Suroco Energy Inc.
TSX VENTURE : SRN

Suroco Energy Inc.

April 30, 2010 13:16 ET

Suroco Energy Inc. Announces Filing of Year-End Financial Statements and MD&A

CALGARY, ALBERTA--(Marketwire - April 30, 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 audited Consolidated Financial Statements and the related Management's Discussion and Analysis ("MD&A") for the year-ended December 31, 2009 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)  
             
  2009 2008 2007
Financial            
             
Oil and gas revenue ($) 10,473,716   11,771,793   201,635  
Funds flow from operations (1) ($) (925,002 ) 4,877   197,608  
  Per share – basic ($) (0.01 ) -   -  
  Per share – diluted ($) (0.01 ) -   -  
Net loss ($) (3,269,966 ) (7,330,107 ) (224,838 )
  Per share – basic ($) (0.05 ) (0.20 ) (0.01 )
  Per share – diluted ($) (0.05 ) (0.20 ) (0.01 )
Total assets ($) 37,648,680   41,718,959   8,922,382  
Net working capital (1) ($) 4,368,514   7,914,531   3,796,643  
Common shares outstanding, end of period            
  Basic (000's) 86,940,240   48,215,240   27,366,606  
  Diluted (000's) 124,944,646   56,675,242   29,041,606  
             
Average daily net production (boe per day) 277   141   8  
(1) Non-GAAP measure. See "Non-GAAP Measures" section within MD&A.  

Highlights From 2009

  • Effective March 31, 2009 closed acquisition of Alentar assets which increased working interests in all four core properties in Colombia.
  • Increased average production in 2009 to 277 boe per day from 141 in 2008 with a 2009 exit rate of 452 boe per day.
  • Completed first ever 3D seismic program in Suroriente block in April 2009.
  • Disposed of Texas, U.S.A. properties, and closed offices in Caracas, Venezuela to become a 100% Colombia focused E&P company.
  • Closed private placement in July 2009 to raise $7.2 million, gross.
  • Completed 110 km of 2D seismic in Alea 1848A Block and 100 km of 2D seismic in Alea 1947C Block. Both seismic programs yielded positive results and led to the Corporation entering into the second exploration phase.
  • Began drilling program with Pinuna 5 well, which was completed subsequent to year-end with initial production of 1,400 boe per day (204 net after royalty) on natural flow.
  • Acquired an option to acquire a 28% interest in Llanos Block 33.
  • Continued to focus on significant growth opportunities for the Corporation.

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.
    Travis Doupe
    VP Finance and Chief Financial Officer
    (403) 232-6784
    (403) 264-7455 (FAX)
    www.suroco.com