Highlights of 2008 include:
— Twoco Petroleums reported that the acquisition in September 2009 of certain natural gas assets situated in the Tofield area of Alberta for total net cash consideration of CAD11.5 million after interim closing adjustments and related costs (the Tofield Property)
— Average production of 1,365 boe per day, which includes production from the Tofield property up 14% from the previous year
— Participation in the drilling of 16 gross (13.8 net) wells
— Twoco Petroleums has reported cash flow from operations of CAD11.06 million or CAD0.74 per share, up 36% compared with the previous year
— Capital expenditures, which includes the acquisition of the Tofield property, of CAD20.5million
— Current land position of 140,419 gross (105,322 net) acres
— Operating costs of CAD6.49 per boe
— Operating netback of CAD29.50 per boe compared to CAD22.97 per boe in 2007
— General and administrative expenses of CAD2.04 per boe; and
— The company has reported finding and development costs of CAD11.28 per boe on a proved basis and CAD9.59 per boe on a proved plus probable basis.
Highlights of Twoco Petroleums ‘s anticipated 2009 work program and summary of operations for the year to date include:
— Approval of a CAD5.7 million capital budget which represents a major decrease against prior years and reflects current natural gas prices. Also, in response to the existing low natural gas prices, Twoco Petroleums will assess its capital budget on a regular basis and will make alteration as required
— Participation in the drilling of 15 net wells – all targeting natural gas
— In the first quarter of 2009, Twoco Petroleums took part in the drilling of one gross (0.2 net) well that resulted in one gross (0.2 net) well being cased for potential natural gas production. Initial production from this gas well is anticipated in the second quarter of 2009
— Current production of about 1,550 boe per day and
— Twoco Petroleums approximates existing behind pipe production capability of 200 boe per day.
