/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
Symbol: SUT: TSX Venture Exchange
CALGARY, Aug. 30 /CNW/ - During the second quarter of 2007, energy producers undertook modest drilling. Suntec generated $36,302 and $77,670 of revenue and a net loss of $764,396 and $959,678 during the three and six months ended June 30, 2007.
Suntec has realized substantially lower revenue than expected as the energy industry responds to prolonged, lower natural gas prices and higher drilling costs through a reduction in well drilling and fracturing. This trend is expected to continue until Suntec's clients increase their drilling and fracturing activity levels as a result of higher natural gas prices or lower drilling costs. The Suntec water treatment plant suspended operations in July 2007 pending an increase in industry activity.
Financial Summary
Three months ended Six months ended
June 30, June 30,
2007 2006 2007 2006
------ ------ ------- -------
($) ($) ($) ($)
Revenue 36,302 38,582 77,670 168,520
Operating expenses 800,698 285,181 1,037,348 566,414
Net loss (764,396) (246,599) (959,678) (397,894)
Loss per share, basic (0.03) (0.01) (0.03) (0.01)
Loss per share, diluted (0.03) (0.01) (0.04) (0.01)
Outlook
Suntec has suspended commercial operations at its water treatment facility pending an increase in industry activity. Suntec is currently seeking strategic alternatives which include licensing its proprietary technology included in existing and proposed patents.
Suntec's Financial Statements and Management Discussion and Analysis for the three and six months ended June 30, 2007 can be found on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com.
About Suntec
Suntec Pure Water Technologies Inc. treats and recycles oilfield waste water and sells recycled water, methanol water and potassium chloride. Waste water and sand is transported by truck from well fracturing operations to Suntec's oilfield waste water treatment facility, located approximately 80 kilometers southeast of Calgary, Alberta. The recycling process removes residual contaminants from the water. Treated and recycled water, methanol water and potassium chloride are sold to oil and gas industry operators for re-use in the oil and gas drilling and development process while the sand is shipped to a recycler. The waste water, as treated and recycled by Suntec, would otherwise be disposed of through the existing method of deep well injection, removing the water from the hydrological cycle.
Suntec's common shares trade on the TSX Venture Exchange under the symbol "SUT".
This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties and actual results may differ materially.