International Sovereign Energy Corp.
TSX : ISR

International Sovereign Energy Corp.

May 15, 2008 12:13 ET

International Sovereign Energy Corp.: First Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 15, 2008) - International Sovereign Energy Corp. (TSX:ISR) (the "Company") is pleased to announce the Company's results for the first quarter ending March 31, 2008, which was a successful period for the Company.

Net Income for the quarter was $489,464 or $.04 per share as compared to $.01 per share for the 2007 first quarter. Cash flow from operations was $1,910,635 or $.14 per share as compared to $.08 per share in the 2007 first quarter.

Revenue for the quarter was $3,977,498, an increase of 59% from the 2007 level of $2,517,612. Average production over this period increased from 665 boe/d in March of 2007 to 816 boe/d in March of 2008. The Company exited the quarter at 876 boe/d.

Operating costs during the period decreased on per boe/d basis to $9.21/boe, compared to $10.52/boe during the first quarter of 2007. Total general and administrative expenses decreased by 12% as compared to first quarter of 2007.

Royalties, increased from $263,998 at March 31 2007 to $821,277 at March 31 2008. The royalty increase was due to higher production during the quarter at Berwyn, Medicine River and Peace River areas, which wells are high gas producing wells subject to maximum royalties.

During quarter one of 2008, the company drilled three successful gas wells. The first well was tied-in and on stream in late March 2008. The other two wells will be tied in after spring break-up. Production from these three wells is estimated to be 200-250 boe/d net to the Company. For the past year the Company had the capability to produce an additional 250 boe/d from the Berwyn field, but was restricted by available third party line capacity. As the additional pipeline capacity has become available the Company plans to bring this production online in the latter half of 2008.

For further details please see the Company's Consolidated Financial Statements and related Management's Discussion and Analysis filed on Sedar at: www.sedar.com.

International Sovereign Energy Corp. is an oil and gas exploration development and production company with offices in Vancouver, British Columbia, Calgary, Alberta and Islamabad, Pakistan and is active in the exploration and development of hydrocarbon reserves in Western Canada and internationally.

Certain information provided in this press release contains forward-looking statements that by their nature are subject to numerous risks and uncertainties and readers are cautioned that actual results may vary considerably from those forecasted.

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

Contact Information

  • International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    (604) 684-2407 (FAX)
    Website: www.isove.com