Stratic Energy Corporation has filed its interim financial statements and accompanying Management’s Discussion and Analysis for the quarter ended March 31, 2009.
Highlights:
West Don Development
• First West Don production commenced on April 28, 2009; first well has produced at gross rates of up to 20,000 bopd – currently choked back to 10,000 bopd in planned program to gather operational data
• Water injector well drilled; second producer well to complete development currently being drilled and scheduled to be brought on stream in July 2009
• Production expected to build to gross peak of 25,000 bopd (4,300 bopd net Stratic) in third quarter 2009
• Project 93% complete as at end April; remaining capex on completion of drilling and tie-in to Brent export system
Appraisal and Pre-Development Assets
• Breagh appraisal drilling completed successfully – work continues towards Field Development Plan submission
• Bowmore well due to spud in June 2009
Disposal Program
• Advancing discussions with bidders as part of the disposal program announced previously (involving some or all of the Company’s interests in Italy and Turkey and the Breagh gas discovery in the UK) to raise capital from the portfolio for
reinvestment and to reduce debt levels
Financial (all amounts in US dollars)
• Gas sales revenues in Turkey of $1.4 million in Q1 (2008: $1.2 million) with production in the quarter of 129.4 mmscf (2008: 126.9 mmscf)
• Net loss for quarter of $6.8 million (2008: $5.1 million)
• Capital expenditure for the quarter of $16.3 million (2008: $6.7 million), mainly on West Don
• Cash and cash equivalents (including restricted cash) of $14.4 million (2008: $5.5 million) at quarter end; bank debt and convertible notes totaling $127.9 million (2008: $36.1 million) at quarter end.
Kevin Watts, Stratic’s President and Chief Executive Officer, commented:
“We continue to work on our two key objectives: first, to conclude our disposals program to strengthen our balance sheet and second, to finalise the amendments to our banking arrangements to defer debt repayments and provide additional liquidity over the next few months. Operationally, we look forward to spudding wells on the North Sea Bowmore discovery in June and on our Syrian acreage in the second half of the year, and to the increased flexibility that West Don production and the recent improvement in oil prices should provide over the balance of this year.”