Found 2011 earnings released on sedar April 20th...
For the year ended December 31, 2011, the Company reported a net loss of $13,916,145 Bowood also had at December 31 2011 an accumulated deficit of $30,692,652. In addition, at December 31, 2011, Bowood had drawn $2,200,000 against its credit facility of $8,500,000 (subsequently reduced to $5,700,000 in March 2012) and had other working capital deficiencies of $2,080,792. As the credit facility is a demand loan, it may be called at any time. As the lending value of the credit facility is tied closely to natural gas prices, and current over-supply and depressed pricing is expected to continue for the immediate future, there is no assurance that the credit facility will be renewed when it is informally reviewed in May 2012. Should the bank not extend the loan, the Company would need to seek alternative forms of debt or equity financing or dispose of certain assets to repay the outstanding indebtedness. Please see note 18c) - liquidity risk below. In addition, in light of these low gas prices, the Company recorded impairments of $13,798,516 against property and equipment for the year ended December 31, 2011.
These material uncertainties lend significant doubt as to the ability of the Company to meet its obligations as they come due and accordingly, the appropriateness of the use of accounting principles applicable to a going concern.
On February 27, 2012, the Company entered into a strategic alternatives review process. The strategic alternatives may include, among other alternatives: a sale of the shares of the Company, either in one transaction or in a combination of transactions; a merger, recapitalization, arrangement, amalgamation or any combination thereof, a sale of a material portion of the assets of the Company, or equity financing. There is no assurance that the strategic alternatives review process will be successful, or if a transaction is undertaken, as to its terms or timing.
These financial statements do not include any adjustments to the amounts and classifications of assets and liabilities, and the reported revenues and expenses, that might be necessary should the Company be unable to continue as a going concern, and therefore, be required to realize its assets and discharge its liabilities other than in the normal course of business and at carrying amounts different from those reflected in the accompanying financial statements. Any such adjustments could be material.