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Message: Announces Financial and Operating Results for the Three Months Ended March 2009
| May 29, 2009 | |
| Second Wave Petroleum Inc. Announces Financial and Operating Results for the Three Months Ended March 31, 2009 | |
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CALGARY, ALBERTA--(Marketwire - May 29, 2009) - Second Wave Petroleum Inc. ("Second Wave" or the "Company") (TSX VENTURE:SCS) is pleased to announce its financial and operating results for the three months ended March 31, 2009. Second Wave's first quarter financial statements and management's discussion and analysis have been filed on SEDAR at www.sedar.com and are available on the Company's website at www.secondwavepetroleum.com. Highlights of the Company's operating and financial results for the three months ended March 31, 2009 include: - Production averaged 972 boe/d, up 91% from 510 boe/d in the first quarter of 2008. Production mix was 56% oil and natural gas liquids. - The Company drilled three gross wells (3 net) in the quarter with a 100% success rate. In Judy Creek the Company successfully drilled the first horizontal Pekisko oil well in the Pekisko F pool and successfully delineated the Pekisko G pool with a vertical well. In Provost the Company successfully delineated the Dina M7M pool with a vertical oil well. Production from these three drills was brought on stream during the second quarter to take advantage of the Alberta Government's recently announced royalty incentive program. - Petroleum and natural gas sales of $3.3 million were down slightly from $3.4 million in the first quarter of 2008. Higher production volumes in the quarter were offset by lower commodity prices. - The Corporation incurred a net loss of $2.1 million ($0.06 per share) for the three months ended March 31, 2009 compared to net income of $0.4 million ($0.02 per share) in the first quarter of 2008. - The Company spent $4.9 million on its first quarter capital program ($1.6 million in the first quarter of 2008) of which $3.4 million was spent on drilling, $1.4 million on facilities and $0.1 million on land and seismic. Selected Financial Information
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Three months ended March 31,
($000s, except per share amounts) 2009 2008 % Change
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Petroleum and natural gas sales 3,325 3,407 (2)
Royalties (407) (466) (13)
Lease operating costs (1,962) (829) 137
Transportation (99) (54) 83
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Operating netback 857 2,058 (58)
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Production volumes
Crude oil (bbls/d) 510 334 53
Natural gas liquids (bbls/d) 33 21 57
Natural gas (mcf/d) 2,573 930 177
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Combined (6:1) 972 510 91
Operating netback per boe 9.81 44.87 (78)
Total capital expenditures 4,882 1,627 200
Net income (loss) (2,128) 380 (660)
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Funds from operations per share:
Basic and diluted ($) - 0.07 -
Net income (loss) per share:
Basic and diluted ($) (0.06) 0.02 (400)
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Average daily production during the remainder of 2009 is expected to be in the range of 1,000 to 1,100 boe/d. Currently production is between 1,050 boe/d and 1,100 boe/d with a 60% weighting to oil and natural gas liquids. Due to the volatility in the current commodity price environment the Company has decided to carefully monitor its cash flows throughout the summer before determining whether to proceed with its remaining capital expenditures program late in Q3 and early Q4 of this year. In the fourth quarter the Company intends to drill its next two gross (2 net) Pekisko horizontal oil wells in Judy Creek to further develop the Pekisko G pool. The Company's first horizontal oil well in the Pekisko F pool continues to meet or exceed expectations and as such the Company has moved forward on surveying and preparing to license an additional 9 drilling locations in Judy Creek. These drilling projects can be accelerated if economic conditions improve considerably over the second and third quarter. Second Wave believes that the junior oil and gas industry will see substantial consolidation in 2009 and as such the Company has continued to review potential merger and acquisition opportunities. To view the Company's current Corporate Presentation, please visit the Second Wave website at www.secondwavepetroleum.com. |
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