Pacific Stratus Reports 3Q07 Results
Pacific Stratus Energy reported results for the three and nine-month periods ended September 30, 2007. For the quarter, Pacific Stratus reported net income of US$1.6 million or US$0.03 per share as compared to a loss of US$2.5 million or US$0.08 per share in the third quarter of last year. For the nine months ended September 30, 2007 the company reported a loss of US$21.0 million or US$0.50 per share as compared to a loss of US$4.5 million or US$0.16 per share in the same period last year. Oil production in the quarter averaged 1,950 barrels per day, and the average price received for sales in the quarter amounted to US$71.50 per barrel for a total revenue of US$10.9 million. Net income in the quarter is primarily due to increased revenues attributable to higher price achieved on sales. The company changed its reporting currency to United States dollars effective January 1, 2007 to improve investor's ability to evaluate the company's results with comparable companies in the industry.
The company recently announced that it has entered into an agreement by which, subject to shareholder approval, Petro Rubiales Energy Corp. will combine on a market to market basis with Pacific Stratus through a court approved plan of arrangement, with the combined entity to be renamed "Pacific Rubiales Energy Corp." Pacific Stratus shareholders will receive 8.85 common shares of Petro Rubiales for each share in Pacific Stratus. The exchange ratio represents a market-to-market transaction based on the agreed 10, 15 and 20-day volume weighted average price of the two companies.
During the quarter the company completed the auction to sell 34,807 million British Thermal Units per day (MBTUD) of natural gas that will be produced at the La Creciente Field from the extended well tests at Prospect A. The price for the total amount of gas negotiated through the auction averaged US$ 3.72/MBTUD.
At the La Creciente block, the drilling of the third exploratory well was completed reaching a Final Depth of 12,950 feet. The well was tested through two Drill Stem Tests which indicated a production potential of 32.7 million cubic feet per day (mmcfd) with a 32/64 inch choke, slightly higher that that measured at the LCA-1 well, which measured 29.1 mmcfd with the same choke.
In this quarter the Company started the seismic acquisition programs at the Guama Block in the Lower Magdalena Basin and at the Moriche Block in the Llanos Basin of Colombia. As well, at the Arauca Technical Evaluation Area, 2,000 kms of existing seismic have been sent to be reprocessed.
Finally, the company spudded well LCD-1, located at La Creciente on Prospect D, and it is planning to reach the top of the Cienaga de Oro reservoir at 10,583 feet toward mid-December 2007.
- 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)