Aug. 25, 2010 (Canada NewsWire Group) --
CALGARY and LONDON, Aug. 25 /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, 2010. 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:
Recommended offer for the Company by EnQuest PLC
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- Agreement for proposed conditional sale of the Company to EnQuest PLC
announced on August 3, 2010, in an all share transaction pursuant to
a statutory plan of arrangement under which each Stratic common share
will be exchanged for 0.089626 EnQuest ordinary shares
- Agreement subject to a number of conditions, including approval of
the Stratic shareholders, acceptance of repayment by the holders of
the Company's outstanding 9% convertible notes upon change of
control, court approval pursuant to the arrangement provisions of the
Business Corporations Act (Yukon) and receipt of all necessary
regulatory consents and approvals
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Operations and West Don Development
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- Production in the quarter from continuing operations of 1,085 bopd
(2009: 1,075 bopd). Production from discontinued operations in Turkey
of 157 boepd (2009: 297 boepd)
- More consistent production performance from the Northern Producer
floating production facility on West Don, following successful
connection by pipeline in March 2010 to Brent oil export system
- Mechanical problems with West Don WPB well reduced production -
operator looking at possibility of rig intervention
- Third production well in the southern part of the West Don field
spudded with John Shaw semi-submersible drilling unit on August 7,
2010 and currently drilling in accordance with plan
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Pre-Development Assets
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- Following the postponement of operator Fairfield's IPO, plans for
development of the Crawford field delayed for an estimated 12 months
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Financial
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- Oil sales revenues for the quarter from continuing operations in the
UK of $6.2 million (2009: $5.6 million). Gas revenues from
discontinued operations in Turkey of $0.7 million (2009: $1.4
million)
- Net income for the quarter of $0.2 million (2009: net loss $8.4
million). Net loss from continuing operations of $3.0 million (2009:
$7.8 million). Net income from discontinued operations of $3.2
million (2009: net loss $0.6 million)
- Capital expenditure for the quarter of $3.0 million (2009: $14.4
million), mainly in the UK
- Cash and cash equivalents (including restricted cash) of $10.9
million at June 30, 2010 (December 31, 2009: $7.4 million); bank debt
(excluding letters of credit) of $18.9 million and convertible notes
of $66.7 million totaling $85.6 million at June 30, 2010 (December
31, 2009: $112.5 million), making net debt at the mid-year of $74.7
million (December 31, 2009: $105.1 million)
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Disposal Program
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- Sale of the Company's Turkish business agreed and completed in May
2010.
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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).
Kevin Watts, Chief Executive Officer, +44 20 7766 7900; John van der Welle, Chief Financial Officer, +44 20 7766 7900; Mark Bilsland, Chief Operating Officer, +44 20 7766 7900; Patrick d'Ancona, M:Communications, +44 20 7920 2347; Canadian Investor Relations: Roger Fullerton, +1 952 929 7243, Email: [email protected]; Website: www.straticenergy.com