Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

August 27, 2010 18:40 ET

Suroco Energy Inc. Announces Filing of Second Quarter Financial Statements and MD&A

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2010) -

(NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Suroco Energy Inc. (TSX VENTURE:SRN) (the "Corporation") is pleased to announce that it has filed its Unaudited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the three and six months-ended June 30, 2010 on the System for Electronic Document Analysis and Retrieval ("SEDAR").

Copies of these documents can be found on the SEDAR website at www.sedar.com.

Financial & Operating Highlights
(All references to $ are Canadian dollars unless otherwise noted)

  3 months ended June 30 6 months ended June 30
  2010 2009 2010   2009  
Financial            
Oil and gas revenue ($) 9,600,072 2,985,512 14,055,386   4,800,460  
Funds flow from operations (1) ($) 4,663,189 379,430 6,450,436   (108,244 )
  Per share – basic ($) 0.05 0.01 0.07   0.00  
  Per share – diluted ($) 0.04 0.01 0.05   0.00  
Net income (loss) ($) 746,269 878,279 957,762   (563,026 )
  Per share – basic ($) 0.01 0.02 0.01   (0.01 )
  Per share – diluted ($) 0.01 0.01 0.01   (0.01 )
Total assets ($) 39,061,497 31,420,021 39,061,497   31,420,021  
Net working capital (1) ($) 5,345,878 3,926,663 5,345,878   3,926,663  
Common shares outstanding, end of period            
  Basic 90,674,730 58,045,240 90,674,730   58,045,240  
  Diluted 127,973,679 66,060,301 127,973,679   66,060,301  
             
Average daily net production (boe per day) 917 305 750   253  
  1. Non-GAAP measure.

Highlights

  • Participated in 2010 bid-round during the quarter which resulted in the award of a 50% operated working interest in Putumayo 12, the most contested block in the Putumayo Basin for the bid-round.
  • Exited quarter with production of 1,005 boe per day, and averaged 917 boe per day for the quarter, new highs for the Corporation.
  • Placed Pinuna 2 well on production on May 4, 2010 with an average production rate of 1,323 boe per day (193 boe per day net) from May 4, 2010 until June 30, 2010.
  • Designed new 3D seismic survey to define a structural trend in the northern part of the Suroriente block that includes the Quinde oil pool, where there is a presently suspended oil well.

References herein to "boe" mean barrels of oil equivalent derived by converting gas to oil in the ratio of six thousand cubic feet (Mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The Corporation is a Calgary-based junior oil and gas company, which explores for, develops, produces and sells crude oil, natural gas liquids and natural gas in Colombia and Western Canada. The Corporation's common shares trade on the TSX Venture Exchange under the symbol "SRN".

Forward Looking Statements

Certain information regarding the Corporation contained herein may constitute forward looking statements within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of facts. Although the Corporation believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will be realized. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Corporation's forward looking statements are expressly qualified in their entirety by this cautionary statement.

Neither the TSX Venture Exchange nor its Regulation Service 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

  • Suroco Energy Inc.
    Alastair Hill
    President and Chief Executive Officer
    (403) 232-6784
    (403) 264-7455 (FAX)
    or
    Suroco Energy Inc.
    Travis Doupe
    VP Finance and Chief Financial Officer
    (403) 232-6784
    (403) 264-7455 (FAX)
    www.suroco.com