Greencastle Resources Ltd.
TSX VENTURE : VGN

Greencastle Resources Ltd.

April 26, 2010 15:08 ET

Greencastle Reports Increase in Oil and Gas Royalty Value Provides Financial Results

TORONTO, ONTARIO--(Marketwire - April 26, 2010) - Greencastle Resources Ltd. ("Greencastle," or the "Company,") (TSX VENTURE:VGN) is pleased to report that, for the year ended December 31, 2009, the Net Present Value before income tax (discounted at 10%) of Greencastle's proved and probable oil and gas reserves increased to $5,279,000 ($0.12/share) from $3,683,000 ($0.08/share) for the prior year, as reported in the Company's independent reserves evaluation dated April 20, 2010. The difference is primarily due to an increase in heavy oil price assumptions and stability of reserves at the Company's main royalty property near Primate, Saskatchewan.

This is the third consecutive year the value of Greencastle's oil and gas reserves have increased (December 31, 2007, value $3,226,000).

Greencastle has filed a Statement of Reserves Data and Other Oil and Gas Information for the year ended December 31, 2009, along with the corresponding reports of the independent qualified reserves evaluator and of management and directors of the Company for such period. A copy of the Company's forms 51-101F1, 51-101F2 and 51-101F3, required pursuant to National Instrument 51-101, are available for review on SEDAR at www.sedar.com.

Report on Fiscal 2009 Results

The Company reported a pre-tax loss of $135,732 ($0.00 per share) for the year ended December 31, 2009, and net loss of $264,607 ($0.00 per share), compared to a pre-tax profit of $1,408,460 ($0.03 per share) and a net income of $885,151 ($0.02 per share) for the same period in 2008. Oil and gas revenues for the year ended December 31, 2009, were $1,303,898 compared to $2,968,212 for the same period in 2008. Current income tax expense for the year ended December 31, 2009, was $234,561 compared to $760,001 for the same period in 2008. The decrease in net profit and revenues is due to a significant drop in royalty income from the Primate oil project in west-central Saskatchewan, where the Company holds a gross overriding royalty after making the initial heavy oil discovery in 2003.

Income was derived primarily from two sources. Income from oil and gas operations during the year ended December 31, 2009, was $1,157,307 (year ended December 31, 2008, $2,589,789) a decrease of $1,432,482. Gains on marketable securities for the year ended December 31, 2009, was $349,739 (year ended December 31, 2008, loss of $133,156).

The Company had working capital of $5,915,980 ($0.13/share) as of December 31, 2009, compared to working capital of $5,164,901($0.12/share) as of December 31, 2008. The market value of the Company's investment in marketable securities as of December 31, 2009, was $769,184.

Caution Concerning Forward-Looking Information

This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.

Neither TSX Venture Exchange nor its 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.

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