Greencastle Resources earns $299,072 in Q3 2008

2008-11-24 16:40 ET - News Release

Mr. Anthony Roodenburg reports

GREENCASTLE DECLARES PRE-TAX PROFIT OF $1,732,989 ($0.04 PER SHARE)

Greencastle Resources Ltd. has provided its third quarter operating results and activities.

Total royalty revenue for the three months ended Sept. 30, 2008, was $1,041,963 (three months ended Sept. 30, 2007, $455,899). Total value of the company's assets at Sept. 30, 2008, was $8,630,460 versus $8,138,165 at June 30, 2008, an increase of 6 per cent. Current assets increased from $5,303,057 at June 30, 2008, to $5,920,694 at Sept. 30, 2008. Greencastle declared a pretax profit of $1,732,989 (four cents per share) for the first nine months of 2008 and a net profit of $1,039,989 (two cents per share) versus a net profit of $298,182 for the same period in 2007. Revenues for the nine months ended Sept. 30, 2008, were $2,626,663 compared with $1,230,591 for the same period in 2007. Revenues for the three months ended Sept. 30, 2008, increased to $1,041,963 versus $455,899 for the same period in 2007. Net income for the three months ended Sept. 30, 2008, increased to $299,072 versus net income of $147,253 during the same period in 2007. Current income tax expense for the three months ended Sept. 30, 2008, was $323,000. The increase in net profit and revenues is due to a significant improvement in royalty income from the Primate oil project in west-central Saskatchewan, where Greencastle holds a gross overriding royalty after making the initial heavy oil discovery in 2003. Expenses for nine months ended Sept. 30, 2008, were $868,542 versus $628,556 for the same period in the previous year. Expenses for the three months ended Sept. 30, 2008, were $389,789 versus $205,888 for the same period in the previous year. The increase was due largely to the write-off of mining interests during the three months ended Sept. 30, 2008. The company's working capital at Sept. 30, 2008, was $5,251,434 versus $4,877,025 on June 30, 2008.

Anthony Roodenburg, Greencastle chief executive officer, made the following comments relating to the company's performance and outlook: "In July and August, oil prices were considerably higher than they are today. Although we expect to remain cash flow positive in the fourth quarter, we also expect a dramatic reduction in revenues as these lower prices are reflected in Greencastle's financial performance. As always, we remain focused on building a strong balance sheet. Total assets at Sept. 30, 2008, increased to $8,630,460 or 19 cents per share. This amount breaks down as to $5,920,694 (69 per cent) cash and liquid investments with the balance primarily attributed to our four gold projects in Nevada. Our carrying costs on these projects are less than $100,000 per year (total) and they provide excellent exposure to a rise in the price of gold."

Greencastle is also pleased to report that the company has been granted an oil and gas exploration permit in the St. Lawrence Lowlands of Quebec. The permit covers 6,622 hectares in the Longueil area, east of Montreal, to the southwest along trend from a recent gas discovery in the Utica shale, as indicated in the company's release in Stockwatch on June 12, 2008.

The company has allowed its option on the Beaver uranium property to expire due to current market conditions for uranium exploration properties. Orezone Resources Inc. gave the company notice that it was terminating its option on the Koyria gold exploration project in Niger. The company also decided to write down its investment to date in the Koyria property.

We seek Safe Harbor.