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Abstract
The following discussion and analysis as provided by the management of Prairie Schooner Petroleum Ltd. ("Prairie Schooner" or the "Company") should be read in conjunction with the unaudited consolidated financial statements for the three months ended March 31, 2006 and 2005 and the audited consolidated financial statements for the year ended December 31, 2005. This discussion is based on information available to and is dated, May 10, 2006. The financial data presented is in accordance with Canadian generally accepted accounting principles in Canadian dollars, except where indicated otherwise.
The Company's production for the first quarter averaged 7,327 boe/d, an increase of 25 percent from the 5,844 boe/d in the fourth quarter of 2005, and an increase of 257 percent compared to the first quarter of 2005. Natural gas production increased to 39.2 mmcf/d in the first quarter from 31.2 mmcf/d in the fourth quarter of 2005. Liquids production increased to 797 bbls/d from 639 bbls/d in the fourth quarter of 2005. This increase was primarily attributable to the closing of a property acquisition in the fourth quarter of 2005, combined with a successful drilling program that resulted in an 88 percent drilling success rate for the three months ended March 31, 2006.
General and administrative expenses for the first quarter were $699 thousand after recoveries and capitalized costs, an increase from $586 thousand in the fourth quarter of 2005. The increase is primarily due to increased staffing levels initiated in the fourth quarter of 2005 associated with the Company's ongoing growth. Additionally, included in the first quarter of 2006 was approximately $250 thousand of bonuses related to 2005 and paid in 2006.