CALGARY, ALBERTA, Nov 12 (MARKET WIRE) --
BlackPearl Resources Inc. ("BlackPearl" or the "Company") (TSX:
PXX)(FIRST NORTH: PXXS) is pleased to announce its financial and
operating results for the three and nine months ended September 30, 2009.
Highlights during the quarter included:
- Revenues of $24.1 million, a 9% increase over Q2.
- Cash flow from operations of $8.2 million.
- Strong balance sheet with $59.9 million in working capital and no debt.
- Initiated a 27 well drilling program at Onion Lake.
- Commenced road construction and completed the steam generator for the
Blackrod SAGD pilot.
- Continued the successful polymer pilot at Mooney; 14% recovery to date.
- Reduced operating costs and administrative expenses.
John Festival, President of BlackPearl, commenting on 2009 activities
indicated that "When the new management group joined BlackPearl we felt
the Company required a more operational focus. Initially, our objective
was to reduce operating costs and overhead expenses, strengthen the
balance sheet and prepare development plans for our three core
properties. We have now completed this phase of the restructuring and we
are beginning the implementation phase. We have initiated a 27 well
drilling program at Onion Lake, filed our application for a SAGD pilot at
Blackrod and have advanced our plans for a polymer flood at Mooney. We
believe those three projects have the potential of providing up to 50,000
boe/day of production over the next few years."
Commenting on third quarter results, Mr. Festival indicated that "Crude
oil prices continued to recover during the third quarter; however, as a
result of the economic downturn prices were still considerably lower than
2008. During Q3, we were able to increase cash flow as well as maintain
production in the 5,000 barrel/day range with limited new capital
activity."
Financial and Operating Highlights
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Three months ended Nine months ended
September 30 September 30
2009 2008 2009 2008
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Daily production / sales
volumes (1)
Oil (bbl/d) 4,247 4,417 4,263 6,594
Natural gas (mcf/d) 5,065 8,156 5,846 9,434
Combined (boe/d) 5,091 5,776 5,237 8,166
Product pricing
Oil ($/bbl) 58.38 95.85 47.76 77.68
Natural gas ($/mcf) 3.05 8.08 3.96 8.54
Combined ($/boe) 51.94 85.02 43.34 72.78
($000's, except per share
and boe amounts)
Revenue
Oil and gas revenue -
gross 24,065 45,180 61,964 162,849
Royalties ($/boe) 14.25 22.51 10.16 18.26
Transportation costs
($/boe) 1.58 1.29 1.90 1.29
Operating costs ($/boe) 13.32 17.45 15.53 17.70
Net income (loss) for the
period (12,013) 1,926 (43,418) 4,824
Per share, basic and
diluted (0.05) 0.01 (0.18) 0.03
Cash flow from operating
activities, before
working capital
adjustments 8,221 21,020 14,328 68,496
Capital expenditures 6,240 39,480 10,319 74,597
Working Capital, end of
period 59,875 36,147 59,875 36,147
Long term debt - - - -
Shares outstanding, end
of period 261,684,050 189,241,716 261,684,050 189,241,716
(1) boe based on a conversion ratio of 6 mcf of gas to 1 barrel of oil.
Boes may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf: 1 barrel is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.
The 2009 third quarter report to shareholders, including the financial
statements, management's discussion and analysis and notes to the
financial statements are available on the Company's website
(www.blackpearlresources.ca) or SEDAR (www.sedar.com).
Forward-Looking Statements
Certain of the statements made and information contained herein is
forward-looking statements and forward looking information (collectively
referred to as "forward-looking statements") within the meaning of
Canadian securities laws. All statements other than statements of
historic fact are forward-looking statements. Forward-looking statements
are typically identified by such words as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project", "potential",
"targeting", "intend", "could", "might", "should", "believe" or similar
words suggesting future events or future performance. In addition,
statements relating to "reserves" or "resources" are deemed to be
forward-looking statements as they involve the implied assessment, based
on certain estimates and assumptions, that the reserves and resources
described exist in the quantities predicted or estimated and can be
profitably produced in the future. In particular, this document contains
forward-looking statements pertaining to, and which rely on assumptions
as to, without limitation, business plans and strategies, capital
expenditure programs, operating costs, production levels and oil and gas
prices.
Undue reliance should not be placed on forward-looking statements, which
are inherently uncertain, are based on estimates and assumptions, and are
subject to known and unknown risks and uncertainties (both general and
specific) that contribute to the possibility that the future events or
circumstances contemplated by the forward-looking statements will not
occur. Although we believe that the expectations conveyed by the
forward-looking statements are reasonable based on information available
to us on the date such forward-looking statements were made, there can be
no assurance that the plans, intentions or expectations upon which
forward-looking statements are based will in fact be realized. Actual
results will differ, and the difference may be material and adverse to
the Corporation and its shareholders.
BlackPearl's Certified Advisor on First North is E. Ohman J:or
Fondkommission AB.
Company Registration Number: 409596-1
The report for the year ending December 31, 2009 will be published on or
before February 28, 2010.
Contacts:
BlackPearl Resources Inc.
John Festival
President and Chief Executive Officer
(403) 215-8313
john.festival@pxx.ca
BlackPearl Resources Inc.
Don Cook
Chief Financial Officer
(403) 215-8313
(403) 265-8324 (FAX)
don.cook@pxx.ca
www.blackpearlresources.ca
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