Aug. 27, 2009 (Marketwire Canada) -- CALGARY, ALBERTA--(Marketwire - Aug. 27, 2009) -
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Canoro Resources Ltd. ("Canoro" or "the Company") (TSX VENTURE:CNS) announces senior management changes and its financial and operational results for the first quarter ended June 30, 2009 (the "Quarter").
Canoro Chairman, Doug Martin, announced that effective immediately Les Kondratoff has left Canoro and Robert S. Wynne has been appointed President and Chief Executive Officer of the Company. Mr. Wynne was appointed to the Board of Directors in November 2008 and recently appointed Managing Director and Chief Operating Officer. Mr. Wynne holds a BSc. in Mechanical Engineering and a Master of Business Administration. A Calgary resident, he is a senior level international investment banker and corporate executive. Mr. Wynne has over 28 years experience in the oil and gas industry and investment banking. He was previously Chief Financial Officer of Pan-Ocean Energy Corporation Limited, formerly a TSX-listed international oil and gas company.
The table below provides a summary of the Company's financial and operating results for the three-month periods ended June 30, 2009 and March 31, 2009, and the same period ended June 30, 2008. Consolidated financial statements with management's discussion and analysis (MD&A) will be available on the Company's website (www.canoro.com) and on the SEDAR website (www.sedar.com) within the next 24 hours. All amounts are presented in US$ unless otherwise noted.
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Three months ended
June 30 Prior (1)
US$000s, US$ per share 2009 2008 % change Quarter
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Financial
Funds generated by/(used) in operations (915) 1,565 n/m (1,476)
per share diluted (0.01) 0.01 n/m (0.01)
Profit/(loss) for the year (2,195) (381) 476 (2,663)
per share diluted (0.02) - n/m (0.02)
Capital expenditures 1,197 6,588 (82) 3,829
Working capital 4,956 31,384 (84) 6,989
Long-term debt - - - -
Shareholders' equity 76,155 82,935 (8) 78,138
Common shares outstanding (000s) 113,709 113,709 - 113,709Operational
Natural gas (mcf/d) 2,629 3,731 (30) 2,617
Oil and Condensate (bbl/d) 172 282 (39) 209
Total (boe/d) 610 904 (33) 645
Realized gas price ($/mcf) 1.96 2.40 (18) 1.84
Realized oil price ($/bbl) 61.62 131.77 (53) 50.64
Nigerian Bonny Light ($/bbl) 58.51 125.46 (53) 47.59
Realized price ($/boe) 25.79 51.06 (49) 23.87
Royalties ($/boe) 2.79 5.04 (45) 2.86
Operating costs ($/boe) 8.40 4.36 93 9.68
Netback ($/boe) 14.60 41.66 (65) 11.33
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(1) Denotes the three months ended March 31, 2009
First Quarter Highlights
- production declined 5% over Q4 FY2009 to 610 ("boe/d"), due to both a decision by Canoro to restrict natural gas production to maintain reservoir pressure in anticipation of the installation of gas reinjection in early 2010 and reduced demand for natural gas in the region;
- reduced production, partially offset by slightly higher commodity prices, consumed funds from operations of $0.9 million compared with $1.5 million funds used by operations in the prior quarter;
- exited the quarter with no debt and working capital of $5.0 million;
- Amguri condensate recovery and gas injection project on track for Q1 2010 commissioning with engineering and procurement 90% complete; and
- commenced site preparations for first well on Block AA-ONN-2003/2 (Canoro 15%).
Subsequent to Quarter Highlights
- closed limited-recourse funding of US$4.0 million for the purchase and installation of gas compression;
- completed primary volume of Amguri 3D Pre-Stack Depth Migration seismic re-processing with full re-interpretation of Amguri Block expected by year-end;
- in the wake of positive election results in India, the Company renewed its efforts to work with the various stakeholders to secure the necessary approvals to proceed with the Changpang project in Nagaland;
- initiated a feasibility study for a 50 megawatt to 100 megawatt gas-fired power plant in Amguri.
Canoro entered the first quarter of its fiscal 2010 year committed to solidifying its production base, financial position and organization in preparation for the next stage of the Company's growth. Canoro continues to navigate through very challenging times both for the Company and the industry as a whole. Capital markets have begun to be accessible for select oil and gas companies.
