Magnum Energy Inc. Announces Year End 2009 Financial Results and Filing of its NI 51-101 Disclosures
19 December 2009 - 12:30AM
Marketwired Canada
Magnum Energy Inc. ("the Company" or "Magnum") (TSX VENTURE:MEN) is pleased to
announce that it has filed on SEDAR its audited financial statements and related
management's discussion and analysis ("MD&A") for the year ended August 31,
2009. The Company has also filed, on November 30, 2009, its reserves data and
other oil and gas information for the year ended August 31, 2009 as mandated by
National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities.
Selected operational and financial results are outlined below and should be read
in conjunction with Magnum's audited financial statements and MD&A. Copies of
these filings can be found at www.SEDAR.com.
Magnum was formed to operate in Canada as an oil and gas exploration,
development and production company. The goal of the Company is to create
sustainable and profitable growth in production and cash flow. To accomplish
this, Magnum plans to develop existing properties using cash flow generated from
existing production and from development drilling and recompletions. Initially,
efforts will be concentrated in the Sedalia area where the Company has an
average 78% working interest in 13.24 sections of land and operates a gas
processing facility. Magnum currently in the process of re-entering or
recompleting eight wells in the area and plans to drill two additional wells in
Sedalia early in 2010.
HIGHLIGHTS FOR THE YEAR ENDED AUGUST 31, 2008
- Petroleum and natural gas production was 39,361 boes for the year, an increase
of 35% compared to 29,234 boes for the year ended August 31, 2008.
- The Company drilled three successful gas wells (100% w.i.) in the Sedalia area
that commenced production during the year.
FINANCIAL AND OPERATING HIGHLIGHTS
---------------------------------------------------------------------------
Three Months Year
Ended August 31 Ended August 31
2009 2008 2009 2008
---------------------------------------------------------------------------
FINANCIAL
Oil and natural gas sales $ 329,349 $ 470,114 $1,528,419 $1,868,137
Cash flow from (used in)
operations (83,592) 21,550 30,453 407,385
Per share, basic and diluted 0.00 0.00 0.00 0.02
Net income (loss) 3,024 (281,914) (401,206) (82,825)
Per share, basic and diluted 0.00 (0.01) (0.02) 0.00
Capital expenditures (net of
dispositions) 33,960 361,417 2,051,947 1,198,037
Working capital deficiency,
end of period (2,084,842) (108,310) (2,084,842) (108,310)
Weighted average shares
outstanding -
Basic and diluted 25,143,572 24,929,514 25,024,521 24,536,069
---------------------------------------------------------------------------
OPERATIONS
Production
Oil and NGL's (bbls) 2,133 2,381 14,915 11,114
Gas (mcf) 65,241 22,943 146,677 108,720
Combined (boe) 13,007 6,205 39,361 29,234
Average selling price
Oil and NGLs($/bbl) 63.52 115.08 64.53 98.24
Gas ($/mcf) 2.97 8.55 3.86 7.14
Total ($/boe) 25.32 75.77 38.83 63.90
Operating netback
(per boe at 6:1) $ 12.39 $ 57.83 $ 24.04 $ 43.35
Cash flow netback
(per boe at 6:1) $ (6.43) $ 3.47 $ 0.77 $ 13.94
---------------------------------------------------------------------------
As referred to above, to view a full copy of the Company's audited financial
statements, the accompanying MD&A and the Reserves Data and Other Information
for the year ended August 31, 2009, please refer to the SEDAR website at
www.sedar.com.
Reader Advisory
This news release and the documents referred to therein contain certain
forward-looking statements, including management's assessment of future plans
and operations and capital expenditures and the timing thereof, that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Magnum's control. Such risks and uncertainties include, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserves
estimates, environmental risks, competition from other producers, inability to
retain drilling rigs and other services, delays resulting from or inability to
obtain required regulatory approvals and ability to access sufficient capital
from internal and external sources, the impact of general economic conditions in
Canada, the United States and overseas, industry conditions, changes in laws and
regulations, including the adoption of new environmental laws and regulations,
and changes in how they are interpreted and enforced, increased competition, the
lack of availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the final
valuations thereof, and obtaining required approvals of regulatory bodies.
Actual results could differ materially from those expressed in or implied by
these forward-looking statements. No assurances can be given that any of the
events anticipated by any forward-looking statements will transpire or occur, or
if any of them do so, what benefits Magnum will derive there from. Readers are
cautioned that the foregoing list of factors is not exhaustive. All subsequent
forward-looking statements, whether written or oral, attributable to Magnum or
persons acting on behalf are expressly qualified in their entirety by these
cautionary statements. The forward-looking statements contained in this news
release and the documents referred to herein, are made as at the date of this
news release, and Magnum does not undertake any obligation to update publicly or
to revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.
Petroleum and natural gas volumes are converted to an equivalent measurement
basis referred to as a "barrel of oil equivalent" (boe) on the basis of 6
thousand cubic feet of natural gas equaling 1 barrel of oil. This is based on an
energy equivalency conversion method applicable at the burner tip and does not
necessarily represent a value equivalency at the wellhead. Readers are cautioned
that boe figures may be misleading, particularly if used in isolation.
(TSXV:MEN)
Historical Stock Chart
From Jun 2024 to Jul 2024
(TSXV:MEN)
Historical Stock Chart
From Jul 2023 to Jul 2024