DGAP-News: Activa Resources AG reports on the first half of 2010
(firmenpresse) - Activa Resources AG / Key word(s): Half Year Results
30.09.2010 08:20
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Activa Resources AG reports on the first half of 2010
- Production revenues unchanged at EUR 1.63 million
- Positive EBITDA of EUR 0.19 million
- First horizontal well drilled at OSR-Halliday
- Preparations completed for a broad drilling programme
Bad Homburg, September 30th, 2010. Activa Resources AG generated
consolidated revenues of EUR 1.63 million from the production of oil and
natural gas during the first half of 2010 (2009 H1: EUR 1.68 million). This
reflects slightly lower oil and gas production compensated by the recovery
in oil and gas prices compared to the prior period. The total direct costs
of oil and gas operations - comprising production taxes and lease operating
expenses - amounted to EUR 0.74 million vs. EUR 0.63 million in 2009.
Activa's overhead costs - personnel and other operating expenses - were
further reduced to EUR 0.73 million (vs. EUR 0.77 million), having already
been reduced 30 % y-o-y from EUR 1.10 million in the first half of 2009.
Following the significant balance sheet adjustments taken in the 2009
accounts no further expenses for impairments, project abandonments or dry
hole costs were taken. Expenses for depreciation, depletion and accretion
(DD&A) - non-cash expenses charged to adjust capitalised costs for
proportional production of Activa's oil and gas reserves - fell from EUR
0.87 million to USD 0.39 million. Profits before interest, taxes and
depreciation expenses (EBITDA) amounted to EUR 0.19 million (EUR 0.46
million in 2009). Interest charges amounted to EUR 0.35 million vs. EUR
0.46 million. A net loss of EUR 0.55 million (EUR 0.87 million in 2009) was
recorded.
An important transaction was completed after the mid-year stage. As
published on 22nd September Activa sold a 10 % working interest in the
OSR-Halliday oil field in East Texas for USD 4.5 million in cash. The most
important recent operational development at Activa is the drilling of the
first horizontal well in the OSR-Halliday field (H-12). The well has
recently been drilled to a vertical depth of approx. 7,700 feet with a
lateral extension of approx. 5,500 feet. Casing has been set and production
tests are currently underway. This is Activa's most significant new well
for 2 years and follows on from the successful No. 8-2 vertical well
drilled in 2008 and the field study conducted by Activa and its partners
during 2009.
Activa has developed a broad project development plan that includes
drilling and recompletion activities across its portfolio of assets with
the aim of materially increasing the company's production and the value of
those assets. Three oil projects - OSR-Halliday, Adams Ranch Waterflood
und Gray Waterflood - are the immediate focus and should improve the
company's oil-gas production balance. Production of natural gas is also set
to rise with a move uphole to the S-Sand in the Sunny Ernst No. 2 well at
the Loma Field.
The recent developments discussed above are important steps towards
returning Activa to its growth path. Management expects significantly
higher production volumes as of Q4 2010. Assuming oil and natural gas
prices remain constant Activa will be able to generate substantially higher
revenues in 2011. As a result of the company's improved cost structure, the
company expects to beprofitable in 2011. Activa's US subsidiary is well
positioned and has weathered the global finacial crisis well, especially
when the impact on US natural gas prices is considered. The largest
challenge facing the company concerns the Activa Resources AG bond which
matures in 2011. Management expects that operational successes will allow
a successful restructuring of the company's finances.
The Interim Report in the english language will available for downloading
in the coming days from www.activaresources.com. The report is based on the
Activa Resources AG consolidated financial statements prepared in
accordance with IFRS and reviewed by the company's US and German auditors.
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.
30.09.2010 08:20 Dissemination of a Corporate News, transmitted by DGAP -
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Datum: 30.09.2010 - 08:20 Uhr
Sprache: Deutsch
News-ID 32278
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