Attention Business/Financial Editors:
Osprey Energy Ltd.
www.ospreyenergy.com
BRIDGEWATER, NS, Dec. 12 /CNW/ - OSPREY ENERGY LTD. (OEL) is pleased to
announce the audited financial results for the fiscal year ending June 30,
2000 and financial results for Q1 ending September 30th.
Revenues for the fiscal year ending June 30, 2000 increased 53% to
$811,292 from $528,786, resulting in a profit of $14,674 compared to a loss of
$147,977 in 1999. Canadian operations contributed $547,813 (68%), while US
operations contributed $263,479 (32%). The results reflect a contribution from
only 1 of the 3 Louisiana properties in which Osprey acquired working
interests during the year. The most prolific property, Cotton Valley, as well
as Bayou Choctaw, have a total of 20 Wells, of which 12 are now producing. All
Wells are scheduled to be in production in early 2001.
The quarter ending September 30, 2000 saw revenues rise 403% to $415,517
from $103,405 in the same period last year. Canadian operations contributed
$171,177 (41%) while US operations contributed $244,340 (59%). Earnings from
operations rose 565% to $218,332 from $38,622 while net earning for the period
rose to $64,724 from a loss of $7,368 in Q1, 1999. Over $330,000 was expended
on Well remedial work during Q1 to bring 7 Wells on stream, which began
producing in September. The full impact will not be felt until Q2, which is
expected to be significantly better then Q1. Gas revenues have a 60 day
reporting lag and are not included in the Q1 numbers.
The 3 Louisiana Wells with the greatest reserves (the Crosby 36A, the
Crosby 25, and the Willamette) require about $2,600,000USD in remedial costs,
with payback projected to be about 120 days. The Crosby 36A, which has never
been produced, tested at 500 Barrels of oil and 5 million cubic feet of gas
per day when it was drilled in 1998. The Company is currently in negotiations
to raise the funds and expects to commence the remedial work within 30 days.
In October, a Houston geological firm, Keljor Group, LLC, reported proven
reserves net to Osprey of 6.3 BCF of gas and 249,000 BO for these 3 Wells,
with Osprey's value for the property estimated to be more than $29,000,000USD,
based on oil at $30.84 per barrel and natural gas at $5.19 per MCF. Osprey is
currently receiving a 20% premium for gas produced from its Cotton Valley
Wells and over $30.00USD per barrel of oil.
The Company expects the increased production coming on-stream and buoyant
oil and gas prices, especially gas, to exponentially accelerate revenues for
Q2 and for the balance of the fiscal year.
ON BEHALF OF THE BOARD OF DIRECTORS OF
OSPREY ENERGY LTD.
"R. Gary Malone"
President
"This release was prepared by management who take full responsibility for
its contents. The CDNX neither approves nor disapproves of this news
release".
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WARNING: The Company relies on litigation protection for "forward-
looking" statements.
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For further information: 138 High Street, Bridgewater, N.S., Canada,
Tel: (902) 543-5666, Fax: (902) 543-7532, E-mail
ospreyenergy@ns.sympatico.ca |
