Admiral Bay Resources has reported record production for the second quarter ended April 30th, 2009. Average daily production (before royalty) was 3,516 MCFEPD, a 37% increase over 3rd quarter of 2008 and 2% increase over the 2nd quarter of 2009. Production costs, excluding the Thayer acquisition completed at the end of the quarter, were $2.40/mcf, a decrease of 10% when compared to Q3 2008 and G&A expense was $1.22/mcf, a decrease of 31% from Q3 2008. Revenues (before royalties and hedging impact) were $0.9 million, a decrease of 50% year over year due to a 64% decrease in natural gas prices partially offset by the increase in production volumes. Including the impact of hedging, revenues were $1.4 million or a 23% decrease from the prior year. Earnings for the quarter were a loss of ($ 2.2 million) versus ($ 2.5 million) in the prior period.
President and CEO Steven Tedesco commented, "Despite the sharp reduction in natural gas prices, we have been able to grow production while reducing overall costs in response to these challenging times. We are continuing to grow the Company as evidenced by the recent acquisition of the Thayer project in Kansas that will allow us to show further growth in production going forward while we continue to aggressively lower costs in all our project areas and corporately. We continue to look for additional ways to take advantage of the current environment to grow the Company while improving our cost structure and liquidity."
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