Highview Resources Ltd.
TSX VENTURE : HVW

Highview Resources Ltd.

August 04, 2005 18:09 ET

Highview Announces Second Quarter Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 4, 2005) - During the second quarter 2005, Highview (TSX VENTURE:HVW) was extremely active on both the corporate and operational sides of the business. The Company reported record production revenues and cash flow and completed the second of two common share financings. In addition the Company closed a purchase and sale agreement with Arctos Petroleum comprising a substantial block of acreage and a number of shut-in wells, requiring either completion work or facilities construction, to connect them to market.

Inclement weather in Alberta, lasting through the spring and early summer had the effect of delaying a number of the Company's key operations for up to 10 weeks. The Company is now preparing to recommence work on these projects.

Financial

Oil and gas revenues for the first half of 2005 totaled $1.3 million, up substantially from the $330,000 reported for the first half of 2004. Cash flow from operations reached $220,000 in 2005 compared with a cash flow deficiency of $23,000 for 2004.

Capital expenditures for the six months totaled $5.0 million including $2.8 million pertaining to the acquisition of properties from Arctos. On April 18, 2005 Highview closed a $5.0 million private placement of common shares. The Company issued 10.7 million common shares at $0.28 per share and 6 million flow-through common shares at $0.33 per share.

Operations

The Company's production increased during the first half of 2005, to average 181 BOE/d compared with 47 BOE/d for 2004. The Company's principal property, at Alexander, central Alberta continued to perform well, with 13 wells producing a total of 142 BOE/d, net to Highview.

During the second quarter of 2005 Highview participated in drilling three successful wells. At Wood River, a multi-zone oil and gas well was successfully completed. Highview's working interest in the well is 50%. The Company anticipates the well to be placed on-stream within the next 30 days, at an initial production rate of 1.0 MMcf/d. At Newton, Highview participated for a 25% interest in a gas well. The well will be placed on-stream within the next month, at an estimated flow rate of 1 MMcf/d. The Company holds a 20% working interest in a new well at Snipe Lake, which will be placed on-stream in the fall of 2005.

Highview has constructed a battery facility at Alexander to place two oil wells on-stream. While initial production rates are positive, the combination of large volumes of oil, natural gas and water will require some remedial work in order to maximize production. Highview has completed a 3-D seismic shoot over this prospect, which should assist in targeting additional locations.

Outlook

Highview's business plan for the balance of 2005 focuses on the geological and geophysical evaluation of the Company's significant undeveloped land position. As a result of a number of land purchases and farm-ins concluded over the past nine months, the Company has an excellent inventory of drillable prospects and anticipates a very active fall and winter drilling season.



HIGHLIGHTS
Six months ended May 31, 2005 May 31, 2004
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FINANCIAL
Total revenue $ 1,322,924 $ 330,103
Cash flow from operations $ 222,467 $ (23,272)
Per share $ 0.00 $ (0.00)
Net loss $ (263,108) $ (34,423)
Per share $ (0.00) (0.00)
Capital expenditures $ 5,044,444 $ 266,892
Working capital $ 727,463 $ 13,379
OPERATIONS
Production
Natural Gas - Per Day (Mcfd) 1,045 269
Crude Oil - Per Day (Bopd) 5 3
NGL - Per Day (Bopd) 2 -
BOE - Per Day (BOEd) 181 47
Product Prices
Gas ($/Mcf) $ 6.66 $ 6.39
Oil ($/Bbl) $ 19.61 $ 28.91
NGL ($/Bbl) $ 43.07 $ -
Total shares outstanding 65,899,893 15,791,667
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Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward- looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Highview Resources Ltd.
    John H. Cassels
    President & CEO
    (403) 261-9978
    (403) 261-4072 (FAX)
    or
    Highview Resources Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)