CALGARY, Aug. 21 /CNW/ - Eagle Rock Exploration ("Eagle Rock " or "the
Corporation") (TSXV: ERX) has filed its Unaudited Financial Statements and
Management's Discussion and Analysis (MD&A) for the second quarter ended June
30, 2009 on SEDAR. The documents can be accessed through SEDAR's website at
www.sedar.com, or on Eagle Rock's site at www.eaglerockexploration.com.
The following table provides a summary of key financial results.
Three Three Six Six
months months months months
2009 2008 2009 2008
$000's except production
and per share amounts $ 000's $ 000's $ 000's $ 000's
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Average daily production - boed 527 403 560 444
Petroleum & natural gas revenue 2,691 3,929 4,986 7,456
Cash flow - operating activities 790 2,295 3,971 3,467
Loss for the period (646) (613) (1,562) (488)
Basic and diluted loss per share (0.01) (0.01) (0.03) (0.01)
Capital expenditures 166 4,560 1,542 6,929
Total assets 50,546 35,432 50,546 35,432
Net (debt) cash (20,254) (7,290) (20,254) (7,290)
Common shares outstanding - 54,543 54,001 54,543 54,001
The Corporation entered terms of forbearance with its bank in April 2009
following a breach of the working capital covenant in the lending agreement.
The key term of the forbearance agreement was to cure the working capital
default by June 30, 2009. This was not accomplished.
Subsequent to the period end Eagle Rock continued to seek solutions to
the working capital issue and was successful in selling a natural gas property
for net proceeds of $1.2 million. These proceeds are to be applied to
reduction of the bank debt but are not sufficient to resolve the working
capital problem. The Corporation has continued its efforts to resolve the
working capital problem and is considering several proposed courses of action.
The capital program remains suspended until such time as additional capital
resources are available.
Lower oil prices in 2009 have generated lower netbacks and cash flow from
the sale of petroleum and natural gas compared to 2008. The operating netback
for Q2 2009 was $31.80 per boe, a decrease of 56% from $72.75 in Q2 2008. Cash
flow from operating activities was $0.8 million for Q2 2009, a decrease of 66%
from the cash flow of $2.3 million in Q2 2008.
