Birchcliff Energy BIR on Toronto
Birchcliff Energy Reports BIR $ 13.17 up .85 ( 6.9%)
Our growth projections plus nat gas sector increase - on track - led to a home run when Birchcliff reported ( Wednesday May 14th, 2008 )
FIRST QUARTER HIGHLIGHTS:
Record Average Production, Cash Flow, Cash Flow Per Share and Earnings Record Capital Expenditure program: drilled 17 gross (16.0 net) wells Two High Impact Natural Gas Discoveries in the Doig (90.1% W.I.) and Kiskatinaw (50% W.I.) formations Drilled 4 gross (3.6 net) Horizontal natural gas wells in the Montney/Doig formations Drilled two vertical Montney/Doig wells resulting in the significant increase in proven Montney/Doig lands to 37.5 net sections. Drilled 7 vertical wells and 2 horizontal wells on the Worsley light oil Property. Extended the Worsley light oil pool to the North on 100% working interest lands. Expanded and continued the water flood at the Worsley light oil pool Completed major pipelining and infrastructure expansion at the Worsley light oil pool notwithstanding severe weather problems Increased undeveloped land to 322,830 gross (275,340 net) undeveloped acres all in the Peace River Arch Completed $130 million equity issue resulting in extremely strong balance
Production Production at the beginning of May, immediately prior to shutting down the Worsley plant for a scheduled turnaround, was approximately 10,350 boe/day. Currently there are 10 gross (8.5 net) wells that are in various stages of completion and awaiting tie-in. Production for the first quarter of 2008 averaged 9,470 boe/day. This is a 62% increase from the 1st quarter of 2007 and a 2% increase from the 4th quarter of 2007. Production in the first quarter was impacted by unseasonably cold temperatures and the expected decline of flush production from wells tied-in during late 2007. Production per share was up 5% over the first quarter of 2007.
Cash Flow and Earnings Cash flow was $27.3 million or $0.28 per share for the first quarter 2008, as compared to $13.4 million or $0.21 per share in the first quarter of 2007. Birchcliff was required to recognize a realized loss from its oil price risk management contracts in the amount of $3.24 million in the first quarter which related to a volume of 2,000 boe/day of light oil. The volume under these oil price risk management contracts decreased on April 1, 2008 to 1,000 boe/ day for the remainder of the year. Birchcliff has no current intention of hedging commodity price on any further production. Notwithstanding the loss from the oil price risk management contracts, Birchcliff had earnings of $3.8 million or $0.04 per share for the first quarter of 2008 as compared to a loss of $1.4 million or $0.02 per share for the first quarter of 2007