Admiral Bay Announces Second Quarter Financial Results.TORONTO -- Admiral Bay Resources Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:ADB (Apple Desktop Bus) A low-speed serial bus for connecting keyboards, mice and other input devices on Apple IIgs and Macintosh computers. Starting with the iMac in 1998, the ADB was superseded by USB. ) announces that since March 2004 the Company has drilled, and/or re-activated, and completed 68 wells in the U.S.A. Admiral Bay is currently producing gas from 43 wells and is expecting to have completions and infrastructure in place to bring an additional 23 wells on stream shortly. Admiral Bay's drilling program has currently permitted a further 80 gas wells. A total of $5.7 million cash was spent on exploration activities during the three months ended January 31, 2005, compared with $1.6 million during the quarter ended October 31, 2004. Of these expenditures, $5.2 million was applied to progress the mid-continent U.S.A. oil and gas projects that are now the Company's focus. The Company had working capital of $4.0 million on hand at January 31, 2005, compared with a working capital deficit of $1.9 million at October 31, 2004 and a working capital deficit of $1.7 million at July 31, 2004. The Company recorded a net loss from operations of $6.3 million, or $0.20 per share in the three months ended January 31, 2005, compared $1.0 million, or $0.04 per share in the three months ended October 31 2004. The net loss from operations included book entries related to stock-based compensation, calculated using the Black-Scholes option pricing model option pricing model A mathematical formula for determining the price at which an option should trade. The model expresses the value of an option as a function of the value of the underlying asset, length of time until maturity, exercise price, yields on , the write off of the accumulated exploration expenditures at the Moose River Moose River River, northeastern Ontario, Canada. It flows northeast for more than 60 mi (100 km) to empty into James Bay. A wide stream, it is actually the estuary for several rivers, including the Abitibi and Mattagami. (Canada) and El Volcan (Mexico) projects and a future income tax recovery applicable to the issuance of flow through shares on the exercise of flow-through warrants. Excluding these entries, general and administrative expenses amounted to $371,000 and $370,000 in the second and first quarters respectively. Please refer to the Interim Financial Statements for the three and six months ended January 31, 2005 and the commentary thereon provided in Management's Discussion & Analysis that were filed on SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review today for further information on the progress made by the Company and its current financial position. The Company has also granted options to purchase 925,000 common shares of the Company to directors and officers at an exercise price of $1.88 for a period of 5 years. Admiral Bay Resources Inc. (www.admiralbay.com) is a Canadian listed oil and gas exploration and development company focused on developing its U.S. producing projects in the Cherokee Basin in southeast Kansas Southeast Kansas is a region of the U.S. state of Kansas. It can be roughly defined by Woodson County in the northwest, Bourbon County in the northeast, Cherokee County in the southeast, and Montgomery County in the southwest. and the Appalachian Basin, in Pennsylvania. Coalbed methane (CBM CBM Commodore Business Machines CBM Coalbed Methane CBM Christoffel Blindenmission CBM Condition Based Maintenance CBM Confidence-Building Measures CBM Curriculum Based Measurement (education) CBM Cubic Meter ) and conventional oil & gas production has begun at the Company's Shiloh, Devon and Quest projects in Kansas and Utah. The Company is listed on the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . Statements in this release that are not historical facts are "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these "forward-looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy of this release Admiral Bay Resources Inc. (TSX VENTURE:ADB) |
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