TSX Venture: RTE
CALGARY, March 30 /CNW/ - Result Energy Inc. ("Result") is pleased to
announce record cash flow, production and reserve additions for the 2005
fiscal year. Exploration and development activity was the focus of an
extremely active year for Result, with all additions to reserves and
production achieved through the drill-bit. Highlights for 2005 include:
- 72% year-over-year growth in total NI 51-101 proven oil and natural
gas reserves, and 67% growth in total proved plus probable ("P + PA")
reserves. Factoring in 2005 production, the net increases were 101%
for proven and 83% for P + PA reserves.
- Drilling a total of 30 wells (14.9 net), achieving an overall 80%
success rate, and resulting in 23 (11.2 net) natural gas and
potential natural gas producing wells, 1 (0.6 net) producing oil
well, 4 (2.1 net) cased wells, and 2 (1.0 net) wells which were
abandoned in 2005.
- A 72% increase in average daily production for the year to 431 boed
compared to 250 boed for 2004.
- For the Q4 period, revenues increased by 106% to $2,800,350 compared
to $1,358,779 in the Q4-04 period, and cash flow from operations
increased by 102% to $939,910 compared to $466,190 for Q4-04.
<<
Summary financial information for 2005
year ended year ended
December 31, December 31, % change
2005 2004 from 2004
------------------------------------------
Revenue, before royalties $ 8,019,864 $ 3,409,213 135.2 %
Net (loss) for the period $ (744,009) $ (107,290) (593.5)%
Net (loss) per share -
basic and diluted $ (0.02) $ (0.00) 0 %
Cash flow from operations $ 2,667,371 $ 1,379,720 93.3 %
Cash flow per share $ 0.08 $ 0.06 33.3 %
Total assets $ 30,645,344 $ 14,931,859 105.2 %
Total number of shares
outstanding:
weighted average for
the period 34,535,639 22,147,950 55.9 %
as at year-end 42,151,138 31,970,637 31.8 %
Summary of oil and natural gas reserves (Mmcfe)
% change
Proved developed producing 4,987.1 4,024.2 23.9 %
Proved developed non-producing
("PDNP") 2,696.0 309.2 771.9 %
Proved undeveloped 767.0 568.0 35.0 %
-------------------------------------------------------------------------
Total Proved 8,450.1 4,901.4 72.4 %
Probable additional reserves 4,650.6 2,968.1 56.7 %
-------------------------------------------------------------------------
Proved plus probable additional
reserves ("P + PA") 13,100.7 7,869.5 66.5 %
-------------------------------------------------------------------------
P + PA reserves, on boe basis 2,183.5 1,311.6 66.5 %
-------------------------------------------------------------------------
The above noted summary of the Company's oil and natural gas reserves is
based on the Company's working interest ("WI") share (before royalty
interests) of estimated recoverable reserves in the Forecast prices case
provided in the December 31, 2005 third party reserve reports which were
prepared in accordance with National Instrument 51-101 ("NI 51-101")
standards. The December 31, 2005 PDNP reserves total above relates to a total
of 6 natural gas wells which are currently shut-in and / or tested and behind
pipe awaiting pipeline tie-in to processing facilities in the Clear Hills and
Pembina areas.
Result also reports the following update on its main exploration and
operation activities for the 2006 year-to-date period:
- in addition to the 2 wells that were drilled in 2005 at Clear Hills,
an additional 3 (1.1 net) wells were drilled during Q1- 2006
targeting an expansion of Result's existing interests in the Charlie
Lake A gas pool. Construction of a 10-mile natural gas gathering
pipeline has commenced which will tie these area wells into a new
third party gas plant scheduled to commence construction in Q2-06.
Subject to regulatory approvals and favorable weather, we anticipate
the new pipeline and facilities to be operational by mid Q3-06. We
estimate this will bring on at least another 1,500 mcfd net to
Result. A fourth Clear Hills area well location is anticipated to be
drilled next winter.
- in the Pembina area Result continues to await a regulatory ruling
which will allow a third party compression facility to be
commissioned, through which the Company's gas volume can flow. Result
has a 50% (BPO or Before Payout) interest in two Viking natural gas
wells which were drilled in 2005, which should produce at an
estimated total of 3,500 mcfd (1,750 mcfd net, BPO) once on stream.
- Result participated (50% WI) in drilling a deep Nisku test in
January 2006 in the Pembina area. This well was not successful in the
target zone; however, an uphole completion may still be pursued at a
later date.
- in the Worsley area, one additional Leduc gas well (36.4% WI) was
drilled in Q1-06, and is planned to be completed and tested by the
end of June following break-up.
- in the Dodsland Saskatchewan area, an additional 3 (1.5 net) Viking
gas infill wells were drilled in Q1-06, of which 2 await completion
of tie-in operations.
The Corporation's audited financial statements for the year ended
December 31, 2005 and the related Management Discussion and Analysis ("MD&A")
should be available for review on SEDAR on or before April 3, 2006.
Result's Annual General Meeting for 2005 will be held at 10:00 am on
Tuesday May 23, 2006 at the Calgary Petroleum Club (Cardium Room),
319 Fifth Avenue SW, Calgary.
Result's Board of Directors has also approved the granting of a total of
1,250,000 stock options at an exercise price of $1.10 per share, expiring
March 24, 2011. A total of 1,000,000 of these options were granted to the
Directors and Officers of Result, and will vest over a 24 month period to
March 24, 2008.
Investors are cautioned that this news release contains forward looking
information. Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward-looking information. Readers are
cautioned not to place undue reliance on forward-looking information, as no
assurances can be given as to future results, levels of activity or
achievements.
The term barrels of oil equivalent ("boe") may be misleading,
particularly if used in isolation. A boe conversion ratio of six thousand
cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence
is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead. All
boe conversions herein are derived from converting gas to oil in the ratio mix
of six thousand cubic feet of gas to one barrel of oil.
Result Energy Inc. is a publicly traded Canadian energy company involved
in the exploration and development of oil and gas properties in western
Canada, with a current exploration focus in the Peace River Arch region.
Result trades on the TSX Venture Exchange under the symbol "RTE".
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.
>>
%SEDAR: 00012334E
