DGAP-News: Activa Resources AG: Developments at OSR-Halliday oil field gain momentum
(firmenpresse) - Activa Resources AG / Miscellaneous
27.04.2010 08:12
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NEWS RELEASE 27th APRIL 2010
Developments at OSR-Halliday oil field gain momentum
- Activa publishes 2009 financial results of US subsidiary Activa
Resources, LLC
- Activa prepares to drill first horizontal well at OSR-Halliday
- Eagle Ford shale potential identified at OSR-Halliday field
- Activa hires Petro Capital Group to evaluate strategic alternatives
- 3 wells drilled under the Adams Ranch agreeement
Bad Homburg, 27th April 2010. Activa Resources AG provides the following
information on the main developments concerning its US subsidiary Activa
Resources, LLC.
Activa Resources, LLC in 2009 - significant balance sheet adjustments made
Activa's US auditors have completed the 2009 audit of Activa Resources,
LLC, the company's 100 % subsidiary based in San Antonio, Texas. The
company's production of oil and natural gas in 2009 increased 19 % to
117,309 BOE despite no new drilling activity. Production revenues fell by
35 % to USD 4.48 million vs. USD 6.92 million in 2008. This is in-line with
the guidance provided in the 2009 interim report and is a result of weaker
oil and gas prices. Profits before interest, tax and non-cash costs
(EBITDAX) were positive at USD 1.18 million vs. USD 2.65 million in 2008.
Due to a significant write-down of the Fayetteville Shale investment
expenses for impairment, project abandonment and dry hole costs increased
from USD 1.57 million to USD 5.30 million. As a result of these write-downs
a net loss of USD 5.77 million was recorded. The balance sheet total at
31.12.09 amounted to USD 19.7 million vs. USD 25.3 million a year earlier.
At the time of writing Activa's German auditors are in the process of
auditing the 2009 consolidated group financial statements. These will be
published in June. A net loss at the group level is expected.
OSR-Halliday - horizontal drilling and the Eagle Ford shale
Important developments concerning Activa's main oil producing asset
OSR-Halliday, a 16,400 acre unit in Leon and Madison Counties, Texas, can
be reported. Activa continues to monitor and incorporate into its field
study the results of horizontal drilling combined with multi-stage frac
treatments in the Woodbine fields on trend with OSR-Halliday. Activa
believes the Woodbine interval in these fields is analogous to the Woodbine
in OSR-Halliday and expects similar results using this technology. The
initial production rates of the most recent wells have now reached 1,000
BOPD. These results suggest greatly improved economic expectations for OSR
from a reserve and valuation standpoint. Activa has begun to stake the
first horizontal well location at OSR-Halliday and plans to spud the well
in July.
In addition to the these developments in the Woodbine trend, Activa is
closely monitoring developments in the Eagle Ford shale play, one of the
most dynamic new plays in the US. The trend is expanding and moving towards
Activa's OSR-Halliday field. In its field study - details of which were
recently announced - Activa identified an Eagle Ford shale interval but had
limited production data with which to evaluate it. A small independent oil
company has recently completed an oil well in the Eagle Ford formation 13
miles west of OSR-Halliday and is currently drilling a 5,000 foot
horizontal well approximately 10 miles from OSR-Halliday. Activa's review
of its extensive data base shows the Eagle Ford as prospective in the
field.
Strategic Initiatives - US investment bank appointed
As a result of the divergent development of the oil price and the US
natural gas price, industry interest is focussing increasingly on oil
prospects. While Activa's current production (approx. 300 BOED) is heavy on
natural gas, its development potential and 2P reserve base is significantly
more 'oily'. Several companies have shown interest in working with Activa,
in particular with regard to the high-potential oil project OSR-Halliday.
Management has appointed Petro Capital Group of Dallas, specialised energy
industry investment bankers, to appraise the various funding alternatives
available in the the US market. Corporate options are also being explored.
Adams Ranch agreement extended - new wells drilled
The previously announced agreement whereby an investment group comprising
company management provided the company with USD 600,000 in funds in 2009
was extended until 30 March 2010 and a further extension is currently being
discussed. In accordance with the agreement, the investor group also funded
Activa's drilling costs in 3 wells on the subject properties in late 2009
(1 Adams Ranch and 2 AKG-Tait wells). Two of the three wells were
successful. The AKG Kleinman No. 1 was placed on production in February
2010 at a rate of 350 MCFGPD. The second AKG well (Owens No. 1), drilled to
a depth of 9,500ft to test a deep Wilcox objective, was unsuccessful. The
3rd well, the Hickey No.10 well was drilled to test the Austin Chalk
formation on the Adams Ranch project. The well proved up a field extension
in the chalk which could result in 7-12 additional Austin Chalk well
locations. The well was completed in the Austin Chalk and is currently
averaging approximately 12 BOPD.
Further details can be found in our 2010 Q1 Newsletter which is available
at www.activaresources.com.
The Management Board
Enquiries: Leigh A. Hooper, CEO, Tel. + 49 6172 483 2352
About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as 'could,' 'plan,' 'estimate', 'expect',
'intend', 'may', 'potential', 'should' and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.
27.04.2010 08:12 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 27.04.2010 - 08:12 Uhr
Sprache: Deutsch
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