Exceed Energy Inc.
TSX VENTURE : EX.A

Exceed Energy Inc.

December 01, 2009 09:00 ET

Exceed Energy Announces Third Quarter 2009 Financial Results

CALGARY, ALBERTA--(Marketwire - Dec. 1, 2009) - Exceed Energy Inc. (TSX VENTURE:EX.A) today announced that it has filed its third quarter unaudited financial statements and management's discussion and analysis for the third quarter ended September 30, 2009 as well as its NI 52-109 CEO and CFO Certificates. This press release is meant to be read in concurrence with the above filed documents. Copies of these documents are available on SEDAR at www.sedar.com.

In accordance with National Instrument 51-1-2 released by the Canadian Securities Administrators, the Company discloses that its auditors have not reviewed these unaudited interim statements as at and for the interim periods ending September 30, 2009 and 2008.



Selected Financial Information

Unaudited Financial
data Three Months Three Months Nine Months Nine Months
----------------------------------------------------------------------------
30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08
Oil and natural
gas revenue $ 280,056 $ 1,685,530 $ 1,154,613 $ 4,199,947
Oil and natural gas
revenue, net of
royalties $ 200,465 $ 1,542,461 $ 1,041,046 $ 3,656,221
Operating expense $ 181,298 $ 304,937 $ 462,893 $ 867,550
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Operating Net back
(non GAAP) $ 19,167 $ 1,237,524 $ 578,153 $ 2,788,671

Net (loss) income $ (345,031) $ 398,868 $(2,847,429) $ 93,846

Per share, basic (0.01) 0.01 (0.04) 0.00

Per share, diluted (0.01) 0.01 (0.04) 0.00

Cash flow from
Operations
(non GAAP)(1) $ (118,735) $ 1,038,763 $ (92,946) $ 986,406

Per share, basic
(non GAAP) (0.00) 0.02 (0.00) 0.02

Per share, diluted
(non GAAP) (0.00) 0.02 (0.00) 0.02

Total assets $8,208,830 $ 14,012,946 $ 8,208,830 $14,012,946
Total liabilities $2,564,456 $ 3,491,847 $ 2,564,456 $ 3,491,847


Share capital data 30-Sep-09 30-Sep-08 30-Sep-09 30-Sep-08
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Number of class A
common shares 64,522,527 41,267,507 64,522,527 41,267,507
Number of class B
common shares - 2,333,602 - 2,333,602
Number of options
outstanding 2,485,000 3,100,000 2,485,000 3,100,000
Average exercise price $0.20 $0.21 $0.20 $0.21
Number of options
exercisable 2,064,995 1,273,333 2,064,995 1,273,333

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(1) before changes in non-cash working capital items


The Company reports:

- Revenue for the nine month period ended September 30, 2009 WAS $1.15 million and $280,056 for the three month period ended September 30, 2009 compared to $4.20 million for the nine month period ended September 30, 2008 and $1.69 million for the three month period ended September 30, 2008.

- Operating expenses for the nine month period ended September 30, 2009 of $462,893 and $181,298 for the three month period ended September 30, 2009 compared to $867,550 for the nine month period ended September 30, 2008 and $304,937 for the three month period ended September 30, 2008.

- Net after tax loss of $2,847,429 (includes a write down of assets of $2,061,875 in second quarter fiscal 2009) for the nine month period ended September 30, 2009 and an after tax loss of $345,031 for the three month period ended September 30, 2009 compared to a net income of $93,846 for the nine month period ended September 30, 2008 and net income of $398,868 for the three month period ended September 30, 2008.

- Cash flow from operations, before changes in non-cash working capital items, of $(92,946) for the nine month period ended September 30, 2009 and $(118,735) for the three month period ended September 30, 2009 compared to $986,406 for the nine month period ended September 30, 2008 and $1,038,763 for the three month period ended September 30, 2008.

The Company continues to reduce G&A expenses and capital expenditures during the current period of low natural gas prices. The Company has reduced its 2009 capital budget to $300,000.

Oil and natural gas sales before royalties declined 34% from the fourth quarter of 2008 to this quarter while the Company's production remained flat. The reduction in revenue was due to a continued deterioration in natural gas prices and reduced production. This decline in product prices was also a major contributing factor in the decline of revenue year over year for the period ending September 30, 2009.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. Certain information regarding Exceed in this news release including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells, expected production rates, drilling success rates, dates of commencement of production, may constitute forward-looking statements under applicable securities laws and necessarily involve risks. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from the potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com. Or through the Company's website, www.exceedenergy.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Exceed does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither the TSX Venture Exchange nor Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Exceed Energy Inc.
    Richard Wolfli
    President & CEO
    (403) 508-1853
    or
    Exceed Energy Inc.
    1520, 840 - 7th Ave SW
    Calgary, AB T2P 3G2
    www.exceedenergy.com