DALLAS, March 31, 2006 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) announced today that it has released its Interim Quarterly report for the second quarter ended January 31, 2006 of its 2006 fiscal year ending July 31, 2006 and filed the report with securities regulators on SEDAR.
The date of the report is as of March 30th, 2006 and a summary of management's discussion and analysis contained therein follows.
As at January 31, 2006, the Company's interim consolidated financial statements reflect a working capital position of $2,864,435. This represents an increase in the working capital of approximately $2,904,000 compared to the July 31, 2005 working capital deficit of $39,066. The increase was mainly due to the Company selling its Yapen subsidiary and receiving cash proceeds of $3,600,000. The increase was offset by general and administrative requirements during the period. The cash balance at January 31, 2006 was $3,314,529 compared to $98,898 as at July 31, 2005, an increase of $3,215,631. During the current quarter, the Company's cash balance decreased by $295,342.
The Company used $199,716 for operating activities during the six months ended January 31, 2006 compared with $167,749 in the six months ended January 31, 2005. The current level of spending is consistent with the prior year spending for operations. During the current quarter, the Company used $127,806 as compared with $69,921 in the same fiscal quarter in the prior year.
The cash resources provided by investing activities during the six months ended January 31, 2006 was $3,367,734 compared with using $27,879 in the six months ended January 31, 2005. The Company's property expenditures were reduced to a minimal level until such time as financing is obtained to continue further exploration and development of its Indonesian properties. The current year amount includes the proceeds from the Yapen sale, net of closing costs in the amount of $3,506,834 as well as equipment purchases of $65,750. During the current quarter, the Company used $220,537 as compared with $19,076 in the same fiscal quarter in the prior year.
The cash resources provided by financing activities during the six months ended January 31, 2006 was $47,613 compared with $72,639 in the six months ended January 31, 2005. During the current period the company received proceeds of $60,000 for share issuances compared with $75,000 in the prior period. During the current quarter, cash resources provided by financing activities were $53,001 as compared with $77,844 in the same fiscal quarter in the prior year.
During the second quarter the Company filed an annual report on its oil and gas activities under a Form-51-101F1 filing with, and as required by, Canadian securities regulators. The report may be downloaded from the SEDAR website.
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.
No securities regulatory authority has either approved or disapproved the contents of this news release.
Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the U.S. Securities Exchange Commission.