Ceres Announces Its Financial & Operating Results and Filing of Reserves Data for the Year Ended December 31, 2008
April 14 2009 - 3:31PM
Marketwired Canada
Ceres Capital Corp. (the "Company" or "Ceres") (TSX VENTURE:SRS) is pleased to
report its operational and financial results for the year ended December 31,
2008. Furthermore, the Company announced today that it has filed its Form
51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, 51
101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator or
Auditor and form 51 101F3 - Report of Management and Directors on Oil and Gas
Disclosure, under National Instrument 51-101 - Standards of Disclosure for Oil
and Gas Activities, for year ended December 31, 2008.
The consolidated financial statements and management discussion and analysis
along with the NI 51-101 reserves filings for the year ended December 31, 2008
for Ceres and its subsidiary Reliable Energy Ltd. ("Reliable") will be available
at www.sedar.com or at the Company's website www.reliableenergy.ca.
HIGHLIGHTS
On December 23, 2008 Reliable closed a financing of common and flow through
shares for gross proceeds of $9,739,760.
On December 24 Ceres acquired all the issued and outstanding shares of Reliable
and Reliable became a subsidiary of Ceres.
The transaction between Ceres and Reliable was accounted for as a reverse
take-over and although the results are in the name of Ceres the highlights
contained here-in are deemed to be a continuation of Reliable.
The Company, through Reliable, participated in the drilling of four wells (2.8
net) during 2008. Two wells (1.0 net) were drilled in the Trochu Basin, Alberta
and were abandoned and two (1.8 net) were drilled in Kirkella, Manitoba. One
(0.9 net) was put on production in March 2009 and one (0.9 net) is awaiting
completion services.
Ceres Production averaged 119 mcf/day (20 boe/d) in 2008 compared with 228
mcf/day (38 boe/day) in 2007. During the fourth quarter of 2008, production
averaged 75 mcf/day (13 boe/day) compared with 155 mcf/day (26 boe/day) in the
same period in 2007. Facility constraints resulted in some wells being shut in
for four months during 2008.
Net loss in 2008 was $1.9 million compared with $4.5 million in 2007.
Total debt at December 31, 2008 was $1.17 million compared with $1.1 million in
2007 and relates to amounts owing on a convertible debenture.
Capital expenditures in 2008 totalled $1.8 million compared with $1.0 million in
2007.
The Company's oil and natural gas reserves were evaluated by Sproule Associates
Limited ("Sproule") as at December 31, 2008. The report concludes that the
company holds 274 mmcf of proved reserves and 364 mmcf of proved plus probable
reserves. The report assigns a value before tax of $731,000 for the proved plus
probable reserves applying a discount rate of 10%.
In August 2008, the Company, through Reliable, entered into a farm-in on
approximately 48,000 acres of lands in SE Saskatchewan and SW Manitoba. At
December 31, 2008, the company held 23,949 acres (net) of undeveloped lands in
Western Canada.
FINANCIAL AND OPERATING HIGHLIGHTS
SELECTED ANNUAL INFORMATION
2008 2007
--------------------------
Financial
Gross Revenue $ 278,283 $ 484,630
Net loss 1,892,197 4,524,907
Per share - basic and diluted 0.046 0.131
Cash flow used in operations 1,757,494 1,269,197
Per share - basic and diluted 0.043 0.004
Total assets 11,977,491 2,551,736
Capital expenditures 1,849,497 981,175
Weighted average shares - basic 41,113,427 34,464,318
Operational
Production (boe) 7,234 13,857
Reserves
Proved reserves (boe) 60,667 67,323
Undeveloped land 23,949 2,960
Wells drilled
Gross 4.0 1.0
Net 2.8 1.0
RESULTS OF OPERATIONS
---------------------------------------
Three months ended Twelve months ended
December 31 December 31
---------------------------------------
2008 2007 2008 2007
---------------------------------------
Operations
Natural gas production - mcf 6,908 14,226 43,399 83,106
Total production - boe (6:1) 1,151 2,371 7,234 13,857
Natural gas sales - mcf 5,111 11,408 32,662 66,806
Gross sales revenue 37,651 78,947 $ 278,283 $ 484,630
Royalties 6,120 14,425 62,111 107,516
Operating expenses 55,475 60,440 225,728 249,453
Net operating revenue (23,944) 4,082 (9,556) 127,661
Average gas price - $/mcf 7.37 6.92 8.52 7.25
Operating cost - $/boe 48.2 25.49 31.20 18.00
Netback - $/boe (20.80) 1.72 (1.32) 9.21
Note: A barrel of oil equivalent (boe), derived by converting gas to oil
in the ratio of six thousand cubic feet of gas to one barrel of oil
may be misleading, particularly if used in isolation. A boe
conversion is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a
value equivalency at the wellhead.
About Ceres and Reliable
Ceres is an Alberta based public company listed on the TSX Venture Exchange and
conducts its operations through Reliable Energy Ltd., a wholly owned subsidiary.
The Company is currently focused on two core areas in the Western Canadian
Sedimentary Basin. The first core area consists of an unconventional resource
play in the Bakken/Three Forks formation situated on the Saskatchewan - Manitoba
border. The second is a Devonian reef play in central Alberta.
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