East Coast Energy Corporation Limited, a company domiciled in the British Virgin Islands and focusing on exploration and production of natural gas in Tanzania, and the sale of additional gas to the East Africa markets, has announced the financial results for the third quarter of 2006. The financial report to 30 September 2006 was released in the end of November, some weeks after the company announcing the nomination of two new directors and the plans to change its name.
Financial highlights for the third quarter of the year include following figures:
Total revenue – US$3,835 (compared to the previous quarter the increase made 20%),
Profit before tax – US$1,309 (the increase made 21%),
Working capital – US$3,298 (the increase of 35%),
Net cash flow from operating activities – US$2,513 (211%).
In this period the company commenced the installation of a new pressure reduction station and pipeline connections to the emergency power plants. The company also signed a short term agreement in the beginning of November 2006 for the supply of gas to the Aggreko units.
East Coast is working to increase natural gas deliverability from the Songo Songo field in Tanzania. Peter R. Clutterbuck, the President and CEO of East Coast Energy, has stated in his message that the Company’s initial exploration focus is in Tanzania, and East Coast long-term presence and established reputation as the operator of the Songo Songo gas field and processing plant provides a strong base for company negotiations and joint venture projects with other Tanzania license holders. He added that over the longer term East Coast plans to to expand its reserve base through the identification of additional new opportunities, mainly in Africa.
To fund the expanded scope of work, East Coast has announced its intention to raise approximately Cdn$21,5 million through a rights issue. The offering documents were submitted to the company shareholders on 14 November 2006. The funds received will primarily be used to develop the Company’s existing gas assets in Tanzania and to pursue new options for growth.