MegaWest Energy Corp. has filed amended and re-stated annual financial statements for the years ended April 30, 2007 and 2006 to include a re-stated note for the additional disclosures required under US Generally Accepted Accounting Principles ("GAAP"). The Company's financial position and results, as previously reported under Canadian GAAP, have not changed.
The Company has re-stated its 2007 additional disclosures required under US GAAP to record the net assets acquired from the related parties at the exchange amount and to reflect the exchange shares issued on an acquisition as temporary equity. The effect on the consolidated balance sheet prepared in accordance with US GAAP for the restatements is to increase the oil and gas assets by $23,307,691 with a corresponding increase to shareholders' equity. The net loss for the year ended April 30, 2007 prepared in accordance with US GAAP remained unchanged. A complete description of the US GAAP reconciliation can be found in "Note 19" to the annual financial statements.
MegaWest owns or has the right to earn an interest in over 115,000 acres in Missouri, Kansas, Kentucky, Texas and Montana. MegaWest's strategy is to grow shareholder value through the selective acquisition of projects with large resource potential located in the vicinity of existing infrastructure and the application of emerging and proven commercial developments in thermal recovery technologies. Delineation drilling and the completion of thermal and enhanced recovery production demonstration projects may increase the value of the unconventional heavy oil resources in each of its core areas.
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