DALLAS, Jan. 6, 2005 (PRIMEZONE) -- Continental Energy Corporation (OTCBB:CPPXF) announced today that it has released its Annual Report and audited financial statements for its year ended July 31, 2004, and filed the report with securities regulators on SEDAR.
Continental has also set its annual general meeting for January 24, 2005. Notice of the meeting and the annual information circular for items to be dealt with at the meeting have been sent to shareholders as of the December 16, 2005 record date.
As at July 31, 2004, the Company's consolidated financial statements reflect a working capital deficit of $824,545. This represents a working capital deficit increase of $334,653 compared to the July 31, 2003 deficit of $489,892. To improve its working capital position, the company is currently negotiating private placements and farm out agreements for its properties.
During the year ended July 31, 2004 the Company invested $635,862 in its Indonesian oil & gas properties and recovered $383,249 from its farm out partner, GeoPetro. The Company had no revenue during the year ended July 31, 2004.
During the year ended July 31, 2004, 3,330,554 warrants were exercised resulting in the issuance of 3,330,554 common shares for total proceeds of $518,333, of which $92,008 was received prior to July 31, 2003, and 388,750 options were exercised resulting in the issuance of 388,750 common shares for total proceeds of $72,750.
Overall, year over year expenses decreased by $935,879 from $2,046,616 to $1,110,737 for the years ended July 31, 2003 and 2004 respectively.
About Continental Energy Corporation:
Continental Energy Corporation is a small oil and gas exploration company, focused entirely on making a major oil or gas discovery in Indonesia. There it has successfully acquired production sharing contracts granting exclusive petroleum exploration and production rights to two high potential exploration concession areas, the Bengara-II and Yapen Blocks, totaling over 3 million acres; and a third concession for the development of the Bangkudulis Oil Field. Continental concentrates its efforts in Indonesia, one of the few places in the world where large tracts of highly prospective acreage can be accumulated. Indonesia has a long and successful history of oil and gas exploration and geological conditions are proven to be excellent for petroleum accumulation. Management has long experience in-country, and solid relationships with both industry and government at all levels. A strong and growing domestic demand for both crude oil and natural gas provides expanding and nearby markets for any production Continental establishes.
No securities regulatory authority has either approved or disapproved the contents of this news release. Certain matters discussed within this press release may be forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although Continental believes the expectations reflected in such forward-looking statements including reserves estimates, production forecasts, feasibility reports and economic evaluations are based on reasonable expectations and assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, oil and gas prices, drilling program results, regulatory changes, political risk, terrorism, changes in local or national economic conditions and other risks detailed from time to time in Continental's periodic filings with the US Securities Exchange Commission.
For further information, please visit our web site at www.continentalenergy.com .