CALGARY, ALBERTA--(CCNMatthews - Aug. 27,
2004) - Robert V. Shields, President of Marauder Resources
East Coast Inc. ("Marauder" or the "Company"),
formerly Endless Energy Corp ("Endless Energy")
is pleased to report results for the second quarter ended
June 30, 2004. The most significant event of the second quarter
was the receipt of shareholders' approval for the Plan of
Arrangement with Marauder Resources Corp. ("MRC")
on June 28, 2004 and the concurrent financing which closed
August 10, 2004. Under the Plan of Arrangement, which became
effective on August 10, 2004, Endless Energy disposed of its
Western Canadian production and completed the acquisition
of all of the Scotian Shelf assets formerly held by Nova Scotia
Resources Limited. With the closing of the MRC acquisition
and a $16.6 million financing, the Company is in a position
to develop its significant East Coast holdings, which most
notably include Deep Abenaki reef opportunities.
Offshore Nova Scotia, the Company owns a 50% working interest
in 18,414 acres which includes shallow rights at Panuke and
Cohasset and all rights in the Balmoral block under Nova Scotia
Production Licenses PL-2901 and PL-2902. In addition, the
Company currently holds a 0.25% royalty interest in 627,605
acres covering four offshore exploration licenses.
On August 10, 2004, a $16.6 million flow through common share
financing was closed at a price of $1.90 per share and Endless
Energy changed its name to Marauder Resources East Coast Inc.
Under the terms of an over-allotment option granted to the
financing Agents, up to an additional 2,631,759 flow through
common shares, priced at $1.90 per share, may be issued for
gross proceeds of up to $5.0 million. Marauder currently estimates
that approximately $15.0 million will be required to fund
its share of drilling costs associated with its first well
offshore Nova Scotia. An additional $5.0 million to $10.0
million will be required, depending on whether one or two
production tests are conducted, to evaluate targeted horizons
for this first offshore well. We expect to raise additional
equity financing before year-end.
New officers were appointed at this year's Annual General
and Special Meeting of the shareholders held June 28, 2004.
Company officers are: Robert Shields (President, CEO and Director),
Jon Axford (Vice-President), Larry S. Martin (CFO), Gerry
O'Reilly (Vice-President, Exploration) and Bill Smith (Corporate
Secretary).
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION.
ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED.
ENDLESS ENERGY CORP.
|
ENDLESS ENERGY CORPORATION
CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited - prepared by management)
|
| |
June 30, 2004
(unaudited) |
December 31, 2003
(Restated) |
|
ASSETS |
CURRENT |
|
|
| Cash |
$ 299,804 |
$ 930,031 |
| Accounts receivable |
160,704 |
151,495 |
| Inventory |
42,522 |
- |
| Prepaid expenses |
31,832 |
45,460 |
| Income taxes recoverable |
4,828 |
- |
| Share subscription receivable |
- |
159,005 |
| |
------------ |
------------ |
| |
539,690 |
1,285,991 |
| WELL ABANDONMENT DEPOSITS |
21,316 |
118,625 |
| CAPITAL ASSETS |
695,432 |
310,107 |
| INVESTMENTS |
80,383 |
52,596 |
| DUE FROM RELATED PARTY |
- |
3,372 |
| |
------------ |
------------ |
| |
$ 1,336,821 |
$ 1,770,691 |
|
|
LIABILITIES |
| CURRENT |
|
|
| Accounts payable and accrued liabilities |
$ 434,772 |
$ 406,700 |
| Obligation to issue shares |
- |
500,986 |
| |
------------ |
------------ |
| |
434,772 |
907,686 |
| DUE TO RELATED PARTY |
460 |
46,045 |
| ASSET RETIREMENT OBLIGATION |
98,200 |
98,225 |
| |
------------ |
------------ |
| |
|
| |
533,432 |
1,051,956 |
| |
------------
|
------------ |
SHAREHOLDERS' EQUITY |
| |
|
|
| SHARE CAPITAL |
4,627,550 |
3,958,752 |
| CONTRIBUTED SURPLUS |
661,070 |
- |
| DEFICIT |
(4,485,231) |
(3,240,017) |
| |
------------ |
------------ |
| |
803,389 |
718,735 |
| |
------------
|
------------ |
| |
$ 1,336,821 |
$ 1,770,691 |
| |
|
|
|
ENDLESS ENERGY CORPORATION
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(Unaudited - prepared by management) |
| |
Three months ended
June 30
(unaudited) |
Three months ended
June 30
(unaudited) |
| |
2004 |
2003 |
2004 |
2003 |
| REVENUE |
146,753 |
369,899 |
493,010 |
598,116 |
| |
------------ |
------------ |
------------ |
------------ |
| EXPENSES |
|
|
|
|
| General and administrative |
268,115 |
170,885 |
643,314 |
309,886 |
| Stock compensation expense |
- |
- |
661,070 |
- |
| Operating |
122,131 |
136,496 |
127,641 |
178,098 |
| Amortization, depletion and accretion |
17,848 |
42,562 |
266,436 |
119,562 |
| Interest and bank charges |
286 |
399 |
850 |
28,602 |
| |
------------ |
------------ |
------------ |
------------ |
| |
408,380 |
350,342 |
1,699,311 |
636,148 |
| |
------------ |
------------ |
------------ |
------------ |
| Earnings (loss) before the following
|
(261,627) |
19,557 |
(1,206,301) |
(38,032) |
| |
------------ |
------------ |
------------ |
------------ |
| Gain on disposition of petroleum and natural gas
properties |
- |
80,889 |
- |
137,232 |
| Costs of failure to close proposed investment
transaction |
- |
(1,000,000) |
- |
(1,000,000) |
| |
------------ |
------------ |
------------ |
------------ |
| Loss before income taxes |
(261,627) |
(899,554) |
(1,206,301) |
(900,800) |
INCOME TAXES
Future |
- |
- |
38,913 |
- |
| |
------------ |
------------ |
------------ |
------------ |
| LOSS FOR THE PERIOD |
(261,627) |
(899,554) |
(1,245,214) |
(900,800) |
|
| Basic and fully diluted loss per share |
$(0.016) |
(0.049) |
(0.078) |
(0.049) |
|
| ENDLESS ENERGY CORPORATION
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(Unaudited - prepared by management) |
| SIX MONTHS ENDED JUNE 30 |
2004
(unaudited) |
2003
(unaudited)
|
| BALANCE, beginning of period, as previously reported |
$ (3,294,542) |
$ (2,483,020) |
| Effect of change in accounting policy |
54,525 |
(28,188) |
| |
|
| BALANCE, beginning of period, restated |
(3,240,017) |
(2,511,208) |
| |
|
|
| LOSS FOR THE PERIOD |
(1,245,214) |
(900,800) |
|
| BALANCE, end of period |
$ (4,485,231) |
$ (3,383,820) |
|
ENDLESS ENERGY CORP.
CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited - prepared by management) |
| |
Three months ended
June 30
(unaudited) |
Six months ended
June 30
(unaudited) |
| |
2004 |
2003 |
2004 |
2003 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
| LOSS FOR THE PERIOD |
(261,627) |
(899,554) |
(1,245,214) |
(900,800) |
| Items not affecting cash |
|
|
|
|
| Amortization, depletion and accretion |
17,848 |
42,562 |
266,436 |
119,562 |
| Future income taxes (recovery) |
- |
- |
38,913 |
- |
| Gain on disposition of petroleum and natural gas
properties |
- |
(80,889) |
- |
(137,232) |
| Stock compensation expense |
- |
- |
661,070 |
- |
| |
------------ |
------------ |
------------ |
------------ |
| Cash flows provided by operating activities |
(243,779) |
(937,881) |
(278,795) |
(918,470) |
| Net change in non-cash working capital balances |
(67,759) |
967,124 |
75,947 |
804,811 |
| |
------------ |
------------ |
------------ |
------------ |
| |
(311,538) |
29,243 |
(202,848) |
(113,659) |
| |
------------ |
------------ |
------------ |
------------ |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| Additions to property and equipment |
(299,295) |
(66,233) |
(433,038) |
(95,177) |
| Proceeds from disposal of capital assets |
- |
200,000 |
30,000 |
200,000 |
| Decrease (increase) in well abandonment deposits |
350,285 |
17,888 |
348,616 |
17,888 |
| Purchase of investments (other than subsidiary) |
- |
- |
(27,787) |
- |
| Acquistion of subsidiary |
- |
- |
(629,774) |
- |
| Advances (to) from related party |
6,011 |
- |
(42,213) |
- |
| |
------------ |
------------ |
------------ |
------------ |
| Cash flows provided by investing activities |
57,001 |
151,655 |
(754,196) |
122,711 |
| |
------------ |
------------ |
------------ |
------------ |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| Issuance of share capital |
98,603 |
20,000 |
326,817 |
20,000 |
| Decrease in restricted cash |
- |
1,500,000 |
- |
4,875,000 |
| Repurchase of share capital |
- |
1,500,000 |
- |
(4,875,000) |
| Cash flows provided by financing activities |
98,603 |
20,000 |
326,817 |
20,000 |
| INCREASE (DECREASE) IN CASH |
(155,934) |
200,898 |
(630,227) |
29,052 |
| CASH (DEFICIENCY), beginning of period |
455,738 |
(74,528) |
930,031 |
97,318 |
| |
|
|
|
|
| CASH, end of period |
299,804 |
126,370 |
299,804 |
126,370 |
|
|
FOR FURTHER INFORMATION PLEASE CONTACT:
Marauder Resources East Coast Inc.
Robert V. Shields
(403) 262-3907
Email: rvs@predatorenergies.com
Website: Website: www.endlessnrg.ca
or
Marauder Resources East Coast Inc.
720, 440 - 2nd Ave SW
Calgary, Alberta T2P 5E9
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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