|
Consistent with our strategy to deploy assets into
energy-based opportunities, we:
- Created the Canergy Growth Fund LLC (Canergy
Fund), a U.S. Virgin Islands non-registered investment
company, to invest in a potentially undervalued segment
of the global energy industry, the Canadian junior oil
and gas market. The Canergy Fund is seeking total capital
commitments up to $10 million. As of June 30, 2008, total
capital contributions into the Canergy Fund were $2.4 million
(HKN owning approximately 83% of the Canergy Fund).
- Held approximately $7.7 million outstanding
of average notional value in exchange-traded written positions
in our energy trading portfolio through our treasury activities.
- Deployed capital expenditures of $1 million
for development drilling on new interests (the RC Roberson
#1 well) in the NW Speaks field in South Texas, completion
costs on the successful Boquillas #1 well also in South
Texas as well as other projects.
- Deployed over $1.7 million of prepaid costs
towards the 2nd five-well pilot project for our coalbed
methane Indiana Posey Prospect as well as for two wells
in our Creole Field to be drilled during the third quarter
2008.
- Repurchased approximately 92 thousand of our
common shares in the market.
Consistent with our focus to improve our financial condition
and optimize the value of our assets through collective
expectations and objectives, we:
- Improved our current ratio (defined as current
assets divided by current liabilities) to 6.76 to 1.00
at June 30, 2008 up from 5.81 to 1.00 at March 31, 2008
and 5.48 to 1.00 at December 31, 2007.
- Held no debt outstanding during the six months
ended June 30, 2008.
- Increased our profitable operations resulting
in net income of $3.3 million.
- Decreased depreciation, depletion and amortization
rates per unit as a result of increased proved reserve
volumes.
- Experienced an increase in the fair value of our investment in Global
Energy Development plc (“Global”) shares to approximately
$28.8 million at June 30, 2008 as compared to $19.8 million
at December 31, 2007.
- Reaped a 73% increase in our crude oil revenue
compared to prior year period due to increased commodity
prices and an overall increase in our oil production from
our Main Pass 35 and Creole fields.
- Decreased our general and administrative expenses
in an increasing-cost environment.
|
