(Adds details on interest expenses on convertible debentures, increased
admin costs)
LONDON (Thomson Financial) - First Calgary Petroleums Ltd. said net loss for
the quarter to the end of March widened to $11.98 million against a $2.40
million loss last year, primarily due to the onset of interest expenses on the
convertible debentures issued in December 2007, and higher general and
administrative costs.
First Calgary said it incurred an interest expense of $8,073 for the quarter
on the $267 million convertible debenture which was issued on Dec. 14, 2007. The
debentures bear interest at 9 percent, payable semi-annually, with the first
interest payment due May 29.
The company's administrative costs increased 86 percent to $4,953, primarily
due to increased staffing costs and professional fees required to manage and
operate the Algerian project.
Importantly, the company said it plans to secure funds to advance work on
its MLE project. First Calgary said it is in preliminary discussions for a
financing with a group of banks and the consensus view remains that a deal on
acceptable terms can be reached.
It expects in this quarter to formally approach a small group of primarily
European banks to secure underwriting commitments, with a view to loan signing
in the second half.
The company said it continues to make good progress in the MLE project and
expects the first gas from the project in the the second half of 2010.
TFN.newsdesk@thomson.com
ypv/kf1/ypv/ejp
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