Crocotta Energy Posts Q3 Loss

11/10/2009 7:34 AM ET

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(RTTNews) - Canadian oil and natural gas company Crocotta Energy Inc. (CTA.TO: News ) reported Tuesday a net loss in its third quarter that slipped from prior year's profit, as revenues were hurt by lower oil and gas prices. Meanwhile, production grew 33% in the quarter on the acquisition of Salvo Energy corp.

Third-quarter net loss was C$3.92 million or C$0.06 per share, compared to net earnings of C$1.23 million or C$0.04 per share in the year ago quarter.

Funds from operations, or FFO, for the quarter fell 77% to C$1.75 million from C$7.72 million in the same quarter last year. On a per share basis, FFO plunged 87% to C$0.03 from C$0.23 a year ago, reflecting a 65% rise in share count.

Revenues were C$6.56 million for the quarter, down from C$10.78 million in the prior year quarter. Adjusting for royalties, oil and natural gas sales for the quarter declined 36% to C$8.65 million from C$13.55 million a year ago.

The company attributed the decline in revenue to lower oil, NGLs, and natural gas commodity prices, partially offset by the increase in production as a result of the acquisition of Salvo Energy.

Oil and NGLs revenues declined 27% to C$5.59 million from prior year's C$7.64 million. Natural gas revenues plunged 48% to C$3.06 million from C$5.91 million last year.

In the quarter, the company's production was 2,668 barrel of oil equivalent per day, or boe/d, up 33% from 2,007 boe/d last year, helped by the acquisition of Salvo Energy on August 13, 2009, which was producing approximately 1,550 boe/d at the date of acquisition.

Oil and liquids production rose 30% to 1,000 barrels per day, or bbls/d from 767 bbls/d a year earlier. Production of natural gas also grew 35% to 10,005 mcf/d from prior year's 7,438 mcf/d.

Average sales price was C$35.25 per barrel of oil equivalent, down 52% from C$73.40 last year. Oil and NGLs price fell 44% to C$60.81 per barrel, and natural gas price plunged 62% to C$3.32 per mcf.

For the nine months of fiscal 2009, Crocotta Energy's net loss was C$10.42 million or C$0.22 per share, compared to last year's profit of C$5.49 million or C$0.17 per share. FFO for the period fell 80% to C$5.35 million from C$27.14 million in 2008, and FFO per share declined 87% to C$0.11 from C$0.82 a year ago. Oil and natural gas sales for the period dropped 52% to C$22.07 million from C$45.74 million a year earlier.

Crocotta noted that its production profile remained constant in 2009, comprised of 63% natural gas and 37% oil and NGLs, which was equivalent to the production profile for fiscal 2008.