We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Drake Energy Ltd. | TSXV:DPE | TSX Venture | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
Drake Energy Ltd. (TSX VENTURE:DPE) ("Drake" or the "Company") announces the filing of its 2009 audited financial statements and management discussion and analysis. Access to Drake's 2009 year end results may be obtained at www.sedar.com or www.drake-energy.com. Average production increased from 2008 to 2009 and subsequently is estimated to increase again in Q1 of 2010. ---------------------------------------------------------------------------- Production Mcf/d Bbld Total Boe/d ---------------------------------------------------------------------------- 2008 Yr Avg. 662 50 160 2009 Yr Avg. 884 31 178 2010 Q1 Avg. estimate 800 70 203 Production in Q1 2010 briefly reached a peak of 300 Boed due to the initial high rates from the 01-24 Sousa oil well and other optimization efforts at various other locations. Declines at a number of wells and temporary shut-ins have reduced production levels subsequently. Summary and results for 2009 In the first half of 2009, the Company focused on reducing its operating costs which were high. Accretive acquisitions of partners' interests were made, profitable dispositions were made and still, cash flows were negative even though production levels were at record highs. As the year progressed, these costs were reduced significantly; in some properties as much as 30% or more. The price of natural gas continued to slide and the Company shut in some gas properties to preserve reserves. Also, during Q3 gas production was hampered by a 3rd party pipeline failure, with certain production shut in or restrained for many months. In addition a major joint venture partner went bankrupt leaving Drake with a large uncollectible receivable and therefore increased debt. As this was unfolding Drake made a key move into pursuing its considerable in-house oil prospects. A modest equity financing was done in the early fall and capital projects began in earnest in December to bring on more production, with the primary focus on oil. The 01-24 oil well at Sousa was a critical success, adding significant revenue and proving up Drake's core area oil prospects. It came on strongly in February 2010 at over 120 barrels per day. It averaged 70 barrels per day in the first month and has since stabilized at about 50 to 60 barrels per day. This contribution to cash flow is significant and adds a great deal of value to a company of Drake's size. However, a number of the smaller projects were marginal or uneconomic. Forward into 2010 Drake entered 2010 with higher levels of production than previous years and with a stronger oil weighting. It has multiple years of oil and gas prospects lined up and has strengthened its core area of Sousa with infrastructure and more oil production. The Company has also taken aggressive measures to reduce both operational and general and administrative expenses. Drake's financial condition, however, is such that it does not have the capital to pursue its in-house opportunities, and the working capital deficiency is now sufficiently large that the Company has curtailed all capital and non-essential expenditures and is negotiating longer term repayment schedules with the larger creditors. With positive cash-flow, steady production and reduced expenses the Company can move forward and progressively improve its balance sheet. As has been previously press released, Drake's Board of Directors has decided to seek strategic alternatives to maximize shareholder value. Change in Management Greg Hodgson has resigned as V.P. Engineering but will continue with the Company on a part-time consulting basis. The Board would like to thank Mr Hodgson for his efforts over the last year. Drake Energy Ltd. is active in oil and gas exploration and development in Alberta. Headquartered in Calgary, Alberta, Canada, the Company is publicly traded on the Toronto Stock Exchange Venture Board under the stock symbol DPE.V. This news release contains forward-looking information. Implicit in this information are assumptions regarding commodity pricing, production, royalties and expenses that, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in the Company's plans, commodity prices, equipment availability, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee made by the Company that the actual results achieved will be the same as those forecasted herein. Barrel of oil equivalent ("boe") amounts may be misleading, particularly if used in isolation. A boe conversion ratio has been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel and is based on an energy equivalent conversion method application at the burner tip and does not necessarily represent an economic value equivalent at the wellhead
1 Year Drake Energy Ltd. Chart |
1 Month Drake Energy Ltd. Chart |
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions