Zodiac Exploration loses $27.6-million in fiscal 2012

2012-11-28 07:32 ET - News Release


Mr. Murray Rodgers reports


Zodiac Exploration Inc. has filed its audited financial statements, management's discussion and analysis, annual information form and statement of reserves data, and other oil and gas information for the year ended Sept. 30, 2012, on SEDAR.

During the year, Zodiac incurred a net loss of $27.6-million after recognizing an asset impairment of $23.2-million.

As at Sept. 30, 2012, Zodiac had $20.4-million in cash and $20.4-million in working capital.

Subsequent to year-end the company signed a definitive farmout agreement with Aera Energy LLC, a large California operator, whereby Aera has acquired the right to earn a 50-per-cent interest in approximately 19,600 net acres of Zodiac lands located in Kings county, California. Under the terms of the farmout agreement, Aera will pay 100 per cent of the cost of one vertical well and one horizontal well to be drilled on the Zodiac-controlled farmout lands. Also, Aera will pay 100 per cent of the cost of one additional vertical well and one additional horizontal well to be drilled adjacent to the farmout lands. Zodiac will retain a carried working interest of 12.5 per cent (before payout) and 25 per cent (after payout) in the four earning wells.

Zodiac continues to engage in discussion with additional, potential joint venture partners on its other lands located in California. Zodiac controls approximately 86,000 net acres in Kings county, prior to any earning by Aera under the farmout agreement.