Excelsior Files Year End Disclosure Documents and Announces 2009 Results
April 30 2010 - 6:36PM
Marketwired Canada
Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company")
announces that it filed today on SEDAR its Annual Information Form which
includes the Company's oil and gas information for the year ended December 31,
2009 as mandated by National Instrument 51-101 Standards of Disclosure for Oil
and Gas Activities of the Canadian Securities Administrators.
Additionally, the Company has filed its audited financial statements for the
year ended December 31, 2009 and related management discussion and analysis with
the Canadian Securities Regulatory Authorities.
2009 Highlights
-- The Company completed a 29 core well drilling program in 2009 at
Hangingstone for a total of 55 delineation wells in 39 sections. The
results of the drilling program achieved all the program objectives to
support a project application at Hangingstone and further delineate
three of five areas that encountered thick net bitumen pay identified in
the 2007/2008 winter drilling program.
-- The Company submitted an experimental in situ combustion technology
"COGD" project application to the provincial government in 2009 ("the
Project Application") at Hangingstone to test this technology. The
Project Application will seek approval to operate three COGD well arrays
with a production target of up to 1,000 barrels of bitumen per day with
a budget of $50 million. It is anticipated approval of the Project
Application is expected in the latter half of 2010 with subsequent
implementation and commissioning of the pilot in the first quarter of
2011. In 2009 Excelsior filed a patent application for the pre-ignition
heat cycle involved in the COGD process.
-- The Company requires funding for the COGD pilot project and engaged CIBC
World Markets Inc. as its strategic advisor to assist in identifying a
joint venture partner for its COGD pilot project at Hangingstone or
other value creating opportunities.
-- Through its partially owned subsidiary, ENS Energy Ltd., Excelsior
Energy North Sea Limited ("EENS") was awarded licence P1691 for two new
blocks at 16/1b and 16/2c in the United Kingdom Continental Shelf 25th
Licensing Round by UK Department of Energy and Climate Change in March
2009. These blocks were contiguous to licence P1500 awarded in 2007. The
P1500 licence was relinquished in 2009 as EENS was not able to
demonstrate the financial capacity to undertake a drilling program for
an exploratory well by November 30, 2009, and a request to extend this
deadline to February 28, 2010 was declined. The relinquishment of
licence P1500 in the North Sea due to the inability to attract a joint
interest partner or other financing for the project has resulted in a
re-evaluation by ENS of the North Sea as the international focus. Other
international opportunities are being explored by ENS with a focus on
heavy oil in the Middle East and Northern Africa that are onshore and
have a shorter cycle time to production. ENS is not expecting to
continue its work program in the North Sea and all capitalized costs for
the North Sea cost centre have been written off.
2010 Activity and Outlook
-- The Company entered into an agreement on April 13, 2010, to finance up
to $20,000,000 in non-brokered private placements. The net proceeds of
the offering will be used to fund further delineation at Hangingstone
and for general corporate purposes. The private placement financings are
subject to regulatory approval and conditions, as well as other
customary closing conditions. The private placement financings are
currently under review with regulatory authorities.
-- Pursuant to the Hangingstone farm-in agreement, in January 2010 the
Company exercised its option to acquire and cancel the gross overriding
royalty that encumbered the Company's Hangingstone oil sands property.
Excelsior issued 1,445,056 common shares in consideration for the
acquisition and cancellation of the gross overriding royalty.
-- To assist funding the COGD project, the Company re-submitted its
application to the Alberta government's Innovative Energy Technology
Program ("IETP") for the COGD experimental technology in the amount of
$10 million. The IETP program provides for royalty credits being awarded
for capital spent on new technology in the energy industry. Excelsior
has also applied for $22 million of funding from Climate Change and
Emissions Management Corporation ("CCEMC"), a non-profit organization
with a mandate to manage and administer the Climate Change and Emissions
Management Fund. CCEMC will award funding to companies with projects
that aim to reduce greenhouse gas emissions. Resolution on both these
initiatives is expected by mid year.
Selected Information
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($'s except weighted average shares) Dec 31, 2009 Dec 31, 2008
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Gas revenue 12,552 108,001
Royalties (349) (16,496)
Operating expenses (13,613) (35,102)
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Net gas revenue (1,410) 56,403
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Interest and other income 39,132 317,672
General and administrative expense 1,294,237 1,537,808
Net loss and comprehensive loss (2,026,687) (3,401,081)
Loss per share (basic and diluted) (0.01) (0.03)
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Capital expenditures
Petroleum and natural gas properties - cash 8,793,895 14,285,031
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Cash flows
Cash flows used in operations (1,022,859) (1,086,857)
Cash flows used in investing (11,160,234) (13,597,374)
Cash flows from financing - 12,583,640
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Change in cash and cash equivalents (12,183,093) (2,100,591)
Cash and cash equivalents, beginning of year 13,748,057 15,848,648
----------------------------------------------------------------------------
Cash and cash equivalents, end of year 1,564,964 13,748,057
----------------------------------------------------------------------------
Basic and diluted weighted average number of
shares outstanding 143,060,590 119,986,718
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Copies of all of the Company's 2009 year-end disclosure documents may be
obtained at www.sedar.com.
About Excelsior
Excelsior is an early stage, oil sands company with 58 operated sections on two
contiguous blocks in the Hangingstone and West Surmont areas of the Athabasca
Oil Sands Region near Fort McMurray, Alberta. The Company has developed a
proprietary in situ combustion technology ("Combustion Overhead Gravity
Drainage" or "COGD") which has potential to improve economic and environmental
impact in the development and recovery of heavy oil and bitumen. An application
for an experimental pilot project to field demonstrate the COGD technology was
submitted in the second quarter of 2009. Project approval is expected in the
latter half of 2010 with subsequent implementation and commissioning in early
2011. Excelsior's strategy is to capture oil and gas appraisal and development
opportunities where we can leverage Management's diverse international
operating, heavy oil and field development expertise with developing
technologies to produce oil and gas.
Forward Looking Information
This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking statements or
information. More particularly and without limitation, this press release
contains forward-looking statements and information concerning: anticipated
regulatory approvals, expected timing on project applications, use of proceeds
of the Company's proposed financing activities, anticipated production and
recovery results using the Company's COGD process, the sufficiency of its
current funding to meet planned expenditure requirements, the plans of its
subsidiary companies in meeting their contractual commitments, joint venture
opportunities and financing arrangements.
The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Excelsior, including
expectations and assumptions concerning: prevailing commodity prices and
exchange rates; applicable royalty rates and tax laws; future drilling results
and production rates; reserve and resource volumes; the success obtained in
drilling new wells; the anticipated production rates and recoverability factors
based on certain modeling results conducted by third parties; the success of the
process conducted by CIBC on terms acceptable to the Company; the sufficiency of
budgeted capital expenditures in carrying out planned activities; the
availability and cost of labour and services; and the receipt, in a timely
manner, of regulatory approvals. Although Excelsior believes that the
expectations and assumptions on which such forward-looking statements and
information are based are reasonable, undue reliance should not be placed on the
forward-looking statements and information because Excelsior can give no
assurance that they will prove to be correct.
Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to the risks
associated with the oil and gas industry in general such as: operational risks
in development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve and resource estimates; the uncertainty of estimates
relating to production, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; marketing and
transportation or petroleum and natural gas and loss of markets; environmental
risks; competition; incorrect assessment of the value of acquisitions; failure
to realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; failure to obtain
required regulatory approvals; inaccuracies in modeling results conducted by
third parties; the ability of the Company to identify and enter into a binding
agreement with a joint venture partner on terms acceptable to the Company; and
changes in legislation, including but not limited to tax laws, royalty rates and
environmental regulations.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the
operations or financial results of Excelsior are included in reports on file
with applicable securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com).
The forward-looking statements and information contained in this press release
are made as of the date hereof and Excelsior undertakes no obligation 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.
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