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Any news from TOPZ would be great for us longs.
This one is blowing big today imo. I believe this is the stock John Bell is talking about.
Does anyone know why there is a bid price higher than the ask price?
The Grammys and Topz wow I'm in Heaven
Stans Energy Provides Corporate UpdateFont size: A | A | A10:19 AM ET 10/20/11 | BusinessWire
Stans Energy Corp (TSX-V: HRE)(Pink Sheets: HREEF)('Stans' or 'The Company') is pleased to announce the following update on the progress of: refurbishment at the company's Kashka Rare Earth Plant (KRP); formalization of the Company's relationship with VNIIHT (Leading Research Institute of Chemical Technology); exploration activities at the Aktyuz Ore Field, and overall development of the Kutessay II and Kalesay projects.
Selected Highlights of Stans Energy's progress:
Key Personnel Updates Kashka Rare Earth Plant improvements Framework agreement with VNIIHT Aktyuz Ore Filed Exploration Updates Status of Strategic Partnership Discussions Kalesay Beryllium Deposit
Boris Aryev, Stans' Chief Operating Officer, comments: "These recent announcements demonstrate the expertise that Stans is employing towards resuming near term production at the Aktyuz Ore Field, specifically at Kutessay II. Through our exploration program and technical partnership with VNIIHT, Stans is rapidly acquiring key assets and expertise to capitalize on the current elevated market pricing trends we see with Rare Earths. After completion of our feasibility studies, we will have a solid blueprint to realize long term value for all of our shareholders."
Stans Energy Key Personnel Update Stans is pleased to announce the appointment of Mr. Victor S. Kashtanov as the Director General of KRP. Mr. Kashtanov has invaluable experience with the technology of rare earth separation. Mr. Kashtanov recently served as the Senior Technologist of Kyrgyzaltan OJSC, and had 26 years of experience at the Company's Kyrgyz Mining and Metallurgical Complex. Mr. Kashtanov's roles ranged from equipment operator, foreman, and chief foreman, culminating in his role as Head of Plant #2 for Total Rare Earth Oxide (TREO) concentrate production, as well as the separation of light, medium and heavy REE concentrates. He was also responsible for production of high purity yttrium and luminophores.
Stans now has 54 employees in Kyrgyzstan including mining engineers, metallurgists, geologists, chemical technologists, and various maintenance and administrative personnel employed by its subsidiaries: Stans Energy KG, Kutessay Mining and Kashka Rare Earth Plant.
Kashka Rare Earth Plant (KRP) Improvements Stans has recently hired Mr. Victor Kashtanov to lead the team of experts to restart production of Heavy Rare Earth Elements (HREEs) from outsourced concentrates at Plant #3 in 2012, and to assist our engineering team to design of a new Plant #1 (a thorium extraction facility) and a solvent extraction [SX] plant with a 1500 t.p.y. capacity. Stans is actively engaged in the selection of an existing facility and site to host the new SX plant. Going forward the plan is to have both the first module of Plant #1 and the 500 t.p.y. SX plant in operation by 2013.
Process Engineering - VNIIHT Recently Stans finalized a framework agreement with VNIIHT that specifically outlines the short and long term joint program of activities.
The agreement is for a period of three years and may be automatically extended for subsequent years. The agreement outlines the implementation of joint activities such as:
-- Creation and advancement of joint science-intensive and high technology projects
-- Providing experts for conducting technological and economic examination of projects, conducting market research necessary for the commercialization of research and technology developments
-- Processing of various types of ore and extraction of REE and possible by-products
-- Environmental Protection
-- Processing technogenic waste
-- Providing support in realization of joint programs in the area of education
-- Development of innovative entrepreneurship based on technologies developed by the joint program
Exploration Update As announced on August 23rd, Stans commenced further exploratory diamond drilling at the Kutessay II deposit and at the former Aktyuz mine. As of October 15th, Stans has completed 3 of 4 planned drill holes (DH) at the Kutessay II deposit to test the depth potential of known mineralization. The fourth hole will be completed by November 15th. The assay of the core and the full report of results will be published by the end of December.
A second diamond drill will be put into operation this week to start drilling two drill holes totaling 1100m at the former Aktyuz Mine to explore lower horizons with known historical rare earth mineralization. Further exploratory drilling of an additional 400m will be undertaken to explore other untested anomalies in the Aktyuz Ore Field. The two drilling programs will be completed by December 15th and a report will be ready by the end of January 2012.
Strategic Partnership Discussions Initiated Throughout 2010 and 2011, various Fortune 500 companies and governmental agencies that have expressed interest in developing strategic partnerships in respect to its Kutessay II project in Kyrgyzstan have approached Stans. These firms have the ability to assist with financial, technical, marketing and other necessary prerequisites that would accelerate early production at Kutessay II.
Stans conducted site visits with the representatives of various potential strategic partners in April, July, August and October 2011, and is planning to host another site visit in early November. The company is working towards signing agreements with one or more of these strategic partners, and will be releasing information as it becomes available.
Kalesay The underground resampling program for the Kalesay Beryllium deposit completed earlier this year returned results that were inconsistent and could not be used to confirm the historical Soviet data. The sampling was conducted on an area that was open to weathering; so the new sample program will be conducted in the un-weathered, central part of the deposit. Stans has decided to reopen the underground workings to resample the beryllium mineralization much deeper in the underground exploration drift closer to the core of the historic deposit. Stans has contracted Prospecting LLC to do this work and has submitted an application to the Kyrgyz government to reopen the underground workings for further sampling.
About VNIIHT VNIIHT has developed technologies and technological schemes of individual REE production out of different types of raw materials that were implemented at plants in Russia, Kazakhstan, Ukraine and Estonia. REE extraction technologies developed at VNIIHT were utilized in the production cycle for over 20 hydrometallurgical plants. Over 2600 inventors' certificates and patents have been issued to VNIIHT. Of the 1000 employees at VNIIHT, over 100 are PhDs.
About Stans Energy Stans Energy is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Plant (KRP) the same plant that historically refined REEs from the Kutessay-II open pit mine. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.
We seek safe harbour.
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, and the continued advancement of the company's general business development, research development and the company's development of mineral exploration projects. When used in this press release, the words "will", "shall", "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
SOURCE: Stans Energy Corp.
Stans Energy Corp.
Robert Mackay, 647-426-1865
President & CEO
robert@stansenergy.com
or
David Vinokurov, 647-426-1865
Manager, Investor Relations
david@stansenergy.com
I am not able to view the website is anyone else having this problem? http://www.topazresourcesinc.com/
Yandex looking good this week, Go Yandex Go Yandex
Brownstone Energy Provides Update on Operations in Colombia
Toronto, Ontario (July 20, 2011) – Brownstone Energy Inc. (TSXV: BWN) (“Brownstone”) is pleased to provide the following update on operations in Colombia.
Canaguaro Block, Llanos Basin
Brownstone has been advised by the operator of the Canguaro Block the long term production testing of Canaguay #1 is continuing with the well currently producing approximately 500 barrels of oil and 150 barrels of water. The optimal production rate for the Mirador reservoir and facilities will be determined by the results of the long term production test. Brownstone has met its obligations to earn its 25% working interest in the Canaguaro Block.
Block 27, Llanos Basin
Brownstone has been advised that a follow-up 54 square kilometer 3D seismic acquisition program has been completed in the south eastern portion of the block, and is currently being interpreted. The operator has defined drilling locations on three separate Block 27 structures, based on the interpretation of 3D seismic and potential follow-up development drilling locations have been identified on several of these structures. Interpretation of the 3D seismic is continuing and several additional geological features are being studied as potential drilling locations.
Lengthy delays in the issuing of block environmental permits continue to adversely effect the operations of both large and small oil companies in Colombia. The operator and Brownstone have waited approximately 8 months for the Block 27 environmental permit. It is anticipated that permit will be granted during the 3rd quarter of 2011. Construction of drilling locations is scheduled to begin as soon as the required environmental permit is received. A two to three well drilling program is planned to commence approximately one month after location construction begins. The wells have a planned depth of approximately 10,000 feet and will test prospective oil bearing intervals in the Carbonera, Mirador and Une Formations.
Brownstone has a 50% paying interest (45.275% working interest before pay out, 34.25% working interest after payout) in Block 27.
Block 21
An 83 square kilometer 3D seismic survey has been competed on Block 21 and is currently being interpreted. Several geological features are being studied as potential drilling locations. The Company plans to drill 2 wells by the 1st quarter of 2012. Brownstone is the operator of the block and has a 50% paying interest (45.5% working interest before pay out, 35% working interest after payout) in Block 21.
Block 36
The operator of Block 36, has advised that the acquisition of the 109 km of 3D seismic has been completed and is being processed. Drilling of one, 15,000 foot well is now scheduled for 2012. Brownstone has a 20% paying interest (18.2% working interest before pay out, 14% working interest after payout) in Block 36.
About Brownstone
Brownstone Energy Inc. is a Canadian-based, energy focused company with direct interests in oil and gas exploration projects, including varying interests in 5 off-shore Israel concessions and in 4 Colombian blocks in the Llanos basin, as well as other oil and gas interests worldwide. By owning and managing a diversified portfolio of energy-based projects, Brownstone provides shareholders with a unique energy alternative. For additional information, please see Brownstone’s website: www.brownstoneenergy.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Jonathan Schroeder, P. Geoph., President and COO
(403) 660-2894
schroeder@brownstoneventures.com
or
Richard Patricio, Vice-President Corporate and Legal Affairs
(416) 941-8900
info@brownstoneventures.com
Stans Energy Provides an Update on its Kutessay II Mine, Aktyuz Ore Field and Kashka Rare Earth Processing Plantposted by: Stans Energy | comments : 0 CommentStans Energy Corp (TSX-V: HRE, OTCQX: HREEF) (‘Stans’ or ‘The Company’) is pleased to announce the following update on the progress of the exploration and development activities at its Kutessay II and Kutessay III sites and the Aktyuz Orefield and at the company’s Kashka Rare Earth Processing Facility (KRP).
Selected Highlights of Stans Energy’s progress:
Feasibility Studies
Exploration Updates
Key Personnel Updates
Progression of Strategic Partnership Discussions
FEASIBILITY STUDIES
Stans Energy’s feasibility study is at an advanced stage and scheduled for completion by end of Q4 2011. The company has retained a team of highly qualified and experienced consultants with extensive experience in rare earths to undertake the following roles:
Project Oversight
The feasibility studies will be conducted under the guidance of VNIIHT – All Russian Research Institute of Chemical Technology. VNIIHT has 60 years of research experience in the technology of rare earth elements and is capable of executing the complete cycle of research, development, and the creation of profitable highly efficient technologies of rare earth production. This includes ore concentrates treatment, purification from impurities and separation with the recovery of highly pure rare earth metals, as well as powders and other final rare earth metal products.
Dr. Valery Kosinkin will be overseeing the metallurgical aspects, while Dr. Marat Fazlullin will be supervising the mine design and its various elements.
Mine Design and Planning
Asiarudproject Mining Planning-Production Company CJSC (Asiarudproject) has been retained for the mine design and its planning. Asiarudproject has completed more than 90 designs of mining enterprises and feasibility studies, over twenty of which were implemented including:
Design of Kumtor open-pit in its final outlines for Centerra Gold
Designs of open-pits of the Central, Southwestern and Northwestern sites in the Kumtor deposit;
2001: Asiarudproject prepared a feasibility study of further development of the Kumtor deposit by underground mining
2004-2005: Asiarudproject developed “an underground mine for the Taldybulak Levoberezhny deposit” project
Laboratory Services
Information-Research Centre LLC (IRC LLC) will be responsible for all assays and further development of new milling technologies for Stans Energy. Dr. Ludmilla I. Evteeva, Director General of IRC LLC will be reporting to VNIIHT whilst overseeing the company’s laboratory services which include:
Research of chemical, physical and mineral composition of various natural minerals, geochemical, exploration and industrial samples and end products;
Research in the sphere of analytical chemistry, ecology, geo-technology and technology of various branches of industry
IRC’s laboratory has the following accreditations:
International accreditation center UKAS, Great Britain (laboratory #4431)
Kyrgyz Center of Accreditation (Accreditation Certificate # KG417/KCS.IL.007)
Laboratory is accredited for compliance with the international standard ISO/IEC 17025:2005. The accreditation includes measurements of grades of elements using the atomic absorption, ICP and X-ray fluorescence.
Process Engineering
VNIIHT – The All Russian Research Institute of Chemical Technology will be guiding the implementation of improvements to historical methods of Rare Earth extraction and processing of final metals, alloys and oxides. VNIIHT has developed technologies and technological schemes of individual REE production out of different types of raw materials which were implemented at plants in Russia, Kazakhstan, Ukraine and Estonia.
Technologies worked out in VNIIHT became the production cycle for over 20 hydrometallurgical plants. Over 2600 inventors’ certificates and patents have been issued. Of the 1000 employees at VNIIHT, over 100 are PhDs.
VNIIHT, having previously improved upon historical methods of thorium roasting will be furthering the testing of the sorption technology to remove radioactivity from the production process.
Environmental
Geomin will be responsible for environmental protection management for Stans Energy. GEOMIN cooperative is a Czech geological and consulting company, offering services in a wide range of geological and environmental branches. The company was established in 1994 and follows up with activities of the former state enterprise Geoindustria. The company ´s pivotal program is to project, carry out and evaluate geological work and to perform the work associated with protection of the environment.
GEOMIN has a System of Quality Assurance introduced, in accordance with the Standards of C?SN EN ISO 9001:2008 and C?SN EN ISO 14001:2004.
Mineral Resource Estimate
Kazakhstan Mineral Company (KMC) is a Kazakhstan consulting company that will provide resource estimation services to the company.
KMC has carried out projects in the CIS countries, Afghanistan, Poland, Angola and Mongolia. In 2004- 2010, KMC completed more than 40 projects (gold, uranium, copper, nickel, tin, and phosphates) in these countries.
Construction Survey
Kyrgyz GIIZ OJSC (Kyrgyz Main Institute of Engineering Surveys in Construction), will provide a full complex of geological engineering and topographical surveys for Stans Energy.
The largest recent projects include surveys for a biological laboratory in Bishkek city ordered by the Canadian Government (2008-2009); surveys for facilities of the Taldybulak Levoberezhnyi gold deposit (1996-present); surveys for the Ishtamberdy gold deposit (2008-2009); sampling of tailing ponds 1 and 2 of the Tereksay deposit.
Stans Energy Key Personnel Update
Stans Energy Corp. is pleased to announce that it’s Mining and Milling initiatives will be overseen by Valery Yakhin. Mr. Yakhin will hold the position as the Project Manager for Kutessay Mining LLC. Mr. Yakhin brings a wealth of technical engineering management service to the company. He is a graduate of the Moscow Mining Institute and was formerly the Deputy Head at Altynken LLC, a company developing the Taldybulak Levoberezhnyi gold deposit. Mr. Yakhin’s extensive career at KAZATOMPROM began with several technical and engineering positions, eventually leading to Head of Production and Technical Department of the Taukent Mining and Chemical Enterprise.
The Atomic Company KAZATOMPROM is the national operator, of the Republic of Kazakhstan, for import and export of uranium, rare metals, nuclear fuel for power plants, special equipment and dual- purpose materials.
Additionally, Stans Energy Corp. is pleased to announce that Vladmir Shubin its Chief Geologist will be responsible for all the geological activities for Stans Energy KG. Mr. Shubin holds a degree in Mining Engineering, specializing in geology and exploration of mineral deposits.
Mr. Shubin has over 20 years of experience as the Chief Geologist for the North Kyrgyz geological Expedition.
Exploration Update
Stans Energy Corp. will focus this year’s initial exploration program on extending the mineralization to depth on Kutessay II to increase to size of the Measured and Indicated Reserves as confirmed by the JORC on Kutessay II.
Kutessay II
The exploration plan for Kutessay II is to drill below the known mineralization that was used for the resource calculation in the recently completed JORC report by KMC.
Two 500m drill holes are initially planned and will be drilled from the open pit.
Aktyuz Mine
In researching the historical records of the Aktyuz lead, zinc and silver mine (last mined in the 1940s), Stans Energy Corp discovered a zone of Rare Earth mineralization. This mineralization was categorized into a B category by the Soviets which had been discovered by exploring underground, drifting into the mineralization along with diamond drilling.
This Yttrium rich mineralization is will be initially prospected with two drill holes to test the downward extension of the historic mineralization.
Kutessay III
In 2010 Stans Energy KG drilled two holes of 500m to test a geophysical anomaly at Kutessay III. The two drill holes intersected Rare Earth mineralization however the results did not explain the strong anomaly.
Over the past six months, the geological team of Stans Energy KG led by Chief Geologist, Vladimir Shubin researched the historical reports in the Kutessay III area done by the Soviet geologists. This research discovered underground drilling done at Kutessay II that intersected REE mineralization which showed a REE structure approximately 100 meters east of Stans Energy’s 2010 drilling. Stans Energy KG is continuing to evaluate known data in the Kutessay III area to determine the best drill targets.
In reviewing the historic data from the annual reports of work in the Kutessay III site for 1968 by A.T. Khokihlol and the 1974-75 report by Dr. V.F Kim it was noted that Kutessay III had a length of 300m with a thickness from 22m to 50m averaging 40m.
Aktyuz Ore Field
Stans Energy KG will continue to do surface exploration work on the Aktyuz ore field in 2011, along with building a computerized model using historic data.
Geophysics
Geophysical surveys over the entire ore field are near completion and the data is being compiled. The data will be used in conjunction with geological data which Stans compiled over 2010 and will be coordinated with the historical data to further expand the known rare earth zones.
There are over 400 historical geological reports on the Aktyuz field. Stans Energy is continuing to add to the database to further refine the computerized models.
Five historical areas in the Aktyuz ore field where REE mineralization was put into a resource category by the Soviets. These areas are:
Kutessay II
Kutessay III
Aktyuz
Kuperlisai
Anjilga
Strategic Partnership Discussions Initiated
Throughout 2010 and 2011, Stans Energy Corp has been approached by various companies and agencies that have expressed interest in developing strategic partnerships in respect to its property in Kyrgyzstan, namely Kutessay II. These firms have the ability to assist with financial, technical, marketing and other necessary prerequisites that would accelerate early production at Kutessay II.
About Stans Energy
Stans Energy Corp. is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the Former Soviet Union. In December 2009, Stans acquired a 20-year mining license for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic. On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs historically from Kutessay II. The KRP was the only hard rock plant to produce all rare earth elements outside of China, producing 120 different metals, alloys, and oxides. For over 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.
We seek safe harbour.
Robert Mackay
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Email: robert@stansenergy.com
David Vinokurov
Manager Investor Relations, Stans Energy Corp
Ph. 647 426 1865
Email: david@stansenergy.com
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, use of proceeds from the Offering, the completion of the Offering, the continued advancement of the company’s general business development, research development and the company’s development of mineral exploration projects. When used in this press release , the words “will”, “shall”,
“anticipate”, “believe”, “estimate”, “expect”, “intent”, “may”, “project”, “plan”, “should” and similar expressions may identify forward-looking statements. Although Stans Energy Corp. believes that their expectations reflected in these
forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual
results to differ from these forward-looking statements include the potential that fluctuations in the marketplace for the sale of minerals, the inability to implement corporate strategies, the ability to obtain financing and other risks disclosed in our filings made with Canadian Securities Regulators.
About Stans EnergyStans Energy Corp. is focused on developing properties containing Rare Earth Elements (REEs), Uranium, and Associated Metals. The company continuously examines and evaluates new opportunities to acquire and develop proven resource properties in areas of the former Soviet Union. The headquarters of the company is located in Toronto, Ontario, Canada, and its wholly-owned subsidiary, Stans Energy KG, is located in Bishkek, Kyrgyzstan. Stans Energy Corp’s Chairman, Rodney Irwin, was the former ambassador to the Russian Federation for Canada, and currently serves as the Honorary Consul of the Kyrgyz Republic for Canada.
Press Release Source: TransAtlantic Petroleum Ltd. On Tuesday May 31, 2011, 5:56 pm EDT
HAMILTON, BERMUDA--(Marketwire - 05/31/11) - TransAtlantic Petroleum Ltd. (TSX:TNP - News) (AMEX:TAT - News) announced today its financial results for the three months ended March 31, 2011. The Company's financial results are prepared in accordance with U.S. GAAP, and the reporting currency is U.S. dollars.
Selected Financial Highlights
Total revenues for the three months ended March 31, 2011 increased 160% to $32.2 million from $12.4 million for the three months ended March 31, 2010. The increase was the result of increased production in the Selmo oil field, additional production in the Arpatepe oil field and new production in the Thrace Basin gas fields. The increase was also due to the increase in the average price received for our oil production. In addition, oilfield services revenue for the first quarter of 2011 increased 218% to $3.5 million from $1.1 million for the first quarter 2010. Net loss for first quarter March 31, 2011 was $22.6 million, or $0.07 per share (basic and diluted), compared to a net loss of $11.3 million, or $0.04 per share (basic and diluted), for the same period in 2010. The following table sets forth selected financial data from the Company's consolidated statements of operations and comprehensive loss:
For the three months ended(in thousands, except per share amounts) March 31, 2011 2010 ------------ -------------Total revenues $ 32,244 $ 12,392Costs and expenses: Production 4,107 4,198 Exploration, abandonment and impairment 9,798 4,483 Seismic and other exploration 1,516 419 Oilfield services 5,525 3,716 General and administrative 10,361 6,000 Depreciation, depletion, and amortization 9,347 3,970 Other 214 46 ------------ -------------Total costs and expenses 40,868 22,832 ------------ -------------Operating loss $ 8,624 $ 10,440Total other (income) expense 13,451 58 ------------ -------------Loss before income taxes 22,075 10,498Net loss 22,606 11,340Other comprehensive loss (2,299) 1,957 ------------ -------------Comprehensive loss $ 20,307 $ 13,297 ============ =============Net loss per share $ 0.07 $ 0.04Basic and diluted weighted average number of shares outstanding 341,142 303,335
At March 31, 2011, the Company had unrestricted cash and cash equivalents of $20.2 million, $78.3 million in short-term debt, $66.8 million in long-term debt and a working capital deficit of $49.5 million compared to unrestricted cash and cash equivalents of $34.7 million, $106.7 million in short-term debt, $30.1 million in long-term debt, and a working capital deficit of $60.2 million at December 31, 2010. The following table sets forth selected financial data from the Company's consolidated balance sheets:
As of March 31, December 31,(in thousands) 2011 2010 ------------ ------------ASSETSCurrent assets: Cash and cash equivalents $ 20,200 $ 34,676 Accounts receivable 36,499 33,186 Prepaid and other current assets 4,888 7,367 ------------ ------------Total current assets 61,587 75,229Property and equipment, net 407,764 367,225Other 29,743 29,893 ------------ ------------Total assets $ 499,094 $ 472,347 ============ ============LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities: Accounts payable $ 16,641 $ 16,811 Short term debt 78,253 106,673 Accrued liabilities and other 16,242 11,941 ------------ ------------Total current liabilities 111,136 135,425 ------------ ------------Total liabilities 215,929 197,717Total stockholders' equity 283,165 274,630 ------------ ------------Total liabilities and stockholders' equity $ 499,094 $ 472,347 ============ ============
Selected Production Highlights
Net oil and gas production, after royalty, for the first quarter of 2011 increased 142% to approximately 353,000 barrels of oil equivalent ("Boe") compared to approximately 146,000 Boe for the first quarter of 2010. The Company produced approximately 219,000 net barrels of crude oil in the first quarter 2011 at an average rate of 2,433 net barrels per day.
For the first quarter of 2011, the Company's average realized oil price was approximately $107 per barrel, and the Company's average realized natural gas price was approximately $7.29 per thousand cubic feet.
Conference Call
The Company will host a conference call to discuss this release on Wednesday, June 1, 2011 at 8:30 a.m. Eastern, 7:30 a.m. Central. To access the conference call, please contact the conference call operator at 877-878-2762, or 678-809-1005 for international calls, approximately 10 minutes prior to the scheduled start time, and ask for the TransAtlantic conference call. The pass code is 71771413. A replay will be available until 11:59 p.m. Eastern on July 1, 2011. The number for the replay is 800-642-1687, or 706-645-9291 for international calls, and the pass code is 71771413.
An enhanced webcast of the conference call and replay will be provided by Shareholder.com and will be available through the Company's web site. To access the conference call and replay, click on "Investors," select "Events," and click on "Webcast" found below the event listing.
Annual Meeting of Shareholders
The Company will conduct its 2010 Annual Meeting of Shareholders on Monday, June 27, 2011 at the Hotel Palomar in Dallas, Texas. The meeting is scheduled to begin at 10:00 a.m. local time.
About TransAtlantic
TransAtlantic Petroleum Ltd. is a vertically integrated, international energy company engaged in the acquisition, development, exploration, and production of crude oil and natural gas. The Company holds interests in developed and undeveloped oil and gas properties in Turkey, Morocco, Bulgaria and Romania. The Company owns its own drilling rigs and oilfield service equipment, which it uses to develop its properties in Turkey and Morocco. In addition, the Company's drilling services business provides oilfield services and drilling services to third parties in Turkey and Iraq.
(NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.)
This news release contains statements regarding the annual meeting of shareholders, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to the continuing ability of the Company to operate effectively internationally, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, the results of exploration, development and drilling, imprecision in estimates of future production capacity, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company 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.
Boe is derived by the Company by converting natural gas to oil in the ratio of six thousand cubic feet (mcf) of natural gas to one barrel (bbl) of oil. A boe conversion ratio of 6 mcf to 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. Boe may be misleading, particularly if used in isolation.
31-May-2011
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
In this Quarterly Report on Form 10-Q, references to "we," "our," "us" or the "Company," refer to TransAtlantic Petroleum Ltd. and its subsidiaries on a consolidated basis. Unless stated otherwise, all sums of money stated in this Form 10-Q are expressed in U.S. Dollars.
Executive Overview
We are a vertically integrated, international oil and gas company engaged in the acquisition, exploration, development and production of crude oil and natural gas. We hold interests in developed and undeveloped oil and gas properties in Turkey, Morocco, Romania, and Bulgaria. We own our own drilling rigs and oilfield service equipment, which we use to develop our properties in Turkey and Morocco. In addition, our drilling services business provides oilfield services and drilling services to third parties in Turkey and Iraq. As of May 27, 2011, approximately 44.2 % of our outstanding common shares were beneficially owned by N. Malone Mitchell, 3rd, our chairman of the board of directors and chief executive officer.
Financial and Operational Performance Highlights. Highlights of our financial performance and operational performance for the first quarter of 2011 include:
? During the first quarter of 2011, we derived 71% of our revenues from the production of oil, 18% of our revenues from the production of natural gas and 11% of our revenues from oilfield services.
? Total oil and gas revenue increased to $28.7 million for the quarter ended March 31, 2011 from $11.3 million realized in the same period in 2010. The increase was the result of increased production in the Selmo oil field as well as an increase in natural gas production and an increase in the average price received for our oil production, which was approximately $107 per barrel in the quarter ended March 31, 2011 as compared to approximately $78 per barrel for the quarter ended March 31, 2010.
? Oilfield services revenue increased to $3.5 million for the first quarter of 2011 from $1.1 million in the first quarter of 2010.
? Production in Turkey increased to approximately 219,000 net barrels (Bbls) of crude oil and approximately 803 million cubic feet (Mmcf) of natural gas for the first quarter of 2011, compared to approximately 146,000 net Bbls of crude oil and no natural gas for the first quarter of 2010.
? As of March 31, 2011, we were producing an aggregate of approximately 2,700 net Bbls oil per day from the Selmo and Arpatepe oil fields in Turkey and approximately 8.3 net Mmcf of natural gas per day from our producing gas fields in the Thrace Basin.
? For the quarter ended March 31, 2011, we incurred $54.2 million in capital expenditures, of which $28.1 million was a non-cash capital expenditure incurred in the acquisition of Direct Petroleum Morocco, Inc. ("Direct Morocco"), Anschutz Morocco Corporation ("Anschutz") and Direct Petroleum Bulgaria EOOD ("Direct Bulgaria"), compared to capital expenditures of $44.0 million for the quarter ended March 31, 2010. The decrease in cash capital expenditures was primarily due to the larger amount of drilling services and other equipment and long-term drilling inventory that were purchased in the first quarter of 2010.
? During the first quarter of 2011, our short-term borrowings increased to $78.3 million, compared to short-term borrowings of $6.1 million for the first quarter of 2010.
Recent Developments
Amendment and Restatement of Senior Secured Credit Facility. On May 18, 2011, our wholly owned subsidiaries, DMLP, Ltd. ("DMLP"), Petrogas Petrol Gaz ve Petrokimya ?? In?aat Sanayi ve Ticaret A?. ("Petrogas"), Talon Exploration, Ltd. ("Talon Exploration"), TransAtlantic Exploration Mediterranean International Pty. Ltd. ("TEMI") and TransAtlantic Turkey, Ltd. ("TAT") (collectively, the "Borrowers") entered into a five year amended and restated senior secured credit facility (the "amended and restated credit facility") with Standard Bank Plc ("Standard Bank") and BNP Paribas (Suisse) SA ("BNP Paribas"). The amended and restated credit facility amends and restates the three year senior secured credit facility entered into by and between DMLP, TEMI, Talon Exploration, TAT and Standard Bank and BNP Paribas, on December 21, 2009.
On May 24, 2011, we used a portion of the amounts borrowed under the amended and restated credit facility to repay the $30.0 million short-term secured credit agreement, dated as of August 25, 2010, between TransAtlantic Worldwide, Ltd. ("TransAtlantic Worldwide") and Standard Bank, which was scheduled to mature on May 25, 2011. We plan to use the remainder of the amounts borrowed under the amended and restated credit facility to finance a portion of the development of our oil and gas properties in Turkey and for working capital purposes in Turkey. See "-Amended and Restated Senior Secured Credit Facility."
Amendment of Dalea Credit Agreement. On May 18, 2011, we entered into a first amendment with Dalea Partners, LP ("Dalea") to that certain credit agreement, dated as of June 28, 2010, by and between Dalea and the Company. Mr. Mitchell, our chairman of the board of directors and chief executive officer, and his wife own 100% of Dalea. The amendment was effective as of May 1, 2011 and extends the repayment date under the credit agreement from June 28, 2011 to December 31, 2011 and increases the interest rate under the credit agreement from three-month LIBOR plus 2.50% per annum to three-month LIBOR plus 5.50% per annum, which is the same interest rate under our amended and restated credit facility with Standard Bank and BNP Paribas. See "-Dalea Credit Agreement."
Appointment of New Chief Executive Officer. Effective May 6, 2011, our board of directors appointed Mr. Mitchell to serve as our chief executive officer. Mr. Mitchell also serves as the chairman of our board of directors. Matthew McCann, our former chief executive officer, tendered his resignation on May 5, 2011.
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TBNG Share Purchase Agreement. On November 8, 2010, TransAtlantic Worldwide entered into an option agreement with Mustafa Mehmet Corporation ("MMC"), regarding the potential purchase of all of the shares of Thrace Basin Natural Gas (Turkiye) Corporation ("TBNG") and Pinnacle Turkey, Inc. ("Pinnacle"). Pursuant to the option agreement, on November 8, 2010, TransAtlantic Worldwide paid MMC an option fee of $10.0 million in cash and, on February 10, 2011, exercised the option. Under the option agreement, TransAtlantic Worldwide or its assigns would acquire all of the shares of TBNG and Pinnacle in consideration for $100.0 million in cash, the issuance of 18.5 million of our common shares, and the transfer of certain overriding royalty interests to MMC or an affiliate. At closing, the $10.0 million option fee would be credited towards the cash purchase price. On April 23, 2011, TransAtlantic Worldwide and MMC entered into a definitive share purchase agreement pursuant to which MMC agreed to sell, and TransAtlantic Worldwide agreed to purchase, all of the shares of TBNG. Under the terms of the purchase agreement, TransAtlantic Worldwide or its assigns will acquire all of the shares of TBNG in exchange for the issuance of 18.5 million of our common shares and the transfer of certain overriding royalty interests (ranging from 1.0% to 2.5% of the working interests owned by TBNG on specified exploration licenses) to MMC or an affiliate. Closing of the transactions is subject to, among other conditions, the receipt of consents from all required regulatory authorities, including approval from the Competition Board of the Republic of Turkey which was received on May 17, 2011, and closing is expected to occur in June 2011. TransAtlantic Worldwide intends to apply the $10.0 million option fee it paid in November 2010 towards the purchase of approximately 6.5% of the production and acreage owned by Pinnacle and other affiliates of MMC. TransAtlantic Worldwide is negotiating with third party investors, including Valeura Energy, Inc. ("VEI"), that are expected to provide $90.0 million in cash to acquire approximately 59.5% of the current production and acreage owned by TBNG and Pinnacle. Closing of the cash portion of the transactions contemplated by the option agreement is expected to occur concurrently with the closing of the TBNG purchase agreement.
TBNG and Pinnacle currently produce an aggregate of approximately 25.0 Mmcf of natural gas per day in the Thrace Basin region of northwestern Turkey and hold interests in approximately 600,000 net onshore acres and 360,000 net offshore acres in the Thrace Basin and approximately 305,000 net onshore acres in the Gaziantep region of southeastern Turkey.
Valeura Energy Letter Agreement. On February 9, 2011, we entered into a letter agreement with VEI, whereby VEI offered to acquire 61.54% of the shares of Pinnacle and certain interests from Pinnacle and TBNG in certain exploration licenses and production leases on properties in the Thrace Basin and Gaziantep areas of Turkey, together with associated assets. Under the letter agreement, VEI would provide approximately $61.5 million in funding to acquire 61.54% of the shares of Pinnacle and certain other assets.
Under the letter agreement, as amended, the parties agreed to negotiate in good faith the terms of certain definitive agreements, including agreements to transfer 61.54% of the shares of Pinnacle and certain other assets, and to use reasonable commercial efforts to finalize the definitive agreements no later than June 15, 2011. If any of the conditions precedent of the letter agreement are not satisfied before closing or if closing has not occurred by July 11, 2011, any party is entitled to terminate its obligations under the letter agreement. If VEI's acquisition of the interests in Pinnacle does not proceed as a result of a material breach by TransAtlantic Worldwide, us or VEI of the letter agreement, a material breach by TransAtlantic Worldwide of the TBNG option agreement or a material breach by TransAtlantic Worldwide or VEI of certain other agreements entered into in contemplation of the acquisition of TBNG and Pinnacle, the breaching party shall be liable to the non-breaching party for all direct damages, costs and expenses suffered by the non-breaching party as a direct result thereof, up to a maximum of $9.2 million.
Direct Petroleum Acquisition. On February 18, 2011, TransAtlantic Worldwide acquired Direct Morocco and Anschutz, and our wholly owned subsidiary, TransAtlantic Petroleum Cyprus Limited ("TransAtlantic Cyprus"), acquired Direct Bulgaria. In addition, TransAtlantic Worldwide purchased from the seller, Direct Petroleum Exploration, Inc. ("Direct"), all of Direct's right, title and interest in the amounts due to Direct by each of Direct Morocco, Anschutz and Direct Bulgaria. As consideration for the acquisition, TransAtlantic Worldwide paid $2.4 million in cash to Direct, and we issued 8,924,478 of our common shares (at a deemed price of $3.15 per common share) to Direct in a private placement, for total consideration of $34.5 million. In addition, if certain post-closing milestones are achieved, we will issue additional consideration to Direct equal to: (i) $6.0 million worth of our common shares if the GRB-1 well in Morocco is a commercial success; (ii) $10.0 million worth of our common shares if the Deventci-R2 well in Bulgaria is a commercial success; and
(iii) $10.0 million worth of our common shares if Direct Bulgaria receives a production concession for a specified area in Bulgaria.
In connection with the acquisition, we entered into a registration rights agreement whereby Direct is entitled to certain piggyback registration rights for the common shares issued to Direct, including any common shares issued to Direct as part of the additional consideration, for a period of six months following the date of issuance to Direct. The piggyback registration rights permit Direct to elect to have the common shares included in a registration statement filed by us, subject to the limitations and conditions set forth in the registration rights agreement.
At the time of closing, Direct Morocco and Anschutz owned a 50% working interest in the Ouezzane-Tissa and Asilah exploration permits in northern Morocco. As a result of the acquisition, we own 100% of the Asilah exploration permits. We subsequently relinquished the Ouezzane-Tissa exploration permits. Direct Bulgaria owns 100% of the working interests in the A-Lovech exploration permit and the Aglen exploration permit, subject to a 3% and a 1% overriding royalty interest, respectively, which cover an aggregate of approximately 600,000 acres (2,288 square kilometers) in northwestern Bulgaria. The A-Lovech permit contains the Deventci-R1 well, which discovered a reservoir in the Jurassic Orzirovo formation at a depth of approximately 4,200 meters. The well is currently producing approximately 250 Mcf of natural gas per day on a limited test basis, and the production is being sold to a nearby compressed natural gas facility. We plan to appraise this discovery by drilling a second well, the Deventci-R2 well, on the A-Lovech exploration permit in 2011.
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The A-Lovech exploration permit is also estimated to contain over 300,000 acres prospective for Jurassic-aged shale (at a depth of approximately 3,800 meters), which was recently certified as a geologic discovery by the Bulgarian government. We anticipate coring the Etropole shale interval, which will enhance the technical understanding of the potential of this shale play.
First Quarter 2011 Operational Update
We are in the process of integrating the Amity Oil International Pty. Ltd. ("Amity"), Petrogas and Direct Bulgaria properties, equipment and personnel into our operations. As of March 31, 2011, we were producing an aggregate of approximately 2,700 net Bbls of oil per day from the Selmo and Arpatape oil fields and approximately 8.3 net Mmcf of natural gas per day in the Thrace Basin.
Turkey Exploration and Development. During the first quarter of 2011, we continued to develop our Selmo oil field and Thrace Basin gas fields. At Selmo, we completed one well, drilled and completed two wells and began drilling two additional wells. In the Thrace Basin, we completed two wells, drilled and completed one well and began drilling four additional wells.
In southeastern Turkey, we completed a 23-kilometer, 6-inch pipeline from the Bakuk-101 well to an existing pipeline to the south, commissioned the pipeline and began selling limited quantities of natural gas from the well in April 2011.
Morocco Exploration and Development. In the first quarter of 2011, we continued to explore and develop our properties in Morocco. We commenced producing oil in January 2011 from the HR-33 bis well on the Tselfat exploration permit (100% working interest, subject to a 25% participation interest by Office of National des Hydrocarbures et des Mines ("ONHYM")) and put the well on an extended production test to determine its commerciality. We also constructed water separation facilities at the HR-33 bis well. We drilled the GRB-1 well, which we are currently testing, on the Asilah permit (100% working interest, subject to a 25% participation interest by ONHYM).
Bulgaria and Romania Exploration and Development. We are evaluating potential locations in Bulgaria for a planned Deventci-R2 well on the A-Lovech permit (100% working interest) to appraise the Orzirovo formation and we plan to core the Jurassic-aged Etropole shale formation, which was recently certified as a geologic discovery by the Bulgarian government. In Romania, we are evaluating a potential exploration well to test a Silurian-aged shale and a potential Jurassic-aged oil play and reprocessing seismic data previously shot over the Sud Craiova license (50% working interest).
Drilling Services. As of March 31, 2011, we owned six drilling rigs and four workover and completion rigs in Turkey and we owned two drilling rigs in Morocco. In addition, we managed one drilling rig in Turkey for Viking Drilling, LLC ("Viking Drilling") and one drilling rig in Iraq for Maritas A.?. ("Maritas") pursuant to management services agreements.
We have expanded our drilling services activities, particularly in Turkey, to include products and services used to drill and evaluate oil and natural gas wells. Through Viking International Limited ("Viking International"), our wholly owned subsidiary, we provide the following oilfield services: wireline, pressure pumping (including fracture stimulation, acid stimulation and cementing), construction (including location building, road building and pipeline construction), rental tools and underbalanced drilling, pulling units, drilling fluids, inventory, yards and trucking and mudlogging. Through Viking International, we are able to provide a full range of services to our exploration and production business, reducing costs and the need to rely on third party service providers. In addition, when our drilling rigs and equipment are not operating on our properties, we can use them to provide drilling and oilfield services to third parties. Viking International is not currently active in Bulgaria or Romania. During the first quarter of 2011, Viking International generated revenues of approximately $3.0 million from providing oilfield services to third parties in Turkey.
Through Viking Geophysical, Ltd. ("Viking Geophysical"), our wholly owned subsidiary, we operate two seismic data acquisition crews with equipment capable of acquiring 2D, 3D and microseismic data. During the first quarter of 2011, Viking Geophysical generated revenues of approximately $500,000 from providing seismic services to third parties in Turkey.
To support these services, we have established an electric wireline division, a pressure pumping division and a drilling fluids division. The pressure pumping division has personnel and cementing, fracture and acid stimulation equipment, which includes state-of-the-art fracturing technologies, including microseismic capabilities.
On May 5, 2011, our board of directors formed a special committee, comprised of four independent directors, to evaluate strategic alternatives relating to our drilling services business.
Planned 2011 Operations
We continue to actively explore and develop our existing oil and gas properties in Turkey, Morocco and Bulgaria and evaluate opportunities for further activities in Romania. Our success will depend in part on discovering additional hydrocarbons in commercial quantities and then bringing these discoveries into production. For the remainder of 2011, we are focused on accomplishing the following objectives:
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? Increasing Production. Our goal is to achieve a production rate of 10,000 barrels of oil equivalent (Boe) per day by the end of 2011. We plan to increase our crude oil and natural gas production in Turkey through the acquisition of TBNG, continuous drilling in Selmo and the Thrace Basin, the completion of pipelines to bring shut-in gas to market, the application of modern well stimulation techniques such as gelled acidizing and fracture stimulation, and the introduction of directional drilling.
? Securing Partners to Reduce Exploration Risk. We are actively seeking partners for our exploration acreage in Turkey, Morocco, Bulgaria and Romania. Through farm-outs, we expect to reduce our exploration risk and accelerate the exploration and development activities on the farmed-out properties. We have begun consolidating and analyzing well data and seismic data for our properties in Bulgaria and our exploration acreage in Turkey. It is our intention to remain as operator in the properties that we farm out.
? Integrating Acquisitions. We expect to complete the acquisition of TBNG in June 2011, which will bring additional acreage, production, personnel and equipment into our Turkey operations. We continue to integrate the recent acquisitions of Amity, Petrogas and Direct Bulgaria.
Capital expenditures for the remainder of 2011 are expected to range between $75.0 million and $125.0 million. Approximately 50% of these anticipated expenditures will occur in the Thrace Basin in Turkey, devoted to developing conventional and unconventional natural gas production, building infrastructure and acquiring seismic data. Approximately 35% of these anticipated expenditures will occur in southeastern Turkey, devoted to developing crude oil production at Selmo and Arpatepe and drilling exploratory wells on various licenses. The balance of the estimated budget is divided between exploration activities in Morocco and Romania. We are seeking a joint venture partner to fund our anticipated capital expenditures in Bulgaria in 2011. If cash on hand, borrowings from our amended and restated credit facility and cash flow from operations are not sufficient to fund our capital expenditures, then we will either curtail our discretionary capital expenditures or seek other funding sources. We currently plan to execute the following drilling and exploration activities in 2011:
Turkey. We plan to drill approximately 90 gross wells during the remainder of 2011, including wells to be drilled on acreage held by TBNG, which we expect to acquire in June 2011. If we do not complete the acquisition of TBNG, the number of wells we expect to drill in 2011 may change. We also plan to construct the infrastructure necessary to produce and sell oil and natural gas from the productive wells we drill.
Morocco. On our Tselfat exploration permit, we are currently producing oil from the HR-33 bis well on an extended production test to determine if the well is commercially viable. If testing confirms the HR-33 bis well as a commercial well, we plan to delineate the oil field, apply for an exploitation concession and drill at least one additional well in the Haricha field. We drilled the TKN-1 exploration well on the Tselfat exploration permit, but the well failed to encounter the target formation. We plan to drill two additional exploration wells to a depth of at least 1,500 meters on the Tselfat exploration permit in 2011. On our Asilah exploration permit, we are testing the recently completed GRB-1 well, which had gas shows during drilling. If that well is completed as a commercial well, we would likely drill additional appraisal wells and develop plans to commercialize those wells.
Bulgaria. We plan to drill the Deventci-R2 well on the A-Lovech exploration permit to appraise the Deventci-R1 well gas discovery. While drilling the Deventci-R2 well on the A-Lovech permit, we plan to test the productivity of the Jurassic-aged Etropole shale interval. We may also drill an additional appraisal well on the A-Lovech exploration permit. If the Deventci-R2 well on the A-Lovech permit is a commercial well, we anticipate planning the construction of a pipeline to connect the Deventci wells to a natural gas pipeline to the south. We are seeking to enter into a joint venture where the joint venture partner would carry us in a portion of the capital expenditures incurred in Bulgaria in 2011.
Romania. We plan to drill an exploration well to test the Silurian-aged shale formations present on the Sud Craiova license. We may also drill an exploration well to test the Coyote oil prospect on the southeastern portion of the Sud Craiova license.
Drilling Services Business. We plan to continue to increase drilling services revenues by providing drilling services and seismic acquisition services to third parties in Turkey and northern Iraq.
Significant Accounting Policies and Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Our significant accounting policies are described in Notes 3 and 4 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2010 and are of particular importance to the portrayal of our financial position and results of operations and require the application of significant judgment by management. These estimates are based on historical experience, information received from third parties, and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. There have been no changes to the significant accounting policies disclosed in our Annual Report on Form 10-K for the year ended December 31, 2010.
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Other Recent Accounting Pronouncements
In January 2010, the Financial Accounting Standards Board issued Accounting Standards Update No. 2010-06, Improving Disclosures about Fair Value Measurements ("ASU 2010-06"). The update provides amendments to Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures, that require more robust disclosures about: (1) the different classes of assets and liabilities measured at fair value, (2) the valuation techniques and inputs used, (3) the activity in Level 3 fair value measurements, and (4) the transfers between Levels 1, 2, and 3. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009. Disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of ASU 2010-06 did not have a material impact on our financial statements.
We have reviewed other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on our current or future earnings or operations.
Results of Operations-Three Months Ended March 31, 2011 Compared to Three Months Ended March 31, 2010
Revenue. Total oil and gas revenue increased to $28.7 million in the quarter ended March 31, 2011 from $11.3 million realized in the same period in 2010. The increase was the result of higher prices received for our oil production and an increase in oil and natural gas production. In addition, we recorded $3.5 million in oilfield services revenue during the first quarter of 2011 compared to $1.1 million in oilfield services revenue during the same period in 2010. The increase was the result of an increase in oilfield drilling services provided to third parties in the first quarter of 2011.
Production. We produced approximately 219,000 net Bbls of crude oil in the first quarter of 2011, substantially all of which was generated from the Selmo and Arpatepe oil fields. We produced approximately 803 net Mmcf of natural gas from the Thrace Basin gas fields in Turkey during the same period. We produced approximately 146,000 net Bbls of crude oil in the first quarter of 2010 from the Selmo and Arpatepe oil fields. We did not produce any natural gas in the first quarter of 2010.
Production Expenses. Production expenses for the quarter ended March 31, 2011 were $4.1 million compared to $4.2 million in the quarter ended March 31, 2010. Production expenses remained steady in the first quarter of 2011 compared to the . . .
26MayStans Closes Acquisition of KCMP Heavy Rare Earth Processing Complexposted by: Stans Energy | comments : 0 CommentStans Energy Corp. (TSX-V: RUU, OTCQX: HREEF) (“Stans” or “the Company”) has completed its $5,500,000 USD transaction for 100% ownership of the Kyrgyz Chemical Metallurgical Plant (KCMP) Rare Earth Processing Complex and Private Rail Terminal, pursuant to the agreement signed on January 13th, 2011, and further approved by the KCMP shareholders on February 18th, 2011. TSX-V approval for this acquisition was obtained on April 29, 2011. The Complex has been legally renamed, “Kashka REE Plant Ltd. (KRP)”.
Stans has hired Mr. Leonid A. Bulyonkov as a Director General of KRP. Mr. Bulyonkov started his engineering career at KCMP. During his career, Mr. Bulyonkov worked closely with the Russian Institutes VNIIHT, VIMS, GIREDMET, and IHHT. He has coordinated large scale rare metal processing operations, while supervising up to 1000 people. From 2008 to 2010, Mr. Bulyonkov worked at the Karabalta Ore Mining Complex OJSC in Kyrgyzstan, acting as Chief Engineer – Deputy Director General. Amongst his peers, Mr. Bulyonkov is recognized as a rare metals and radioactive processing specialist.
Robert Mackay, President and CEO of Stans Energy stated, “The completion of this transaction is a crucial step towards achieving our goal of becoming a near term producer of Heavy Rare Earth Elements (HREEs). We are very fortunate to add Mr. L. Bulyonkov to our team as our Head of Operations at KRP and we are confident that he will be able to use his extensive experience to efficiently reestablish a rare earth production line at the Facility. Mr. L Bulyonkov has already initiated plans for design and capacity upgrades to KRP.”
KRP Details and Historical Production Flow SheetFor almost three decades the KCMP Rare Earth Processing Complex produced 80% of the former Soviet Union’s RE products. The facilities and the rail terminal were used to produce and transport materials, equipment, chemicals and final product to and from markets when the Kutessay II RE mine was last in production. The Kutessay II mine is now 100% owned by Stans Energy. When the KCMP Rare Earth Processing Plant was last in operation the processing facilities comprised of four individual plants that were part of a much larger industrial complex.
Plant 1Plant 1 has been decommissioned and will not be used in Stans’ new design. This is because much of the past technology used in Plant 1 would not be used today, as newer Sorption technology has proved to be more efficient and less damaging to the environment when removing radioactive materials.
Historically, RE feed from the Kutessay II mine was brought to Plant 1 to be refined into a new, higher grade concentrate. At this stage, the radioactivity was removed through roasting. Modern technologies have made this step redundant.
Plant 2Plant 2 separated the mixed rare earth solution from Plant 1 and produced light rare earth (LRE) concentrate (La, Ce, Pr, Nd), middle rare earth (MRE) concentrate (Sm, Eu, Gd), heavy rare earth (HRE) concentrate (Tb, Dy, Ho, Er, Tm, Yb, Lu) and Yttrium Oxide (Y2O3). The equipment in Plant 2 is intact, but has been removed from the building and stored at a location 4 km away for security purposes. Stans intends to refurbish and reassemble Plant 2.
Plant 3Plant 3 separated the MRE and HRE concentrates into final oxides, metals, alloys, nitrate solutions, and final oxides and metals of the LREEs Lanthanum (La) and Cerium (Ce). This Plant was where the various complexing, elutriation, and regeneration solutions were prepared. The process was carried out on a batch system where the conditions in the ion exchange columns (linear flow, solution, complexing, elutriating solution concentration solution, etc.) were specific for each REE. The Rare Earths were then precipitated as the oxalate (carbonate), filtered and washed and then dried and calcined to rare earth oxide (REO). The RE metal section involved the production of metals from the REOs through various electrical, induction and arc furnaces.
The Soviets never used Plant 3 to its full capacity as uses for HREEs were limited between 1965 and 1990. In the late 80s, the Soviets initiated plans for the Plant’s expansion to process 3 to 4 times the amount at which it had previously operated. The industrial building expansion was completed when the Plant ended operations in 1991. Some new equipment was delivered to and stored on site but this equipment has not yet been installed.
The Plant continued to process small amounts of remaining HRE concentrate into final metals up until 2009. The last of its HREE concentrate and final products were sold in 2010. Plant 3 is in good working condition.
Plant 4Plant 4 separated light rare earth concentrate from Plant 2 into individual rare earth oxides. Like Plant 2, much of the equipment from Plant 4 was removed and stored at a secure location. A feasibility study will determine whether Stans Energy will produce and sell light rare earth concentrate derived from Plant 2, or reassemble Plant 4 to produce final oxides.
Rail TerminalThe newly purchased rail terminal connects to the Central Asian Rail Network, which connects to Russia and all countries in Asia including China, Korea, and by ferry to Japan. The purchase of the Rail Terminal includes a gantry crane, two warehouses, two offices, and a weigh station. The land purchased with the rail terminal amounts to 143,500 m2. The rail terminal is roughly 15 km from the KMCP Processing Plants by paved road, and is roughly 35 km away from the Kutessay II mine by paved road.
Equipment Inventory and Industrial SpaceIn an independent assessment of the equipment, it was determined that 97% of the equipment purchased which had been previously used for processing rare earths were in either good, or satisfactory operating condition, and only 3% required repair. Stans has published a full list of the inventory included in the purchase and can be found at www.stansenergy.com/rare-earth-processing. The total industrial space in Plants 2 and 3 totals 21,812 m2.
Capacity Old & NewPreviously, the entire REE processing facility operated at approximately 500 mt/annum of final rare earth product. During its time in operation, its capacity varied depending on which products were needed and at what purities. 120 different final rare earth products were produced, including oxides, metals and alloys of all lanthanides with purities up to 99.99%. In the late 80s, the Soviets initiated plans to expand the operating capacity to 1500 mt, but never finished the expansion. A feasibility study will determine the optimal scale at which to bring Kutessay II back into production.
Stans Energy has engaged the Russian Institutes that initially designed and built KCMP to help redesign and refurbish the Facilities to create a new and more efficient source of rare earth supply. New technologies and solvents that were unavailable during the Soviet era will be tested in an effort to further improve the Plant’s efficiency.
For additional information, please contact:
Robert Mackay
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Email: robert@stansenergy.com
Jonathan Buick
Investor Relations, The Buick Group
Ph. 416 915 0915
Email: jbuick@buickgroup.com
About Stans EnergyStans Energy Corp. is focused on developing properties containing Rare Earth Elements (REEs), Uranium, and Associated Metals. The company continuously examines and evaluates new opportunities to acquire and develop proven resource properties in areas of the former Soviet Union. The headquarters of the company is located in Toronto, Ontario, Canada, and its wholly-owned subsidiary, Stans Energy KG, is located in Bishkek, Kyrgyzstan. Stans Energy Corp’s Chairman, Rodney Irwin, was the former ambassador to the Russian Federation for Canada, and currently serves as the Honorary Consul of the Kyrgyz Republic for Canada. Leave a comment
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Latest NewsStans Closes Acquisition of KCMP Heavy Rare Earth Processing Complex 26 May 2011
Stans Energy Corp Closes $28,000,000 Private Placement 28 April 2011
Stans Energy Corp Announces Terms of Private Placement and Increase of Offering to Approximately $28,000,000 15 April 2011
Stans Energy Corp. Announces Kutessay II Rare Earth Distribution 12 April 2011
Stans Energy Corp to Commence Trading on the United States’ OTCQX on Friday, April 8, 2011 07 April 2011
Stans Energy Corp Announces Private Placement for Approximately $25,000,000 30 March 2011
Stans Energy Corp. Announces Test Results of New Milling Technologies to Improve Kutessay II REE Concentrates 24 March 2011
Stans Energy Corp. Announces Kutessay II JORC Resource Estimate, and Final Five Years of Soviet Mining Data 23 March 2011
KCMP Shareholders Approve Deal Structure for Stans Energy Corp to Acquire 100% of KCMP’s HREE Processing Complex 18 February 2011
Stans Energy Corp. Acquires Past-Producing Heavy Rare Earth Processing Facility and Rail Terminal 13 January 2011
Stans Energy Corp. Reports on Round Table Rare Earth Meeting at the Canadian Embassy in Moscow 20 December 2010
Stans Energy Corp. Announces Results of Kutessay II Re-sampling Program 14 December 2010
Stans Energy Corp. Announces Initiation of JORC Resource Estimate for Kalesay Beryllium Deposit 30 November 2010
TheInvestar.com Interviews Robert Mackay, CEO of Stans Energy Corp. 20 October 2010
Stans Energy announces private placement with Australian Rare Earth Fund 15 October 2010
Stans Energy signs MOI with Russian state-owned VNIIHT 13 September 2010
Chris Berry reviews Stans Energy Corp. 08 September 2010
Stans Energy Corp assists Kyrgyzstan 04 August 2010
Stans Energy Corp receives support from the Ministry of Natural Resources of Kyrgyzstan 03 August 2010
Stans Energy Corp. reports on its shareholder meeting 15 July 2010
Wow, sorry I tried it several times could not access thanks I was able to today
Does anyone know why the website to Topz is not pulling up? I tried the link http://www.topazresourcesinc.com/ and a page for GoDaddy says it has expired?
LEARNINGTHETRUTH, WHAT DO YOU THINK OF THE MESSAGE YOU POSTED ON POLAR AND TOPZ?
5 Health Care Stocks With Upside
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Derma Sciences Inc.| DSCI MediciNova Inc.| MNOV NeurogesX Inc.| NGSX 3. Poniard Pharmaceuticals is a biopharmaceutical company focusing on the development and commercialization of cancer therapeutics. The company's lead product candidate is Picoplatin, an intravenous platinum-based chemotherapeutic designed to treat solid tumors that are resistant to existing platinum-based cancer therapies.
Analysts polled by Bloomberg expect loss per share of 69 cents for 2010, down from $1.31 per share reported during 2009. For 2011, loss per share is likely to contract to 41 cents, analysts foresee.
The company recently announced the receipt of Clinical Trial Application (CTA) approval from the Chinese State Food and Drug Administration (SFDA) to conduct two Phase III clinical studies of Picoplatin, its lead product candidate in the treatment of second-line small cell lung cancer (SCLC) and second-line ovarian cancer in China.
Of the two analysts covering the stock, 50% recommend a buy, while the remaining rate a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 186% to $1 in value from current levels.
http://www.thestreet.com/story/11052982/3/5-health-care-stocks-with-upside.html#
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