Glamis Resources Reports Record Financial & Operational Results for First Quarter 2008
26 Maggio 2008 - 3:15PM
Marketwired Canada
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Glamis Resources Ltd. (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) ("Glamis" or the
"Company") is pleased to announce its first quarter financial and operational
results for the three months ended March 31, 2008.
Glamis' first quarter highlights are as follows:
- Achieved record funds flow from operations of $1.2 million for the quarter
($0.05 per share fully diluted) as a result of increased production levels and
commodity prices as well as lower operating costs from the Company's southeast
Saskatchewan (SE SK) properties (Wauchope, Manor & Queensdale).
- Increased average Q1/08 production by 49% compared to Q1/07 to 306 boe/d as a
result of recent drilling success at Wauchope; Glamis is currently producing
approximately 460 boe/d, 98% oil.
- Field netback from oil and gas production was $58.67 per boe, a 176% increase
over the same period in 2007. Operating cost per barrel is expected to decline
through 2008 as more production from the higher netback, SE SK properties, are
added.
- Invested $2.6 million in capital expenditures, drilling three successful 100%
working interest wells in SE SK and completed the shooting of an 18.3 square
kilometer 3D seismic program.
- Strengthened the Company's balance sheet by completing a $6.0 million private
placement, issuing 3,480,000 Class A shares at $1.15 per share and 1,430,000
flow through Class A shares at $1.40 per share; proceeds are being used to fund
the Company's 2008 drilling program.
During the first quarter, Glamis continued to focus its activities and resources
on developing its SE SK properties. The Company successfully drilled two
horizontal wells which further delineated the Wauchope pool. The first well
began producing in the first quarter while the second well began producing in
the second quarter. These two wells are now producing at a combined rate of
approximately 200 bopd.
Glamis' exploratory test on the Manor prospect successfully discovered a new
light oil pool. This well was placed on production during the second quarter at
approximately 50 bopd. Based on the success of the Manor exploratory well,
Glamis expects to drill a number of horizontal locations on this discovery over
the next twelve months.
Glamis has filed on SEDAR its unaudited financial statements and related
Management's Discussion and Analysis ("MD & A") for the three months ended March
31, 2008. Selected financial and operational information is outlined below and
should be read in conjunction with Glamis' unaudited financial statements and
related MD & A which are available for review at www.glamisresources.ca or
www.sedar.com.
FINANCIAL & OPERATIONAL HIGHLIGHTS
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Three Three
Months Months
Ended Ended
Mar. 31 Mar. 31 %
2008 2007 Change
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Petroleum & natural gas revenue (in 000's) $ 2,370 $ 897 164
Funds flow from operations (in 000's) $ 1,157 $ 22 n/a
Per share weighted average fully diluted $ 0.05 $ 0.00 n/a
Net income (loss) (in 000's) $ 239 $ (300) n/a
Per share weighted average fully diluted $ 0.01 $ (0.01) n/a
Capital expenditures, net (in 000's) $ 2,583 $ 3,943 (34)
Working capital (in 000's) $ 1,562 $ 1,227 30
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Production
Crude oil & NGLs (bbls/d) 301 191 58
Natural gas (mcf/d) 32 88 (64)
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Total (boe/d) 306 206 49
Realizations
Crude oil & NGLs ($/bbl) $ 85.67 $ 48.75 76
Natural gas ($/mcf) $ 8.73 $ 7.11 23
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Average ($/boe) $ 85.15 $ 48.39 76
Netbacks ($/boe)
Petroleum & natural gas revenue $ 85.15 $ 48.39 76
Processing - $ 0.46 -
Royalties $ (7.41) $ (3.39) 119
Operating costs $ (19.07) $ (24.24) (21)
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Field netback $ 58.67 $ 21.22 176
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Outlook
To date four horizontal wells have been successfully drilled in the
Wauchope/Manor pools and Glamis is currently drilling its first horizontal well
into the Queensdale pool with initial results expected in early June.
Glamis' April production levels in SE SK were reduced as a result of road bans
which eliminated the ability to truck production to market. All road bans have
now been lifted and the Company is currently producing approximately 300 bopd
from the Wauchope/Manor pools.
Average wellhead price received in April 2008 was approximately $15.00/bbl
higher than the average price received in Q1 2008. 100% of Glamis' production is
sold through the spot market.
Glamis' principal lender has increased the Company's credit facility to $5.6
million from $3.5 million. This increase will enhance Glamis' financial
flexibility in 2008. No amount is currently drawn on this credit facility.
Given Glamis' strong balance sheet and current drilling inventory the board of
directors has approved a budget of $12.75 mm for 2008.
Subsequent to the first quarter, Glamis drilled a step out well adjacent to its
Conrad Ellis oil pool in southern Alberta. This well has proved to be uneconomic
and has been abandoned.
Glamis Resources Ltd. is a junior oil and gas company formed to generate and
develop its own prospects, acquire oil and gas properties and participate with
joint venture partners in oil and gas exploration and development in the Western
Canadian Sedimentary Basin. The Company's Class A Shares and Class B Shares
trade on the TSX Venture Exchange under the symbols GLM.A and GLM.B.
respectively. The Company currently has 19,714,988 Class A shares and 922,500
Class B shares outstanding.
FORWARD LOOKING STATEMENTS: Certain information regarding Glamis in this news
release including management's assessment of future plans and operations, timing
of drilling and tie-in of wells, productive capacity of the new wells and
productive capacity from different wells, expected production rates, drilling
success rates, dates of commencement of production, may constitute forward
looking statements under applicable securities laws and necessarily involve
risks including, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, competition
from other producers, inability to retain drilling rigs and other services,
unexpected decline rates in wells, wells not performing as expected, delays
resulting from or inability to obtain required regulatory approvals and ability
to access sufficient capital from internal and external sources. As a
consequence, actual results may differ materially from those anticipated in the
forward-looking statements. Readers are cautioned that the foregoing list of
factors is not exhaustive. Additional information on these and other factors
that could effect Glamis' operations and financial results are included in
reports on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). Furthermore, the forward
looking statements contained in this news release are made as at the date of
this news release and Glamis does not undertake any obligation to update
publicly or to revise any of the included forward looking statements, whether as
a result of new information, future events or otherwise, except as may be
required by applicable securities laws. The term "boe" may be misleading,
particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.
Grafico Azioni Glamis Res Ltd (TSXV:GLM.B)
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