TORONTO, ONTARIO--(CCNMatthews - July 28, 2006) - Westchester Resources Inc. (TSX VENTURE:WSR) ("Westchester" or the "Company"), today reported its audited financial results for the year ended March 31, 2006.
The Company reported net revenue of $377,578, production and operating costs of $286,086, and depletion and depreciation of $161,681 versus net revenue of $144,132, production and operating costs of $98,156, and depletion and depreciation of $68,180. Revenue for 2006 and 2005 includes interest income of $34,744 and $44,534 respectively. In 2006, general and administrative (G&A) expenses increased to $403,322, from $238,710 in 2005 as Westchester's activities in oil and gas exploration and development increased.
For the year ended March 31, 2006, Westchester reported a net loss of $4,153,639 ($0.11 per share) versus a net loss of $584,729 ($0.02 per share) in the same period in 2005. The loss in 2006 is primarily attributable to a write down on its Saskatchewan and North Dakota assets of $3,336,662 and a write down on a mining property of $103,139. Excluding the write-downs, net loss in 2006 was $683,838.
For the year ended March 31, 2006, Westchester reported cash and cash equivalents of $24,824 and a working capital deficit of $202,905 versus cash and cash equivalents of $3,001,120 and working capital of $2,612,756 in the previous year. Subsequent to the 2006 year-end, Westchester completed an equity financing raising gross proceeds of $2,575,000 to fund its participation in the Daly Field drilling program and for general corporate purposes.
Comparative summary results for the twelve-month periods ended March 31, 2006 and 2005 are shown in the following tables:
Consolidated Summary Balance Sheet as at
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Mar. 31, 2006 Mar. 31, 2005
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(audited) (audited)
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Assets
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Cash and current assets $ 180,230 $ 3,001,120
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Oil and gas properties/mining
interest 2,100,950 3,084,156
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Total Assets $ 2,281,180 $ 6,085,276
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Liabilities and Stockholders' Equity
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Total Current Liabilities $ 383,135 $ 388,364
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Asset Retirement Obligation 65,661 45,565
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Stockholders' Equity $ 1,832,384 $ 5,651,347
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Total Liabilities and Stockholders'
Equity $ 2,281,180 $ 6,085,276
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Consolidated Summary Statements of Operations
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Mar. 31, 2006 Mar. 31, 2005
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(audited) (audited)
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Revenue $ 377,578 $ 144,132
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Expenses 1,061,416 728,861
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Write-down of assets 3,469,801 -
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Net loss 4,153,639 584,729
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Net loss per share $ 0.11 $ 0.02
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Shares outstanding 38,571,263 38,228,263
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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 and development company. Westchester's operations are focused in North America. 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@westchester.ca
www.westchester.ca
