Mystique Energy Inc.
TSX VENTURE : MYS

November 28, 2008 12:56 ET

Mystique Energy Reports Financial Results for the Third Quarter of 2008 and Terminates RTO Agreement With Petro Energy Corp.

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) - Mystique Energy, Inc. (TSX VENTURE:MYS) ("Mystique") reports its financial results for the three months ended September 30, 2008.

Financial results include:

- Cash flow for the three months ended September 30, 2008 was $(40.5) thousand compared to ($178.6) thousand for the same period of 2007.

- Net earnings loss for the three months ended September 30, 2008 was $44.7 thousand compared to a net loss of $4,535.4 thousand for the third quarter of 2007.

Complete financial results will be filed on SEDAR later today.

In another corporate development, Mystique and Petro Energy Corp. ("Petro") have terminated an arrangement agreement dated September 8, 2008 ("Agreement"), the details of which had been provided in a press release dated October 16, 2008. Pursuant to the Agreement, Mystique undertook to acquire all of the issued common shares of Petro. Due to the changed and current market environment, Petro has determined that the business combination was not in the best interests of its shareholders.

The Agreement was the basis of a proposed arm's length business combination (the "Combination") the details with respect to which Mystique has filed pursuant to the Companies' Creditors Arrangement Act (Canada) (the "CCAA"). The terms of the Combination had been approved by the Alberta Court of Queen's Bench (the "Court") and by the unsecured creditors of Mystique. By order of the Court, the deadline to have completed the Combination is December 31, 2008. As a result of terminating the Agreement, Mystique and the Court appointed monitor will complete the distribution of the remaining cash assets and any recovered receivables, less any applicable costs, (second distribution) to Mystique's unsecured shareholders after all, or substantially all, of the remaining recoverable receivables are collected. The first distribution was made in January, 2008. Those unsecured creditors of Mystique who had elected (or deemed to have elected) to receive new Mystique shares in full satisfaction of their respective claims, instead of their share of the first distribution, will now receive their share of the first and second distributions.

Use of the term 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.

This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities.



MYSTIQUE ENERGY INC

BALANCE SHEETS
(unaudited)

September 30 DECEMBER 31
2008 2007
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ASSETS

Current
Cash and cash equivalents $ 398,517 $ 8,300,964
Accounts receivable 490,301 272,398
Refundable deposits - 93,133
Prepaid expenses 27,422 135,934
-------------------------------
916,240 8,802,429

Property, Plant and Equipment 38,189 50,659
-------------------------------

$ 954,429 $ 8,853,088
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LIABILITIES

Current
Accounts payable and accrued liabilities $ 369,596 $ 382,406
Accounts payable per CCAA 1,989,265 9,696,456
-------------------------------
2,358,861 10,078,862
-------------------------------

SHAREHOLDERS' EQUITY

Share Capital (Note 3) 16,649,434 16,649,434
Contributed Surplus 1,317,252 1,317,252
Deficit (19,371,118) (19,192,460)
-------------------------------
(1,404,432) (1,225,774)
-------------------------------

$ 954,429 $ 8,853,088
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Approved by the directors:

"Victor Luhowy" "Brent Walter"
Director Director


MYSTIQUE ENERGY INC
STATEMENTS OF OPERATIONS AND DEFICIT
(Unaudited)

THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2008 2007 2008 2007
Restated Restated
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Revenues
Oil and gas
revenue $ - $ 313,461 $ - $ 3,602,071
Royalties net
of ARTC - (21,881) - (928,367)
Other revenue (84,169) 70,587 76,864 247,566
--------------------------------------------------------
(84,169) 362,167 76,864 2,921,270
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Expenses
Production - 1,192 - 612,216
Transportation - (2,974) - 36,529
General and
administration (27,256) 498,158 249,904 2,888,694
Depletion,
depreciation and
accretion 4,157 4,157 12,471 1,995,063
Interest 1,138 44,346 10,689 481,083
Stock-based
compensation - 61,383 - 260,856
--------------------------------------------------------
(21,961) 606,262 273,064 6,274,441
--------------------------------------------------------

Loss From
Operations (62,208) (244,095) (196,200) (3,353,171)

Gain (Loss) on
Sale of Assets 17,542 (4,027,276) 17,542 (4,027,276)
--------------------------------------------------------
Loss Before
Income Taxes (44,666) (4,271,371) (178,658) (7,380,447)

Future Income
taxes - 264,000 - (967,583)
--------------------------------------------------------
Net Loss and
Comprehensive
Loss For The
Period (44,666) (4,535,371) (178,658) (6,412,864)

Deficit,
Beginning of
Period (19,326,452) (12,995,154) (19,192,460) (11,117,661)
--------------------------------------------------------
Deficit, End Of
Period $ (19,371,118) $ (17,530,525) $ (19,371,118) $ (17,530,525)
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Income (Loss)
Per Share
Basic $ 0.00 $ (0.08) $ (0.01) $ (0.11)
Diluted $ 0.00 $ (0.08) $ (0.01) $ (0.11)

Weighted Average
Number Of Shares
Basic 59,840,682 59,840,682 59,840,682 59,480,682
Diluted 59,840,682 59,840,682 59,840,682 59,480,682


MYSTIQUE ENERGY INC
STATEMENTS OF CASH FLOWS
(Unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
2008 2007 2008 2007
(Restated) (Restated)
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Operating
Activities
Net Income (loss)
for the period $ (44,666) $ (4,535,371) $ (178,658) $ (6,412,864)
Add: Items not
involving cash:
Loss on Sale of
Assets - 4,027,276 - 4,027,276
Future income tax - 264,000 - (967,583)
Stock-based
compensation
expense - 61,383 - 260,856
Depletion,
depreciation and
accretion 4,157 4,157 12,471 1,995,063
---------------------------------------------------------
(40,509) (178,555) (166,187) (1,097,063)
Change in non-cash
working capital
items:
Accounts receivable (256,629) 665,206 (217,903) 925,824
Accounts payable
and accrued
liabilities 314,968 (779,472) (7,720,002) 1,130,825
Income tax
receivable - 165,032 - 165,032
Prepaid expenses
and deposits 122,528 (31,383) 201,645 (9,766)
---------------------------------------------------------
140,358 (159,172) (7,902,447) 1,114,663
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Financing
Activities
Advances - (59,354) - (59,354)
Bank indebtedness - (9,558,985) - (13,444,168)
Restricted cash - 110,540 - 110,540
---------------------------------------------------------
- (9,507,799) - (13,392,982)
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Investing
Activities
Petroleum and
natural gas
acquisitions - - - (778,261)
Proceeds on sale of
assets, net of
costs - 18,810,145 - 22,506,334
Net change in
non-cash working
capital balances - (148,972) - (455,552)
---------------------------------------------------------
- 18,661,173 - 21,272,521
---------------------------------------------------------

Increase (Decrease)
In Cash 140,358 8,994,202 (7,902,447) 8,994,202

Cash, Beginning Of
Period 258,159 - 8,300,964 -
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Cash, End of Period $ 398,517 $ 8,994,202 $ 398,517 $ 8,994,202
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Interest Paid $ 1,138 $ 51,346 $ 10,689 $ 481,083


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mystique Energy, Inc.
    Victor Luhowy
    President & Chief Executive Officer
    (403) 261-3634
    (403) 265-3348 (FAX)
    Email: vic@mystiqueenergy.ca