Sahara Energy Ltd.
TSX VENTURE : SAH
PINK SHEETS : SAHRF

Sahara Energy Ltd.

August 26, 2010 17:13 ET

Sahara Energy Ltd. Announces Refiling of Its June 30, 2010 Management's Discussion and Analysis

CALGARY, ALBERTA--(Marketwire - Aug. 26, 2010) - Sahara Energy Ltd. (TSX VENTURE:SAH) (PINK SHEETS:SAHRF) has amended and restated its management's discussion and analysis for the period ending June 30, 2010. The material amendments to the management's discussion and analysis resulted in the following changes:

1. The indebtedness referred to in the last sentence in the second paragraph under "Corporation Overview and Principal Business Risks" was changed from $1,822,848 to $1,828,848.

2. The table under "Royalties" was changed as follows:

As previously reported                
   
  Three months ended   Six months ended  
  June 30   June 30  
  2010   2009   2010   2009  
   
Royalties 6,385   34,679   33,195   43,447  
As a % of oil and natural gas revenue 9.95   14.48   11.59   9.84  
Per boe (6:1) ($) 5.32   5.95   6.55   4.37  
   
Restated                
   
  Three months ended   Six months ended  
  June 30   June 30  
  2010   2009   2010   2009  
   
Royalties 3,749   34,679   30,559   43,447  
As a % of oil and natural gas revenue 5.84   11.70   10.67   9.84  
Per boe (6:1) ($) 3.12   5.96   6.03   4.37  

3. The following: "Excluding the credit of approximately $60,000, Sahara's operating costs for the second quarter would have been $30,926 or $25.75 per boe." was added as the second last sentence under "Production Expenses".

The table under "Operating Netback" was changed as follows:

As previously reported                
   
  Three months ended   Six months ended  
  June 30   June 30  
($ per boe) 2010   2009   2010   2009  
   
Revenue 53.40   50.79   56.49   44.40  
Royalties 5.32   5.94   6.55   4.37  
Production expenses (24.26 ) 30.37   26.52   30.60  
Field netback 72.34   14.48   23.42   9.43  
   
Restated                
   
  Three months ended   Six months ended  
  June 30   June 30  
($ per boe) 2010   2009   2010   2009  
   
Revenue 53.40   50.87   56.49   44.44  
Royalties 3.12   5.96   6.03   4.37  
Production expenses (24.26 ) 30.42   26.52   30.63  
Field netback 74.54   14.49   23.94   9.44  

4. The table under "Depletion Depreciation and Accretion (DD&A)" was changed as follows:

As previously reported                
 
  Three months ended   Six months ended  
  June 30   June 30  
  2010   2009   2010   2009  
 
Depletion and Depreciation ($) 26,840   (90,640 ) 100,724   1,064,357  
Per boe (6:1) 22.34   (20.43 ) 19.87   48.82  
Accretion ($) 8,647   2,149   17,294   16,589  
Per boe (6:1) 7.20   0.48   3.41   0.76  
                 
Restated                
 
  Three months ended   Six months ended  
  June 30   June 30  
  2010   2009   2010   2009  
 
Depletion and Depreciation ($) 26,840   574,702   100,724   760,100  
Per boe (6:1) 22.34   98.69   19.87   76.51  
Accretion ($) 8,647   (6,547 ) 17,294   23,456  
Per boe (6:1) 7.20   (1.12 ) 3.41   2.36  

5. Certain figures in the last table under "Quarterly Summary" were changed as follows:

  As previously reported   Restated  
 
  2010      
  Q2      
Operating ($)        
Royalties 6,385   3,749  
Revenues, net of royalties 57,755   60,391  
Operating income ($) 86,900   89,536  
G&A / other expenses ($) 122,834   150,692  
$ per boe        
Royalties 5.32   3.12  
Netback 72.34   74.54  

"Neither the 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."

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    President
    (403) 232-1359
    (403) 232-1307 (FAX)
    pete@Saharaenergy.ca