Nordic Posts Financial, Operational Results for 2009

Nordic O&G announced the Company's financial results from operations for its fourth quarter and year ended December 31, 2009. All amounts referenced herein are in Canadian dollars.

12-Months Results

Revenue from oil and natural gas sales (including liquids and transport revenue) in 2009 totaled $1,259,969 compared to $1,487,971 in 2008. Total revenue (including interest income) was $1,269,144 as compared to $1,564,973 a year ago. The slight decrease is a direct result of the fact that a number of the Company's heavy oil wells in Lloydminster were down for maintenance during
the fourth quarter.

Cash, short term investments and accounts receivable for the year totaled $1,088,669 compared to $3,090,315 at the end of December, 2008. The primary reason for the drop was the decrease in short-term investment for the year, which was much higher in 2008 due to the success of several private placement financings the Company undertook in 2008. Cash and cash equivalents at the end of the year were $162,216, as compared to $161,172 at the end of 2008.

Total assets as at December 31, 2009 were $17,357,549, an increase of more than $3.2 million - 23% - from the 2008 total of $14,113,291. The main reasons for the increase are the large jump in property and equipment to $16,168,787 from last year's total of $10,857,791.

Overall expenses, including operating costs, increased by approximately $540,000 on a comparative basis to $3,079,810 for the year ended December 31, 2009 compared to $2,538,902 for the year prior. The primary reason for the increase in total expenses was the rise in operating costs to $1,293,414 from $707,268, and increases in G & A expenses to $1,028,860 from $860,743, and in depletion and amortization expense to $642,291 from $529,196.

The net loss for the year was up only marginally from last year - $1,230,218 versus $995,869. The slight increase in the 2009 loss can be attributed to the aforementioned rise in the Company's expenses. Net loss per share in 2009 was $0.02, the same as it was in 2008.

Fourth Quarter Results

Revenue, including interest income for the three-month period ended December 31, 2009 totaled $256,041 compared to $602,557 during the same period a year ago and $385,882 in Q3 2009. The decrease in quarter over quarter revenue totals was due mainly to the fact that several of the Company's heavy oil wells in Lloydminster were down for maintenance.

General and administrative expenses for the three months under review totalled $785,495, up from the $446,644 in the same period in 2008. Overall expenses for the fourth quarter under review totaled $1,080,557 up from the $747,577 reported in Q4 2008.

For the quarter, the Company recorded a net loss of $443,759, as opposed to the $426,402 loss reported in Q4 2008.

Production Comparisons

Average production volume for gas for the year ended December 31, 2008 was 6.33 10(3)m(3)/day or 224.38 GJ/day, compared to 10.71 10(3)m(3)/day or 352.34 GJ/day in 2008. This equates to approximately 40 BOE/d in 2009, versus 72 BOE/d last year. The Company received $3.93/GJ as a weighted average gas price during the year under review compared to $7.58/GJ last year.

Average production volume for gas for the three months ended December 31, 2009 was 2.84 10(3)m(3)/day or 71.19 GJ/day compared to 9.83/10(3)m(3)/day or 357.22 GJ/day during the fourth quarter last year. This year's total equates to approximately 28 BOE/d versus 64 BOE/day for the same period in 2008. The Company received $3.64/GJ as a weighted average gas price during the fourth quarter of 2008 compared to $6.33/GJ for the fourth quarter last year.

Average daily heavy oil production for the year ended December 31, 2010 was approximately 52 BOPD, with an average price received of $50.66 per barrel. For the fourth quarter of 2009, average daily heavy oil production was approximately 53 BOPD, with an average price received of $49.31 per barrel.

In other news, Mr. Benson also announced that pursuant to the terms and conditions of Nordic's Stock Option Plan, the Board of Directors has approved the granting of 1,425,000 stock options to directors and officers of the Company, along with selected Nordic consultants and employees. The options, which are effective immediately, are priced at $0.10 per share and will run for a period of five years from today's date.

The Company currently has 69,741,626 issued and outstanding Class A Common shares listed on the TSX Venture Exchange.


 

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