August 13, 2008 / 12:31 PM / 10 years ago

Cadence Energy reports loss on derivatives losses

TORONTO, Aug 13 (Reuters) - Cadence Energy CDS.TO, which is poised to be bought by Canada’s Barrick Gold (ABX.TO), reported a loss of C$10.07 million ($9.4 million), or 17 Canadian cents a share, in part reflecting losses on derivatives trades.

That compared with a profit of C$2.55 million, or 4 Canadian cents a share in the year-ago quarter.

Funds from operations, a key measure of an oil company’s ability to fund future projects, fell to C$14.1 million, or 24 Canadian cents a share, from C$22.3 million, or 38 Canadian cents a share in the year-ago quarter, reflecting lower production and the costs tied to disposal of assets.

Production fell to 3,464 barrels of oil equivalent a day, from 9,517 in the year-ago quarter, reflecting four separate asset sales. Revenue fell to C$33.2 million, from C$49.5 million a year ago.

The company said the C$410 million Barrick takeover was a good proposition for its shareholders. It said it had altered and “in some cases curtailed” its capital program pending the closing of the deal.

Barrick is offering C$6.75 a share for Cadence and says it is buying the Calgary-based company to cut its energy costs. Cadence closed at C$6.70 on the Toronto Stock Exchange on Tuesday.

$1=$1.07 Canadian Reporting by Janet Guttsman; Editing by Ka Yan Ng

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