newsNordic Oil & Gas loses $1.37-million in 2007
2008-04-25 17:15 ET - News Release
Mr. Donald Benson reports
NORDIC OIL AND GAS ANNOUNCES 2007 YEAR-END RESULTS
Donald Benson, chairman and chief executive officer of Nordic Oil & Gas Ltd., is releasing the company's financial results from operations for the year ended on Dec. 31, 2007. All amounts referenced herein are in Canadian dollars.
Revenue from oil and natural gas sales for the year (including liquids and transport revenue) totalled $588,152, a decrease of $78,984 from the $667,136 reported for 2006. The decrease in total revenue was largely due to continuing lower natural gas prices, which prevailed throughout the energy industry for much of the year.
Current assets, including cash, term deposits and accounts receivable for 2007, were up significantly from a year ago to $3,169,248 compared with $767,903 in 2006. This was due largely to the increase in cash and cash equivalents to $2,044,388, a direct result of the successful private placement financings during the latter part of the year. However, net cash flow from operating activities (cash received from operators minus royalty expense) was down slightly to $390,853 compared with $505,063 for the year ended Dec. 31, 2006.
Total assets as at Dec. 31, 2007, were $7,713,059, up substantially from the $4,309,480 in 2006, including an increase in property and equipment to $4,543,811 from $3,426,676 a year ago. General and administration expenses for the year were up over 2006 -- $576,742 versus $408,601. Furthermore, overall expenses for the year under review increased to $1,625,752 compared with $1,302,337 in 2006. This was due primarily to the increase in the company's stock-based compensation costs, which rose to $530,211 in 2007 as compared with $179,710 last year.
The company recorded a net loss before income taxes of $1,370,566 for the year, compared with the 2006 loss of $800,556. As was the case last year, the 2007 loss can be attributed to the costs related to the increase in stock-based compensation, asset retirement obligation and depletion costs, which were recorded as expenses on the income statement. However, as noted, the company ended the year on a positive note with respect to cash and cash equivalents, which totalled $2,044,388, compared with $433,423 at the end of 2006.
Commenting on the financial results Mr. Benson stated: "Thanks to our ability to raise a record amount of money in 2007, we closed the year on the strongest financial ground we have ever been on. With the success we achieved with our various private placements during the second half of 2007, we find ourselves in a financial position that will allow us to begin embarking on our most aggressive and large-scale capital expenditures program in our history.
"We intend on undertaking a most ambitious drilling program at Preeceville, Joffre and Lloydminster, which should result in a substantial increase in our production levels in 2008."
He added that the company also looks forward with great anticipation, to the commencement of its exploration drilling activities in Preeceville, where, Mr. Benson said, "We are confident that the possibility exists for one or more pools of oil to be identified on our property."
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