WELLINGTON, New Zealand, May 14 /PRNewswire-FirstCall/ -- Austral
Pacific Energy Ltd. (TSX-V: APX; NZSX: APX; Amex: AEN) Chief executive,
Thom Jewell, said the company recorded a loss of $6,567,884 for the quarter
ended March 31, 2008. The majority ($4.4mm) of this figure relates to non
cash components associated primarily with unrealised derivative losses and
depletion. The underlying performance of the company is strong.
The company has made significant gains over the period resulting in a
reduction of its liability from $49mm to $32mm and managing its short term
financial challenges by restructuring its loans and reduction of its long
term debt from $18 to $14.5mm with a further reduction to $11mm expected
during the second quarter.
The company has also been successful in monetising one its non core
projects in Papua New Guinea at an opportune point in its value cycle. "We
will continue to high grade the portfolio of assets with disciplined
capital spending, divestments and additions as warranted," said Jewell.
The Cheal field continues to pump cash into the organisation. The
Company's 69.5% of the Cheal field has produced 35,931 barrels of oil and
generated net revenue of $2,817,267 during the quarter.
Jewell said, "the individual wells are performing as anticipated and I
am confident that we will be able to increase both the reserves and the
total field production with additional drilling. We are also pleased with
the performance of the A1 well which is the first producing well from the
shallower Urenui sands overlying the entire Cheal field. Bringing this well
on stream this quarter and will allow us to realise additional reserves and
production for the field."
Two additional wells have been prepared and could spud before the end
of this month. While these wells are targeting incremental reserves, the
facilities are designed to allow successful exploration, appraisal or
development wells to be converted to producing wells and put on stream
rapidly. More than 10 additional drilling locations have been targeted to
extend the play trend beyond the existing field but within the permit area
over the next two years. These wells if successful may be produced through
the world class production facilities that are now in place and operating
smoothly.
"We have a staged forward work programme which will be funded out of
existing funds, future production revenue and by raising additional
capital." Jewell said. "This program includes further work on Cheal to
increase reserves and subsequent production, and development of the Kahili
and Cardiff assets."
Web site: http://www.austral-pacific.com Email: ir@austral-pacific.com
Phone: Thom Jewell, CEO +64 (4) 495 0880 or
Brad Holmes +1 (713) 304 6962
None of the Exchanges upon which Austral Pacific's securities trade
have approved or disapproved the contents hereof. This release includes
certain statements that may be deemed to be "forward-looking statements"
within the meaning of applicable legislation. Other than statements of
historical fact, all statements in this release addressing future
production, reserve potential, exploration and development activities and
other contingencies are forward-looking statements. Although management
believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of
future performance, and actual results or developments may differ
materially from those in the forward-looking statements, due to factors
such as market prices, exploration and development successes, continued
availability of capital and financing, and general economic, market,
political or business conditions.
See our public filings at http://www.sedar.com and
http://www.sec.gov/edgar/searchedgar/webusers.htm for further information.
SOURCE Austral Pacific Energy Ltd.
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Related links:
http://www.austral-pacific.com
CONTACT:
Thom Jewell, CEO, +64 (4) 495 0880, or Brad
Holmes, +1-713-304-6962, both of Austral Pacific Energy Ltd.,
ir@austral-pacific.com
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