In c2557 transmitted at 08:00e today, an error occurred in the heading of
the first table, 1st and 2nd column respectively. It should read "2009 2008"
not "2008 2007". Corrected copy follows:
Spitfire Energy Earns $250,000 on Record Cash Flow in Fiscal 2009
CALGARY, June 29 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) increased its
average production 4% to 317 boe per day, oil and gas revenues 20% to $7.2
million and cash flow from operations 32% to $ 2.7 million for the fiscal year
ending March 31, 2009.
The following table provides a summary of Spitfire's results for the
12-month period ending March 31, 2009 and 2008.
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Year Ended March 31
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2009 2008 % change
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Financial
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Petroleum and natural gas sales
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Crude oil and NGLs $5,749,019 $4,904,825 17
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Natural gas $1,422,059 $1,065,679 33
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Net revenue $7,171,078 $5,970,504 20
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Cash flow from operations $2,677,480 $2,021,212 32
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Per share basic and diluted $0.07 $0.04 75
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Net earnings (loss) $249,979 $211,851 18
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Per share basic and diluted $0.01 $0.01 -
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Capital expenditures $6,694,411 $3,060,872 119
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Net debt $5,857,095 $1,725,314 239
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Total assets $24,426,569 $20,080,331 22
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Shareholders equity (deficit) ($828,480) ($1,078,459) 23
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Weighted average outstanding 40,833,887 38,247,744 7
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Common shares outstanding 40,265,582 41,246,244 -2
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Operating
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Realized prices
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Crude oil and NGLs ($/bbl) $71.66 $58.81 22
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Natural gas ($/mcf) $6.69 $6.24 7
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Total ($/boe) $62.01 $53.46 16
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Average production
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Crude oil and NGLs (bbls/d) 220 229 -4
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Natural gas (mcf/d) 582 468 24
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Total (boed) 317 306 4
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Reserves BOE PV 5% PV 10%
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Fiscal 2009
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Forecast Pricing (GLJ April 1, 2009)
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Total proved 1,266,000 $25,508,000 $18,896,000
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Total proved plus probable 2,034,000 $40,620,000 $28,056,000
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Reserve Life Index - 12.0 years (P+P)
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Fiscal 2008
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Forecast Pricing (GLJ April 1, 2008)
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Total proved 1,215,000 $24,575,000 $19,114,000
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Total proved plus probable 2,028,000 $39,689,000 $28,461,000
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Reserve Life Index - 12.1 years (P+P)
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Price Assumptions Natural Gas Crude Oil
(GLJ April 1, 2009) (NYMEX $US/mmbtu) (WTI $US/bbl)
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2009 (full year) $4.68 $51.91
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2010 $6.50 $62.00
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2011 $7.25 $70.00
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2012 $7.75 $77.00
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2013 $8.25 $85.00
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In fiscal 2010, the capital spending budget will be dependent upon
forecasted cash flows, commodity prices and service costs. The Company will
focus on lower risk projects and acquisitions that provide sound economic
returns. The Company is currently planning to drill three (1.5 net)
development wells with a total estimated capital budget of $2 million.
Spitfire will continually manage the capital budget working within fiscal 2010
cash flows.
Spitfire also announces that independent director John Gunton has
resigned his directorship effective June 25, 2009. The Company would like to
thank John for the valuable contribution he has made to Spitfire as a director
and wishes him every success in future endeavors.
Spitfire's audited financial statements, management's discussion and
analysis and detailed information regarding Spitfire's reserves for the fiscal
year ended March 31, 2009 have been electronically filed and can be accessed
on SEDAR at www.sedar.com and on the company website at
www.spitfireenergy.com.
Spitfire Energy Ltd. is a junior oil and gas company engaged in the
exploration, development and production of natural gas and crude oil reserves.
Spitfire's common shares trade on the TSX Venture Exchange under the symbol
"SEL".
This press release contains forward-looking statements that are based on
current expectations. There are a number of risks and uncertainties associated
with the oil and gas industry that could cause actual results to differ
materially from those anticipated. A barrel of oil equivalent, derived by
converting gas to oil using a ratio of six thousand cubic feet of gas to one
barrel of oil, may be misleading, particularly if used in isolation. A boe
conversion is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of the contents of this press release.
