Bad Homburg, April 21, 2009. Activa Resources’ US auditors have completed the 2008 audit of Activa Resources, LLC, and the company’s 100% subsidiary based in San Antonio, Texas. 2008 was its most successful year to date. Profits before interest, tax and non-cash costs (EBITDAX) increased 70% to $2.65 million. A net loss at the group level is expected. At the time of writing Activa Resources’ German auditors are in the process of auditing the 2008 consolidated group financial statements. These will be published in May 2009.
After considerably increasing production and revenues in 2008 Activa Resources, LLC maintained its average production levels during the first quarter at about 400 BOE per day. No new wells were drilled in the first quarter. First quarter revenues from the production of oil and natural gas amounted to about $1 million.
Activa Resources is aggressively implementing initiatives to ensure that the company survives the financial storm and global economic crisis. These include capex reduction, headcount and wage reductions. Activa Resources will reduce its costs by at least 30% in 2009. The company’s strategic priority is two-fold during the current phase:
— to maintain our existing production levels and fulfill lease commitments with minimal capital expenditures
— to intensify the G+G work on our projects so that our inventory is ready to drill when the overall environment is more favorable.
The oil and gas reserves at Activa Resources, LLC have been updated by the independent petroleum engineers Sojen Petroleum Consulting of Austin, Texas in accordance with SPE guidelines. At January 1, 2009, proven reserves (P1) amounted to 1.2 million barrels and 6.5 BCF with PV10 of $42 million (using recent price deck with a 10% discount). PDP runs at $11 million and PUD’s at $31 million. Probable reserves amount to an additional 1.3 million BO and 3.5 BCF with PV10 of $32 million. The PV10 of Activa Resources’ 2P reserves therefore total $74 million or EUR18 per share.
The build-up of Rhein Petroleum GmbH, in which Activa Resources AG holds 33%, as the only new independent E+P company with significant acreage in Germany has continued. During the first quarter we published details for the first time of RP’s license areas in Southern Germany and its agreement with Wintershall Holding AG, Germany’s leading oil and gas player, to jointly redevelop the Arlesried field, Bavaria’s largest oil field which produced some 14 millions barrels of oil between 1965 and 1995. This is the first in a series of joint ventures that Rhein Petroleum is working on.
