Osprey Energy revenue increases 478% in third quarter
Osprey Energy Ltd OEL
Shares issued 7,054,288 Jun 18 close $0.93
Tue 19 Jun 2001 News Release
Mr. R. Gary Malone reports
Osprey Energy has posted record results for the third quarter ending March
31, 2001.
Revenue increased 478 per cent to $686,968 compared with $143,680 in the
same period last year. U.S. properties contributed $452,990 (66 per cent)
of the quarterly revenue, while $233,978 (34 per cent) came from Canadian
operations. Nine months revenue escalated 632 per cent to $1,937,395 from
$306,335 in 2000. Net earnings from operations for the quarter grew to
$284,261, raising the total for the nine months to $804,820. This
represents a gain of 793 per cent when compared with $101,476 earned in the
same period last year.
Remedial work continues in Louisiana and is expected to have a positive
effect on future production, revenue and profit. Even more significant in
terms of future growth is the completion of remedial work for the
reserve-rich Crosby 36A well. This well tested at over 960 barrels of oil
per day and 2.5 million cubic feet of gas per day and is expected to
produce at a sustained rate of 600 to 700 barrels of oil per day and 1.5 to
two million cubic of gas per day. Once the flowback is finished, the well
will be produced through a recently completed company pipeline tying the
36A into the production infrastructure of the Crosby 25, which is linked to
Duke Energy's extensive gas-gathering system.
Additionally, a remedial program for the reserve-rich Crosby 25 well has
been finalized. Work is scheduled to commence this summer and is expected
to be completed prior to the end of August. Production for the Crosby 25 is
projected to be in the range of 400 to 500 barrels of oil per day and 1.5
to two million cubic feet of gas per day.
The company has also received final approval from the Canadian Venture
Exchange for the private placement announced in April (see news release in
Stockwatch dated April 9, 2001). The funds from this placement will be used
to finance the remedial work in Louisiana, as well as the seismic program
in Nova Scotia.
In other news, the company is pleased to welcome L.M. Falzone to the board
of directors. Mr. Falzone is president of Maple Minerals Inc. and from
October, 1996, to the present has also served as vice-president, legal and
corporate affairs of Brownstone Resources Inc. and Pinetree Capital Corp.
Prior thereto, Mr. Falzone practiced law in both the private sector,
specializing in securities and corporate law, and as in-house counsel for
the Toronto Stock Exchange.
The continuing development of proven reserves on properties in Louisiana
will continue to escalate revenues and cash flow, and will have a positive
effect on shareholder value.
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