Storm Cat Energy posts $51.63 million third-quarter operating loss

By Caroline Salls

Pittsburgh, Nov. 17 - Storm Cat Energy Corp. reported a $51.63 million operating loss for the quarter ended Sept. 30 on $5.36 million of natural gas revenues, according to a 10-Q filed Monday with the Securities and Exchange Commission.

The figures compared to a $29.14 million operating loss reported in the third quarter of 2007 on $4.18 million of natural gas revenues.

The net loss for the third quarter of 2008 was $49.45 million, widening from a $30.72 million net loss reported for the third quarter of 2007.

Meanwhile, the company posted a $54.74 million operating loss for the first nine months of this year on $17.93 million in natural gas revenues, compared with a $34.35 million operating loss for the first nine months of last year on $11.76 million in natural gas revenues.

The net loss for the first nine months of 2008 was $47.78 million, declining from a $36.65 million net loss for the first nine months of 2007.

According to the 10-Q, the increase in the natural gas sales is a direct result of increased production from the company's drilling activities over the past year and from the increase in production as a result of the dewatering process associated with new wells.

The company had $1.2 million in cash and cash equivalents at Sept. 30, down from $4.75 million at Sept. 30, 2007.

Storm Cat Energy, an independent oil and gas company with headquarters in Denver and Calgary, Alta., filed for bankruptcy on Nov. 10 in the U.S. Bankruptcy Court for the District of Colorado. The Chapter 11 case number is 08-27887.

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