Contact Announces Year End Filings and Filing of Statement of Reserves Data4:15PM ET on Friday Jul 20, 2012 by CNW Group
(TSX-V:CEX)
Contact Exploration Inc. ("Contact" or the "Company") (TSX-V: CEX) is pleased to announce that it has today filed its audited consolidated financial statements for the year ended March 31, 2012 and the related management's discussion and analysis on the Company's profile on the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com.
Year End Summary
Alberta
During the year ended March 31, 2012, Contact acquired a 25% operated working interest in 16 contiguous gross sections of land in the prolific Deep Basin at Kakwa, Alberta. Subsequent to the end of the fiscal year, Contact successfully drilled and completed a horizontal well in the Montney Formation at Kakwa. This well tested at 1,150 bbl/d condensate and 8,290 mcf/d gas, being 2,532 boe/d combined (431 bbl/d and 3,109 mcf/d, or 950 boe/d combined, net to Contact and before payout). In addition to well head condensate, the gas analysis from the 13-17 Well suggests up to an additional 70 bbl/mmcf of natural gas liquids could be recoverable with access to a deep cut processing facility. Contact is proceeding with tie in/pipeline work for this well and is currently licensing its second horizontal well on the Kakwa property. As this well was completed after the fiscal year end, the associated reserves are not included in Contact's reserves evaluation for the year ended March 31, 2012.
New Brunswick
Contact expanded its oil presence in New Brunswick during the year by drilling the Hopewell structure. The well encountered thick net pay with a significant oil presence. Contact estimates the Hopewell structure to be more aerially extensive and at least as prospective for crude oil as the Stoney Creek field. Contact plans to complete this well and bring it onto production shortly thereafter. Contact also extended the exploration leases on all its gas-prone assets in the Moncton sub-basin for 5 years and all lands with respect to the Company's Hopewell project for 2 years.
Fiscal year end March 31, 2011 (Audited)
2012 2011 2010 IFRS IFRS Previous $ $ GAAP $Revenues (Net of Royalties and tax 3,925,202 1,873,585 1,281,390credits)Impairment (4,126,190) (26,046) (-)Net Loss: (4,013,722) (1,259,103) (1,390,909)Loss Per Diluted Share: (0.027) (0.011) (0.022)Total Assets 20,079,933 21,351,163 13,234,353
Highlights from the year ended March 31, 2012 include:
-- Gross proved oil reserves increased 40% from 319mbbl to 449mbbl. In the calendar year 2011, the Company produced more oil from the Stoney Creek field than had been produced in any other year in the field's 102 year history. -- The Company secured 16 gross sections of land in the Kakwa area of Alberta. -- The Hopewell structure was drilled in the Edgett's Landing area of New Brunswick successfully encountering the oil prone target, within a gross interval greater than 100m thick. -- Numerous lease extensions in New Brunswick were granted, securing all New Brunswick acreage for between 2 and 5 years. -- The Company divested a small Saskatchewan producing asset which was no longer cash flow positive, due to high operational costs. -- Over $2 million in equity financing was obtained. -- A new $2.5 million credit facility agreement was agreed upon between Contact and its lender. -- Contact welcomed Robert Hodgins to its Board of Directors on April 25, 2012. Mr. Hodgins is an independent businessman who brings a wealth of financial, business and corporate governance skills and experience to Contact's Board.
Statement of Reserves Data
Contact is pleased to report that an independent reserves evaluation effective March 31, 2012 (the "GLJ Report") has been completed by its newly appointed reserves evaluator, GLJ Petroleum Consultants Ltd., in accordance with the COGE Handbook. The GLJ Report evaluates the Company's Stoney Creek and Hopewell areas only and does not include the Company's new core area at Kakwa Alberta. In this connection, Contact has today filed on the SEDAR website the following reports for the year ended March 31, 2012, as required under National Instrument 51-101 - Standard of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators: Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information, Form 51-101F2 - Reports of Reserve Data by Independent Qualified Reserves Evaluators and Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure. These filings can be accessed electronically under Contact's profile on the SEDAR website at www.sedar.com.