Excelsior Energy Limited (TSX VENTURE:ELE) ("Excelsior" or the "Company")
announces it has filed financial statements and management's discussion and
analysis for the three and six month periods ended June 30, 2010 and 2009. These
materials can be found online at www.sedar.com.
"The $26 million financing in June allows the Company to move ahead and confirm
the full potential of its Hangingstone property" said Dr. David Winter,
Excelsior's President and Chief Executive Officer. "We will be drilling an
aggressive delineation core well program this winter that will further delineate
the areas identified with commercial development potential in the western and
northern areas of the Hangingstone property and also appraise thick pay areas
with less well density in the north east and central part of Hangingstone. The
programs are designed to provide sufficient well density to support our
reservoir characterization work that will underpin an application for an initial
10,000 bopd SAGD project. The initial 10,000 bopd SAGD development will be the
first of several development areas planned to realize the full potential at
Hangingstone."
Second Quarter 2010 Highlights
-- Excelsior raised gross proceeds of $25,999,760 in non-brokered private
placement financings in June, 2010 (the "Financings"). Pursuant to the
Financings Excelsior issued 41,666,667 units at a price of $0.36 per
unit comprised of two common shares (priced at $0.18 per common share
and in some instances one of the common shares was issued on a flow-
through basis)and two common share purchase warrants with a three year
term each at an exercise price of $0.30; 10,416,166 units at a price of
$0.48 per unit comprised of two common shares (priced at $0.235 per
common share and in some instances both of the common shares were issued
on a flow-through basis) and two common share purchase warrants with a
five year term each at an exercise price of $0.32; 27,777,777 common
shares at a price of $0.18 per common share; and 4,166,666 common shares
at a price of $0.24 per common share. Proceeds from the Financings are
intended to be used for further delineation of the Corporation's
property in the Hangingstone area of Alberta and for general corporate
purposes. The Company issued in aggregate 136,110,113 common shares, of
which 41,346,309 were issued on a flow-through basis, and 104,165,668
common share purchase warrants in connection with the Financings. The
Company currently has 280,755,755 common shares outstanding.
The Financings brings the involvement of a significant investor group into
Excelsior who have a track record of value creation in junior companies and have
demonstrated significant access to capital markets which will be key as
Excelsior moves forward in developing its Hangingstone asset. With the
completion of the Financings Mr. Jeff Scott and Mr. Verne Johnson joined the
Board of Excelsior.
-- The Company has a commitment to renounce $8,020,658 of eligible
expenditures to subscribers of its flow-through shares issued as part of
the units comprising the Financings and incur the related expenditures
by December 31, 2011.
-- The Company had positive working capital of $25.3 million at June 30,
2010 and no debt.
Outlook
-- The Company will continue to delineate the resource potential at
Hangingstone this winter to provide the necessary geological control to
support an initial 10,000 bopd SAGD project application and to add new
areas of resource. The initial SAGD 10,000 bopd project will be the
first step to production and to realizing the ultimate potential through
a multi-phase development of the Hangingstone property. Implementing the
initial SAGD 10,000 bopd oil sands development project will require
significant capital and is dependent on successful equity and/or debt
financings.
Selected Information
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($'s except weighted Three Months Ended Six Months Ended
average shares) June 30, June 30,
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2010 2009 2010 2009
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Gas revenue - 4,462 - 10,615
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Royalties - (80) - (329)
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Operating expenses (279) (4,644) (537) (8,839)
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Net gas revenue (279) (262) (537) 1,447
----------------------------------------------------------------------------
Interest and other
income 8,180 2,505 9,736 30,484
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General and
administrative expense 514,637 274,650 803,324 536,264
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Net loss and
comprehensive loss (1,130,061) (337,730) (1,464,805) (748,530)
----------------------------------------------------------------------------
Loss per share (basic
and diluted) (0.01) - (0.01) (0.01)
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Capital expenditures
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Petroleum and natural
gas properties (cash) 83,743 824,279 113,718 8,563,640
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Cash flows
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Cash flows used in
operations (500,735) (23,679) (838,590) (433,051)
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Cash flows used in
investing (54,714) (2,366,592) (98,643) (10,688,377)
----------------------------------------------------------------------------
Cash flows from
financing 24,904,739 - 24,902,994 -
----------------------------------------------------------------------------
Change in cash and
cash equivalents 24,349,650 (2,390,271) 23,965,761 (11,121,428)
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Cash and cash
equivalents,
beginning of period 1,181,075 5,016,900 1,564,964 13,748,057
----------------------------------------------------------------------------
Cash and cash
equivalents, end of
period 25,530,725 2,626,629 25,530,725 2,626,629
----------------------------------------------------------------------------
Basic and diluted
weighted average number
of shares outstanding 169,932,809 143,060,590 157,241,566 143,060,590
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About Excelsior
Excelsior is an early stage, oil sands company with 58 operated sections on two
contiguous blocks in the Hangingstone and West Surmont areas of the Athabasca
Oil Sands Region near Fort McMurray, Alberta. The properties contain
high-quality, bitumen reservoirs which will be exploited using in-situ recovery
methods. The bitumen resources are anticipated to be initially developed using
SAGD ("Steam Assisted Gravity Drainage"). The Company has also developed a
proprietary in situ combustion technology ("Combustion Overhead Gravity
Drainage" or "COGD") which has potential to improve economic and environmental
impact in the development and recovery of heavy oil and bitumen. An application
for an experimental pilot project to field demonstrate the COGD technology was
submitted in the second quarter of 2009. Project approval is expected in the
latter half of 2010 with subsequent implementation and commissioning in early
2011. Excelsior's strategy is to capture oil and gas appraisal and development
opportunities where we can leverage Management's diverse international
operating, heavy oil and field development expertise with developing
technologies to produce oil and gas.
Forward Looking Information
This press release contains forward-looking statements and forward-looking
information within the meaning of applicable securities laws. The use of any of
the words "expect", "anticipate", "continue", "estimate", "objective",
"ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and
similar expressions are intended to identify forward-looking statements or
information. More particularly and without limitation, this press release
contains forward-looking statements and information concerning: anticipated
regulatory approvals, expectations regarding the Company's future operations,
including drilling of further core wells on the Company's Hangingstone property
and the further delineation of such property, development of the Company's
bitumen resources using SAGD or COGD, fulfillment of "flow-through" commitments,
expectations regarding cash flows relating to operations on the Hangingstone
property, further operations regarding a proposed COGD pilot program, the
sufficiency of its current funding to meet planned expenditure requirements,
joint venture opportunities and financing arrangements.
The forward-looking statements and information in this press release are based
on certain key expectations and assumptions made by Excelsior, including
expectations and assumptions concerning: prevailing commodity prices and
exchange rates; applicable royalty rates and tax laws; future drilling results
and production rates; reserve and resource volumes; the success obtained in
drilling new wells; the sufficiency of budgeted capital expenditures in carrying
out planned activities; the availability and cost of labour and services; and
the receipt, in a timely manner, of regulatory approvals. Although Excelsior
believes that the expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance should not
be placed on the forward-looking statements and information because Excelsior
can give no assurance that they will prove to be correct.
Since forward-looking statements and information address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to the risks
associated with the oil and gas industry in general such as: operational risks
in development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve and resource estimates; the uncertainty of estimates
relating to production, costs and expenses; health, safety and environmental
risks; commodity price and exchange rate fluctuations; marketing and
transportation or petroleum and natural gas and loss of markets; environmental
risks; competition; incorrect assessment of the value of acquisitions; failure
to realize the anticipated benefits of acquisitions; ability to access
sufficient capital from internal and external sources; failure to obtain
required regulatory approvals; and changes in legislation, including but not
limited to tax laws, royalty rates and environmental regulations.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could affect the
operations or financial results of Excelsior are included in reports on file
with applicable securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com).
The forward-looking statements and information contained in this press release
are made as of the date hereof and Excelsior undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.
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