Stratic Energy Posts Loss, Continues Development in Q1 2008

Stratic Energy Corporation filed its interim financial statements and accompanying Management's Discussion and Analysis for the quarter ended March 31, 2008.

Highlights in Q1 2008:


  • West Don project in North Sea on-track: field development program expected to be approved imminently, key subsea contracts awarded and development drilling due to commence in third quarter, 2008
  • Project team established by operator for the development of Longanesi gas discovery in Italy; development plan, production license application and environmental permits expected to be submitted mid year 2008
  • Crawford project in North Sea moved into development planning phase following successful 2007 appraisal well; submission of field development plan targeted by end 2008
  • Drilling rig contracted for 2008 appraisal program of at least two wells on Breagh gas discovery in North Sea, expected to commence in June
  • Planning advanced for well in late 2008 on Cairngorm discovery in North Sea to test potential high productivity of reservoir
  • Nasrani prospect approved for drilling in late 2008 in Block 17, Syria
  • First gas from Ayazli field completes development of Phase I of South Akcakoca project in Turkey. Total net production of 126.9 mmscf for the quarter after resumption of production in February following repairs of pipeline damage suffered in 4Q 2007.
  • Financial (all amounts in US dollars):

  • Net loss for quarter of $5.1 million (1Q 2007: $2.1 million)
  • Issue of convertible notes raised $42.5 million, which closed in April 2008, for general corporate purposes
  • New bank facilities totaling $150 million secured.
  • "We have made solid progress in the first quarter of 2008, with important steps towards project development approvals on each of our five current projects and definition of an active 2008 appraisal drilling program, with substantial value-adding potential, on the next phase of projects," said Kevin Watts, Stratic's President and Chief Executive Officer. "We have also secured nearly $200 million of new finance, on attractive terms, to develop the business further. Stratic is set to deliver its planned step change in production at a time of record oil prices."