Athlone Energy Reports Record Revenue for Q3
Athlone Energy's third quarter financial statements for the period ended October 31, 2007 together with the related management's discussion and analysis has been filed. The third quarter represented record growth in terms of revenue, cash flow, production and reserve additions.
This is the seventh straight quarter of revenue and production growth. Gross revenue in the third fiscal quarter was $2,274,499 compared to $1,585,727 in the second quarter, an increase of 43%. This quarter over quarter increase was the highest in the company's history.
Financial highlights of the third quarter compared to the third quarter of the previous year gross revenue of $2,274,499 compared to $1,164,326 an increase of 95%, operating cash flow of $998,442 compared to $601,171 an increase of 66%, and average production of 578 boepd compared to 300 boepd an increase of 93%.
At Grand Forks in Southern Alberta, Athlone exercised its drilling option on the farm-in with an intermediate sized trust. The first well was drilled to test the Sawtooth formation for medium gravity oil. The Sawtooth was water bearing and the well was abandoned. Athlone earned two sections of land by drilling this well and has until mid January, 2008 to elect to drill an additional well which would earn an additional two sections. The second well would target Bow Island gas and Athlone is currently evaluating the economics of this project.
Oil prices are forecast to remain strong which will provide a strong platform for future growth. Should natural gas pricing improve Athlone also has a number of drill ready gas locations.