Sahara Energy Ltd.

Sahara Energy Ltd.

September 07, 2007 17:01 ET

Sahara Energy Releases Revised Second Quarter Results

CALGARY, ALBERTA--(Marketwire - Sept. 7, 2007) - Sahara Energy Ltd. ("Sahara" or the "Company") (TSX VENTURE:SAH) (PINK SHEETS:SAHRF) is pleased to announce its financial and operating results for the quarter ended June 30, 2007.

Gross revenue for the 3 month period totaled $526,772 , compared to $124,834 for the same period last year; an increase of $401,938.

As at June 30, 2007, the Company reported a bank overdraft of $ 608,842 and a working capital deficiency of $3,643,003. Included in the working capital deficiency is $605,004 in convertible debentures converted at $0.57 that mature December 31, 2007. Additional convertible debentures of $620,000 that mature June 29, 2009 and convert at $0.90. Management is of the opinion that the 2007 debentures will be converted leaving a working capital deficiency of $ 3,037,999. The company has a credit line facility in the amount of $1,500,000. Sahara will dispose of non-core properties to increase its working capital position.

The company had a net loss of $610,917 for the three months ended June 30, 2007. Adjusting the net loss for non-cash items of depletion, depreciation, accretion and stock based compensation the company has a net loss of $313,900 for the three months ended June 30, 2007.

For the three month period ended June 30, 2007, the Company had capital expenditures of $ 691,811 of which $170,180 which was spent on drilling and completion, $279,793 on well equipment and facilities, and $ 241,838 on land and other costs.

During the next three months, depending on financing, Sahara will operate the drilling of 8 heavy oil test wells. In Alberta, 2 test well will be drilled at Hayter (50% interest), 2 test wells at Blackfoot (50% interest), 2 test wells at Lloydminster (50% interest) and 2 wells (50% interest) at Soda Lake, Saskatchewan. Sahara may also participate in the drilling of up to 3 non-operated wells (30% interest) in the Buzzard/Lashburn area of western Saskatchewan.

Additional Information

Sahara's unaudited consolidated financial statements and relating managements' discussion and analysis for the three months ended June 30, 2007 have been filed on SEDAR at For additional information on the Company, please go to the Company's profile at SEDAR.

Sahara is a junior oil and gas company focused on the exploration and development of oil and gas in western Canada.

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 McF: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner top and does not represent a value equivalency at the wellhead.

Reader Advisory

Statements in this press release may contain forward-looking statement including expectations with respect to future events and the actions of third parties. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to: the underlying risks of the oil and gas industry (i.e. operational risks in development, exploration and production; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserves estimates; the uncertainty of estimates and projections relating to production, costs and expenses, adequate available financing and health, safety and environmental factors), commodity price and exchange rate fluctuation and uncertainties.

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

Contact Information

  • Sahara Energy Ltd.
    Peter J. Boswell
    President and CEO
    (403) 232-1359
    Sahara Energy Ltd.
    Quentin C Enns
    VP - Exploration
    (403) 232-1359
    Sahara Energy Ltd.
    800, 510 - 5th Street S.W.
    Calgary, Alberta T2P 3S2