TORONTO, ONTARIO--(CCNMatthews - Nov. 29, 2005) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company"), today reported its financial results for the three and six-month period ended September 30, 2005. For the period, Westchester reported a net loss from operations of $0.258 million ($0.01 per share) versus a net loss of $0.436 million ($0.02 per share) in the three month period ended September 30, 2004. For the six months, the Company reported a net loss of $0.357 million in 2005 versus $0.539 million in 2004.
As at September 30, 2005, Westchester reported cash and cash equivalents of $1.1 million and working capital of $0.46 million versus cash and cash equivalents of $3 million and working capital of $2.6 million at March 31, 2005. The reduction is primarily due to expenditures related to the Company's successful exploration activities in Manitoba, as well as costs associated with its interests in North Dakota and Saskatchewan.
In the second quarter, the Company participated in drilling three horizontal wells in the Daly Field in Manitoba. Construction and tie-in of the temporary surface gathering facilities for two of the wells (the 16-10 and the (2) 16-10), consisting of two production tanks per well, have been completed and the wells were put into production using tubing pumps at a nominal cumulative rate of approximately 80-100 barrels of oil per day (bopd). The wells have been monitored to determine optimum pump size. Engineers are currently working to properly size the pumps to handle the high water volumes that are typical in the Daly field and increase production rates to a higher stabilized output level. All production from the wells is being sold during this process. Westchester owns a 50 percent working interest in each well.
Results for the three-month period ended June 30, 2005 with comparative information as at March 31, 2005 and for the three and six months ended September 30, 2004 are shown in the following tables:
Consolidated Audited Summary Balance Sheet as at
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Sept. 30, 2005 Mar. 31, 2005
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(unaudited) (audited)
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Assets
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Cash and current assets $ 1,121,357 $ 3,001,120
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Oil and gas properties/mining
interest 4,952,930 3,038,591
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Total Assets $ 6,074,287 $ 6,039,711
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Liabilities and Stockholders' Equity
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Total Current Liabilities $ 557,536 $ 388,364
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Stockholders' Equity $ 5,516,751 $ 5,651,347
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Total Liabilities and Stockholders'
Equity $ 6,074,287 $ 6,039,711
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Consolidated Summary Statements of Operations
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For the three-month For the six-month
period ended period ended
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Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
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(unaudited) (unaudited) (unaudited) (unaudited)
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Revenue $ 18,249 $ 71,156 $ 34,860 $ 81,955
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Expenses 276,354 507,974 392,706 621,617
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Net Loss 258,105 436,818 357,846 539,662
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Weighted average
number of shares 38,230,872 28,054,941 38,228,263 28,054,941
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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
