NEYYF.PK or TSX:NNN,NiMin Energy Corp. Announces 2010 Second Quarter Results
CARPINTERIA, CALIFORNIA--(Marketwire - 08/12/10) - NiMin Energy Corp. (TSX:NNN - News)(Pinksheets:NEYYF - News)(PINK SHEETS:NEYYF - News) ("NiMin" or the "Company") today announced its financial results for the quarter ended June 30, 2010. Copies of the Company's financial statements and management's discussion and analysis ("MD&A") may be obtained on SEDAR at www.sedar.com.
Net loss for the quarter ended June 30, 2010, was $2,927,828 compared to a net loss of $4,310,816 for the quarter ended June 30, 2009. Loss per share for the quarter ended June 30, 2010, was $0.05 compared to $0.12 for the same period a year earlier.
For the quarter ended June 30, 2010, the Company reported gross revenues of $4.42 million, up from $2.12 million reported in the same period of 2009. The increased revenue is from a 49.5% increase in the volume of oil and natural gas produced, due in part to the addition of the producing properties in Wyoming, and a 32% increase in prices.
Operating netback increased to $1.70 million for the quarter ended June 30, 2010 from $0.27 million for the quarter ended June 30, 2009.
General and administrative ("G&A") expenses increased from $1.98 million in the prior year to $2.27 million in the quarter ended June 30, 2010. Before stock-based compensation expense, a non-cash accounting entry, the G&A expense for the quarter ended June 30, 2010 was $1.52 million compared to $0.94 million reported for the same period in 2009.
Depreciation, depletion, amortization and accretion ("DD&A") for the second quarter of 2010 decreased to $1.14 million from $1.76 million reported for the same period in 2009. This decrease in DD&A is primarily attributable to an increase in proven reserves associated with the acquisition of four fields in Wyoming in December 2009.
Highlights for the quarter ended June 30, 2010, include:-- In May 2010, NiMin completed a public offering of Common Shares at an offering price of CDN $1.25 per share. The Company issued 9,200,000 Common Shares for aggregate gross proceeds of CDN $11,500,000 or USD $11,018,492, net of CDN $989,260 or USD $947,840 of offering costs.-- On June 30, 2010, the Company entered into a senior secured loan (the "Senior Loan") in the amount of $36 million from a U.S. based institutional private lender (the "Lender"). At the request of the Company and subject to approval by the Lender, the Senior Loan may be increased to $75 million to provide additional development capital. The Senior Loan has a 12.5% fixed interest rate and a term of five years.
Management Comments
Mr. Clancy Cottman, Chairman and CEO, said, "During the latest quarter, we successfully restructured our balance sheet, which gives us the financial strength to grow our production significantly over the next few years through development drilling at our Wyoming properties. Our second and third wells have been drilled at the Ferguson Ranch field and are awaiting completion work. We expect to see production from these two wells in September. It is anticipated that we will drill a total of 12 wells in Wyoming in 2010."
Mr. Cottman continued, "In addition to Wyoming, we are also very excited about the long term implications of our Combined Miscible Drive ("CMD") process. The H-2 well continues to increase in production and is currently producing 122 barrels of oil per day ("bopd"), 68 bopd above the natural decline rate of the well. Continued increases in production in the Santa Margarita formation at our Pleito Creek Field demonstrate the effectiveness of the process. We will continue to evaluate new opportunities to apply the CMD process."
