300
Restricted Cash (Note 5) - 110,540
Future Income Tax (Note 11) - 2,297,130
Property, Plant And Equipment (Note 6) 50,659 28,433,017
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$ 8,853,088 $ 33,008,987
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LIABILITIES
Current
Accounts payable and accrued liabilities $ 382,406 10,067,841
Accounts payable per CCAA (Note 13) 9,696,456 -
Bank indebtedness (Note 6) - 13,444,168
-----------------------------
10,078,862 23,512,009
Advances Payable (Note 5) - 59,354
Asset Retirement Obligation (Note 7) - 678,975
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10,078,862 24,250,338
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SHAREHOLDERS' EQUITY (Deficiency)
Share Capital (Note 9) 16,649,434 18,844,836
Contributed Surplus 1,317,252 1,031,474
Deficit (19,192,460) (11,117,661)
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(1,225,774) 8,758,649
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$ 8,853,088 $ 33,008,987
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Going Concern (Note 1); Commitments (Note 10)
Approved by the Directors:
"Victor Luhowy" Director "Brent Walter" Director
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STATEMENTS OF OPERATIONS AND DEFICIT
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YEARS ENDED
DECEMBER 31,
2007 2006
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Revenue
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Oil and gas revenue $ 3,512,805 $ 5,231,570
Royalties, net of ARTC (928,367) (1,117,868)
Other revenue 364,208 104,844
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2,948,646 4,218,546
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Expenses
Production 662,566 1,012,176
Transportation costs 36,529 106,797
General and administration (Note 12) 3,439,732 731,889
Depletion, depreciation and accretion 1,999,220 16,255,933
Interest 470,617 301,917
Stock-based compensation 285,777 367,962
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6,894,441 18,776,674
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Loss From Operations (3,945,795) (14,558,128)
Loss on Sale of Assets (4,027,276) -
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Loss Before Income Taxes (7,973,071) (14,558,128)
Future Income Tax Expense (Recovery)
(Note 11) 101,728 (4,274,466)
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Net Loss For the Year and Comprehensive Loss (8,074,799) (10,283,662)
Deficit, Beginning Of Year (11,117,661) (833,999)
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Deficit, End Of Year $ (19,192,460) $(11,117,661)
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Going Concern (Note 1)
Loss per share - basic and diluted
(Note 2(i)) $ (0.14) $ (0.19)
STATEMENTS OF CASH FLOWS
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YEARS ENDED
DECEMBER 31,
2007 2006
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Operating Activities
Net loss for the period $ (8,074,799) $(10,283,662)
Add: Items not involving cash:
Loss on sale of assets 4,027,276 -
Future income tax (recovery) 101,728 (4,274,466)
Stock-based compensation 285,777 367,962
Depletion, depreciation and accretion 1,999,220 16,255,933
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(1,660,798) 2,065,767
Change in non-cash working capital items:
Accounts receivable 1,601,248 1,082,938
Accounts payable and accrued liabilities 607,325 (531,220)
Income tax receivable 165,032 (114,266)
Prepaid expenses and deposits (99,444) 28,886
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613,365 2,532,105
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Financing Activities
Advances payable (59,354) 3,304
Shares issued for cash - 6,756,367
Bank indebtedness (13,444,168) 13,444,168
Restricted cash 110,540 (3,304)
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(13,392,982) 20,200,535
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Investing Activities
Petroleum and natural gas interest
acquisitions (778,261) (27,968,643)
Proceeds on sale of assets, net of costs 22,455,147 -
Purchase of other equipment - (22,073)
Net change in non-cash working capital
balances (596,304) 1,891,207
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21,080,582 (26,099,509)
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Increase (Decrease) In Cash And Cash
Equivalents 8,300,964 (3,366,869)
Cash And Cash Equivalents, Beginning Of Year - 3,366,869
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Cash And Cash Equivalents, End Of Year $ 8,300,964 $ -
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Supplemental Disclosure :
Interest paid $ 470,617 $ 289,109
Income tax paid $ - $ -
%SEDAR: 00001147E