CXZ Canext Energy Ltd

Canext Energy Ltd. ("Canext" or the "Company") (TSX VENTURE:CXZ) is pleased to
announce its operating and financial results for the three months ended June 30,
2007. On June 22, 2007 Canext completed its amalgamation with Trimox Energy Inc
and Tasman Exploration Ltd. These results reflect only nine days of production
and revenue from the combined entity but include the full debt at the end of the
quarter.


Highlights:

- Production increased 29% from the first quarter of the year,

- Successfully completed the amalgamation with Trimox Energy Inc. and Tasman
Exploration Ltd. creating a larger entity with a stronger production base,
prospect inventory and balance sheet,


- Undeveloped land increased to 109,769 net acres, up 214% from the previous
quarter,


- Additional exploration acreage under option expanded to 14,720 net acres

The following table summarizes some of the key financial results. Interim
financial statements with accompanying notes along with management's discussion
and analysis have been filed on SEDAR (www.sedar.com).




                                      Three Months Ended
                               June 30, 2007   March 31, 2007     % Change
----------------------------------------------------------------------------

Production (boe/d)                       427              332           29%

Highlights ($000's)
Revenue                                1,804            1,442           25%
Cash flow                                619              629           (2%)
Net income/(loss)                       (556)            (249)         123%
Capital spending                         562            4,913          (89%)
Acquisitions                          51,703                0

Per Diluted Common Share
Cash flow                               0.02             0.02
Earnings                               (0.02)           (0.01)

Balance Sheet at period end
($ 000's)
Property, plant and equipment         71,879           20,800          246%
Working capital deficiency
 including debt                        6,494              803          709%
Shareholders' equity                  61,122           19,866          208%

Wt average shares 000's               33,236           28,389
Diluted shares 000's                  33,236           28,389

Revenue $/boe                          46.47            48.26           -4%
Royalty $/boe                         (10.72)          (11.94)         -10%
Opcost $/boe                          (10.57)           (9.05)          17%
Transportation $/boe                   (0.05)           (0.05)           0%
Operating Netback $/boe                25.13            27.22           -8%
G&A                                    (8.87)           (7.40)          20%



Operations Update

During the quarter Company efforts were concentrated on successfully completing
the amalgamation with Trimox and Tasman and as a result, field operations were
minimal.


Subsequent to the end of the second quarter, Canext has reached agreement to
dispose of its interests in 100 boepd of production at Teepee and three other
non-core properties. Total proceeds of $2,280,000 will be applied initially to
reduce the debt and will provide additional resources to fund the capital
program. Proven and probable reserves totaling 50.8 mstboe were sold for
proceeds of $44.85/boe.


Pouce Coupe

The summer program began in July and to date the Company has re-completed three
(1.5 net) wells. Two (0.5 net) wells tested a combined rate of 1,700 mscf/d (430
mscf/d or 72 boepd net) on extended flow tests. One (0.25 net) well is expected
to be tied-in during the third quarter while tie-in of the other well is pending
higher gas prices. These wells were part of an acquisition done by Canext in
2006 and have proven up additional development locations on company held land.


Production has been hampered by limited interruptible third party gas processing
in the Pouce Coupe area. The Company's best wells have been operating at 50 -
75% on-stream efficiency since June. A new third party gas plant expected to be
on-stream mid October will allow Canext to nominate for firm capacity. With
potential for plant capacity and following on recent success, the company will
continue with its plan to drill four wells the first of which should spud within
a week. The first well is an exploration well targeting an untested Montney
tight gas accumulation.


Worsley

The Company has commenced drilling its 2200 m Devonian play at Worsley with the
first of two (1.0 net) wells. The first well is expected to reach total depth
shortly. Contingent on the results, Canext plans to shoot additional 3D seismic
and drill on its recently expanded land base on this prospect.


Retlaw

The Company has reallocated a portion of its budget and now plans on drilling
two 100% wells at Retlaw in Southern Alberta. The wells are targeting oil and
solution gas as step outs from recent discoveries. Drilling is expected to
commence within two weeks. If successful, the Company anticipates tieing in the
production early in the fourth quarter to a Canext operated oil battery.


Outlook

As a result of property dispositions, restrictions at Pouce Coupe and delays
starting the summer drilling program, the Company is lowering its Q3 guidance
from a range of 1550 - 1650 boepd to a revised target of 1350 boepd.


Canext plans to have three drilling rigs operating in three different core areas
in September. The Company is still planning to drill 12 - 14 (7 - 8 net) wells
during the second half of 2007. Production increases are expected throughout the
fourth quarter therefore, the Company is maintaining its target exit rate of
1700 - 1800 boepd.


A general reduction in industry activity due to the short term decline in
natural gas prices has resulted in a substantial drop in drilling and servicing
costs. Canext is well positioned to take advantage of this opportunity. The
Company has the balance sheet strength and prospect inventory to continue to
grow its operations. Third and fourth quarter drilling activity combined with
production already tested should ensure steady production growth.


Reader advisory:

The term "BOE" may be misleading, particularly if used in isolation. In
accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1
bbl has been used which is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


Investors are cautioned that the preceding statement of the Company may include
certain estimates, assumptions and other forward-looking information. The actual
future performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or part attributable to
general economic conditions and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including natural gas/oil
prices, reserve estimates, drilling risks, future production of gas and oil,
rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development and production of gas and oil
hedging, financing availability and other risks related to financial activities.

Canext Energy Ltd (TSXV:CXZ)
Historical Stock Chart
Von Mai 2024 bis Jun 2024

Canext Energy Ltd (TSXV:CXZ)
Historical Stock Chart
Von Jun 2023 bis Jun 2024