Traverse Energy Ltd.

August 17, 2010 16:06 ET

Traverse Energy Announces 2010 Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Aug. 17, 2010) - Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents financial and operating results for the six months ended June 30, 2010. 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.

(unaudited) Three months ended   Six months ended  
  June 30, 2010   June 30, 2009   June 30, 2010   June 30, 2009  
Financial ($ thousands, except per share amounts)                      
Revenue $ 333   $ 98   $ 610   $ 281  
Net loss   (309 )   (24 )   (454 )   (30 )
  Per share – basic and diluted   (0.01 )   0.00     (0.02 )   0.00  
Funds flow from operations*   41     45     73     126  
Net capital expenditures   739     164     3,087     241  
Total assets   12,244     7,978     12,244     7,978  
Shareholders' equity   10,855     7,164     10,855     7,164  
Working capital   4,274     4,329     4,274     4,329  
Common shares                        
  Outstanding (millions)   29.4     20.9     29.4     20.9  
  Weighted average (millions)   25.1     15.5     25.0     14.2  
Operations (Units as noted)                        
Production (BOE/d)   100     43     83     49  
  Natural gas (Mcf per day)   403     214     317     244  
  Oil and NGL (bbls per day)   33     7     30     8  
Average sale price                        
  Natural gas ($/Mcf)   3.80     3.25     4.27     4.50  
  Oil and NGL ($/bbl)   69.88     57.66     72.59     51.44  

*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

All of the Company's oil and gas properties are located in Alberta. Traverse purchased additional interests in the Turin area from partners during the second quarter for cash consideration of $320,000. Field activities were restricted due to spring breakup and extensive wet weather conditions in southern Alberta. No wells were drilled during the second quarter. The Company was able to add infrastructure at the Turin property, including additions to the oil battery and installation of a natural gas sweetening unit. Undeveloped land holdings at June 30, 2010 totalled 170,000 gross (160,000 net) acres.

Traverse plans an active drilling program for 2010 including up to 12 gross (8 net) wells with an initial budget of $6 to $7 million. This program includes a combination of development and exploratory wells targeting oil and natural gas. The near term is focused largely on oil.

Subsequent to the second quarter, the Company sold a minor producing property for $800,000. Drilling completed to date in the third quarter includes a re-entry (100%) in the Manyberries area and 2 gross (1.5 net) wells in the Turin area. At Turin, the Company is developing a Sunburst oil pool. Upon successful completion of these recent wells, Traverse plans to proceed with pipeline construction to allow for natural gas conservation and water injection in a nearby wellbore. Further drilling will be scheduled upon completion of this infrastructure.

In addition to the Turin property, Traverse plans drilling operations at Little Bow, Long Coulee and Manyberries in southern Alberta and at Warwick and Carbon in central Alberta.

Forward-looking information

This press release contains forward-looking information. Forward-looking information is based upon the opinions, expectations and estimates of management as at the date the information is provided and, in some cases, information received from or disseminated by third parties. In particular, the Company's statements with respect to its drilling program for 2010; planned pipeline construction in the Turin area; planned drilling operations at Little Bow, Long Coulee and Manyberries in southern Alberta and at Warwick and Carbon in central Alberta are forward-looking information. This forward-looking information is subject to a variety of substantial known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking information. The Company's Annual Information Form filed with securities regulatory authorities (accessible through the SEDAR website describes the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

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.

Contact Information

  • Traverse Energy Ltd.
    Laurie Smith
    President and CEO
    (403) 264-9223
    (403) 264-9558 (FAX)
    Traverse Energy Ltd.
    800, 839 - 5th Avenue S.W.
    Calgary, Alberta T2P 3C8