Brownstone Energy Inc
TSX VENTURE : BWN

Brownstone Energy Inc

February 24, 2011 16:03 ET

Brownstone Energy Inc. Releases Unaudited Results for the Three and Six Months Ended December 31, 2010

TORONTO, ONTARIO--(Marketwire - Feb. 24, 2011) - Brownstone Energy Inc. (TSX VENTURE:BWN) today announces its unaudited results for the three and six months ended December 31, 2010.

As at December 31, 2010, the Company had cash and cash equivalents of $8.7 million as compared to $1.8 million as at June 30, 2010. Investments at fair value totaled $14.5 million at December 31, 2010 as compared to $17.2 million at June 30, 2010. Also at December 31, 2010, oil & gas properties and related expenditures totaled $40.1 million as compared to $36.2 million as at June 30, 2010.

Financial Highlights for the three and six months ending December 31, 2010 with comparatives:

Operating Results (unaudited) Three months ended
December 31,
  Six months ended
December 31,
 
  2010 2009   2010   2009  
Realized gains on disposal of investments, net $ 279,670 $ 699,799   $ (724,176 ) $ 777,355  
Unrealized gains (losses) on investments, net   4,178,644   (968,470 )   5,241,808     2,719,171  
Net investment gains (losses)   4,458,314   (268,671 )   4,517,632     3,496,526  
Net and comprehensive income (loss) for the period   3,117,392   (762,474 )   2,655,069     (1,410,600 )
Basic earnings (loss) per share   0.04   (0.01 )   0.03     (0.02 )
Diluted earnings (loss) per share   0.03   (0.01 )   0.03     (0.02 )
     
Balance Sheet Highlights December 31, 2010   June 30, 2010  
Cash and cash equivalents $ 8,700,056   $ 1,832,230  
Investments, at fair value   14,458,169     17,174,119  
Oil & gas properties and related expenditures   40,134,618     36,167,168  
Total assets   68,601,793     63,961,793  
Total liabilities   3,302,037     2,113,363  
Share capital, warrants and contributed surplus   82,850,538     82,054,281  
Deficit   (17,550,782 )   (20,205,851 )
Working Capital   23,002,877     20,394,295  

During the six months ended December 31, 2010, the Company spent cash of $4,230,778 on oil & gas properties and related expenditures. 

Brownstone is currently participating in eight oil and gas exploration projects based in Colombia, Israel, United States (Colorado/Utah and Oregon), Argentina, Canada and Brazil.

About Brownstone 

Brownstone Energy Inc. is a Canadian-based, energy focused investment company with equity interests and direct interests in oil and gas exploration projects, including working interests in almost 300,000 acres in the Piceance/Uinta Basins of Colorado and Utah; 253,000 acres in Rio Negro, Argentina; interests in several projects in Brazil; a 50% interest in approximately 300,000 hectares in the Quėbec Lowlands; a 15% participating interest in several off-shore Israel oil and gas blocks; and is earning interests (14-35%) in 4 Colombian blocks in the Llanos basin. For additional information, please see Brownstone's website: www.brownstoneenergy.com.

Neither 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.

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