PetroKamchatka Plc Reports Financial Results for the Year Ended May 31, 2011
PetroKamchatka Plc a Jersey company, reports its audited financial results for its year ended May 31, 2011. PetroKamchatka has filed its Consolidated Financial Statements for the year ended May 31, 2011 and its Management’s Discussion and Analysis (“MD&A”) on www.sedar.com and on its website at www.petrokamchatka.com.
Selected financial information as at May 31, 2011 and May 31, 2010 and for the years ended May 31, 2011 and 2010 are set out below and should be read in conjunction with PetroKamchatka’s May 31, 2011 Consolidated Financial Statements and MD&A.
SELECTED FINANCIAL INFORMATION
The audited consolidated financial information for PetroKamchatka includes the Corporation, its subsidiaries and its proportionate share of the accounts of its joint interest entities.
PetroKamchatka reported a net loss for the year ended May 31, 2011 of $22.5 million ($0.05 per share) compared to a net loss of $38.5 million ($0.09 per share) for the year ended May 31, 2010.
The loss for the year ended May 31, 2011, included a write down of approximately $17.1 million of its full cost pool of capitalized petroleum and natural gas exploration licenses in Russia. The write down includes approximately $17 million in the carrying value of the Corporation’s interest in the Icha license and approximately $75,000 in the carrying value of the Corporation’s interest in the Ichinskaya and Vorovskaya licenses. All three licenses are located in Kamchatka, Russia. PetroKamchatka incurred ‘equipment operating costs and other’ in the current year of approximately $2.4 million relating to its interest in two drilling rigs. These costs include de-mobilization, transportation, storage and repairs to its Russian mobile drilling rig; storage, legal and appraisal fees relating to its interest in the HighKelly rig. Other costs contributing to the current year loss included general and administration expenses of $2.4 million, stock-based compensation expense of $0.4 million and depreciation on its Russian mobile drilling rig and equipment of $0.3 million.
Cash flow used in operating activities was approximately $3.7 million, mostly to fund equipment operating costs and general and administration expenses. Capital expenditures for the year were approximately $0.8 million, which were primarily related to transportation and preparatory costs for the drilling of a well on the Icha exploration license that was not drilled.
Working capital at May 31, 2011 was approximately $2.0 million, including cash of $4.0 million. The Corporation has no long-term debt.
The loss for the year ended May 31, 2010, included a write down of property and equipment of approximately $32 million, including a $29.5 million partial write down of its full cost pool of capitalized petroleum and natural gas costs in Russia, and a $2.0 million write down in the carrying value of the Corporation’s 46.25percent net interest in a drilling rig.
The Corporation also incurred a one-time expense of approximately $1.2 million relating to its reorganization in the 2010 fiscal year and its listing on the TSX Venture Exchange. Other costs contributing to the current year loss included general and administration costs of $4.5 million, stock-based compensation expense of $0.7 million and depreciation on its Russian drilling rig and equipment of $0.7 million. These amounts were partially offset by a $0.4 million recovery of prior year’s expenses.