Q3 financials are out on Sedar Nothing to get too excited about. Cardium oil well still not GPP approved so down to about 50bpd for Q3 ending 5/31/08. Gross revs 703K, net profit of 273K or .01eps. Avg production 96boepd vs 81 for Q2. Avg price was up to 79.42 compared to $56 in the previous qtr.
Sedalia ngas well that tested at 166boepd is still behind pipe. The abandoned pipeline that is in the area has been acquired by Magnum and they are waiting for the title transfer to be done at ERCB before they can test the line and replace pipe if necessary or put it into use. That should be done by monthend August. As soon as that is done, they will recomplete the second shut in Sedalia well. Magnum did acquire two adjacent sections and now has up to 6 more drill sites in the Sedalia area.
FYE 8/31/08 is coming up quickly so it is unlikely that the Sedalia well will be fully included in the reserve report or contribute much revs to Q4.
Based on the delays, it is likely Q4 will be similar to Q3 in production and cashflow. The qtr ending 11/30/08 should have both Sedalia and the Cardium oil well for most if not all the qtr. We should see a dramatic increase in production from the 96boepd avg for Q3 to something closer to 350boepd with potential from the Sedalia ngas well to continue the growth trends.
Bobwins