TSX VENTURE STOCK SYMBOL: RIP
CALGARY, Aug. 26 /CNW/ - RIPPER OIL AND GAS INC. ("RIP") reports its first quarter oil and gas revenue net of royalties was $932,485 as compared to $1,147,097 in the fourth quarter ending March 31, 2009. Cash flow from operations for the first quarter was $273,771 ($0.01 per share), as compared to $445,846 ($0.02 per share) for the fourth quarter of the previous year. Net loss for the three months ended June 30, 2009 was $294,019 ($0.01 per share) as compared to $341,675 ($0.02 per share) in the three months ended March 31,2009. The average sales price for natural gas decreased to $3.57/mcf for the first quarter as compared to $5.18/mcf in the previous quarter.
Production for the three months averaged 385 barrels of oil equivalent per day (boepd) (6mcf(equal sign)1 barrel of oil) comprised of average daily production of 72 barrels of oil and natural gas liquids and 1,877 mcf per day of gas. Production was down due to natural declines offsetting new production from drilling and gas wells being shut in because of low net backs. Three 50% working interest gas wells drilled last year are forecasted to be on production in the second quarter.
For the three month period ended June 30, 2009, oil and natural gas revenue net of royalties was $932,485 compared to $2,555,524 for the three months ending June 30, 2008, which represents a 64% decrease due to depressed natural gas prices and lower production volumes. Cash flow from operations for the first quarter was $273,771 ($0.01 per share) compared to $1,172,415 ($0.06 per share) in the previous year's first quarter. Net loss for the three months to June 30 in 2009 was $294,019 ($0.01 per share) compared to net income of $606,468 ($0.03.per share) for the same period last year. The average sales price for natural gas decreased 66% to $3.57/mcf in the three month period, compared to $10.40/mcf for the same period last year. The sales price for oil and natural gas liquids averaged $55.81/barrel in the three month period, a decrease of 51% compared to $114.41/barrel for the same period in 2008.
Production was 385 barrels of oil equivalent per day (boepd) (6 mcf (equal sign) 1 barrel of oil) for the three months ending June 30, 2009 as compared to 446 boepd for the three months ending June 30 ,2008.
The natural gas industry is experiencing the worst netbacks in recent years. Operating and drilling costs have not declined to reflect lower natural gas prices.
The Corporation's capital budget is dependent on recovery in natural gas prices. The Corporation currently has 20,768,909 shares outstanding.
Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange. Further information is available on SEDAR at www.sedar.com.
BOEs 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 neither approved nor disapproved of the information contained herein.
%SEDAR: 00015775E