6-K 1 v014298_6-k.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A - 16 OR 15D - 16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of March 2005 Assure Energy, Inc. -------------------------------------------------------------------------------- (Registrant's name) 521 3rd Avenue, S.W., Suite 800 Calgary, Alberta T2P 3T3 Canada -------------------------------------------------------------------------------- (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40F Form 20-F |X| Form 40-F |_| Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes |_| No |X| If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): TABLE OF CONTENTS 1. Press Release dated March 10, 2005. Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: March 14, 2005 ASSURE ENERGY, INC. By: /s/ Harvey Lalach ------------------- Name: Harvey Lalach Title: President 2

---------------------------------------------------------------------------------------- September 30, 2004 December 31, 2003 (Unaudited) (Audited) ---------------------------------------------------------------------------------------- ASSETS Restated - Note 3(b) Current Assets Cash $ 503,783 $ 4,628,405 Receivables 3,074,437 3,302,813 Deposits and prepaid expenses 532,197 551,296 ---------------------------------------------------------------------------------------- 4,110,417 8,482,514 Deposits (note 5) 144,227 159,581 Investment (note 6) 927,783 899,601 Property and equipment (note 7) 31,070,229 25,551,279 ---------------------------------------------------------------------------------------- Total Assets $ 36,252,656 $ 35,092,975 ======================================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Payables and accrued liabilities $ 8,126,303 $ 5,801,845 Debenture payable (note 8) 1,250,000 1,250,000 Bank loan (note 9(a)) 6,650,000 7,800,000 Interest payable (note 10) 11,716 -- Due to shareholders (note 11) 410,020 -- Current portion of long term debt (note 10) 1,017,517 830,105 ---------------------------------------------------------------------------------------- 17,465,556 15,681,950 Long term debt (note 10) 3,511,309 4,370,595 Asset retirement obligation (note 4) 1,248,185 1,088,682 Future income taxes 1,947,049 2,716,255 Minority interest in consolidated subsidiary 2,677,934 3,285,564 ---------------------------------------------------------------------------------------- 26,850,033 27,143,046 ---------------------------------------------------------------------------------------- Shareholders' Equity Common shares (note 12(b)) 19,482,588 15,597,103 Preferred shares (note 12(c)) 3,489,521 3,489,521 Warrants (note 12(e)) 2,003,913 1,976,913 Contributed surplus (note 12(b)) 611,421 288,623 Currency exchange adjustment (Note 3(b)) 434,109 319,960 Deficit (16,618,929) (13,722,191) ---------------------------------------------------------------------------------------- 9,402,623 7,949,929 ---------------------------------------------------------------------------------------- Total Liabilities and Shareholders' Equity $ 36,252,656 $ 35,092,975 ========================================================================================

---------------------------------------------------------------------------------------- 9 Months Ended September 30, 2004 September 30, 2003 ---------------------------------------------------------------------------------------- Restated - Note 3(b) REVENUE Petroleum and natural gas sales $ 12,107,320 $ 5,317,010 Less: royalties, net of tax credits 2,631,920 1,003,783 ---------------------------------------------------------------------------------------- Net petroleum and natural gas revenue 9,475,400 4,313,227 Equity income 28,182 37,077 Interest and other income 6,470 72,580 ---------------------------------------------------------------------------------------- 9,510,052 4,422,884 ---------------------------------------------------------------------------------------- EXPENSES Production and operating costs 4,319,242 1,683,194 General and administrative 3,509,055 1,723,280 Interest 686,590 758,415 Depletion and depreciation 4,973,839 2,497,647 Asset retirement obligation - accretion 59,042 20,265 ---------------------------------------------------------------------------------------- 13,547,768 6,682,801 ---------------------------------------------------------------------------------------- Loss before income taxes (4,037,716) (2,259,917) ---------------------------------------------------------------------------------------- Income tax expense - current 38,223 22,913 Income tax expense (recovery) - future (769,206) 339,161 ---------------------------------------------------------------------------------------- Total income tax expense (recovery) (730,983) 362,074 ---------------------------------------------------------------------------------------- Net loss after taxes (3,306,733) (2,621,991) Minority interest in consolidated subsidiary 607,630 (187,000) ---------------------------------------------------------------------------------------- Net loss for the period (2,699,103) (2,808,991) Deficit, beginning of period (13,722,191) (1,292,899) Dividends (197,635) -- ---------------------------------------------------------------------------------------- Deficit, end of period $(16,618,929) $ (4,101,890) ---------------------------------------------------------------------------------------- Earnings per share - Basic $ (0.13) $ (0.17) Weighted average common shares outstanding - Basic 20,081,613 16,210,220

-------------------------------------------------------------------------------------------------- 9 Months Ended 9 Months Ended September 30, 2004 September 30, 2003 -------------------------------------------------------------------------------------------------- Restated - Note 3(b) OPERATING ACTIVITIES Net loss for the period $ (2,699,103) $ (2,808,991) Add (deduct) items not affecting cash: Depreciation and depletion 4,973,839 2,497,647 Asset retirement obligation - accretion 59,042 20,265 Amortized proceeds on sale of hedging contracts -- (129,461) Future income taxes (769,206) 339,161 Equity share of earnings of investment (28,182) (37,077) Interest paid thru issuance of shares 532,821 -- Warrants issued for interest -- 250,014 Options and warrants issued for services -- 175,862 Stock compensation expense 322,798 -- Accrued interest payable 11,716 418,467 Consulting expense paid through the issuance of shares 33,000 -- Provision for income tax -- (40,478) Minority interest in income (607,630) 187,000 -------------------------------------------------------------------------------------------------- Cash flow from operations 1,829,095 872,409 Net change in non-cash operating working capital 2,914,600 172,245 -------------------------------------------------------------------------------------------------- Net cash provided by operating activities 4,743,695 1,044,654 -------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES Proceeds (repayments) from/to long term debt -- 5,609,570 Bank loan advances (repayments) (1,150,000) 431,772 Intercompany advances 410,020 -- Proceeds from the sale of common stock 2,376,493 2,400,749 -------------------------------------------------------------------------------------------------- Net cash provided by financing activities 1,636,513 8,442,091 -------------------------------------------------------------------------------------------------- INVESTING ACTIVITIES Expenditures on property and equipment (10,504,830) 860,966 Disposition of commodity hedging -- (191,567) Acquisition of business, net of cash acquired -- (11,043,231) -------------------------------------------------------------------------------------------------- Net cash used in investing activities (10,504,830) (10,373,832) -------------------------------------------------------------------------------------------------- Net cash flow for the period (4,124,622) (887,087) Cash, beginning of period 4,628,405 1,642,487 -------------------------------------------------------------------------------------------------- Cash, end of period $ 503,783 $ 755,400 ==================================================================================================

Accumulated Depletion and September 30, 2004 Cost Depreciation Net Book Value ----------------------------------------------------------------------------------------------------- Petroleum and natural gas properties and equipment $57,603,887 $26,567,361 $31,036,526 Furniture and equipment 124,136 90,433 33,703 ----------------------------------------------------------------------------------------------------- $57,728,023 $26,657,794 $31,070,229 ===================================================================================================== Accumulated Depletion and December 31, 2003 (Restated - Note 3(b)) Cost Depreciation Net Book Value ----------------------------------------------------------------------------------------------------- Petroleum and natural gas properties and equipment $46,455,696 $20,940,748 $25,514,948 Furniture and equipment 105,831 69,500 36,331 ----------------------------------------------------------------------------------------------------- $46,561,527 $21,010,248 $25,551,279 =====================================================================================================

Year Ended 9 Months Ended December 31, 2003 September 30, 2004 (Restated - Note 3(b)) ----------------------------------------------------------------------------------------------------------------- Contributed Contributed # Shares Amount Surplus # Shares Amount Surplus ================================================================================================================= Beginning balance 19,650,100 $15,597,103 $ 288,623 15,366,000 $ 6,249,437 $ -- Payment of dividend on preferred shares 68,363 300,705 -- -- -- -- Exercise of warrants 100,000 506,503 -- 1,782,100 831,824 -- Private placement (1) 482,000 2,282,683 -- 2,152,000 6,871,363 -- Payment of principal and interest on long term debt 191,387 795,594 -- 350,000 1,644,479 -- Pursuant to 2003 private placement (2) 143,500 -- -- -- -- -- Warrants expense -- -- -- -- -- 145,190 Stock compensation -- -- 322,798 -- -- 143,433 ================================================================================================================= Ending balance 20,635,350 $19,482,588 $ 611,421 19,650,100 $15,597,103 $ 288,623 =================================================================================================================

Year Ended 9 Months Ended December 31, 2003 September 30, 2004 (Restated - Note 3(b)) -------------------------------------------------------------------------------------------------- Wtd Avg Wtd Avg Wtd Avg Wtd Avg Price Price Price Price # Options (US $) (Cdn $)(1) # Options (US $) (Cdn $)(1) -------------------------------------------------------------------------------------------------- Options outstanding, 425,000 $ 2.93 $ 3.80 320,000 $ 2.75 $ 4.34 beginning of period Issued 1,375,000 3.31 4.18 305,000 3.00 3.89 Cancelled -- -- -- (200,000) 2.75 3.57 -------------------------------------------------------------------------------------------------- Options outstanding, end of period 1,800,000 $ 3.22 $ 4.09 425,000 $ 2.93 $ 4.38 -------------------------------------------------------------------------------------------------- Options exercisable, end of period 477,500 $ 3.07 $ 3.87 75,000 $ 2.80 $ 3.63 --------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------- Year Ended 9 Months Ended December 31, 2003 September 30, 2004 (Restated - Note 3(b)) ----------------------------------------------------------------------------------------- # Warrants Amount # Warrants Amount Beginning balance 10,036,400 $ 1,976,913 7,200,000 $ -- Issued in connection with private placement 675,500 94,000 Issued for investor relation services 60,000 33,000 Issued on completion of equity financing -- -- 2,100,000 -- Subscription agreement -- -- 533,500 770,000 In connection with financing -- -- 450,000 450,000 For consulting services -- -- 100,000 129,903 1,435,000 640,000 Exercise of warrants (100,000) (100,000) (1,782,100) (12,990) ----------------------------------------------------------------------------------------- Ending balance 10,671,900 $ 2,003,913 10,036,400 $ 1,976,913 -----------------------------------------------------------------------------------------

Year Ended 9 Months Ended December 31, 2003 September 30, 2004 (Restated - Note 3(b)) ----------------------------------------------------------------------------------------------------------------- Wtd Avg Wtd Avg Exercise Exercise Wtd Avg Wtd Avg Price Price Price Price # Warrants (US $) (Cdn $)(1) # Warrants (US $) (Cdn $)(1) ----------------------------------------------------------------------------------------------------------------- Beginning balance 10,036,400 $ 1.38 $ 1.79 7,200,000 $ 0.50 $ 0.79 Issued in connection with equity financing -- -- -- 2,100,000 1.00 1.30 Issued in connection with subscription agreement -- -- -- 533,500 2.50 3.24 Issued in connection with financing -- -- -- 450,000 3.10 4.02 Issued in connection with consulting services -- -- -- 100,000 3.00 3.89 Exercised during the year (Class A) -- -- -- (1,772,100) 0.33 0.43 Exercised during the year (Other) -- -- -- (10,000) 3.00 3.89 Issued in connection with financing -- -- -- 1,435,000 4.00 5.19 Exercised in payment of interest (100,000) 3.10 3.91 -- -- -- Issued in connection with private placement 482,000 4.00 5.05 -- -- -- Issued in connection with investor relation services 60,000 4.05 5.11 -- -- -- Issued in connection with private placement 193,500 4.00 5.05 -- -- -- ----------------------------------------------------------------------------------------------------------------- Ending balance 10,671,900 $ 1.54 $ 1.99 10,036,400 $ 1.38 $ 1.89 -----------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------- Canadian US Canadian US Principles at Principles at Principles Principles at September 30, September 30, at December December 31, 2004 2004 31, 2003 2003 ------------------------------------------------------------------------------------------------------- Assets (Restated note 3(b)) Current assets 4,110,417 4,110,417 8,482,514 8,482,514 Deposits 144,227 144,227 159,581 159,581 Investment 927,783 927,783 899,601 899,601 Property and equipment 31,070,229 31,070,229 25,551,279 25,551,279 ------------------------------------------------------------- 36,252,656 36,252,656 35,092,975 35,092,975 ============================================================= Liabilities Current liabilities(1) 17,465,556 17,454,636 15,681,950 15,572,750 Long term debt(2) 3,511,309 3,187,505 4,370,595 3,889,450 Asset retirement obligation 1,248,185 1,248,185 1,088,682 1,088,682 Future taxes 1,947,049 1,947,049 2,716,255 2,716,255 Minority interest 2,677,934 2,677,934 3,285,564 3,285,564 ------------------------------------------------------------- 26,850,033 26,515,309 27,143,046 26,552,701 Shareholders' Equity 9,402,623 9,737,347 7,949,929 8,540,274 ------------------------------------------------------------- 36,252,656 36,252,656 35,092,975 35,092,975 =============================================================

--------------------------------------------------------------------------------------------------------------- Nine months ended September 30 % 2004 2003 Change Change --------------------------------------------------------------------------------------------------------------- OPERATIONS Production: Crude oil & NGL's (Bbl/d) 713 275 438 159 Natural gas (Mcf/d) 2,448 1,532 916 60 Total (Boe/d) 1,121 530 591 112 Average sales prices: Crude oil ($/Bbl) $ 39.58 $ 40.23 $ (0.65) (2) Natural gas ($/Mcf) $ 6.52 $ 5.49 $ 1.03 19 Total ($/boe) $ 39.42 $ 36.75 $ 2.67 7 Royalty expense ($/ Boe) $ (8.57) $ (6.94) $ (1.63) 24 Operating expense ($/ Boe) $ (14.06) $ (11.63) $ (2.43) 21 Netback ($/ Boe) $ 16.79 $ 18.18 $ (1.39) (8) FINANCIAL (UNAUDITED) (CDN$) Revenues: Crude oil & NGL's $ 7,732,729 $ 3,020,533 $ 4,712,196 156 Natural gas 4,374,591 2,296,476 2,078,114 90 --------------------------------------------------------------------------------------------------------------- 12,107,320 5,317,010 6,790,310 128 Royalty expenses (2,631,920) (1,003,783) (1,628,137) 162 Operating expenses (4,319,242) (1,683,194) (2,636,048) 157 --------------------------------------------------------------------------------------------------------------- Net revenue from oil and gas production 5,156,158 2,630,033 2,526,125 96 --------------------------------------------------------------------------------------------------------------- Net loss $ (2,699,103) $ (2,808,991) $ 109,888 4 --------------------------------------------------------------------------------------------------------------- Net loss per share $ (0.13) $ (0.17) $ 0.04 24 --------------------------------------------------------------------------------------------------------------- Cash flow from operations before changes in working capital* $ 1,829,095 $ 872,409 $ 956,686 110 --------------------------------------------------------------------------------------------------------------- Cash spent on investing activities $ 10,504,830 $ 10,373,832 $ 130,998 1 ---------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------ Less: Quarry Nine Months Nine Nine Months Less: Quarry Change: Ended Months Assure O&G Ended Two Months Assure O&G Assure O&G September 30, Sept 30, (Excluding September 30, Aug & Sept (Excluding (Excluding 2004 2004 Quarry) 2003 2003 Quarry) Quarry) ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Production: Crude oil & NGL's (Bbl/d) 713 619 94 275 139 136 (41) Natural gas (Mcf/d) 2,448 851 1,597 1,532 241 1,291 306 Total (Boe/d) 1,121 761 360 530 180 350 10 Average sales prices: Crude oil $(/Bbl) $ 39.58 $ 40.42 $ 34.11 $ 40.23 $ 39.24 $ 41.26 $ (7.15) Natural gas $(/Mcf) $ 6.52 $ 6.82 $ 6.37 $ 5.49 $ 4.84 $ 5.61 $ 0.76 Total $(/boe) $ 39.42 $ 40.50 $ 37.14 $ 36.75 $ 36.96 $ 36.64 $ 0.50 Royalty expense $(/ Boe) $ (8.57) $ (8.17) $ (9.41) $ (6.94) $ (6.14) $ (7.35) $ (2.06) Operating expense $(/ Boe) $ (14.06) $ (17.60) $ (6.59) $ (11.63) $ (13.08) $ (10.89) $ 4.30 Netback $(/ Boe) $ 16.79 $ 14.72 $ 21.14 $ 18.18 $ 17.73 $ 18.41 $ 2.73 FINANCIAL Revenues: Crude oil & NGL's 7,732,729 6,849,683 883,047 3,020,533 1,494,230 1,526,303 (643,257) Natural gas 4,374,591 1,588,974 2,785,616 2,296,476 318,332 1,978,144 807,472 ------------------------------------------------------------------------------------------------------------------------------------ 12,107,320 8,438,657 3,668,663 5,317,010 1,812,562 3,504,448 164,215 Royalty expenses (2,631,920) (1,702,906) (929,014) (1,003,783) (301,179) (702,604) (226,410) Operating expenses (4,319,242) (3,668,218) (651,024) (1,683,194) (641,768) (1,041,426) 390,402 ------------------------------------------------------------------------------------------------------------------------------------ Net revenue from oil and gas production 5,156,158 3,067,533 2,088,625 2,630,033 869,615 1,760,418 328,207 Interest income 6,470 -- 6,470 72,580 38,177 34,403 (27,933) General and administrative (3,509,055) (844,433) (2,664,622) (1,723,280) (104,288) (1,618,992) (1,045,630) Interest expenses (686,590) (387,887) (298,703) (758,415) (77,279) (681,136) 382,433 Accretion (59,042) (44,649) (14,393) (20,265) (13,328) (6,937) (7,456) Depletion and depreciation (4,973,839) (3,331,368) (1,642,471) (2,497,647) (436,715) (2,060,932) 418,461 Income taxes 730,983 365,667 365,316 (362,074) (15,631) (346,443) 711,759 Minority interest 607,630 607,630 -- (187,000) (187,000) -- -- Foreign exchange -- -- -- -- -- -- -- Equity income in unconsolidated subsidiary 28,182 28,182 -- 37,077 -- 37,077 (37,077) ------------------------------------------------------------------------------------------------------------------------------------ Net loss $(2,699,103) $ (539,325) $ (2,159,778) $ (2,808,991) $ 73,551 $ (2,882,542) $ 722,764 ====================================================================================================================================

Nine months ended September 30 2004 2003 Change ---------------------------------------------------------------------------------------------- Net income after adjustment for non-cash items $ 1,829,095 $ 872,409 $ 956,686 Reduction (increase) in working capital 2,914,600 172,245 2,742,355 ---------------------------------------------------------------------------------------------- Provided by operating activities 4,743,695 1,044,654 3,699,041 Used in investing activities (10,504,830) (10,373,832) (130,998) Provided by financing activities 1,636,513 8,442,091 (6,805,578) ---------------------------------------------------------------------------------------------- Net change in cash $ (4,124,622) $ (887,087) $ (3,237,535) ----------------------------------------------------------------------------------------------

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