Caribou Resources Corp.
TSX VENTURE : CBU

Caribou Resources Corp.

May 24, 2005 20:55 ET

Caribou Resources Corp. Announces 2005 First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - May 24, 2005) - Caribou Resources Corp. ("Caribou") (TSX VENTURE:CBU) is pleased to report its financial and operating results for the three months ended March 31, 2005 ("Q1"):

Highlights

- Sales volumes increased by over 500% over the same period in 2004 to 1,373 boe/day. With the tie-in of the remaining wells in Northern Alberta in early April, production is now between 1,700 and 1,800 boe/day, which is an increase of over 50% since the three months ended December 31, 2004 "Q4 2004".

- Netbacks per boe have improved by 40% over Q1 2004 and by 23% over Q4 2004 through the addition of new light oil production and strong oil prices.

- Caribou, as operator, carried out a $13.7 million capital program during Q1 2005 with an average working interest of approximately 80% in its two core areas of Central and Northern Alberta.

- Caribou strives to maintain a balance between natural gas and light oil. Natural gas represents approximately 60% of production and reserves.



Three months ended Three months ended
March 31, December 31, 2004
2005 2004 and % change
to Q1 2005
------------------------------------------------------------------------
Financial ($000, except shares and per share amounts)

Oil and natural gas revenues 6,376 1,058 4,680 36%
Cash flow from operations (1) 2,667 142 939 184%
Per share - basic (1) 0.09 0.05 0.04 156%
Net loss (1,236) (292) (1,709) -28%
Per share - basic (0.04) (0.10) (0.07) -35%
Per share - diluted (0.04) (0.10) (0.07) -35%
Total assets 98,003 30,416 85,879 14%
Bank debt 14,443 342 9,206 57%
Shareholders' equity 51,803 3,699 52,838 -2%
Capital expenditures 13,755 10,038 5,763 139%
Common shares outstanding 28,167,165 2,946,794 28,128,352 0%
Weighted average - basic 28,141,721 2,889,102 25,350,338 11%
Weighted average - diluted 28,141,721 2,889,102 25,350,338 11%
------------------------------------------------------------------------

Operating (boe - 6:1 basis)
Undeveloped land - net acres 131,560 53,486 132,041 0%
Sales volumes
Natural gas (mcf/day) 3,569 746 4,032 -11%
Crude oil and NGL's (bbls/day) 778 146 449 73%
Total oil equivalent (boe/day) 1,373 270 1,120 22%
Product prices ($)
Natural gas per mcf 7.23 6.33 6.39 13%
Crude oil and NGL's per bbl 57.90 47.27 55.03 5%
Operating expense per boe ($) 14.31 11.38 13.64 5%
Netback per boe ($) 28.05 19.98 22.80 23%
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) Cash flow from operations and cash flow from operations per share
are non-GAAP terms that represent net loss adjusted for non-cash items.
The Company evaluates its performance based on these measures. The
Company considers cash flow a key measure as it demonstrates the
Company's ability to generate cash flow necessary to fund future growth
through capital investment and to repay debt.


Caribou has significantly improved upon all aspects of its business over the same period in 2004 and has shown growth over the fourth quarter of 2004. We have enhanced our technical team with the additions in 2005 of a full time geologist and a full time geophysist, both with significant experience in our core areas. The Company has current production of between 1,700 and 1,800 boe/day with a large inventory of drillable prospects. These prospects include a heavy weighting towards exploitation and development operations within Caribou's core areas where the Company has operatorship and significant working interest control.

Caribou will continue with the exploitation of its significant prospective land base throughout the summer and fall of 2005 with the execution of an approximately $10.0 million capital program in Central Alberta on lands that are 50 - 100% working interest ("WI") and which Caribou operates. The summer and fall drilling program will include a $7.0 million development program at Redwater where the Company operates a 70% WI in a 2,800 bopd oil battery and sales gas pipeline. The program will include up to three new horizontal infill wells in the main Basal Quartz pool and two re-entries of existing horizontal wells to add additional horizontal legs. The existing Basal Quartz light oil pool, which the company believes has approximately five million barrels of oil in place, has recovered less than 225,000 barrels of oil to date. Analogy pools in the area having strong bottom water drive systems similar to Caribou's pool have realized oil recoveries exceeding 35% of oil in place indicating that recoverable oil in place may exceed 1.8 million barrels of oil.

In addition to the horizontal exploitation program, two vertical wells will be drilled to delineate a new Basal Quartz oil pool discovery made in the fall of last year. The results of these vertical wells will determine the direction of development for this new pool which may include the employment of horizontal wells in a manner similar to Caribou's main Basal Quartz pool.

The Company will also pursue several high impact multi zone prospects on the Peace River Arch where it has a 70% WI in three sections targeting the Charlie Lake/Montney and Kiskatinaw zones. Secondary targets include the Belloy and Gething zones. The Company has identified a seismic structure which it believes to be analogous to a nearby Charlie Lake/Montney pool that produced over ten bcf at rates as high as six mmcf/d. The program would lead to three wells and a capital program of over $3.3 million. The prospects are in close proximity to infrastructure where transportation and processing capacity exists which would expedite tie-in and revenue generation. Caribou has significant technical expertise within this Peace River Arch area, and with success these prospects would create a new Caribou core area. The Company believes that the inclusion of these exploration prospects in its summer / fall program is an excellent complement to the lower risk Redwater development and exploitation program.

At Wizard Lake the Company has identified a potential program on its multizone lands where it has approximately 17 net sections of undeveloped land and excellent access to infrastructure. We have identified up to five new drilling locations in the Ellerslie, Belly River and Edmonton Sand formations. In addition the Company is investigating alternatives to follow-up on the recompletion test of the Horseshoe Canyon coal interval that it carried out during the past winter. These could involve identifying a Coal Bed Methane ("CBM") industry partner and / or monetizing the CBM opportunity to optimize value for shareholders.

Caribou is only at the threshold of unlocking the opportunity present in its undeveloped land base, and we will continue to update shareholders on the progress of the drilling program over the next several months.



Caribou Resources Corp.

Balance Sheets

As at March 31, 2005 and December 31, 2004

Unaudited

2005 2004
------------------------------------------------------------------------
ASSETS
Current assets
Cash $ - $ -
Accounts receivable 7,114,231 4,779,315
------------------------------------------------------------------------
7,114,231 4,779,315
Property, plant and equipment 88,281,857 78,491,971
Goodwill 2,607,407 2,607,407
------------------------------------------------------------------------
$ 98,003,495 $ 85,878,693
------------------------------------------------------------------------
------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank debt $ 14,443,169 $ 9,206,122
Accounts payable and accrued
liabilities 17,750,139 9,628,238
------------------------------------------------------------------------
32,193,308 18,834,360

Asset retirement obligations 3,069,120 2,918,925
Future income taxes 10,937,705 11,287,366
------------------------------------------------------------------------
46,200,133 33,040,651
------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Share capital 54,575,678 54,511,969
Contributed surplus 741,332 603,997
Retained earnings (deficit) (3,513,648) (2,277,924)
------------------------------------------------------------------------
51,803,362 52,838,042
------------------------------------------------------------------------
$ 98,003,495 $ 85,878,693
------------------------------------------------------------------------
------------------------------------------------------------------------



Caribou Resources Corp.

Statements of Operations and Deficit

For the three months ended March 31, 2005 and 2004

Unaudited

2005 2004
------------------------------------------------------------------------
REVENUES
Oil and natural gas $ 6,376,053 $ 1,057,985
Alberta royalty tax credit 125,000 31,978
Interest and other revenue 107 7,884
Less: Crown and other royalties (1,268,691) (318,293)
------------------------------------------------------------------------
5,232,469 779,554
------------------------------------------------------------------------
EXPENSES
Operating 1,767,820 279,995
General and administrative 681,628 343,814
Stock-based compensation 137,335 50,000
Interest 103,082 189,572
Accretion 62,138 7,571
Depletion and depreciation 4,052,816 417,445
------------------------------------------------------------------------
6,804,819 1,288,397
------------------------------------------------------------------------
(1,572,350) (508,843)
------------------------------------------------------------------------
Capital taxes (13,037) (5,001)
Future income tax recovery 349,661 177,046
------------------------------------------------------------------------
336,624 172,045
------------------------------------------------------------------------
Non-controlling interest - 45,165
------------------------------------------------------------------------
NET LOSS FOR THE PERIOD (1,235,726) (291,633)
Deficit, beginning of period as
previously stated (2,277,922) (3,542,013)
Application of deficit against
contributed surplus - 1,229,146
Application of deficit against share
capital - 2,276,240
Retroactive application of changes in
accounting policy - 11,695
------------------------------------------------------------------------
Deficit, end of period $ (3,513,648) $ (316,565)
------------------------------------------------------------------------
------------------------------------------------------------------------

Net loss per share
Basic $ (0.04) $ (0.10)
Diluted $ (0.04) $ (0.10)
Weighted average common shares outstanding
Basic 28,141,721 2,889,102
Diluted 28,141,721 2,889,102
Outstanding shares 28,167,165 2,946,794
------------------------------------------------------------------------
------------------------------------------------------------------------



Caribou Resources Corp.

Statements of Cash Flows

For the three months ended March 31, 2005 and 2004

Unaudited

2005 2004
------------------------------------------------------------------------
Cash provided by (used in):

OPERATING
Net loss for the period $ (1,235,726) $ (291,633)
Add (deduct) items not affecting cash:
Depletion and depreciation 4,052,816 417,445
Non-controlling interest - (45,165)
Stock-based compensation 137,335 50,000
Interest accretion - 90,011
Accretion 62,138 7,571
Interest accrued on notes payable - 91,055
Future income taxes (349,661) (177,046)
Abandonment costs - -
------------------------------------------------------------------------
Funds flow from operations 2,666,902 142,238
Change in non-cash working capital 939,823 2,312,177
------------------------------------------------------------------------
3,606,725 2,454,415
------------------------------------------------------------------------
FINANCING
Bank debt 5,237,047 342,481
Issue of common shares, net of costs 63,709 523,325
------------------------------------------------------------------------
5,300,756 865,806
------------------------------------------------------------------------
INVESTING
Property, plant and equipment (13,754,645) (10,037,527)
Change in non-cash working capital 4,847,164 2,623,000
------------------------------------------------------------------------
(8,907,481) (7,414,527)
------------------------------------------------------------------------
Decrease in cash - (4,094,306)
Cash, beginning of period - 4,094,306
------------------------------------------------------------------------
Cash, end of period $ - $ -
------------------------------------------------------------------------
------------------------------------------------------------------------

Supplementary disclosure
Cash interest paid $ 103,082 $ 8,506
Cash taxes paid $ - $ 5,001
------------------------------------------------------------------------
------------------------------------------------------------------------

Cash is defined as cash and cash equivalents



Caribou Resources Corp.
Corporate Information


Directors Officers

Christina M. Fehr, BA, MSc Christina M. Fehr, BA, MSc
Calgary, Alberta Vice Chairman and CEO

Ross G. Robertson, P.Eng Ross Robertson, P.Eng
Calgary, Alberta President and COO

Gordon Robertson, P.Geol Giles Twogood, CA (SA)
Calgary, Alberta Vice President and CFO

Gerald D. Sutton, Chairman Robert A. Phelps, P.Geol
Oakville, Ontario Vice President, Exploration

Donald J. Rowden, CA Douglas Patterson, P.Land
Bend, Oregon Vice President, Land

Registrar and transfer agent Donald Leitch, P.Eng
Valiant Trust Company Vice President, Operations
Calgary, Alberta

Daniel P.E. Fournier, LLB
Auditors Corporate Secretary
PricewaterhouseCoopers LLP
Calgary, Alberta Corporate Office
1545, 101 - 6th Avenue S.W.
Evaluation Engineers Calgary, Alberta T2P 3P4
McDaniel & Associates Consultants Ltd. Phone: (403) 269-5218
Fax: (403) 269-5221
Banker Website: http://www.cariboures.com
Canadian Imperial Bank of Commerce Contact: Christina M. Fehr
Email: cmfehr@cariboures.com
Legal Counsel
Blake, Cassels & Graydon LLP Stock Exchange Listing
Gowling Lafleur Henderson LLP TSX Venture Exchange
Symbol: CBU


Caution to the Reader

Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The risks, uncertainties and other factors that could influence actual results are described in the Company's annual reports to the shareholders and other documents filed with regulatory authorities.

Contact Information

  • Caribou Resources Corp.
    Christina M. Fehr
    Chief Executive Officer & Vice Chairman
    (403) 269-5218
    or
    Caribou Resources Corp.
    Ross Robertson
    President & COO
    (403) 269-5218
    or
    Caribou Resources Corp.
    Suite 1545, 101- 6 Ave SW,
    Calgary, Alberta, T2P 3P4