Activa Resources AG announces preliminary 2011 operating results

Activa Resources AG / Key word(s): Preliminary Results

05.03.2012 / 08:30

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Corporate News 5th March 2012

Activa Resources AG announces preliminary 2011 operating results

- Oil and natural gas production revenues rise to EUR 4 million (2010: EUR
3 million)
- Approx. EUR 1 million in EBITDA; positive operating cash flow    
- 25 % production increase from 84,861 BOE to approx. 106,000 BOE
- Increasing focus on development of oil assets
- 2012 drilling programme fully funded through higher cash flows and
increased credit line
- 3rd OSR-Halliday horizontal well reaches total depth

Bad Homburg, 5th March 2012. Activa Resources AG, an independent oil and
gas company with operational knowhow in the development and efficient
exploitation of oil and natural gas properties, provides the following
preliminary details of its group financial performance in 2011. Revenues
from the production of oil and natural gas increased in 2011 from EUR 3
milllion to EUR 4 million. EBITDA reached approx. EUR 1 million (vs. EUR 0
in 2010 excluding asset sale).

Activa's net production of oil and natural gas increased in 2011 by 25 %
from 84,861 BOE to approx. 106,000 BOE. The growth in quarterly production
illustrates the impact of Activa's well successes in 2011 with Q1
production of 16,700 BOE more than doubling to over 34,000 BOE in Q4.

While 2011 saw an increase in both oil and natural gas production Activa is
primarily focussed on increasing its oil production. This strategy will
remain in place as long as US natural gas prices remain low. Against a
backdrop of further uncertainty regarding US natural gas prices Activa's
Management and Supervisory Board have resolved to take certain charges in
its 2011 accounts such that the company's balance sheet contains no
residual risks. Capitalised project expenses relating to natural gas assets
(primarily Fayetteville Shale) totalling EUR 1.3 million will be written
off in 2011. While operating cash flows were clearly positive in 2011
Activa's 2011 group net result will be negative as a result of this
one-off, non-cash item.

Activa also announces an important improvement in its ability to fund its
future growth. The company's US credit facility has been raised from USD 4
million to USD 8 million as a result of Activa's 2011 operational
successes, in particular the first two OSR-Halliday horizontal wells.
Together with higher free cash flows from production, Activa is able to
fully fund its 2012 drilling programme. Capital expenditure at its 4 main
oil projects - OSR Halliday, Loma Field, Adams Ranch und Gray Waterflood -
is expected to amount to up to USD 6 million in 2012. Activa's main
priority is the further development of the OSR-Halliday field where the
company's latest horizontal well recorded strong initial production rates
of 700 BOED. The third horizontal well (1-3H) has recently been drilled to
a total depth of 13,043 feet and now awaits fracture treatment. Activa
expects steadily increasing revenues and higher market valuations of
Activa's interest in the field. This will be supported by accompanying
increases in proven reserve estimates.

Activa is planning to increase production volumes by at least 30% via its
2012 drilling programme. Higher operating cash flows will facilitate
further expansion of the company's drilling activites in the coming years.

The Management Board


About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.


Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as 'could,' 'plan,' 'estimate', 'expect',
'intend', 'may', 'potential', 'should' and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.


Contact information:
Activa Resources AG    
Hessenring 107    
61348 Bad Homburg   
www.activaresources.com   
Telefon: +49 (0)6172-483 2352  
FAX: +49 (0)6172-483 2353   
lah@activaresources.com   

GFEI Aktiengesellschaft
Am Hauptbahnhof 6
60329 Frankfurt
www.gfei.de
Telefon: +49 (0)69-7430 3700
FAX: +49 (0)69-7430 3722
activa-resources@gfei.de


End of Corporate News

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