CALGARY and LONDON, May 29 /CNW/ - Stratic Energy Corporation (TSX Venture: `SE', AIM `SE.') ("Stratic" or the "Company") has today filed its interim financial statements and accompanying Management's Discussion and Analysis for the quarter ended March 31, 2009. This filing can be accessed at www.sedar.com and on the Company's website www.straticenergy.com.
Highlights:
West Don Development
- First West Don production commenced on April 28, 2009; first well has
produced at gross rates of up to 20,000 bopd - currently choked back
to 10,000 bopd in planned program to gather operational data
- Water injector well drilled; second producer well to complete
development currently being drilled and scheduled to be brought on
stream in July 2009
- Production expected to build to gross peak of 25,000 bopd (4,300 bopd
net Stratic) in third quarter 2009
- Project 93% complete as at end April; remaining capex on completion
of drilling and tie-in to Brent export system Appraisal and Pre-
Development Assets
- Breagh appraisal drilling completed successfully - work continues
towards Field Development Plan submission
- Bowmore well due to spud in June 2009
Disposal Program
- Advancing discussions with bidders as part of the disposal program
announced previously (involving some or all of the Company's
interests in Italy and Turkey and the Breagh gas discovery in the UK)
to raise capital from the portfolio for reinvestment and to reduce
debt levels
Financial (all amounts in US dollars)
- Gas sales revenues in Turkey of $1.4 million in Q1 (2008: $1.2
million) with production in the quarter of 129.4 mmscf (2008: 126.9
mmscf)
- Net loss for quarter of $6.8 million (2008: $5.1 million)
- Capital expenditure for the quarter of $16.3 million (2008: $6.7
million), mainly on West Don
- Cash and cash equivalents (including restricted cash) of $14.4
million (2008: $5.5 million) at quarter end; bank debt and
convertible notes totaling $127.9 million (2008: $36.1 million) at
quarter end.
Kevin Watts, Stratic's President and Chief Executive Officer, commented: "We continue to work on our two key objectives: first, to conclude our disposals program to strengthen our balance sheet and second, to finalise the amendments to our banking arrangements to defer debt repayments and provide additional liquidity over the next few months. Operationally, we look forward to spudding wells on the North Sea Bowmore discovery in June and on our Syrian acreage in the second half of the year, and to the increased flexibility that West Don production and the recent improvement in oil prices should provide over the balance of this year."
About Stratic: Stratic Energy Corporation is a Canadian-incorporated international oil and gas business focused on adding value principally through the appraisal, development and production of existing discoveries, supplemented by a low to moderate risk exploration programme. Stratic's principal interests are in the UK and Dutch sectors of the North Sea, Italy, Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto and on AIM, London and its principal operating office is in London, UK.
Forward-looking statements
This news release contains certain forward looking statements, which involve assumptions with respect to future plans, production levels and results, and capital expenditures. The reader is cautioned that all such forward looking statements involve substantial risks and uncertainties and the assumptions used in their preparation may not prove to be correct. Stratic's actual results could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, the forward looking statements are qualified by reference to these cautionary statements. The forward looking statements contained herein are made as at the date of this news release. Stratic undertakes no obligation to update or publicly revise forward looking statements or information unless so required by applicable securities laws.
TSX-V and AIM notifications The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this release.
Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD (petroleum petrophysics), and member of the SPE, is the qualified person who has reviewed and approved the technical information in this announcement for the purposes of the AIM Rules for Companies (incorporating the Guidance Note for Mining, Oil and Gas Companies).