CALGARY and LONDON, Aug. 28 /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 and six months ended June 30, 2009. This filing can be accessed at www.sedar.com and on the Company's website www.straticenergy.com. All amounts below are US dollars, unless otherwise stated.
Highlights:
Disposal Program
- Sale of Breagh asset completed - gross proceeds of $65 million
received; exclusive negotiations with a preferred buyer ongoing in
respect of Italian business
- Proceeds of Breagh asset sale used primarily to pay down debt -
net debt at August 14, 2009 of $153.9 million reduced on proforma
basis for Breagh proceeds by 42% to $89.0 million
West Don Development
- West Don oil production commenced on April 28, 2009; average net
production for the second quarter of 1,075 bopd (6,233 bopd
gross). Currently producing at over 12,000 bopd gross from 2 wells
but operationally constrained
- Field produced nearly 1 million barrels of oil to date; 3 cargoes
sold at an average price of over $68/bbl yielding approximately
$11 million net to Stratic
- Operator working to bring the field to full operating capacity
- Remaining development work is pipeline tie-back to nearby Thistle
platform, expected to be completed and commissioned early 2010
Appraisal and Pre-Development Assets
- Crawford field development plan being reviewed by partnership -
submission for DECC approval planned by year-end
- Bowmore - the well has reached its total depth having penetrated
its primary target horizons in the Upper Jurassic. Wireline logs
have been obtained and evaluated. The well is to be suspended
pending further evaluation
Financial
- Oil and gas sales revenues in the UK and Turkey of $7.0 million in
Q2 (2008: $2.5 million) with production in the quarter of
1,372 boepd (2008: 477 boepd)
- Net loss for quarter of $8.4 million (2008: $6.5 million)
- Capital expenditure for the quarter of $14.4 million (2008:
$7.9 million), mainly on West Don
- Cash and cash equivalents (including restricted cash) of $12.4
million at period end (December 31, 2008: $28.2 million); bank
debt (excluding letters of credit) and convertible notes totaling
$141.9 million at period end (December 31, 2008: $118.9 million),
subsequently reduced following receipt of Breagh proceeds.
Kevin Watts, Stratic's President and Chief Executive Officer, commented: "this has been a period of significant progress for Stratic as we continue to put in place measures to strengthen the Company's finances and position it for growth. We have achieved our two key objectives identified earlier this year. We successfully restructured our bank debt to provide greater short-term flexibility over the second and third quarters and we have concluded the first stage of our disposals program with the sale of our interest in Breagh. As a result, net debt has been reduced by more than 40% to manageable levels. Operationally, West Don's initial performance has been below earlier expectations but we expect this to improve once the operator has successfully commissioned water injection and gas lift facilities on the field. We look forward to spudding our operated well on our Syrian acreage in October, and to completing our disposal program 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).