SHY Sharon Enery Ltd

CALGARY, Nov. 30 /CNW/ -- CALGARY, Nov. 30 /CNW/ - Sharon Energy Ltd. (TSXV:SHY) announces that it has filed its Q2 2011 MD&A and Financial Statements for the six months ended September 30, 2010, on SEDAR. During the quarter, Sharon realized approximately $900,000 from the sale of its Magnum Hunter investment.  The fair value of the remaining investment of 1,832,152 shares was approximately $7.8 million at September 30, 2010.  Subsequent to the end of the quarter, Sharon sold an additional 936,000 shares for $4.77 million.  To date, Sharon has sold approximately 1,398,000 Magnum Hunter shares to realize $7.0 million. During the quarter, Sharon participated in the drilling of a vertical Shaunavon oil well, 91/13-19-7-18W3, located in the Chambery field, Saskatchewan.  Based on Sharon's analysis, the open hole logs indicate potential oil pay in two zones.  Sharon has a 20% interest in the section along with a 20% interest in six additional sections of land in the area. The operator will be applying to the Saskatchewan Government to commingle the Upper Shaunavon and Lower Shaunavon zones and anticipates bringing the well on production before the end of the year. Late in the quarter, Sharon acquired a 25% interest in a property at Macklin, Saskatchewan.  The property contains four shut-in oil wells, a water disposal well, 3-D seismic over the lease area, and 3,770 acres under lease.  Sharon believes the property's four wells can be reactivated.  The wells were producing a combined 58 bopd when they were shut-in.  The operator plans to reactivate the first of the four wells before the end of the year. Sharon continues to be in an enviable position, for a growth oriented junior exploration company, with a:  -- Significant cash position. -- Substantial and highly liquid holding in Magnum Hunter Resources. -- Growing inventory of oil focused prospects. -- Joint venture program with two related junior exploration companies which will allow Sharon to minimize overhead costs and maximize the amount of expenditure used to grow its production and reserves base. Financial Revenue from continuing operations for the quarter ended September 30, 2010, totaled $48,000 compared with $69,000 for the prior year period.  For the six month period, revenue from continuing operations was $106,000 compared with $241,000 for the prior year period.  Revenue for discontinued operations was nil for the three and six month periods compared with $77,000 and $248,000 respectively for the prior year periods.  Revenue was reduced by lower natural gas production and lower interest income.  Cash flow from continuing operations for the quarter was negative $233,000 compared with negative $125,000 for the prior year period.  For the six month period, cashflow was negative $297,000 compared with negative $36,000 for the prior year period.  Cash flow from discontinued operations for the three and six month periods was nil compared with negative $71,000 and positive $29,000 for the prior year periods.  Net earnings from continuing operations for the quarter were $321,000 compared with a loss of $307,000 for the prior year period.  For the six month period, net earnings from continuing operations were $1.3 million compared with a net loss of $353,000 in the prior year period.  The increase in earnings was primarily driven by the $1.7 million gain on the sale of Magnum Hunter shares.  Net earnings from discontinued operations for the three and six month periods were nil compared with net losses of $8.9 million and $9.4 million respectively for the prior year periods.  Capital expenditures for continuing operations for the three and six month periods totaled $314,000 and $444,000 compared with $36,000 and $123,000 for the prior year periods.  Capital expenditures for discontinued operations for the three and six month periods were nil compared with $138,000 and $410,000 for the prior year periods.  Capital expenditures were financed from property dispositions, working capital and cash flow. Sharon exited the quarter with working capital of $1.7 million versus working capital from continuing operations of $133,000 at the beginning of the fiscal year.  The MD&A and financial statements of Sharon Resources Ltd. for the three month period ended September, 2010 is available on SEDAR at www.sedar.ca. The following table summarizes the financial and operating results of Sharon from continuing operations for the year. Six Months Ended (Thousands, except per BOE, BOEd and per share amounts, unaudited) September 30 2010 2009 Financial (Restated, Notes 2 & 3) Total revenue (net of royalty expense) $ 106 $ 241 Cash flow from operations * $ (297) $ (36) per share, basic and diluted $ - $ - Earnings (loss) for the period $ 1,255 $ (353) per share, basic and diluted $ 0.02 $ 0.00 Capital additions $ 444 $ 123 Dispositions $ 64 $ - Working capital (deficiency) $ 1,702 $ (105) Total assets $ 11,419 $ 2,920 Total shares outstanding, at period end 73,907 74,086 Operations (for continuing operations) Production Gas (Mcfd) 138 230 Oil (Bopd) 3 9 BOEd (6 Mcf = 1 Bbl) 26 47 Product Prices Gas ($/Mcf) $ 3.64 $ 3.26 Oil ($/Bbl) $ 58.97 $ 74.28 * Non-GAAP measure.  Please see the reconciliation of "cash flow from operations" to "cash flow from operating activities" after the shareholders message. Business Outlook After the completion of the sale of the U.S. properties and the Parkman oil pool, Sharon has significantly increased its financial flexibility.  Over the last few months oil prices have stabilized at relatively high levels and natural gas prices have recovered from the very low prices of the Fall of 2009.  Sharon plans to use its strong financial base to focus its efforts on the development of oil prospects in Alberta and Saskatchewan. Sharon also wishes to announce today that its Board of Directors has approved the issuance of stock options, effective November 29, 2010, to purchase 200,000 common shares of the Corporation at a price of $0.13 per share, exercisable until November 29, 2015.  The options are being issued to a Director of the Corporation in accordance with Sharon's Share Option Plan dated July 22, 2003.  The total number of options outstanding after the issuance is 3,910,000, or approximately 5% of the issued and outstanding common shares of the Corporation. Sharon is an oil and gas exploration and production company based in Calgary, Alberta. ADVISORY: This press release contains forward looking statements. Although Sharon believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Sharon can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl).  Boe figures may be misleading, particularly if used in isolation.  A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  References to oil in this discussion include crude oil and natural gas liquids (NGLs). The forward looking statements contained in this press release are made as of the date hereof and Sharon undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. p align="justify"iRobert W. Lamond, President and Chairman/i/p p align="justify"Calgary, Albertabr/ SHARON ENERGY LTD.br/ Telephone:  (403) 269-9889br/ Fax:  (403) 269-9890/p

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