-- The Company's net production for the quarter ended June 30, 2008
included 30,670 barrels of oil, 75,637 mcf of natural gas, and 5,522
barrels of natural gas liquids for a barrel-equivalent total of 48,798 boe
compared to 25,282 barrels of oil, 47,027 mcf of natural gas, and 250
barrels of natural gas liquids for a barrel-equivalent total of 33,370 boe
for the quarter ended June 30, 2007.
-- For the quarter ended June 30, 2008, the average daily production was
approximately 536 boe per day of which approximately 363 boe per day was
attributable to the Williston Basin and 173 boe per day was attributable to
the Cinco Terry Field. The daily exit production rate was 546 boe per day.
These rates compare to average daily production of 367 boe per day for the
quarter ended June 30, 2007 and a daily exit production rate of 363 boe per
day.
-- Revenue for the quarter consisted of $4,368,442 of oil and gas sales
compared to oil and gas sales of $1,624,409 for the prior year period.
-- Income from operations of $1,477,730 for the quarter ended June 30,
2008 compared to a loss from operations of $352,303 during the same period
in the prior year.
-- The Company experienced a net loss attributable to common shareholders
of $1,882,826 ($.05 per share) during the quarter ended June 30, 2008 which
included unrealized losses of $2,778,056 on commodity derivates. Excluding
the unrealized losses from commodity derivatives, our adjusted net income
for the second quarter was $950,058 ($.025 per share).
Operations Update
North Dakota Williston Basin
The Company is currently conducting completion operations on the E-M Emmel
#10-3 well in the Deadwood Sandstone formation. The well encountered
apparent logged and cored pay in both the Deadwood Sandstone which was the
primary target and in the Winnipeg Sandstone. The Company has a 25%
working interest it the Newporte Prospect.
The Company is currently drilling the E-M Flying H #5-9 which is the second
well scheduled to
test the Deadwood Sandstone in the Newporte Prospect. The well is
currently drilling at approximately 9470 feet and is expected to reach a
total depth of approximately 9,750 feet.
The East Flaxton Madison Unit #23 H horizontal well has encountered
mechanical difficulties during completion operations and is waiting on an
engineering evaluation and remedial work to establish production.
Cinco Terry Field
The Cinco Terry Field prospect area was recently expanded by 9,480 gross
acres to a total of 31,380 gross acres in which the Company holds a 10%
working interest. The drilling program in the Cinco Terry prospect has also
been recently accelerated with the addition of a second drilling rig
committed to this prospect for the balance of the year and the company
expects to drill another 20 to 25 wells before year end. Year to date the
Company has participated in 19 successful wells. During August 2008, we
achieved a one-day rate of approximately 250 boe per day net to the Company
which is our largest one-day rate in this field to date.
East Chalkley Field
The Pine Pasture #2 well was a slightly deviated hole drilled to 9,760 feet
MD (9,600 feet TVD) and was logged and cased. The well was subsequently
completed and tested from the W-2 Sand. The initial test results on a
rental pumping unit were positive. Based on the results of the initial
testing, the production pump design is currently being engineered. The
Company expects that the well should produce total fluids in a range of 700
to 1,000 barrels per day with a 30% to 50% oil cut. The Company has
approximately 34% working interest in the project.
About Petro Resources
Petro Resources Corporation is an independent exploration and production
company engaged in the acquisition of properties and leases, exploration,
development, exploitation, and production of oil and natural gas in the
continental United States. For more information, please view our website
at www.petroresourcescorp.com.
Forward-looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements relate to, among other things: (1) the Company's
proposed exploration and drilling operations on its various properties, (2)
the expected production and revenue from its various properties, and (3)
estimates regarding the reserve potential of its various properties. These
statements are qualified by important factors that could cause the
Company's actual results to differ materially from those reflected by the
forward-looking statements. Such factors include but are not limited to:
(1) the Company's ability to finance the continued exploration and drilling
operations on its various properties, (2) positive confirmation of the
reserves, production and operating expenses associated with its various
properties; and (3) the general risks associated with oil and gas
exploration and development, including those risks and factors described
from time to time in the Company's reports and registration statements
filed with the Securities and Exchange Commission, including but not
limited to the Company's Annual Report on Form 10-K for the year ended
December 31, 2007 and Form 10-Q for the quarter ended March 31, 2008. The
Company cautions readers not to place undue reliance on any forward-looking
statements. The Company does not undertake, and specifically disclaims any
obligation, to update or revise such statements to reflect new
circumstances or unanticipated events as they occur
Contact Information: Contact: Brad Holmes Investor Relations (713) 654-4009 Don Kirkendall President (832) 369-6986