Admiral Bay Reports Record Production and Revenue for the 3rd Quarter of 2008
Tue Jul 1, 5:20 PM
ca.news.finance.yahoo.com
CENTENNIAL, COLORADO--(Marketwire - July 1, 2008) - Admiral Bay Resources Inc. (TSX VENTURE: ADB.V) ("Admiral Bay" or the "Company") is pleased to report record production and revenue for the third quarter ended April 30, 2008. Record revenue and lower production costs and G&A expense gave the Company its first ever quarterly positive EBITDA (Earnings before interest, taxes, depreciation and amortization). Revenues (after royalties) were $1,517,949, an increase of 47% from the prior period and 50% sequentially driven by increases in production of 23% and 18% respectively and higher commodity prices. Production (before royalty) averaged 2,535 mcfgpd compared to 2,085 mcfgpd in the prior period and 2,098 mcfgpd sequentially. Production costs were $663,580 ($2.68/mcf), a decrease of 18% from the prior period and 29% sequentially and G&A expense was $406,150 ($1.78/mcf), a decrease of 19% from the prior period and 22% sequentially. EBITDA for the quarter was $448,219 compared to ($441,106) in the prior period and ($437,307) sequentially. Earnings for the quarter were ($2,502,134) versus ($1,414,291) in the prior period due primarily to the non-cash change in the mark-to-market of the Company's natural gas hedges as well as higher amortization and interest costs.
President and CEO Steven Tedesco commented "The record third quarter results and the turnaround in EBITDA highlight the progress we are making this year in increasing production while decreasing production costs and G&A expense. It also shows the viability of our Kansas CBM projects. We are continuing to increase production while keeping costs contained to take advantage of the current commodity price environment and aggressively grow the Company."
Complete financial statements and MD&A for the third quarter can be found at www.admiralbay.com or www.sedar.com.
Admiral Bay Resources Inc. ( www.admiralbay.com) is an emerging unconventional gas production company focused on the development of projects in the Cherokee Basin in southeast Kansas and the Appalachian Basin in Pennsylvania. Admiral Bay is listed on the TSX Venture Exchange under the symbol ADB.
Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements".
The TSX Venture Exchange does not accept responsibility for the adequacy of this release.
Contacts
Steven Tedesco
Admiral Bay Resources Inc.
President & C.E.O.
(303) 350-1255
(303) 617-8956 (FAX)
Email: stedesco@admiralbay.com
Robert Carington
Admiral Bay Resources Inc.
CFO
(303) 350-1255
(303) 708-1861 (FAX)
Email: rcarington@admiralbay.com
Website: www.admiralbay.com |
