March 02, 2011 at 09:00 AM EST
Sharon Energy Ltd. Announces Results for the Third Quarter Ended December 31, 2010

CALGARY, ALBERTA--(Marketwire - March 2, 2011) - Sharon Energy Ltd. (TSX VENTURE:SHY) announces that it has filed its Q3 2011 MD&A and Financial Statements for the nine months ended December 31, 2011, on SEDAR.

During the quarter, Sharon realized approximately $7.0 million from the sale of its Magnum Hunter investment. The fair value of the remaining investment of 546,195 shares was approximately $3.9 million at December 31, 2010 and approximately $3.7 million at the date of this report. To date, Sharon has sold 1,748,279 Magnum Hunter shares to realize approximately $9.2 million.

Late in the prior quarter, Sharon acquired a 25% interest in a property at Macklin, Saskatchewan. The property contained four shut-in oil wells, a water disposal well, 3-D seismic over the lease area, and 3,770 acres under lease. Sharon believes the property's four wells can be reactivated. The wells were producing a combined 58 bopd when they were shut-in. The operator reactivated one of the wells late in December 2010. To date, the reactivated well has been producing an average of 20 bopd (5 bopd net). The operator now plans to reactivate the remaining three wells after spring breakup.

Sharon continues to be in an enviable position, for a growth oriented junior exploration company, with a:

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-- Significant cash position.

-- Substantial and highly liquid holding in Magnum Hunter Resources.

-- Growing inventory of oil focused prospects.

-- Joint venture program with two related junior exploration companies

which will allow Sharon to minimize overhead costs and maximize the

amount of expenditure used to grow its production and reserves base.

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Financial

Revenue from continuing operations for the quarter ended December 31, 2010, totaled $67,000 compared with $49,000 for the prior year period. For the nine month period, revenue from continuing operations was $173,000 compared with $290,000 for the prior year period. Revenue for discontinued operations was nil for the three and nine month periods compared with nil and $248,000 respectively for the prior year periods. Revenue was reduced by lower natural gas production.

Cash flow from continuing operations for the quarter was negative $89,000 compared with negative $26,000 for the prior year period. For the nine month period, cashflow was negative $385,000 compared with negative $62,000 for the prior year period. Cash flow from discontinued operations for the three and six month periods was nil compared with nil and positive $29,000 for the prior year periods.

Net earnings from continuing operations for the quarter was $5.4 million compared with a loss of $54,000 for the prior year period. For the nine month period, net earnings from continuing operations was $6.6 million compared with a net loss of $407,000 in the prior year period. Earnings for the three and nine month periods were primarily driven by the $5.5 million and $7.3 million gains respectively on the sale of Magnum Hunter shares. Net earnings from discontinued operations for the three and nine month periods was nil compared with net losses of nil and $9.4 million respectively for the prior year periods.

Capital expenditures for continuing operations for the three and nine month periods totaled $227,000 and $671,000 compared with $93,000 and $216,000 for the prior year periods. Capital expenditures for discontinued operations for the three and nine month periods was nil compared with nil and $410,000 for the prior year periods. Capital expenditures were financed from property dispositions, working capital and cash flow.

Sharon exited the quarter with working capital of $8.3 million versus working capital from continuing operations of $133,000 at the beginning of the fiscal year.

The MD&A and financial statements of Sharon Resources Ltd. for the three month period ended December 31, 2010 is available on SEDAR at www.sedar.ca. The following table summarizes the financial and operating results of Sharon from continuing operations for the year.

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(Thousands, except per BOE, BOEd and per share Nine Months Ended

amounts, unaudited) December 31

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2010 2009

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(Restated,

Financial Notes 2 & 3)

Total revenue (net of royalty expense) $ 173 $ 290

Cash flow from operations (1) $ (385) $ (62)

per share, basic and diluted $ (0.01) $ -

Earnings (loss) for the period $ 6,635 $ (407)

per share, basic and diluted $ 0.09 $ (0.01)

Capital additions $ 671 $ 216

Dispositions $ 64 $ 600

Working capital $ 8,349 $ 339

Total assets $ 14,472 $ 6,495

Total shares outstanding, at period end 73,907 74,086

Operations (for continuing operations)

Production

Gas (Mcfd) 132 198

Oil (Bopd) 3 7

BOEd (6 Mcf = 1 Bbl) 25 40

Product Prices

Gas ($/Mcf) $ 3.57 $ 3.58

Oil ($/Bbl) $ 57.11 $ 62.14

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(1) Non-GAAP measure. Please see the reconciliation of "cash flow from

operations" to "cash flow from operating activities" after the

shareholders message.

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Business Outlook

After the completion of the sale of the U.S. properties and the Parkman oil pool, Sharon has significantly increased its financial flexibility. Over the last few months oil prices have stabilized at relatively high levels while natural gas prices continue to weaken.

Sharon plans to use its strong financial base to focus its efforts on the development of oil prospects in Alberta and Saskatchewan.

Sharon is an oil and gas exploration and production company based in Calgary, Alberta.

ADVISORY: This press release contains forward looking statements. Although Sharon believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Sharon can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

The forward looking statements contained in this press release are made as of the date hereof and Sharon undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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