DALLAS, Jan. 3, 2006 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) today announced that it had earnings of $3,451,135, or $0.05 per share (fully diluted) for the first quarter ended October 31, 2005 of its 2006 fiscal year ending July 31, 2006 and that it has filed its Interim Quarterly report with securities regulators on SEDAR.
The date of the report is as of December 22nd, 2005 and a summary of management's discussion and analysis contained therein follows.
As at October 31, 2005, the Company's interim consolidated financial statements reflect a working capital position of $3,423,059. This represents an increase in the working capital of approximately $3,462,000 compared to the July 31, 2005 deficit of $39,066. The cash balance at October 31, 2005 was $3,609,871 compared to $98,898 as at July 31, 2005, an increase of $3,510,973. The Company used $71,910 for operating activities during the current fiscal quarter compared with $97,828 in the three months ended October 31, 2004. The cash resources provided by investing activities during the current fiscal quarter was $3,588,271 compared with using $8,803 in the three months ended October 31, 2004. The current year amount includes proceeds from the sale of the Company's interest in the Yapen Production Sharing Contract in Indonesia.
The Company used $5,388 for financing activities during the current fiscal quarter compared with $5,205 in the prior year quarter. During the three months ended October 31, 2005 the Company invested approximately $42,000 in its Indonesian oil & gas properties and recovered $30,000 from its farm out partner.
During the three months ended October 31, 2005 there were no Private Placements and no Stock Options or Warrants exercised. On October 31, 2005, the Company had options outstanding granted to directors, officers and consultants to purchase an aggregate of 8,932,426 shares at prices ranging from $0.15 to $0.20 and expiring at varying dates between December 30, 2005 and April 30, 2009. On October 31, 2005, the Company had warrants outstanding to purchase an aggregate of 8,895,334 shares at prices ranging from $0.15 to $0.60 and expiring at varying dates between July 19, 2006 and April 27, 2007.
The Company had income from operations during the three months ended October 31, 2005 of $3,451,135 compared to a loss of $234,128 in the three months ended October 31, 2004. The Company sold its Yapen subsidiary for cash proceeds of $3,600,000 and recorded a gain of $3,599,999 on disposition.
The Company wrote down its resource properties to nominal values, which resulted in an expense in the amount of $11,729. In the prior fiscal period, the property write-down was $15,667. General and administrative expenses decreased by $70,116 from $214,106 to $143,990 for the three months ended October 31, 2004 and 2005 respectively. Foreign exchange loss and interest expense decreased by $17,373 from $23,265 to $5,892. Management fees decreased by $12,676 from $82,997 to $70,321.
About Continental Energy Corporation: Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. For further information, please visit our web site at www.continentalenergy.com or contact Jim Eger at 877-762-2366, Suite 1200, 14001 Dallas Parkway, Dallas, Texas 75240.