Canadian Superior Energy announced the release of its financial and operating results for the three months ended March 31, 2010.
Financial and Operating Highlights
- In January 2010, the Company completed a private placement for gross proceeds of approximately $59.5 million and named James H.T. Riddell to the board of directors.
- On February 3, 2010, converted all the issued and outstanding Series A Preferred Shares for an equal number of Series B Preferred Shares and extended the redemption date from December 31, 2010 to December 31, 2011.
- Western Canada average daily production for the first quarter averaged 2,779 boe/d compared to 3,367 boe/d for the comparable quarter in 2009. The decrease in volumes is primarily due to natural declines combined with minimal capital expenditures in 2009.
- Petroleum and natural gas sales increased from $9.8 million in 2009 to $10.1 million in 2010. The increase is mainly due to increases in commodity prices offset by natural declines in production volumes from 2009 to 2010.
- Beginning in Q4 2009 the Company added new wells currently producing approximately 800 BOE / d, including a significant discovery at Eaglesham currently making 2.4 MMcf / d and 100 BO / d. Particularly encouraging from the winter program is a nearly 25% increase to the Company's daily liquids production, highlighting the potential we believe exists for significant near-term growth in Company-wide oil and condensate production.
- Cash Flow from operations was $2.9 million in 2010 compared to cash flow used from operations of $(1.4) million for the same period in 2009. In 2010, the Company realized a higher operating net back from increased commodity prices and lower operating costs.
- The net loss in 2010 of $(2.2) million compared to the net loss of $(9.0) million decreased primarily due to higher commodity prices, and lower operating and general administration costs.
- The Company signed a rig commitment agreement to take operational possession of the rig sometime in the fourth quarter of 2010 for drilling the Zarat North appraisal well on the 7th of November Block, offshore Tunisia/Libya.
- The Liberty LNG regassification project is on budget and moving forward with submission of a construction permit planned for July of this year. The Company continues to review joint venture opportunities related to this project.
Business Overview and Future Strategy
The Company is focused on the maximization of long-term sustainable value to the shareholders by:
- Hiring a Chief Executive Officer with the skills and strategic vision to extract value from the Company's assets while pursuing new areas of growth.
- The Company is finalizing a 2010 drilling and re-completions program and intends to spend a minimum of $25 million in Alberta, making a strong re-commitment to growth in Western Canada and signifying a belief that our Canadian holdings contain significant un-tapped value for shareholders. The program is highlighted by a series of high-quality infill and step-out targets in our core Drumheller and Kaybob areas, where the Company holds mineral rights on over 180,000 gross acres of proven and prospective land.
- Evaluating synergistic growth opportunities in North America focusing on both conventional and unconventional oil projects.
- Re-imaging the Company and continue to building an ethical and transparent business culture.