American Natural Energy announced its results of operations for 2009. All currency amounts reflected are in US dollars. ANEC recorded net income of $23,953,000 ($0.27 per share) for 2009 compared to net losses of $61,000 ($0.00 per share) for 2008. The recorded net income results from a gain of $27,994,000 realized on extinguishment of debt resulting from the re-purchase of outstanding debentures and transfers of property interests.
For 2009, oil and gas sales and related operating revenues were $1,054,000 compared to $2,198,000 for 2008, a decrease of 52%. The decreased sales are the result of a decrease in realized average prices from $107.92 per boe in 2008 to $66.04 per boe in 2009 and a decrease in overall production from 20,363 boe in 2008 to 15,965 boe in 2009. For 2009, lease operating expenses (including production taxes) were $785,000 ($49.17 per boe) compared to $1,854,000 ($91.05 per boe) for 2008, a decrease of 58%.
During 2008 and until August 2009 ANEC was a non-operating working interest owner in its Bayou Couba field project. The prior operator of the field during that time had not drilled or reworked any wells in the field, and as a result, gross field production decreased from an average of approximately 500 bopd to 100 bopd at August 4, 2009 when ANEC assumed operations of the field. Since August 2009, ANEC has recompleted 3 wells along with addressing several mechanical production requirements in the field and has seen gross field production increase to approximately 250 bopd currently. Total proved reserves at the end of 2009 were approximately 1,375,000 boe compared to 404,880 boe at the end of 2008. Increases were due to revisions to previous estimates of 450,370 boe and additions resulting from purchases of additional interests in the field in the amount of 536,250 boe. Total SEC PV10% at 2009 year end were $24.83 million with pricing of $58.83 per barrel of oil and $3.55 per mcf of natural gas held constant through the production life of the properties. Additionally, the Company has approximately 700,000 barrels of oil in the Probable Reserves category.
In addition to the ongoing effort to maximize the potential of existing reserves ANEC is also completing Pre-stack Depth Migration processing of its 60 square mile licensed data within the regional 3D seismic survey in which it participated in 2007. The final processed data, which ANEC believes will significantly enhance the sub-salt potential of the Bayou Couba Field, is expected to be completed during the 2nd quarter of 2010. Company personnel have identified and estimated approximately 21 bcf of net gas reserves in the Possible Reserves category.
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