Pacific Stratus Sees Loss in 2007 Second Quarter Results
Pacific Stratus Energy reported results for the three and six-month periods ended June 30, 2007. For the quarter, Pacific Stratus reported a loss of US$17.2 million or US$0.45 per share as compared to a loss of US$0.6 million or US$0.04 per share in the second quarter of last year. For the six months ended June 30, 2007 the company reported a loss of $22.6 million or $0.51 per share as compared to a loss of $1.0 million or $0.08 per share in the same period last year. Oil production in the quarter averaged 1,860 barrels per day, and the average price received for sales in the quarter amounted to US$60.30 per barrel. The loss in the quarter is primarily attributable to a $10.6 million non-cash charge for stock-based compensation and $4.1 million non-cash loss on the redemption of the Cdn$32.5 million senior unsecured notes in the quarter. The company changed its reporting currency to United States dollars effective January 1, 2007 to improve investor's ability to evaluate the company's results with comparable companies in the industry.
At La Creciente-2 well located on Prospect A (LCA-2), three gas bearing intervals were defined totaling 156 feet of Net Reservoir, for a Net to Gross ratio of 32% and porosities of 15% to 18%. The Company is now preparing to do an open hole production test to jointly test the sandstones from 11,330 to 11,650 feet. Following the test, the well will be completed with a 5-inch liner to selectively test the three intervals at 11,327-11,368, 11,397-11,411 and 11,426-11,513 feet respectively.
A water-gas contact was encountered in the basal sandstone at 11,740 feet measured depth or 11,030 feet true vertical depth sub-sea level. This contact is located 33 feet below the bottom of the reservoir column at the previously-drilled La Creciente-1 well and it represents the lower limit of the reservoir at Prospect A. Using average parameters for the reserve calculation, this represents a potential increase of 25% of the existing reserves attributed to Prospect A.
Commenting on these results, Jose Francisco Arata, Chief Executive Officer stated, "Now that we have defined the lower limit of the reservoir at Prospect A, not only are we ready to fully develop this field, but also to actively explore the other prospects located at La Creciente, especially Prospect D whose structural closing area is 22% larger than Prospect A. Drilling will commence on this target after completing the production tests at LCA-2. Recently acquired seismic data has also produced three additional prospects and one lead."
At the La Creciente 3 well, also located on Prospect A (LCA-3), drilling has reached a depth of 8,000 feet. Given that the water-gas contact was found at a true vertical depth of 11,030 feet sub-sea level, the company has decided to deviate this well toward the crest of the structure to reach the Cienaga de Oro formation at a depth of 10,292 feet.
The company also announced today that its subsidiary, Stratus Oil and Gas, has reached a Settlement Agreement, the terms of which shall remain confidential, with respect to the ICC Arbitration against Hocol S.A, and that the company holds no interest in the oil and gas fields of the Doima Contract or the Ortega Contract.
The company also announced that it has renegotiated its rights to the Puli-B block in Colombia and that its sole interest in Puli-B is in the Puli-7 well, which produces 70 bopd (net).
- Petro Rubiales Completes Acquisition of Pacific Stratus (Jan 23)
- Petro Rubiales and Pacific Stratus Amend Share Exchange Ratio (Jan 15)
- Pacific Stratus Discovers Gas in La Creciente Block, Colombia (Jan 03)