Traverse Energy Ltd.

April 21, 2010 18:18 ET

Traverse Energy Announces 2009 Year End Financial Results

CALGARY, ALBERTA--(Marketwire - April 21, 2010) - Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents financial and operating results for the year ended December 31, 2009. Unless otherwise stated, the volume conversion of natural gas to barrel of oil equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural gas being equal to 1 barrel of oil.

Highlights   Three Months Ended                
    December 31 (unaudited)     Year Ended December 31 (audited)
    2009     2008     2009     2008   2007
Financial ($ thousands, except per share amounts)                          
Revenue $ 156   $ 249   $ 547   $ 1,372 $ 1,292
Net income (loss)   (178 )   (5 )   (722 )   408   432
  Per share – basic and diluted   (0.01 )   0.00     (0.04 )   0.03   0.03
Funds flow from operations   (29 )   151     128     847   1,004
Net capital expenditures   1,290     165     1,790     457   966
Total assets   10,241     6,193     10,241     6,193   5,736
Shareholders' equity   8,718     5,236     8,718     5,236   4,828
Working capital   4,546     2,501     4,546     2,501   2,110
Common shares                          
  Outstanding (millions)   24.9     12.9     24.9     12.9   12.9
  Weighted average (millions)   24.1     12.9     18.2     12.9   12.9
Operations (Units as noted)                          
Production (BOE/d)   48     59     48     65   81
  Natural gas (Mcf per day)   233     315     237     346   437
  Oil and NGL (bbls per day)   9     7     9     7   8
Average sale price                          
  Natural gas ($/Mcf)   4.29     7.67     4.11     9.04   6.74
  Oil and NGL ($/bbl)   73.85     49.21     60.44     89.93   74.22

*Management uses funds flow from operations (before changes in non-cash working capital) to analyze operating performance. Funds flow as presented does not have any standardized meaning prescribed by Canadian Generally Accepted Accounting Principles and therefore may not be comparable with the calculation of similar measures for other entities.

Operations Review

2009 was a year of transition for the Company. Historically the Company's business model was based on acquiring undeveloped land holdings in under developed areas of Alberta. The Company then endeavored to farm-out properties to industry partners where those partners contributed seismic and or drilling in exchange for an interest in the property.

In June, 2009 at the annual and special meeting of the shareholders, new management was appointed and the Company changed its name to Traverse Energy Ltd. During the third quarter of 2009 the existing asset base was evaluated and preparations were made to initiate exploration, development and additional production. This required additional office space, computer systems, personnel and the implementation of various industry systems. No new production was added in 2009.

In the fourth quarter of 2009 Traverse began actively participating in exploration and development activities. Additional undeveloped lands were purchased in areas of interest while other undeveloped lands within the previously existing land base were sold. Seismic data was purchased over several prospects and new data was shot in one area. Drilling commenced late in the quarter. Traverse participated in the drilling of two gross (0.75 net) wells resulting in one oil well (0.5 net) and one natural gas well (0.25 net). Initial production from these wells commenced in 2010.

Activities in the first quarter of 2010 included the shooting of additional seismic in two areas and the drilling of four gross (3.4 net) wells. This drilling resulted in one natural gas well (1 net), one oil well (0.4 net) and two potential natural gas wells (2 net) that will be completed later in the fall.

Traverse plans an active 2010. The Company's drilling inventory includes both oil and natural gas prone properties. Our exploration and development will focus on the oil properties through spring and summer and shift towards natural gas later in the year.

Further details on the Company, including the 2009 year end audited consolidated financial statements, the related management's discussion and analysis, and the Annual Information Form are available on the Company's website and SEDAR.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of the content of this release.

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