Huntington Exploration Inc.
TSX VENTURE : HEI

Huntington Exploration Inc.

June 02, 2006 09:58 ET

Huntington Exploration Inc.: Financial and Operational Results-First Quarter 2006

CALGARY, ALBERTA--(CCNMatthews - June 2, 2006) - Huntington Exploration Inc. (TSX VENTURE:HEI) ("Huntington") announces operating results for the three months ended March 31, 2006.

Petroleum and natural gas sales were $135,692 for the quarter ended March 31, 2006. No revenues were generated in the comparative period in 2004. Production for the quarter averaged 31 barrels of oil equivalent per day (BOEPD). Production for the month of March 2006 averaged 59 BOEPD reflecting the build-up of production as wells came on production throughout the quarter. Production and revenue were adversely affected as one well that was producing in the fourth quarter of 2005, was shut-in due to a lack of plant capacity. This situation was remedied and the well came back on production on March 21, 2006.

Income for the quarter ended March 31, 2006 was $419,612 or, $0.016 per share, compared to a loss of $37,002 for the same period in the prior year or, $0.003 per share. Income was positively affected by the recording of a future income tax recovery due to a renouncement of income tax deductions to purchasers of flow-through shares and the Company's large unrecorded income tax asset. Operating loss in the first quarter ended March 31, 2006 was $50,638 prior to the recording of the income tax adjustment.

Funds provided by operations were $37,303 in the first quarter while funds used in operation were $22,008 during the comparative period in 2005. The increase in funds provided from operations reflects the proceeds received from the sale of oil and gas production.

First production revenues commenced in July, 2005 when the discovery well, GP 6-32-56-20-W5M, 25% working interest, located in the Pine Creek area, was placed on production. The well has produced on a regular basis since that time. The second well, GP 14-21-56-20-W5M, 16.67% working interest, commenced production in October, 2005 and produced for a limited time until plant capacity issues forced it to be shut-in until March 21, 2006, when the capacity issues have been resolved through an expansion of plant facilities. GP 7-36-55-20W5M, 16.67% working interest, commenced production on February 8, 2006. GP 15-10-56-20W5M, 16.67% working interest, commenced production on March 1, 2006.

TKE et al Hollow 15-7-61-20-W4M, 25% working interest until payout of all costs, has been completed and is awaiting pipeline tie-in. Production from this well is expected to commence in the second quarter of 2006.

The Company also announces the successful drilling and completion of the GPI 102 Pine 14-21-56-20W5M well which is being completed as a gas well. Huntington has an 11.667% interest in this well and now has interests ranging from 25% to 11.667% in five wells at Pine Creek. This is the first well drilled in the previously announced three well program at Pine Creek.

Additional financial information and analysis can be found in the Corporation's Management Discussion and Analysis which can be accessed electronically from the SEDAR system at www.sedar.com.

Huntington Exploration Inc. is listed on the TSX Venture Exchange under the symbol "HEI".

This press release may contain forward-looking statements including management's assessment of future plans and operations and expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially 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 projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

The TSX Venture Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Huntington Exploration Inc.
    C. Alan Smith
    C.E.O.
    (403) 237-7766
    (403) 237-6027 (FAX)
    or
    Huntington Exploration Inc.
    Andrew S. Burgess
    Vice President
    (403) 237-7766
    (403) 237-6027 (FAX)