/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/
Symbol: SUT: TSX Venture Exchange
CALGARY, May 31 /CNW/ - During the first quarter of 2007, energy producers undertook modest drilling. Suntec generated $41,369 of revenue and a net loss of $195,282 during the three months ended March 31, 2007.
Suntec has realized substantially lower revenue than expected as the energy industry responds to prolonged, lower natural gas prices and higher drilling costs through a reduction in well drilling and fracturing. This trend is expected to continue until Suntec's clients increase their drilling and fracturing activity levels as a result of higher natural gas prices or lower drilling costs.
Financial Summary
Year ended March 31
2007 2006
------ ------
($) ($)
Revenue 41,369 129,938
Operating expenses 236,651 281,233
Net loss (195,282) (151,295)
Loss per share, basic and diluted (0.01) (0.01)
Suntec's Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2007 can be found on the Canadian Securities Administrators' System for Electronic Document Analysis and Retrieval ("SEDAR") located at www.sedar.com.
Suntec also announces the resignation of Brad Cann, Chief Financial Officer, effective today. The Board of Directors wishes to express its gratitude to Mr. Cann for his service to the Company. Gene Moody, the President and Chief Financial Officer of the Company, will assume the role of Chief Financial Officer on an interim basis.
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.