Bayshore Petroleum Corp.

December 01, 2008 21:19 ET

Bayshore Petroleum Corp. Announces Update Regarding Re-Filing of Financial Statements and MD&A

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2008) - Bayshore Petroleum Corp. ("Bayshore" or the "Company") (TSX VENTURE:BSH), advises that it has quantified the errors to its financial statements as previously announced on November 25, 2008.

The Following changes have been assessed in respect of the errors to the previously filed December 31, 2007 financial statements.

The following revised disclosure should appear under the headings listed below:

Business Acquisitions

Purchase Price:

Cash $795,000
Shares Issued (1,920,000 shares at $0.25 per share) $480,000
Working Capital Adjustment $(30,222)
Legal fees $81,415
Total $1,326,193

Purchase Price Allocation:

Oil and gas properties $1,384,026
Future Income taxes $(353,966)
Cash $175,000
Receivables $228,891
Payables $(107,758)
Total $1,326,193

Cash Flow Statement

The statement of cash flows at December 31, 2007 contained the following errors:

- Future income taxes should be $9,732 representing the actual expense for the period. The original error included future taxes from the subsidiary company and was incorrectly allocated to items not affecting cash and the offset should have been to acquisition of subsidiary;

- The change in non-cash working capital was incorrect regarding income taxes. The correct change should be $2,637, not $16,643 as originally documented. The change results from income taxes that occurred on the date of change in control of the subsidiary and should be accounted for in the acquisition of subsidiary section;

- Acquisition of property and equipment should have been labelled acquisition of subsidiary, with the actual cash outflow being $846,193. The original entry contained adjustments as noted above as well as non-cash acquisition costs, mainly being $480,000 of share capital issued to complete the transaction; and

- Share capital issued should only include shares issued for cash, not shares issued on acquisition of subsidiary and the correct number is $330,000.

The Company expects to be in a position to re-file the amended and restated Financial Statements and the MD&A for the year ended December 31, 2007 on or before December 10, 2008.

On behalf of the Board of Directors,

Alan M. Tang, President

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Bayshore Petroleum Corp.
    Alan M. Tang
    (403) 269-2823