Ridgeway Petroleum reports financial results
Ridgeway Petroleum Corp. is pleased to announce its audited financial results for the fiscal year ending December 31, 2006.
The Company incurred a net loss of $2,806,069 for the year ended December 31, 2006 compared to a net loss of $2,493,939 during the same period in 2005. The increase in the loss in the current period is principally the result of increased interest expense ($599,319) and related debt settlement cost ($372,500) related to the secured indebtedness negotiated in December 2005, and a loss on an asset disposition ($81,289) related to used drilling equipment purchased and sold during the year. Offsetting this increase was a reduction in future income tax expense of $497,379.
At December 31, 2006, the Company had a working capital deficit of $2,619,176, principally related to the current maturities of two notes payable aggregating $3.2 million which were subsequently repaid in January 2007. Resource property expenditures were $502,429 in 2006 compared to $710,761 in the prior period, all of which were attributable to the St. Johns Helium/CO(2) Project.
Interest expense included amortization of deferred debt issue costs ($128,563) as well as interest calculated at higher rates of 15% and 24% for amounts past due on the Note payable and the Secured Note, respectively. Decreases in consulting fees ($438,668) reflected an absence of investment banking services and fewer consultants. Offsetting this decrease, salaries and wages increased due to severance recognized on closing the Calgary office ($197,000) and the addition of two US employees. A decrease in stock-based compensation ($254,891) resulted from fewer stock options granted compared to 2005.
In January, 2007 the Company closed a non-brokered private placement, raising approximately $9.5 million (before share issue costs).
CEO Barry Lasker reports “2006 was a watershed year for your Company. Following extensive roadshows within the US and Canada we were able to raise approximately $9.7mm before costs in two non-brokered private placements announced in August and December. With the successful conclusion to these financings, in early 2007, the Company was able to pay off its outstanding debt due, initiate the largest drilling program seen to date at St. Johns and begin the process of acquiring mature oilfields where considerable opportunity exists for enhanced oil recovery. The Company is well placed now to enjoy tremendous growth opportunities as it continues to develop the St Johns helium and CO2 field. We thank all our shareholders for their patience during the year and we look forward to bringing you further news as results are achieved”
Ridgeway Petroleum is a development stage, enhanced oil recovery (EOR), company that controls approximately 200,000 acres of land within the St Johns Helium/CO2 field in Arizona and New Mexico where the Company is developing what is thought to be the largest undeveloped resource of helium and carbon dioxide gases in North America. Independent engineering firms have estimated that the St Johns field contains approximately 15 trillion cubic feet of in place resources, with a potential recoverable resource of 5 trillion cubic feet. Development of the project could result in the Company becoming one of North America’s largest CO2 suppliers and EOR producers. The Company’s strategic focus for CO2 delivery and EOR production is the Permian Basin where significant potential exists for enhanced oil recovery from mature, depleted oil fields.
ON BEHALF OF THE BOARD OF DIRECTORS
signed
Barry D Lasker, CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information
visit our Website at www.ridgewaypetroleum.com., or Retail Investors please call Don Currie on 1-888-990-3551 Institutional Investors please call Jonathan Buick at The Buick Group on 1-877-748-0914, Or email jbuick@buickgroup.com
Source: Ridgeway Petroleum Corp.
