RE: NAT GAS 9% up = FEL to rocket upLooks good to me!
- Quarterly production of 15,372 BOE per day, a 17% increase over the second quarter of 2008.
- Light oil production increased 42% from the prior year second quarter to 3,552 bbls per day.
- Funds generated from operations of $35.7 million ($0.41 per share) an 8% increase over first quarter 2009.
- Operating netback of $30.42 per BOE, including sulphur block sales.
- Reduced net debt, excluding convertible debentures, to $225.0 million at the end of the second quarter, down $16.6 million from the first quarter level of $241.6 million, leaving $53 million of credit available on a $285 million bank facility.
- Limited by spring break-up, second quarter activity included three (2.7 net) successful wells drilled and $15.3 million in capital spending, including $1.3 million on land and seismic and $8.8 million on facilities and infrastructure.
- The first horizontal well at Sinclair to utilize 12 stage fracturing was drilled and successfully completed.
- Successfully drilled the second Wilrich horizontal well at Marlboro (working interest - 38%), which was rig released in July.
- Expanded the Company's natural gas hedge position to December 31, 2010 at average prices of $7.79 per Mcf and $6.68 per Mcf for the remainder of 2009 and 2010, respectively.
- Subsequent to the end of the quarter, Fairborne entered into four separate transactions (two dispositions and two acquisitions) which will result in the addition of approximately 100 BOE per day of incremental production with net proceeds to Fairborne of $3.7 million, which will be applied against outstanding bank debt.
- Capital expenditures of approximately $50 million are planned for the remaining six months of the year.
- Three drilling rigs are currently active; one is finishing up a six well program in Sinclair and two rigs are drilling in the Clive area.