Strategic O&G announced its financial results for the three month period ended March 31, 2010.
The three months ended March 31, 2010 showed an increase in volumes over the comparable period of 2009. Average daily sales volumes increased by 56% to 315 boe/d in 2010 versus 202 boe/d in 2009. Revenues also increased by 167% to $1,689,641 for 2010 versus $633,129 in 2009. The increase was the result of the acquisition of the Taber and Conrad areas in 2009, as well as a significant recovery in crude oil prices over the first quarter of 2009. Natural gas prices remain depressed and at similar levels to 2009. The Corporation received an average price of $59.44 per boe versus $34.65 in 2009 which is an increase of 72%.
For the three months ended March 31, 2010 average daily production was 315 boe/d versus 237 boe/d for the fourth quarter of 2009. Revenues for the first quarter of 2010 were $1,689,641 versus $1,081,829 in the fourth quarter of 2009. The increase in production and revenues is the result of a full three months of production included from the Taber and Conrad acquisition in the current quarter, and oil prices improving over the quarter. The Corporation received an average price of $59.44 per boe in the first quarter of 2010 versus $49.72 per boe in the fourth quarter of 2009, a 20% increase.
For the three months ended March 31, 2010, the Corporation had a net loss of $661,490 or $0.01 per share basic and diluted as compared to a net loss of $782,412 of $0.03 per share for the three months ended March 31, 2009. The loss in 2010 arises from the stock-based compensation expense of $726,964 as a result of the issuance of stock options in the quarter. Funds from operations for the three months ended March 31, 2010 was $66,793 as compared to a negative funds from operations of $206,870 for the three months ended March 31, 2009.
Strategic is now well positioned to move forward and grow in 2010. Production in March 2010 is in excess of 320 boe/d and with an increase in crude oil prices, now generates positive funds from operations. Strategic plans to drill up to 5 wells in the Taber and Conrad areas commencing in the second quarter, with the opportunity to increase production by up to 400 boe/d.
In addition, the Corporation, with its partner, are evaluating the potential of the light oil resource play at Maxhamish.
Strategic is in a unique position for a junior/emerging oil and gas company as it is now:
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