Rocksource ASA – Q1 2010 financial results

The Rocksource group (“Rocksource” or “company”) had operating income of NOK 19.8 million in the first quarter of 2010, in line with the previous quarter and a decrease of NOK 9.3 million compared to the corresponding quarter 2009.

Exploration expenses totalled NOK 42.5 million in the quarter, down from NOK 62.9 million in the previous quarter and up from NOK 23.0 million in first quarter 2009.

Net loss for the first quarter was NOK 35.2 million, compared to a net loss of NOK 41.0 million in corresponding quarter 2009.

The equity at 31 March 2010 was NOK 347.0 million compared to NOK 380.5 million at year-end 2009, giving an equity ratio of 47.8 per cent, down from 55.7 per cent at the end of the corresponding quarter 2009. The cash balance at the end of the first quarter was NOK 85.1 million compared to NOK 166.2 million at the end of previous quarter. 

Following recent efforts to strengthen the company’s financial position, Rocksource is now funded for an extensive drilling campaign.

In the first quarter Rocksource reported on the completion of an NCS exploration credit facility of NOK 500 million and an equity line of credit facility of NOK 150 million. In addition the company successfully completed a NOK 250 million equity issue in April.

Preparations are ongoing ahead of the company’s drilling campaign, expected to commence in the second half of 2010. The main priority going forward is to firm up further wells with drilling rigs and spud dates.

Currently, Rocksource expects to participate in a number of low risk high potential wells over the next two years. The upcoming drilling campaign is aiming to test on average net risked resources in excess of 200 million barrels of oil equivalents (mmboe) per year.

Please find the Q1 presentation here: http://www.rocksource.com/presentations/category157.html
The financial report can be found here: http://www.rocksource.com/financial-reports/category159.html
Please follow this link for a corresponding press release: http://www.rocksource.com/press-releases/category166.html  

Oslo, 26.5.2010
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41