First Calgary Petroleums Ltd. 2007 First Quarter Results
TSX: FCP
AIM: FPL
CALGARY, May 10 /CNW/ - First Calgary Petroleums Ltd. (First Calgary, FCP
or the Company) announces its results for the three months ended 31 March
2007.
HIGHLIGHTS:
-----------
Drilling Success:
- Successful drilling of the TAGI oil and gas condensate resource pools
in the LES and MZLN areas of the block
- TAGI pools in the central area of the block emerging as another
development project
Active Appraisal Programme underway:
- ZER-2 appraisal well in the northern part of the block completed
drilling and testing. FCP currently evaluating test results
- LES-6 appraisal well completed drilling in late January and testing
operations are ongoing
- LEC-2 appraisal well finished drilling in mid March and is due to be
tested in the second quarter.
- LEW-3 appraisal well drilling ended in late March, with testing
scheduled for third quarter
- LES-7 commenced drilling in late March
- MZLN-3 testing operations ongoing
- MZLN-4 commenced drilling in April
MLE Field Commercialisation and Development
- Key commercialisation milestone achieved with Algerian Regulatory
approval for the MLE development plan, received in February
- Award of front end engineering and design contract underway
- First gas and liquids production targeted for around the end of
2009/ first quarter 2010
Financing
- CDN $152,400,000 bought deal equity financing completed to
fund 2007 capital programme
- Continuing to progress financing plan, including project debt for MLE
development
Richard Anderson, President and CEO commented:
"FCP has had an excellent first quarter receiving full regulatory
approval for the MLE development and the group is now set to become a major
gas and liquids producer. Our appraisal programme continues with six wells
currently drilling, testing, or under evaluation, whilst the successful TAGI
formation results in the central area confirm another development project is
emerging."
Enquiries:
First Calgary Petroleums Ltd.:
Richard G. Anderson, President and CEO, Tel: (403) 264-6697
John van der Welle, Finance Director and CFO, Tel: +44 (0) 203 159 4010
Other contacts:
David Nabarro, Nabarro Wells & Co. Limited, Tel + 44 (0) 207 710 7400
James Henderson, Pelham Public Relations, Tel: +44 (0) 207 743 6673
Carina Corbett, 4C - Burvale Limited, Tel: +44 (0) 207 559 6710
First Calgary Petroleums Ltd. is an oil and gas exploration company
actively engaged in international exploration and development activities in
Algeria. The Company's common shares trade on the Toronto Stock Exchange in
Canada (FCP) and on the AIM market of the London Stock Exchange in the UK
(FPL).
This news release includes statements about expected future events and
financial results that are forward looking in nature and subject to risks and
uncertainties. FCP cautions that actual performance may be affected by a
number of factors, many of which are beyond its control. Future events and
results may vary substantially from what First Calgary Petroleums Ltd.
Currently forsees.
First Calgray Petroleums Ltd,
Management's Discussion and Analysis
For the period ended March 31, 2007
(in thousands of U.S. dollars unless otherwise indicated)
-------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management's discussion and analysis (MD&A) is a review of operations,
current financial position and outlook for First Calgary Petroleums Ltd.
(First Calgary, FCP or the Company). It should be read in conjunction with the
unaudited interim financial statements for the three month periods ended
March 31, 2007 and 2006 and the audited financial statements and MD&A for the
year ended December 31, 2006. In this discussion and analysis $ refers to the
U.S. dollar and C$ refers to the Canadian dollar.
OPERATIONAL REVIEW
Appraisal Operations
Having completed the five year exploration phase in 2006, in December
last year First Calgary received an extension under the PSC to complete its
Ledjmet Block 405b appraisal activities of the Central Area Field Complex (the
"CAFC"), and to submit commerciality reports and apply for exploitation
permits thereon.
Accordingly FCP scaled back its operational activity in the first
quarter, releasing one drilling rig and one test spread. The remaining two
drilling rigs and single test spread operating on the block will allow FCP to
complete its appraisal of the CAFC by the first quarter of 2008.
The highlight of the 2007 first quarter's operational activities was the
successful drilling of the TAGI oil and gas condensate resource pools in the
LES and MZLN areas of the block, with the LES-6 and MZLN-2 wells. The TAGI
pools in the CAFC are emerging as another development project, and additional
wells are planned to appraise these discoveries.
The following summarizes the appraisal activities that were performed
during the quarter and to date.
The ZER-2 appraisal well, located in the northern part of the block 4.3
km SW of ZER-1, finished drilling in early January to a depth of 4562 metres.
Testing operations were completed in Q1. FCP is evaluating the test results
with its partner Sonatrach.
The LES-6 appraisal well, located in the central part of the block 2.9 km
NE of LES-4, finished drilling in late January to a depth of 4519 metres.
Testing operations at this well are ongoing.
The LEC-2 appraisal well, located in the central part of the block 9.7 km
NE of LES-1, finished drilling in mid March to a depth of 4491 metres. FCP
plans to begin testing this well in the 2nd quarter.
The LEW-3 appraisal well, located in the central part of the block 3.5 km
SW of LEW-2, finished drilling in late March to a depth of 4520 metres. FCP
plans to begin testing this well in the 3rd quarter.
The LES-7 appraisal well, located in the central part of the block 1.5 km
NE of LES-6, started drilling in late March.
Testing operations are also ongoing at MZLN-3.
The MZLN-4 appraisal well, located in the central part of the block 1.1
km NE of MZLN-2, started drilling in April.
Readers are referred to the map which is available on the Company's
website at www.fcpl.ca.
MLE Commercialisation
This past year's commercialisation activities culminated in February 2007
in FCP receiving approval from the Algerian regulatory authority ALNAFT for
the Development Plan for the MLE oil and gas field on Block 405b. This
approval signifies a key milestone reached for First Calgary as it grows into
an oil and gas development and production company in addition to its focus on
exploration.
Included as part of the Block 405b development planning are a gas plant
and field gathering system and facilities designed to process 230 million
cubic feet of raw gas per day on a gross basis and associated natural gas
liquids and oil. The plant capacity can be expanded to treat up to 460 million
cubic feet of raw gas per day. FCP is currently in discussions with its
partner Sonatrach regarding the expansion of the planned gas plant as part of
an integrated block development strategy.
In order to achieve first production around the end of 2009/early 2010,
FCP has established an aggressive project timeline. Some of the key project
deliverables for 2007 are completing the front end engineering and design
(FEED) work, identifying and ordering long-lead items, and tendering and
awarding the engineering, procurement and construction (EPC) contract.
FCP plans to award the FEED contract in the second quarter 2007.
FINANCIAL RESULTS
Three months ended
March 31
--------------------
2007 2006
-------------------------------------------------------------------------
Net loss $2,397 $1,313
The net loss for the quarter was $2.4 million compared to $1.3 million
due to higher general and administrative costs offset by lower stock
based compensation expense, as described in the following.
Three months ended
March 31
--------------------
2007 2006
-------------------------------------------------------------------------
Interest $991 $886
Interest income was higher in 2007 than the comparable 2006 period due to
higher interest rates earned on short-term deposits.
Three months ended
March 31
--------------------
2007 2006
-------------------------------------------------------------------------
General and administrative $4,222 $1,704
Capitalized 1,258 443
--------------------
Expensed $2,964 $1,261
The increase in general and administrative costs in 2007 is primarily the
result of growing employee levels required to manage and operate the
Algerian projects. Capitalized G&A is higher in 2007 due to increased
operational employees resulting in increased capitalized salaries.
Three months ended
March 31
--------------------
Property, plant and
equipment expenditures 2007 2006
-------------------------------------------------------------------------
Drilling, completion and testing $42,454 $24,676
Geological and geophysical 778 855
MLE commercialisation 4,403 5,375
-------------------------------------------------------------------------
47,635 30,906
Block management and administration 3,108 3,928
Corporate 164 74
-------------------------------------------------------------------------
Total property, plant and equipment
expenditures 50,907 34,908
Less non-cash expenditures (stock-based
compensation, asset retirement provisions) 910 674
-------------------------------------------------------------------------
Net cash expenditures $49,997 $34,234
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Capital expenditures are significantly higher in 2007 than 2006
comparable period mainly due to a larger appraisal drilling programme. In the
first quarter 2006, FCP used one drilling rig compared to two rigs in 2007.
Liquidity and Capital Resources
First Calgary had $30.8 million of working capital on hand as at
March 31, 2007 compared with $82.7 million at the end of 2006. Cash balances
and short-term investments were $51.3 million at the end of the quarter. The
Company has no credit or debt agreements in place.
Given the nature of an exploration company, FCP's financial resources
fluctuate with the amount and timing of equity financings and its capital
programme. The $51.9 million decrease in the Company's working capital from
December 31, 2006 is primarily the result of capital activities for
commercialization of MLE and appraisal drilling in Algeria.
In April 2007 FCP raised C$145 million net of expenses from the issue of
30,000,000 common shares at a price of C$5.08 per common share. Together with
existing resources, this financing will provide the Company with the working
capital needed to appraise the CAFC and invest in MLE field pre-development
expenditures, as part of the planned $150 million capital investment programme
for 2007.
Development of the Ledjmet Block 405b reserves through to commercial
production will require significant funding, with 75 percent being FCP's
share. To date, FCP has relied upon equity to fund its short-term operations
and capital programmes. Development funding is expected to be in the form of
project debt, equity, joint venture farm-out arrangements or some combination
thereof. First Calgary has been approached by a number of parties seeking to
fund the block development and has appointed Citigroup as sole advisor to the
Company on project debt for the MLE field development. The gross development
cost of the MLE field is currently estimated at $1.0 - $1.3 billion (depending
on plant and pipeline sizes), and will mainly be incurred over the 2008 - 2009
period. These cost estimates will be refined by the MLE FEED work due to
commence shortly. Development cost estimates for the CAFC will be developed
during the year as appraisal work is completed. To date, no financing
arrangements have been entered into to fund the Ledjmet development.
The Company is listed on the Toronto Stock Exchange and the AIM market of
the London Stock Exchange. The diluted numbers of shares outstanding at the
following dates were:
May 9, March 31, December 31,
2007 2007 2006
-------------------------------------------------------------------------
Common shares 253,886,330 223,886,330 223,686,330
Employee stock options 12,668,936 12,668,936 9,135,600
-------------------------------------------------------------------------
Diluted shares outstanding 266,555,266 236,555,266 232,821,930
-------------------------------------------------------------------------
Selected Quarterly Information
(000's of U.S. 2007 2006
dollars) Q1 Q4 Q3 Q2
-------------------------------------------------------------------------
Interest income $991 $1,633 $2,052 $1,902
Income (loss) (2,397) (1,506) (266) 6,577
Income (loss)
per share (0.01) (0.01) 0.00 0.03
Total Assets 643,642 650,053 649,354 641,938
(000's of U.S. 2006 2005
dollars) Q1 Q4 Q3 Q2
-------------------------------------------------------------------------
Interest income $886 $887 $1,039 $428
Income (loss) (1,313) (4,181) 1,797 (2,467)
Income (loss)
per share (0.01) (0.02) 0.01 (0.01)
Total Assets 491,776 482,776 478,103 475,286
Interest income is lower in Q1 2007 compared to Q4 2006 due to lower
average cash and cash equivalent balances on hand.
Outlook
First Calgary's primary objective is to commercialise Block 405b,
starting with the MLE field, then expanding the development to incorporate the
CAFC on the block. In addition, new exploration acreage will be sought to
utilize the Company's experienced exploration team and expand its exploration
portfolio.
In the short-term, activities include:
- Award a FEED contract for MLE;
- Identify and order long lead items necessary for the MLE field
development;
- Tender and award an EPC contract for the MLE development;
- Finalise appraisal drilling of the CAFC and continue to formulate
a second stage development plan for the CAFC;
- Obtaining financing for the MLE field development and ongoing
activities in the CAFC; and
- Continue to seek attractive new exploration acreage opportunities.
Changes in accounting policies
(a) Financial Instruments - recognition and measurement
This new standard requires all financial instruments within its scope,
including all derivatives, to be recognized on the balance sheet initially at
fair value. Subsequent measurement of all financial assets and liabilities
except those held-for-trading and available for sale are measured at amortized
cost determined using the effective interest rate method. The effect of
adopting the new standard is not material to the financial statements.
(b) Other comprehensive income
The new standards require a statement of comprehensive income, which is
comprised of net earnings and other comprehensive income. For the company,
there are no items in comprehensive income other than net earnings.
Under the new accounting standards, cumulative translation adjustments
are included in accumulated other comprehensive income. As a result, the
Company's cumulative translation adjustment at December 31, 2006 and March 31,
2007 of $6.5 million has been reclassified to accumulated other comprehensive
income in shareholders' equity.
(c) Accounting policies not yet adopted
Two new Canadian accounting standards have been issued which will require
additional disclosure in the Company's financial statements commencing
January 1, 2008, about the Company's financial instruments as well as its
capital and how it is managed.
Internal Controls Over Financial Reporting
Internal controls have been designed to provide reasonable assurance
regarding the reliability of the Company's financial reporting and the
preparation of financial statements together with other financial information
for external purposes in accordance with Canadian GAAP. During the quarter
ended March 31, 2007, there have been no changes in the design of the
Company's internal controls over financial reporting that have materially
affected, or are reasonably likely to materially affect, the Company's
internal controls over financial reporting.
Business Risks and Uncertainties
The MD&A for the year ended December 31, 2006 includes an overview of
certain business risks and uncertainties facing the Company. Those risks
remain in effect as at March 31, 2007.
Advisory Regarding Forward-Looking Statements
Certain information with respect to the Company contained in this report,
including management's assessment of future plans and operations, contains
forward-looking statements. These forward-looking statements are based on
assumptions and are subject to numerous risks and uncertainties, some of which
are beyond FCP's control, including the timing and receipt of joint venture
and government approvals, the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency exchange rate
fluctuations, reserve estimates, environmental risks, competition from other
explorers, stock market volatility and ability to access sufficient capital.
In addition, actual results may vary because FCP principally operates in less
development legal systems than jurisdictions with more established economies
and relies on continuing existing strategic relationships and forming new ones
with other entities in the oil and gas industry, such as joint venture parties
and farm-in partners. FCP's actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that
any events anticipated by the forward-looking statements will transpire or
occur.
Company Information
Additional information is available on FCP's website at www.fcpl.ca or on
SEDAR's website at www.sedar.com.
May 9, 2007
First Calgary Petroleums Ltd.
Consolidated Balance Sheets
March 31, December 31,
(in thousands of U.S. dollars) 2007 2006
-------------------------------------------------------------------------
(unaudited)
Assets
Current assets
Cash and cash equivalents $51,349 $108,489
Accounts receivable 297 738
Deposits and prepaid expenses 1,088 707
-------------------------------------------------------------------------
52,734 109,934
Property, plant and equipment 590,908 540,119
-------------------------------------------------------------------------
$643,642 $650,053
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $21,918 $27,226
Asset retirement obligations 828 687
Future income taxes 18,200 18,200
Shareholders' equity
Capital stock (note 3) 632,072 631,933
Contributed surplus (note 3) 20,200 19,186
Accumulated other comprehensive income 6,502 6,502
Deficit (56,078) (53,681)
-------------------------------------------------------------------------
602,696 603,940
Operations and commitments (note 2)
Subsequent event (note 3(a))
-------------------------------------------------------------------------
$643,642 $650,053
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
FIRST CALGARY PETROLEUMS LTD.
Consolidated Statements of Operations and Deficit
Three months ended
March 31
(in thousands of U.S. dollars) 2007 2006
-------------------------------------------------------------------------
(unaudited)
Revenue
Interest $991 $886
Expenses
General and administrative 2,964 1,261
Foreign exchange loss (gain) 61 (6)
Stock-based compensation (note 3) 233 911
Depreciation and accretion 130 33
-------------------------------------------------------------------------
3,388 2,199
Loss for the period (2,397) (1,313)
Deficit, beginning of period (53,681) (38,973)
-------------------------------------------------------------------------
Deficit, end of period (56,078) (40,286)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Income (loss) per share (note 3)
Basic and diluted $(0.01) $(0.01)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
FIRST CALGARY PETROLEUMS LTD.
Consolidated Statements of Cash Flows
Three months ended
March 31
(in thousands of U.S. dollars) 2007 2006
-------------------------------------------------------------------------
(unaudited)
Operating activities
Loss for the period $(2,397) $(1,313)
Items not involving cash
Stock-based compensation 233 911
Foreign exchange loss (gain) (61) (63)
Depreciation and accretion 130 33
-------------------------------------------------------------------------
(2,095) (432)
Change in non-cash working capital (619) 2,499
-------------------------------------------------------------------------
(2,714) 2,067
Financing activities
Proceeds from exercise of options 139 157
-------------------------------------------------------------------------
Investing activities
Property, plant and equipment expenditures (49,997) (34,234)
Change in non-cash working capital (4,553) 6,039
-------------------------------------------------------------------------
(54,550) (28,195)
-------------------------------------------------------------------------
Change in cash and cash equivalents (57,125) (25,971)
Exchange rate fluctuations on change in
cash and cash equivalents (15) 70
Cash and cash equivalents, beginning of
period 108,489 107,882
-------------------------------------------------------------------------
Cash and cash equivalents, end of period $51,349 $81,981
-------------------------------------------------------------------------
-------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
These interim consolidated financial statements of First Calgary
Petroleums Ltd. ("FCP" or "the Company") have been prepared by
management in accordance with accounting principles generally
accepted in Canada following the same accounting policies as the
consolidated financial statements for the year ended December 31,
2006, except as noted below. The disclosures included below are
incremental to those included with the annual consolidated financial
statements. The interim consolidated financial statements should be
read in conjunction with the consolidated financial statements and
the notes thereto for the year ended December 31, 2006.
1. Changes in accounting policies:
(a) Financial Instruments - recognition and measurement
This new standard requires all financial instruments within its
scope, including all derivatives, to be recognized on the
balance sheet initially at fair value. Subsequent measurement
of all financial assets and liabilities except those held-for-
trading and available for sale are measured at amortized cost
determined using the effective interest rate method. The effect
of adopting the new standard is not material to the financial
statements.
(b) Other comprehensive income
The new standards require a statement of comprehensive income,
which is comprised of net earnings and other comprehensive
income. For the company, there are no items in comprehensive
income other than the loss for the period.
Under the new accounting standards, cumulative translation
adjustments are included in accumulated other comprehensive
income. As a result, the Company's cumulative translation
adjustment at December 31, 2006 and March 31, 2007 of
$6.5 million has been reclassified to accumulated other
comprehensive income in shareholders' equity.
(c) Accounting policies not yet adopted
Two new Canadian accounting standards have been issued which
will require additional disclosure in the Company's financial
statements commencing January 1, 2008, about the Company's
financial instruments as well as its capital and how it is
managed.
2. Operations and commitments:
First Calgary currently has the rights to appraise and develop
Ledjmet Block 405b ("Block 405b") in Algeria. The Company's rights
and obligations on Block 405b are set out in a Production Sharing
Contract (PSC) with Sonatrach, the national oil company of Algeria.
The nature of current operations and the terms or commitments under
the PSC are detailed as follows.
The five year exploration period of the PSC ended on December 26,
2006. All remaining exploration work commitment under the PSC was
completed.
FCP has retained two main acreage parcels for further appraisal and
potential development, the MLE Field and the Central Area Field
Complex (the "CAFC").
In February 2007, First Calgary received approval from the Algerian
regulatory authority ALNAFT for the Development Plan for the MLE oil
and gas field. The total gross cost of the MLE development is
currently estimated at $1.3 billion, and will be mainly incurred over
the 2008 - 2009 period. The costs will be funded 75% by FCP and 25%
by Sonatrach. The total project cost estimate will be refined during
the year as engineering and design plans are completed. In addition
to the development costs, FCP has obligations to Sonatrach for the
MLE access fee and annual training bonuses. The MLE access fee is
compensation for the right to develop the MLE reserves discovered by
Sonatrach with the MLE-1 well, and will result in FCP carrying the
first $45 million of Sonatrach's development costs. The annual
training bonus is $150 thousand for the duration of the contract.
Sonatrach agreed to extend the Block 405b exploration period for
24 months commencing December 26, 2006 in order to complete the
appraisal of the CAFC and to submit commerciality reports and apply
for exploitation permits thereon. Following the appraisal of the
CAFC, the remaining lands not subject to an exploitation permit will
be returned to the government.
First Calgary has committed its revenue interest in the natural gas
production on Block 405b to Sonatrach through a long term take or pay
gas marketing agreement signed in November 2006. Pursuant to the
agreement, Sonatrach will market the total natural gas production
from Block 405b using a price formula linked to the price of European
oil products. During the exploitation period, the PSC allocates
hydrocarbon production between FCP, Sonatrach and the Algerian State
in accordance with a sliding scale formula based on such factors as
production levels, product prices, project investments and rates of
inflation. Pursuant to the formula, the Company's annual share of
production may range from 27.72 to 8.16 percent. All Algerian state
royalties and income taxes are paid by Sonatrach from its share of
hydrocarbon production. In 2006 the Algerian government announced a
new Windfall Profits Tax. FCP is reviewing the detailed rules
published in December 2006 and evaluating the impact on its
production share. Exploitation periods for each commercial oil and
natural gas discovery are 25 and 30 years, respectively.
The development of the Block 405b reserves through to commercial
production will require additional funding in the form of project
debt, equity, joint ventures or some combination thereof. In July
2006 First Calgary appointed Citigroup as sole financial advisor to
the Company on raising project debt for the development of the MLE
field on Ledjmet Block 405b.
3. Capital stock:
(a) Issued share capital:
Number of
Shares Amount
-------------------------------------------------------------------------
Common shares:
Balance, December 31, 2006 223,686,330 $631,933
Issued on exercise of employee stock options 200,000 139
-------------------------------------------------------------------------
Balance, March 31, 2007 223,886,330 $632,072
-------------------------------------------------------------------------
-------------------------------------------------------------------------
On April 24, 2007 the Company issued 30,000,000 common shares
at a price of C$5.08 per common share for aggregate gross
proceeds of C$152 million (net proceeds of C$145 million).
(b) Employee stock options:
The Company has up to 10% of its issued and outstanding common
shares available for issuance pursuant to its Stock Option
Plan. Stock options granted under the plan have a term of five
years and vesting terms are determined at the discretion of the
Board, ranging between two and three years. The exercise price
of each option is equal to the closing market price of the
shares on the date preceding the date of the grant. The
following table summarizes the changes in stock options
outstanding during the three months ended March 31, 2007:
Number of Weighted Avg.
Options Exercise Price
---------------------------------------------------------------
Outstanding, December 31, 2006 9,135,600 C$5.98
Granted 3,860,000 5.20
Exercised (200,000) 0.82
Forfeited (126,664) 7.51
---------------------------------------------------------------
Outstanding, March 31, 2007 12,668,936 C$5.80
---------------------------------------------------------------
---------------------------------------------------------------
The following table summarizes information about the options
outstanding and exercisable at March 31, 2007:
Options Outstanding Options Exercisable
------------------- -------------------
Weighted
Average Weighted Weighted
Remaining Average Average
Range of Contractual Exercise Exercise
Exercise Price Options Life (years) Price Options Price
-------------------------------------------------------------------------
C$ 1.25 - 1.25 382,700 0.4 years C$1.25 382,700 C$1.25
C$ 2.36 - 2.60 745,000 0.8 years 2.59 745,000 2.59
C$ 4.72 - 4.72 2,167,500 1.6 years 4.72 2,167,500 4.72
C$ 5.14 - 6.39 6,964,068 4.4 years 5.66 2,141,400 6.28
C$ 7.22 - 8.59 1,087,334 3.3 years 7.59 557,336 7.73
C$ 8.65-10.50 1,008,334 3.9 years 9.41 328,338 9.19
C$11.10-15.77 314,000 2.7 years 11.87 225,668 11.78
-------------------------------------------------------------------------
12,668,936 3.4 years C$5.80 6,547,942 C$5.51
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(c) Stock-based compensation expense:
For the three months ended March 31, 2007, the Company recorded
$1.0 million (2006 - $1.6 million) of stock-based compensation
expense with a corresponding increase in contributed surplus.
Of the total stock-based compensation expense, the Company has
capitalized $0.8 for the three month period ended March 31,
2007 (2006 - 0.7 million).
The fair value of the options granted in the three months ended
March 31, 2007 was estimated to be C$2.50 (2006 - C$4.50) per
option and was determined using the Black-Scholes option
pricing model with the following assumptions: expected
volatility of 59 percent (2006 - 65 percent), risk-free
interest rate of 3.4 percent (2006 - 4.0 percent) percent and
expected lives of 4.0 (2006 - 3.7) years.
(d) Contributed surplus:
The changes in the contributed surplus balance are as follows:
---------------------------------------------------------------------
Balance, December 31, 2006 $19,186
Options granted 1,014
---------------------------------------------------------------------
Balance March 31, 2007 $20,200
---------------------------------------------------------------------
---------------------------------------------------------------------
(e) Per share amounts:
The income (loss) per share is based on the weighted average
shares outstanding for the period. The weighted average shares
outstanding for the three month period ended March 31, 2007 was
223,855,219 (2006 - 203,033,422).
4. Segmented information:
The Company's activities are conducted in two geographic segments:
Canada and Algeria. All activities relate to exploration and
development of petroleum and natural gas in Algeria.
Canada Algeria Total
---------------------------------------------------------------------
Three months ended March 31
Capital expenditures
2007 $169 $49,828 $49,997
2006 $34 $34,200 $34,234
Total Assets
2007 $52,989 $590,653 $643,642
2006 $82,607 $409,169 $491,776
For further information: First Calgary Petroleums Ltd.: Richard G. Anderson,
President and CEO, Tel: (403) 264-6697; John van der Welle, Finance Director
and CFO, Tel: +44 (0) 203 159 4010; Other contacts: David Nabarro, Nabarro
Wells & Co. Limited, Tel + 44 (0) 207 710 7400; James Henderson, Pelham Public
Relations, Tel: +44 (0) 207 743 6673; Carina Corbett, 4C - Burvale Limited,
Tel: +44 (0) 207 559 6710
(FCP. FPL)
END
First Calgary Petroleums (LSE:FPL)
Historical Stock Chart
From Jun 2024 to Jul 2024
First Calgary Petroleums (LSE:FPL)
Historical Stock Chart
From Jul 2023 to Jul 2024
