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Attention Business And Energy Editors
Austral Pacific Releases Q1 Results and Looks to the Future
WELLINGTON, New Zealand, May 14 /CNW/ -- Austral Pacific Energy Ltd.
(TSX-V: APX; NZSX: APX; Amex: AEN) Chief executive, Thom Jewell, said the
company recorded a loss of $6,567,884 for the quarter ended March 31, 2008.
The majority ($4.4mm) of this figure relates to non cash components associated
primarily with unrealised derivative losses and depletion. The underlying
performance of the company is strong.
The company has made significant gains over the period resulting in a
reduction of its liability from $49mm to $32mm and managing its short term
financial challenges by restructuring its loans and reduction of its long term
debt from $18 to $14.5mm with a further reduction to $11mm expected during the
second quarter.
The company has also been successful in monetising one its non core
projects in Papua New Guinea at an opportune point in its value cycle. "We
will continue to high grade the portfolio of assets with disciplined capital
spending, divestments and additions as warranted," said Jewell.
The Cheal field continues to pump cash into the organisation. The
Company's 69.5% of the Cheal field has produced 35,931 barrels of oil and
generated net revenue of $2,817,267 during the quarter.
Jewell said, "the individual wells are performing as anticipated and I am
confident that we will be able to increase both the reserves and the total
field production with additional drilling. We are also pleased with the
performance of the A1 well which is the first producing well from the
shallower Urenui sands overlying the entire Cheal field. Bringing this well on
stream this quarter and will allow us to realise additional reserves and
production for the field."
Two additional wells have been prepared and could spud before the end of
this month. While these wells are targeting incremental reserves, the
facilities are designed to allow successful exploration, appraisal or
development wells to be converted to producing wells and put on stream
rapidly. More than 10 additional drilling locations have been targeted to
extend the play trend beyond the existing field but within the permit area
over the next two years. These wells if successful may be produced through the
world class production facilities that are now in place and operating
smoothly.
"We have a staged forward work programme which will be funded out of
existing funds, future production revenue and by raising additional capital."
Jewell said. "This program includes further work on Cheal to increase
reserves and subsequent production, and development of the Kahili and Cardiff
assets."
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Web site: www.austral-pacific.com Email: ir@austral-pacific.com
Phone: Thom Jewell, CEO +64 (4) 495 0880 or
Brad Holmes +1 (713) 304 6962
>>
None of the Exchanges upon which Austral Pacific's securities trade have
approved or disapproved the contents hereof. This release includes certain
statements that may be deemed to be "forward-looking statements" within the
meaning of applicable legislation. Other than statements of historical fact,
all statements in this release addressing future production, reserve
potential, exploration and development activities and other contingencies are
forward-looking statements. Although management believes the expectations
expressed in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance, and
actual results or developments may differ materially from those in the
forward-looking statements, due to factors such as market prices, exploration
and development successes, continued availability of capital and financing,
and general economic, market, political or business conditions.
See our public filings at www.sedar.com and
www.sec.gov/edgar/searchedgar/webusers.htm for further information.
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/For further information: Thom Jewell, CEO, +64 (4) 495 0880, or Brad
Holmes, +1-713-304-6962, both of Austral Pacific Energy Ltd.,
ir@austral-pacific.com Web Site: http://www.austral-pacific.com/
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