CALGARY, Aug. 28 /CNW/ - COSTA Energy Inc. ("COSTA" or the
Company)(TSX Venture Exchange: COE) has released its financial and operating
results for the three and six months ended June 30, 2008.
SUMMARY
Three months ended June 30, 2008
(Unaudited)
-------------------------------------------------------------------------
Production and prices
Natural gas sales (mcf/d) 287
Oil sales (bbls/d) -
Average daily sales 6:1 (boe/d) 48
Average natural gas price ($/mcf) $10.04
Average oil price ($/bbl) $89.30
-------------------------------------------------------------------------
Financial ($)
Oil and gas revenue $264,981
Net loss and comprehensive loss $2,363,722
Net loss per share, basic and diluted $0.06
-------------------------------------------------------------------------
Shares
Weighted average basic and diluted 43,260,735
Outstanding at period end 43,260,735
-------------------------------------------------------------------------
The Company experienced a net loss and comprehensive loss of $2,363,722
($0.06 per share, basic and diluted) for the quarter ended June 30, 2008.
Included is a ceiling test write down of $2.1 million, primarily due to the
impairment of the unproved properties (land and seismic). The Company closed
the sale of the Veteran oil property effective April 1, 2008 for $46,313.
COSTA retained Sayer Energy Advisors to assist in pursuing various
strategic alternatives. The Company is presently in discussions with respect
to the sale of COSTA Resources Ltd. ("Resources"), a wholly-owned subsidiary
which holds the Company's oil and gas assets. In anticipation of executing an
agreement for the sale of Resources that will require shareholder approval,
the Company has scheduled an annual and special meeting of shareholders for
October 20, 2008.
About COSTA
-----------
COSTA's interim report, management's discussion and analysis and
financial statements for the quarter ended June 30, 2008 are available on
www.sedar.com and the Company's website at www.costaenergy.com.
COSTA Energy Inc. is a Calgary based junior oil and gas company, which
explores for, develops, produces, and sells crude oil, natural gas liquids and
natural gas in Alberta.
Forward-Looking Statements: Certain information in this press release
contains forward-looking statements, including, without limitation, drilling
plans, expected results and certain expected expenses and costs in subsequent
periods. These forward-looking statements involve inherent risks and
uncertainties, some of which are beyond the Company's control, including but
not limited to the impact of general economic conditions, industry conditions,
commodity price volatility, currency fluctuations, environmental risks,
competition, reserve estimates, ability to access sufficient capital from
internal and external sources and industry regulation. The assumptions used in
the preparation of such information, although considered reasonable by COSTA
at the time of preparation, may prove to be incorrect and actual results may
differ materially from those expressed in or implied by these forward-looking
statements. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as otherwise required by applicable
securities laws.
Oil Equivalent Conversion: Barrel of oil equivalent ("boe") amounts have
been calculated using a conversion rate of six thousand cubic feet of natural
gas to one barrel of oil and natural gas liquids equivalent. This ratio is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead or point
of sale. Barrel of oil equivalents may be misleading, particularly if used in
isolation.
The TSX Venture Exchange does not accept responsibility for the adequacy
or the accuracy of this release.
