I was looking for a greater increase in 2006 cash flow, not much of an increase predicted over 2005:
Rival Energy Ltd. Files 2005 Year-End Financial Results and Reserves on SEDAR
Tuesday April 18, 8:00 am ET
CALGARY, ALBERTA--(CCNMatthews - April 18, 2006) - Rival Energy Ltd. (TSX VENTURE:RGY - News) is pleased to announce it has filed its 2005 year-end financial results (Financial Statements and MD&A) and corporate reserve information (Forms 51-101F1-F3) on SEDAR. These documents are available on www.sedar.com and on the Company's website at www.rivalenergy.com. The following summarizes these filings:
Financial and Operating Highlights
- 96% increase in cash flow to $8.7 million or $0.45 per share.
- Production averaged 843 boe/d in 2005.
- Reserve replacement costs of $14.46/boe.
- Recycle ratio of 2.3.
- Debt approx. $3.5 million (0.3 x cash flow).
- Tax pools of $18 million.
- 2006 capital budget of $12-15 million.
- 2006 forecast cash flow of $10 million or $0.52 per share based on average 2006 production of 1000 boepd.
Highlights 3 Months Ended December 31 Percent ------------------------------------------------------------------------ Financial 2005 2004 Change ------------- ------------- ---------- Oil & gas sales $ 5,106,627 $ 2,772,159 84 Funds from operations 2,632,436 1,170,468 125 Net income (loss) 952,630 (212,491) 548 Funds from operations per share 0.13 0.06 117 Net income (loss) per share .05 (0.01) 552 Average shares outstanding (000) 19,809 19,196 3
Operating (6:1 BOE) Average daily production Natural gas (mcfd) 2,807 3,099 (9) Oil and NGL (bblsd) 419 223 88 ------------- ------------- ---------- Barrels of oil equivalent (boe) 887 739 20
Average Sales Price Natural gas (mcf) $ 11.39 $ 6.47 76 Crude Oil (bbl) 54.83 44.71 23
Year Ended December 31 Percent ------------------------------------------------------------------------ Financial 2005 2004 Change ------------- ------------- ---------- Oil & gas sales $ 16,847,517 $ 10,563,047 59 Funds from operations 8,673,118 4,417,211 96 Net income (loss) 2,884,228 206,662 1296 Funds from operations per share 0.45 0.23 96 Net income (loss) per share 0.15 0.01 1289 Average shares outstanding (000) 19,293 19,203 0
Operating (6:1 BOE) Average daily production Natural gas (mcfd) 2,912 2,845 2 Oil and NGL (bblsd) 358 237 51 ------------- ------------- ---------- Barrels of oil equivalent (boe) 843 711 19
Average Sales Price Natural gas (mcf) $ 8.73 $ 6.50 34 Crude Oil (bbl) 57.67 43.95 31
Corporate Performance:
Rival's drilling success continues to provide the foundation for its growth. In 2005 the Company's growth was primarily realized from the development of a new pool oil discovery in the Killam area of east-central Alberta. This core area, combined with the adjacent Bellshill area, continues to provide growth opportunities for Rival. A new pool discovery in Bellshill in Q4 2005 will provide development opportunities for Rival in 2006, once the Company's reduced spacing application is approved (approximately Q2 2006).
Activity for Rival was reduced in 2005 due to drilling rig availability and surface access, but the Company drilled 12 wells with a 75% success rate (6 oil wells and 3 natural gas wells). Corporate reserves grew by 12% for 2005 (after production of 308,000 boe) and Rival's finding and development costs were $14.46 per boe for the proven reserves added. Rival will be more active on the acquisition front in 2006 as it strives to achieve a more aggressive growth pattern to complement its move to central W5M and the Peace River Arch. The recent additions to Rival's technical team bring a strong balance of exploration and exploitation expertise to the Company. With this technical strength, growing production volumes, strong cash flow and a low debt to cash flow ratio, Rival is well positioned to continue to post solid results as we continue to execute our corporate strategy.
Core Areas:
- East central Alberta - This area offers high quality light oil and natural gas reservoirs at shallower depths with year-round access and available infrastructure. Rival has been very successful in its pursuit of light oil pools and the Company continues to explore for multi-zone natural gas prospects within this area.
- Central W5M and the Peace River Arch are new regions of concentration for Rival. The recent additions to our technical team have a track record of success throughout these geological areas and we expect to be active within selected portions of these areas during 2006.
- Robsart remains the Company's shallow natural gas focus area. This area continues to provide Rival with additional drilling opportunities as our drilling program is executed and additional geophysical work is completed in the area.
2006 Operating Results:
To date in 2006, Rival has completed and placed on production two wells (drilled in late Q1) and has plans and drilling rigs scheduled to drill another 6-8 wells during Q2 this year. The first quarter 2006 also saw Rival drill its first well in the Peace River Arch, which was subsequently abandoned, along with an unsuccessful shallow well in the Corbett Creek area of Alberta. The Company has an active program planned during and immediately following Spring break-up and has recently drilled one potential natural gas well (Killam) and a potential oil well (Bellshill) as part of this program. Current production is approximately 900 boe per day.
In the central W5M area of Alberta (Winter drilling area), Rival has recently completed an exploration farmin that gives the Company access to over 40 sections of land on a prospective shallow natural gas opportunity. Rival is also negotiating on two more multi-well drilling opportunities in areas that offer access to significant landholdings. Participation in these areas is expected to complement the company's shallower oil and natural gas opportunities with a few higher impact plays and allow Rival to benefit from the knowledge and experience of the two senior geologists that recently joined the Company.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Contact:
Colin F. Ogilvy
Rival Energy Ltd.
President
(403) 233-4366
George Ziroff
Rival Energy Ltd.
VP Finance
(403) 233-4365
Website: www.rivalenergy.com
Source: Rival Energy Ltd.
