Admiral Bay Reports Record Production and Revenue for Fiscal 2008 and Record Proved Reserves at Yearend
December 01 2008 - 4:10PM
Marketwired
Admiral Bay Resources Inc. (TSX VENTURE: ADB) ("Admiral Bay" or the
"Company") is pleased to report record production and revenue for
the fiscal year ended July 31st, 2008. Revenues (after royalties)
were $5.7 million, an increase of 64% from the prior period driven
by increases in production of 30% and higher commodity prices.
Production (before royalty) averaged 2,376 mcfpd compared to 1,739
mcfpd in the prior period. Production costs were $3.58/mcf, a
decrease of 3% from the prior period and G&A expense was
$2.05/mcf, a decrease of 41% from the prior period. Earnings for
the fiscal year were a loss of ($8.2 million) versus ($5.4 million)
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.
The annual reserve report, as filed on Form 51-101 F1, based on
forecast process and costs reported gross Proved reserves of 57.6
BCF (42.8 BCF net after royalty) with pre-tax net present value
discounted at 10% ("PV-10") of $117.2 million which is an overall
increase of 31% and 27% respectively from 2007. The Company
reported Probable and Possible reserves of 17.5 and 178.4 BCF
respectively (13.2 and 116.3 BCF respectively net after royalty).
For the 2008 fiscal year Admiral Bay had capital expenditures of
$7.6 million which included $1.2 million for the purchase of the
Ft. Scott properties in May of 2008. The Ft. Scott properties and
the associated interest in the Bourbon County Pipeline were
purchased via the issuance of 3 million shares of the Company's
stock.
Based on fiscal 2008 capital expenditures the Company achieved a
proved finding and development cost for the year of $0.75/MCF.
Admiral Bay's four year average all-in Finding Cost of $1.20/MCF is
based on overall capital expenditures for the four year period of
$52.4 million (including $15.6 million for acquisitions). The four
year average full cycle Finding & Development cost (including
future development costs of $22.9 million) was $1.72/Mcf.
President and CEO Steven Tedesco commented "The record annual
results highlight the progress we are making in increasing
production and Proved reserves while decreasing production costs
and G&A expense. In addition to our excellent finding and
development costs, which show the viability of our Kansas CBM
projects in nearly any commodity price environment, we are
anticipating moving our Revloc project in Pennsylvania to
commercial development in fiscal 2009. Admiral Bay is looking
forward to another record year in 2009 as the Company achieves
additional scale, cost reductions and significant production
growth".
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: Admiral Bay Resources Inc. Steven Tedesco President
& C.E.O. (303) 350-1255 (303) 617-8956 (FAX) Email:
stedesco@admiralbay.com Admiral Bay Resources Inc. Robert Carington
CFO (303) 350-1255 (303) 708-1861 (FAX) Email:
rcarington@admiralbay.com Website: www.admiralbay.com
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