Calvalley Petroleum - 2008 First Quarter Results
Thu May 15, 7:53 PMCALGARY, May 15 /CNW Telbec/ - Calvalley Petroleum Inc., (TSX: CVI-A.TO)
Calvalley Petroleum Inc. (the "Company" or "Calvalley"), an international junior oil and gas company based in Calgary, Alberta, is pleased to announce its financial and operating results for the first quarter ended March 31, 2008.
HIGHLIGHTS
Financial
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Three months ended
March 31
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(in thousands of US dollars) 2008 2007
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Revenue from crude oil sales 12,646 10,882
Volume of crude oil sales (bbls) 128,470 180,085
Operating income(1) 6,578 6,297
Net income (loss) 5,599 6,164
Capital expenditures 7,359 7,114
Cash flow from operations(1) 8,401 8,789
Cash flow from operating activities 309 (3,249)
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(1) See "Non-GAAP Measures"
- Calvalley's revenue from crude oil sales was $12.6 million for the
first quarter ended March 31, 2008 (2007 - $10.8 million).
- Net income was $5.6 million for the three months March 31, 2008, as
compared to $6.2 million for the same period of 2007. The increase to
the crude oil sales revenue during the first quarter reflected the
strong average price of US$98.44 per barrel as compared to $60.43 per
barrel for the first quarters of 2008 and 2007 respectively, which more
than offset the reduction in the volume of crude oil sales.
- Cash flow from operations was $8.4 million for the three months ended
March 31, 2008, as compared to $8.8 million for the same period of
2007.
- Calvalley continues to be well financed and capitalized with no
outstanding debt and working capital of $76.4 million.
Operating
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Three months ended
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March 31, March 31,
(barrels of oil per day) 2008 2007
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Total Block 9 production 4,602 5,404
Calvalley working interest (50.0%) 2,301 2,702
Calvalley net entitlement (31.3%) 1,440 1,691
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- Average daily production from the Block 9 for the three months ended
March 31, 2008 was 4,602 gross barrels per day (Calvalley working
interest 2,301 bopd), down from the previous quarter's average of
5,218 bopd (2,609 bopd net) and 5,404 bopd (2,702 bopd net) for the
first quarter of 2007. The reduction was due to pressure testing and
maintenance activities and reservoir modeling at Hiswah that
periodically took several wells off of production during the quarter.
- A deep exploration well in the Qarn Qaymah region encountered
hydrocarbons in the Kohlan sands and in the fractured granite basement.
The Company is currently in the process of production testing the well.
- The Company continued to explore the Malik region with the Malik 2 well
which encountered oil in the Qishn and Saar formations and testing of
these zones is expected to be completed during the second quarter
- Construction of the Central Processing Facility ("CPF") at Hiswah
continued with good progress on the fire fighting system and plant
electrical and instrumentation
- Design work and equipment specification and tendering have begun for a
gas re-injection facility at the Hiswah reservoir for pressure
maintenance and gas conservation.
- The survey of the export pipeline from Block 9 was completed and a
third party engineering company was engaged to prepare the design for
the pipeline.
Filing of Reports on SEDAR
Calvalley's Management's Discussion and Analysis and Unaudited Financial Statements for the quarter ended March 31, 2008 can be found for viewing by electronic means on The System for Electronic Document Analysis and Retrieval at www.sedar.com.
Calvalley is listed on the Toronto Stock Exchange, trading under the symbol "CVI.A".
THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This press release may contain forward-looking statements including, without limitation, financial and business prospects and financial outlooks, and such statements may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", "continue", and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve significant risk and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including, but not limited to, changes in general economic and market conditions and other risk factors. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof.
Forward-looking statements and other information contained herein concerning the oil and gas industry and Calvalley's general expectations concerning this industry are based on estimates prepared by management using data from publicly available industry sources as well as from reserve reports, market research and industry analysis and on assumptions based on data and knowledge of this industry which Calvalley believes to be reasonable. However, this data is inherently imprecise, although generally indicative of relative market positions, market shares and performance characteristics. While Calvalley is not aware of any misstatements regarding any industry data presented herein, the industry involves risks and uncertainties and is subject to change based on various factors.
ContactsEdmund M. ShimoonCEO
Calvalley Petroleum Inc.
(403) 297-0491
Fax: (403) 297-0499 Renmark Financial Communications: Neil Murray-Lyon: nmurraylyon@renmarkfinancial.com Barbara Komorowski: bkomorowski@renmarkfinancial.com (514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com
