NiMin Energy Corp.
TSX : NNN
OTCQX : NEYYF

NiMin Energy Corp.

November 15, 2010 16:31 ET

NiMin Energy Corp. Announces 2010 Third Quarter Results

Provides Operational Update

CARPINTERIA, CALIFORNIA--(Marketwire - Nov. 15, 2010) - NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) -

  • NiMin increases revenue year-over-year by 143% to $4.54 million

  • Current average production is over 1,250 boe/d; average production for the third quarter was 826 boe/d

  • 12 production enhancing operations remain in Wyoming and California for 2010

NiMin Energy Corp. (TSX:NNN)(OTCQX:NEYYF) ("NiMin" or the "Company") today announced its financial results for the quarter ended September 30, 2010 and provided an update on the Company's operations. Copies of NiMin's financial statements and management's discussion and analysis may be obtained on SEDAR at www.sedar.com or by visiting NiMin's website at www.NiMinenergy.com.

Oil Recovery Operations

  • NiMin's average production from November 1, 2010 through November 14, 2010, was over 1,250 barrels of oil equivalent per day ("boe/d"); average production for the third quarter 2010 was 826 boe/d.
  • On October 25, 2010, the Company announced that it had doubled production in Wyoming to a rate of 650 barrels of oil per day ("bopd"), and has subsequently averaged 790 bopd through the first 14 days of November. The Company has completed two production enhancing operations in Wyoming since the October 25th press release and expects to complete an additional eight operations by the end of 2010.
  • NiMin completed its first polymer treatment at the Willow Draw Field in Wyoming, which increased oil production from 20 bopd to 96 bopd and decreased water production by more than 80%.
  • In California, the Company has recently identified and expects to complete four production enhancing operations by the end of 2010. These operations include workovers of existing wells and the reactivation of shut-in wells.
  • The production of the Pleito Creek Field in California has increased to 260 bopd; 100 bopd above natural decline and 53 bopd above second quarter 2010 production as a result of the Company's proprietary Combined Miscible Drive ("CMD") process.

Mr. Clancy Cottman, Chairman and CEO, said, "NiMin continues to make substantial progress in using enhanced oil-recovery techniques to significantly increase production. During the latest quarter, we ramped up our operational activity in Wyoming and we continue to increase production through drilling and workovers. Moreover, our proprietary CMD process is exceeding our expectations in California, and we have identified four new production enhancing operations to be commenced in the fourth quarter. We are confident that our technology will continue to accelerate production in the San Joaquin Basin."

Mr. Cottman added, "Following the close of our third fiscal quarter, NiMin has increased its total production to over 1,250 boe/d, an increase of 51 percent over our production rate only a few weeks ago. This production increase is encouraging and representative of the immediate and significant impact we're able to bring to bear on the assets in our portfolio."

Financial Information

  • In the third quarter ended September 30, 2010, NiMin incurred non-cash expenses and unrealized losses related to depreciation and depletion of assets, crude oil derivative contracts and stock based compensation, resulting in a net loss for the quarter.
  • The net loss for the quarter was $4,956,970 compared to a net loss of $2,040,963 for the quarter ended September 30, 2009. Loss per share for the quarter ended September 30, 2010, was $0.08 compared to $0.05 for the same period a year earlier.
  • The Company reported gross revenues of $4.54 million for the quarter, up from $2.02 million reported in the same period of 2009. The increased revenue is from an increase in the volume of oil and natural gas produced, due in part to the addition of the producing properties in Wyoming, drilling and workover activity and an increase in prices.
  • Operating netback increased to $1.03 million for the quarter ended September 30, 2010 from $0.15 million for the quarter ended September 30, 2009.
  • General and administrative ("G&A") expenses increased from $1.10 million in the prior year to $2.44 million in the quarter ended September 30, 2010. Before stock-based compensation expense, a non-cash accounting entry, the G&A expense for the quarter ended September 30, 2010 was $1.77 million compared to $0.91 million reported for the same period in 2009.
  • Depreciation, depletion, amortization and accretion ("DD&A") for the second quarter of 2010 decreased to $1.32 million from $1.68 million reported for the same period in 2009. This decrease in DD&A is primarily attributable to an increase in proven reserves associated with the acquisition of four fields in Wyoming in December 2009.

Conference Call

The Company has scheduled a conference call in connection with the earnings announcement for Tuesday, November 16 at 10:30 a.m. Eastern. The call will be open to the public through (866) 382-9489 by entering the following conference ID: 24906278. A live audio webcast will also be available via NiMin's "Investor Relations" page on its website at http://www.niminenergy.com/s/Investors.asp, and can be rebroadcast following the call for up to six months. A replay of the call can also be accessed by dialing (800) 642-1687 and conference ID: 24906278, and will be available through November 23, 2010.

About NiMin Energy

NiMin is a California based independent oil and gas exploitation and production company with principal operations in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and South Louisiana onshore areas of the U.S. The Company has over 27 million barrels of proved and probable reserves, 97% of which are oil.

Cautionary Statements

A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency for the individual products at the wellhead. Such disclosure of boe's may be misleading, particularly if used in isolation.

This news release contains forward-looking statements and information ("forward-looking statements") within the meaning of applicable securities laws, including the drilling program to be commenced by NiMin on the acquired fields, production gains, the long-term upside potential of the CMD process and the increase in oil recovery resulting therefrom. Although NiMin believes that the expectations reflected in its forward-looking statements are reasonable, such statements have been based upon currently available information to NiMin. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in forward-looking statements. Risks include, but are not limited to: the risks associated with the oil and gas industry (e.g., operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in more detail in our Annual Information Form and other documents available at www.sedar.com. Readers are cautioned to not place undue reliance on forward-looking statements. The statements in this press release are made as of the date of this release, and, except as required by applicable law, NiMin does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement. NiMin undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of the NiMin, Legacy or their respective financial or operating results or, as applicable, their securities. The net present value of future net revenue attributable to NiMin's reserves do not represent fair market value.

Contact Information