TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company"), today reported its financial results for the three-month period ended June 30, 2005. For the period, Westchester reported a net loss from operations of $99,741 ($0.00 per share) on revenue of $16,611 versus a net loss of $102,844 ($0.00 per share) on revenue of $10,800 in the three month period ended June 30, 2004.
As at June 30, 2005, Westchester reported cash and cash equivalents of $2,942,984 and working capital of $2,142,331.
Following the end of the quarter, on August 16, 2005, Westchester announced that the 16-10 well (located on the 16-10-009-28W1M lease in the Daley Field in Manitoba) was swab tested and encountered an initial production rate of 332 barrels of oil per day. The well has been shut-in pending the culmination of the immediate drilling program and the construction of the surface gathering facilities.
Drilling operations on the second well, the 10 - 30 well, located on the 10 - 30 - 009 - 28W1M lease have been completed and testing is underway. The drilling rig has been moved to the 02/16-10-14-1- 9-28W1M lease where a third well is currently being drilled.
Westchester also announced that two additional leases in the Daley Field totaling 440 acres have been acquired through a Crown Land sale. With the addition of the new leases, Westchester now holds a 50 percent interest in 7 leases totaling approximately 2200 acres in the area. Consulting geologists and engineers estimate that approximately 25 additional drill targets are contained within the acreage.
Westchester owns a 50 percent working interest in each well through its Joint Venture Agreement with Aspen Group Resources Corporation (TSX: ASR). Aspen is the operator on each well.
Results for the three-month period ended June 30, 2005 with comparative information as at March 31, 2005 and for the three months ended June 30, 2004 are shown in the following tables:
Consolidated Audited Summary Balance Sheet as at
------------------------------------------------
---------------------------------------------------------------------
June 30, 2005 Mar. 31, 2005
---------------------------------------------------------------------
(Unaudited) (audited)
---------------------------------------------------------------------
Assets
---------------------------------------------------------------------
Current assets $ 2,954,308 $ 3,001,120
---------------------------------------------------------------------
Oil and gas properties/mining interest 3,418,451 3,038,591
---------------------------------------------------------------------
Total Assets $ 6,372,759 $ 6,039,711
---------------------------------------------------------------------
---------------------------------------------------------------------
Liabilities and Stockholders' Equity
---------------------------------------------------------------------
Total Current Liabilities $ 800,653 $ 388,364
---------------------------------------------------------------------
Stockholders' Equity $ 5,572,106 $ 5,651,347
---------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $ 6,372,759 $ 6,039,711
---------------------------------------------------------------------
Consolidated Summary Statements of Operations
---------------------------------------------
---------------------------------------------------------------------
For the three month period ended
---------------------------------------------------------------------
June 30, 2005 June 30, 2004
(Unaudited) (Unaudited)
---------------------------------------------------------------------
Revenue $ 16,611 $ 10,800
---------------------------------------------------------------------
Expenses 116,352 113,644
---------------------------------------------------------------------
Net Loss 99,741 102,844
---------------------------------------------------------------------
Net loss per share $ 0.00 $ 0.00
---------------------------------------------------------------------
Weighted average number of shares 38,228,263 23,855,763
---------------------------------------------------------------------
For complete financial statements, please refer to the Company's filings with SEDAR at www.sedar.com
Westchester Resources Inc. is an independent oil and gas exploration company. Westchester's operations are focused in Western Canada and the US. The Company's shares trade on the TSX Venture Exchange under the symbol "WSR".
Forward Looking Statements - Certain information regarding Westchester set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Westchester's control, including, but not limited to the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of reserve estimates, currency fluctuations and exploration risk. In addition, there can be no assurance that the flow rate estimated herein can be maintained with the testing conducted. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Westchester Resources Inc.
Kevin O'Connor
(416) 913-3858
koconnor@westchesterresources.com
