DEERFIELD BEACH, Fla., Feb. 22, 2006 (PRIMEZONE) -- StockMarketNewsAlert.com issues a trade alert for Quest Oil Corporation (OTCBB:QOIL) (www.questoil.com). According to M. D'Alonzo at First Equity Group, Inc., recent news flow from the company has been very positive. The company announced its financial results for the third quarter ended December 31, 2005.
For the nine months ended December 31, 2005, Quest reported a net loss of $3.284 million, or $0.07 per share, on revenues of $1.13 million. The net loss included interest and financing fees of $1.451 million and non-cash related stock charges of $1.189 million. For the three months ended December 31, 2005, Quest recorded a net loss of $1.381 million or $0.02 per share, on revenues of $1.13 million.
Operating revenue for the three-month period ended December 31, 2005, was $1.13 million, up 100% compared to the previous quarter's production. The increase was primarily related to a successful drilling program in the Acadia North project with gas well "10-22" production volumes commencing October 15, 2005. Quest's gross sales before royalty charges were 142 MMcf of natural gas, or 25.1 MBOE. During this period, the average prices the Company received for its natural gas was $7.94 per Mcf or $47.64.
Increase in Reserves
During the period, proved and probable reserves increased over 215%, from 362,977 BOE to 782,584 BOE. This increase was primarily due to the acquisition of the Midkiff, Eastland County leases. Acadia North reserves were depleted from production by 7.4% to 1.636 BCF.
Balance Sheet Review
At December 31, 2005, current assets were $4.750 million, which included $3.874 million in cash. Current liabilities were $0.985 million. Long-term debt was $6.0 million and the accounting treatment for the fair value of the warrants issued to the note holders reduced the amount of the long term debt to $0.750 million on the balance sheet. As of December 31, 2005, the Company's net capitalized costs associated with its oil and gas properties and other equipment were $2.4 million.
Management Comments
Cameron King, Quest Oil's President and CEO, stated, "With the production milestone now behind, we are very pleased with the Company's progress. Based on receiving the benefit of almost a full three months of production from Acadia well '10-22' we have realized our first revenues after months of planning and strategizing. I am very proud of the Quest team for striving toward this goal. The Company is expecting significant improvement in its fiscal fourth quarter performance. The increase in our G&A expenses we view as a positive as we have been ramping up by adding the key personnel and building the infrastructure needed to execute our business strategy."
King added, "We continue to search out strong acquisition partners that will immediately impact our bottom line and add significant reserve values."
About Quest Oil Corporation
The Company is committed to the exploration and development of economical oil and natural gas reserves globally. Quest management is focused on an acquisition program targeting high quality and low risk prospects. Initially Quest is focused on the development of North American oil and gas resources allowing highly leveraged production opportunities in Alberta and Texas, through its 100% owned subsidiaries Quest Canada Corp. and Wallstin Petroleum LLC and PetroStar Oil Services, Inc.
On behalf of the board of Quest Oil Corporation: Cameron King, MBA -- President and CEO Director
To find out more about Quest Oil Corporation (OTCBB:QOIL), visit our website at www.questoil.com.
Safe Harbor for Forward-Looking Statements
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Quest Oil Corporation has little or no control. All persons considering an investment in Quest Oil Corporation are encouraged to consult with an investment professional and to review Quest's public filings which are available at www.sec.gov.
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