Raptor Capital Corporation announces intention to reorganize
CALGARY, April 23 /CNW/ - Raptor Capital Corporation recently received
the draft of the annual Independent Engineering Reserve Evaluation of its oil
and gas properties. The Total Value of the Corporation's proven plus probable
oil and gas reserves utilizing a 10% discount rate and escalated prices has
declined from $3,204,000 as of December 31, 2005 to $904,000 as of
December 31, 2006. The major reason for this decline was the downgrading of
its reserves at Whiskey Creek, Alberta.
Whiskey Creek
Continuing infrastructure problems that have reduced the productivity of
the 6-8-22-3 W5M well at Whiskey Creek has resulted in the value of the
reserves for this well being down graded from $2,104,000 to $606,000.
Improvements to the infrastructure are not expected to be in place until late
2008. Raptor does not expect any significant cash flow from this well until
the system is improved in 2008.
Wandering River
During the past one and half years Raptor has acquired an interest in
15,360 acres at Wandering River and during the period November 2005 to January
2007 participated in the drilling of 8 wells, resulting in one gas well, and
Nodal analysis is being conducted on six wells to determine those that are
potential candidates for plunger lift application with sufficient
deliverability to warrant being tied in. Wandering River is not expected to
provide any significant cash flow to the Corporation in the near future.
Working Capital Deficiency
The corporation had a working capital deficiency as at December 31, 2006
of approximately $589,000 consisting of current assets of $194,000 and current
liabilities of $783,000. In addition the Corporation owed a total of $750,000
to secured Convertible Debenture holders as at December 31, 2006.
As a result of the above Management believes it will have to reorganize
the Corporation in order for it to remain as a going concern. Management is
currently considering the following initiatives as part of a reorganization
effort:
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A: Reducing or eliminating, where practicable, general and
administrative expenses;
B: Consolidation of the share capital of the Corporation;
C: Restructuring of the secured and unsecured debt;
D: Liquidating assets; and
E: The raising of additional funds through equity/debt offerings.
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Raptor Capital will attempt to preserve the Corporation as a going
concern. This will take cooperation from the unsecured creditors of Raptor,
the Convertible Debenture holders and its shareholders. Raptor expects to
announce the date for the holding of a special meeting of the shareholders to
consider the issues outlined in this press release in the near future.
Parties interested in obtaining further information or receiving news
releases and corporate documents from Raptor may e-mail such request to
bill@raptap.com or review the Company's documentation filed on SEDAR at
www.sedar.com.
This news release may contain certain forward-looking statements that
reflect the current views and/or expectations of Raptor Capital Corporation
with respect to its performance, business and future events. Such statements
are subject to a number of risks, uncertainties and assumptions. Actual
results and events may vary.
