Stratic Energy Corporation has filed its interim financial statements and accompanying Management's Discussion and Analysis for the quarter ended June 30, 2008.
Highlights in Q2 2008
- West Don project in UK North Sea on track for first oil at end Q1 2009: field development approved by UK government in May 2008 and development drilling commenced in August 2008.
- Operator's proposed development plan for the Longanesi gas discovery in Italy finalized; development plan, production licence and environmental permit applications in process of being submitted.
- Development planning for Crawford oil project in UK North Sea continues following successful 2007 appraisal well; submission of field development plan targeted by end 2008.
- Lower risk P/8 development option in Netherlands sector of North Sea being assessed; development activity deferred until 2009.
Exploration and Appraisal:
- Drilling commenced in August 2008 of appraisal well to test high potential eastern extension of Breagh gas discovery in UK North Sea; to be followed by high angle/horizontal well on West Breagh.
- Scheduled November 2008 well spud date on Cairngorm oil discovery in UK North Sea using the Byford Dolphin semi-submersible drilling unit, to test potentially high productivity of reservoir.
- Well planning being advanced for early 2009 appraisal of Bowmore condensate discovery in UK North Sea.
- Nasrani gas prospect in Block 17, Syria approved for drilling - rig negotiations advanced for well spud by early 2009.
Financial (all amounts in US dollars)
- Gas sales revenues in Turkey of $2.5 million in Q2 (2007: $0.7 million) with production in the quarter of 260.3 mmscf (2007: 79.5 mmscf) from 3 fields, up from one field in the prior year.
- Net loss for quarter of $6.5 million (2007: $6.7 million).
- New finance for development and exploration raised totaling $192.5 million.
- Capital expenditure for 2008 projected at approximately $100 million, approximately half on developments and half on exploration/appraisal.
Kevin Watts, Stratic's President and Chief Executive Officer, commented, "We are now only 7 months away from the planned West Don production start-up, which will generate significant revenue for the company for the first time. At $100 a barrel oil prices, our share of the field is estimated to net $100 million of operating cash flow over the first 12 months of production, which will allow us to explore more aggressively and expand further our drilling campaign, recently commenced with the Breagh well.
"Over the next year from now we have drilling planned to target net unrisked resources of over 3 times our existing booked reserves, and if successful this would transform Stratic's asset base. In addition, we continue to evaluate value adding portfolio management opportunities, and overall look forward to an important period in the development of the company."