NiMin Energy Corp.
TSX : NNN

NiMin Energy Corp.

December 16, 2009 13:16 ET

NiMin Energy Corp. Announces Re-filing of the Consolidated Financial Statements & MD&A for Interim Period Ending September 30, 2009

CARPINTERIA, CALIFORNIA--(Marketwire - Dec. 16, 2009) -

NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

NiMin Energy Corp. (TSX:NNN) ("NiMin") announces today that it has re-filed its unaudited interim consolidated financial statements and management's discussion and analysis (the "Filings") for the interim period ended September 30, 2009. These financials are available on SEDAR. As a result of discussions with its advisors and regulatory authorities, it was determined that the filings should be amended to include financial statements prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP") as opposed to U.S. generally accepted accounting principles ("U.S. GAAP") due to NiMin being a Canadian incorporated reporting issuer. Pursuant to reverse takeover accounting requirements, the operational financial statements of Legacy Energy, Inc, the wholly-owned subsidiary of NiMin, are the ongoing financial statements of NiMin and were historically prepared in accordance with U.S. GAAP. The use of Canadian GAAP results in the following significant differences in NiMin's U.S. GAAP financial statements.

Under U.S. GAAP, the net book value of NiMin's oil and gas properties cannot exceed the related estimated future net revenues of proved reserves discounted at 10%, net of tax considerations. This comparison is referred to as a "ceiling test". The ceiling test uses prices and costs at the balance sheet date. At September 30, 2009, the application of the ceiling test under U.S.GAAP resulted in no write down of NiMin's oil and natural gas assets. At March 31, 2009 and December 31, 2008, the application of the ceiling test under U.S. GAAP resulted in an impairment of $6,313,633 and $35,872,167, respectively.

Under Canadian GAAP, an impairment exists when the net book value of the crude oil and natural gas properties exceeds the sum of the undiscounted future cash flows from proved reserves calculated using forecast prices and costs, and the cost of unproved properties. If an impairment is determined to exist, it is measured as the amount by which the net book value of the crude oil and natural gas properties exceeds the sum of the present value of the future cash flows from proved plus probable reserves discounted at a risk-free rate using forecast prices and costs, plus the lower of the costs or net realizable value of unproved properties. With the inclusion of probable reserves there was no impairment of NiMin's oil and natural gas properties under Canadian GAAP at September 30, 2009, March 31, 2009 or December 31, 2008.

NiMin is an independent oil and natural gas company with drilling and production operations in the United States.

Not for distribution to U.S. Newswire Services or for dissemination in the United States of America. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.

Contact Information

  • NiMin Energy Corp.
    Clarence Cottman III
    Chief Executive Officer
    (805) 566-2900
    or
    NiMin Energy Corp.
    Jonathan S. Wimbish, CFA
    Chief Financial Officer
    (805) 566-2900
    (805) 566-2917 (FAX)