UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
Report
of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the
Securities
Exchange Act of 1934
For the
month of May,
2005
Commission
File Number 0-29586
EnerNorth
Industries Inc.
(Address
of Principal executive offices)
2
Adelaide Street West, Suite 301, Toronto, Ontario, M5H 1L6,
Canada
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F:
Form
20-F X
Form 40-F
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7):
Yes No
X
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):
82-
_________
SIGNATURES
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.
EnerNorth
Industries Inc.
Date: May
17, 2005 By:____”Sandra
J. Hall”____ ______
Sandra J. Hall,
President, Secretary & Director
EnerNorth
Industries Inc.
News
Release
EnerNorth
Reports 3rd
Quarter Results
Toronto,
Canada - May 17, 2005 - EnerNorth
Industries Inc. (AMEX:
ENY & Frankfurt Stock Exchange: EPW1) (www.enernorth.com) (“EnerNorth” or
the “Company”) announces that it has issued unaudited
consolidated financial statements for the third quarter ending March 31, 2005
expressed in Canadian dollars. Effective
February 1, 2005, the Company divested its interest in its Industrial &
Offshore subsidiary, M&M Engineering Limited (M&M) for cash proceeds of
$7,361,999. For the purpose of financial presentation the operations of M&M
have been accounted for as discontinued operations.
|
HIGHLIGHTS |
|
For
the Nine Month Period Ending |
|
For
the Three Month Period Ending |
|
|
Average
production |
|
|
March
31, 2005 |
|
|
March
31, 2004 |
|
|
%
Change |
|
|
March
31, 2005 |
|
|
March
31, 2004 |
|
|
%
Change |
|
|
Natural
gas (mcf per day) |
|
|
292
|
|
|
165
|
|
|
77 |
% |
|
233
|
|
|
126
|
|
|
85 |
% |
|
Natural
gas liquids (bbls per day) |
|
|
10
|
|
|
7
|
|
|
43 |
% |
|
14
|
|
|
8
|
|
|
75 |
% |
|
Crude
oil (bbls per day) |
|
|
11
|
|
|
5
|
|
|
120 |
% |
|
14
|
|
|
2
|
|
|
600 |
% |
|
Total
(boe per day) |
|
|
69
|
|
|
39
|
|
|
77 |
% |
|
66
|
|
|
31
|
|
|
113 |
% |
|
Average
prices |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas ($/mcf) |
|
$ |
6.50 |
|
$ |
7.07 |
|
|
-8 |
% |
$ |
7.97 |
|
$ |
8.02 |
|
|
-1 |
% |
|
Natural
gas liquids ($/bbl) |
|
$ |
33.77 |
|
$ |
32.04 |
|
|
5 |
% |
$ |
32.67 |
|
$ |
30.78 |
|
|
6 |
% |
|
Crude
oil ($/bbl) |
|
$ |
50.98 |
|
$ |
41.61 |
|
|
23 |
% |
$ |
52.71 |
|
$ |
40.68 |
|
|
30 |
% |
|
BOE
($/boe) |
|
$ |
40.12 |
|
$ |
40.49 |
|
|
-1 |
% |
$ |
45.68 |
|
$ |
43.29 |
|
|
6 |
% |
|
Operating
costs and Netbacks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BOE
($/boe) |
|
$ |
40.12 |
|
$ |
40.49 |
|
|
-1 |
% |
$ |
45.68 |
|
$ |
43.29 |
|
|
6 |
% |
|
Royalties
($/boe) |
|
$ |
8.39 |
|
$ |
6.37 |
|
|
32 |
% |
$ |
11.06 |
|
$ |
4.46 |
|
|
148 |
% |
|
Operating
cost ($/boe) |
|
$ |
18.88 |
|
$ |
21.32 |
|
|
-11 |
% |
$ |
14.84 |
|
$ |
26.03 |
|
|
-43 |
% |
|
Netbacks
($/boe) |
|
$ |
12.85 |
|
$ |
12.80 |
|
|
0 |
% |
$ |
19.78 |
|
$ |
12.80 |
|
|
55 |
% |
|
Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
gas revenue |
|
$ |
517,347 |
|
$ |
318,916 |
|
|
62 |
% |
$ |
167,376 |
|
$ |
90,691 |
|
|
85 |
% |
|
Natural
gas liquids revenue |
|
$ |
88,552 |
|
$ |
60,291 |
|
|
47 |
% |
$ |
40,450 |
|
$ |
21,105 |
|
|
92 |
% |
|
Crude
oil revenue |
|
$ |
148,088 |
|
$ |
53,901 |
|
|
175 |
% |
$ |
64,052 |
|
$ |
7,626 |
|
|
740 |
% |
|
Total
revenue |
|
$ |
753,987 |
|
$ |
433,108 |
|
|
74 |
% |
$ |
271,878 |
|
$ |
119,422 |
|
|
128 |
% |
|
Royalties |
|
$ |
157,778 |
|
$ |
68,091 |
|
|
132 |
% |
$ |
65,834 |
|
$ |
12,311 |
|
|
435 |
% |
|
Net
revenue |
|
$ |
596,209 |
|
$ |
365,017 |
|
|
63 |
% |
$ |
206,044 |
|
$ |
107,111 |
|
|
92 |
% |
A Boe
conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Disclosure provided herein in respect of Boes may
be misleading, particularly if used in isolation.
Depletion
and Accretion. For the
nine month period ending March 31, 2005 depletion and accretion expense was
$546,448, 71% higher compared to $319,746 for the nine month period in 2004. For
the three month period ending March 31, 2005 depletion and accretion expense was
$184,835, 121% higher compared to $83,534 for the comparative three month period
in 20034. The
increased depletion and accretion was a result of higher production
volumes.
Administrative
Expenses.
Administrative expenses of $1,873,946
for the nine month period ending March 31, 2005 were 37% higher than
administrative expenses of $1,372,839 the previous year. Administrative expenses
for the three month period ending March 31, 2005 were $749,972, 1% lower than
$755,275 for the comparable period in 2004. The primary increase in
administrative expenses for the nine month period ending March 31, 2005 was
related to increased litigation expenses of $1,000,148. Litigation expenses were
$194,663 during the three month period ending March 31, 2005.
Foreign
Exchange. For the
nine months period ending March 31, 2005 the gain on foreign exchange was
$492,781 compared to a foreign exchange loss of $159,070 for the
nine month period in 2004. For the
three month period ending March 31, 2005 the loss on foreign exchange was
$11,050 compared to a foreign exchange loss of $6,246 during the comparable
period in 2004. The foreign exchange gain during fiscal 2005 related to
appreciation in the Canadian dollar relating to the Oakwell Claim. This gain was
partially offset by a foreign exchange loss relating to the Company’s investment
in Konaseema EPS Oakwell Power Limited .
Interest
income. For the
nine months ending March 31, 2005 interest income was $221,452, 191% higher
compared to $76,156 for the
comparable nine month period in 2004. For
the three month period ending March 31, 2005 interest income was $56,603
compared to $17,089, 231% higher compared to the three month period in 2004. The
increase in interest income was related to interest payments received on the
Company’s KEOPL investment.
Net
loss from continuing operations. Net loss
from continuing operations decreased 61% to $1,456,530
for the nine month period ended March 31, 2005 compared to a net loss of
$3,777,988 for the nine month period ending March 31, 2004. Net loss from
continuing operations decreased 42% to $771,886 for the nine
three
month
period ended March 31, 2005 compared to a net loss of $1,340,132 for the three
month period ending March 31, 2004. Net loss from continuing operations were
significantly higher in the previous year due to a $2,150,000 provision for the
Oakwell Claim.
Net
income (loss) from discontinued operations. Net
income from discontinued operations resulted from the Company’s disposition of
its Industrial & Offshore Division which was sold February 2005. Net income
from discontinued operations decreased 60% to $337,355 for the nine month period
ended March 31, 2005 compared to $835,677 for the nine month period ended March
31, 2004. On disposition of the operations of the Industrial & Offshore
Division the Company recorded a gain of $1,847,642.
Net
income from discontinued operations was $112,367 for the three month period
ended March 31, 2005 compared to a net loss from discontinued operations of
$420,291 for the three month period ended March 31, 2004. The reduction in net
income from discontinued operations was due to a significant contract performed
during 2003 and 2004 by NECL which did not recur during fiscal
2005.
Net
income (loss). As a
result of the above net income was $728,467 for the nine month period ending
March 31, 2005 compared to a loss of $2,942,311 for the comparable nine month
period ending March 31, 2004. For the three month period ending March 31, 2005
net income was $1,188,123 compared to a net loss of $1,760,423 for the three
month period ending March 31, 2004.
Net
loss from continuing operations per share and fully diluted net loss from
continuing operations per share. Net loss
from continuing operations per share and fully diluted net loss per share from
continuing operations for the nine month period ending March 31, 2005 decreased
by 61% to $0.36 per share from $0.93 per share for the same nine month period
2004. Net loss from continuing operations per share and fully diluted net loss
per share from continuing operations for the three month period ending March 31,
2005 decreased by 42% to $0.19 per share from $0.33 per share for the same
ninethree month
period 2004.
Net
income (loss) per share and fully diluted net income (loss) per
share. Net
income per share for the nine month period ending March 31, 2005 was $0.18 per
share compared to a net loss of $0.72 per share for the same nine month period
2004. Net income per share for the three month period ending March 31, 2005 was
$0.29 compared to a net loss of $0.43 per share for the same three month period
2004.
Fully
diluted net income per share for the nine month period ending March 31, 2005 was
$0.16 per share. Fully diluted net income per share for the three month period
ending March 31, 2005 was $0.26 per share. During fiscal 2004 both figures were
antidilutive.
Capital
Expenditures. Capital
expenditures totaled
$589,270 for the nine months of fiscal
2005
compared to $1,253,926 for the nine months of fiscal 2004. During the three
month period ending March 31, 2005 capital expenditures were $112,565 compared
to $463,705 for the comparable period in 2004. During nine month period ending
March 31, 2005 the Company’s primary expenditures related to drilling and
completion costs of approximately $x85,242 for the
Doe Property, Alberta, $x273,969 in
re-completion and tie-ins at Olds, Alberta, and $x73,360 in
re-completions in the Sibbald area of Alberta.
About
EnerNorth Industries Inc.
EnerNorth
is a junior oil and gas company carrying out operations through production,
development and exploration of oil and gas primarily in Alberta,
Canada.
There are
approximately 4.06 million shares issued and outstanding in the capital of the
Company. For full details of EnerNorth’s 3rd quarter
results and management’s discussion and analysis please visit www.sedar.com or
www.sec.gov.
For
further information contact:
Scott T.
Hargreaves, CA, CFA
Chief
Financial Officer
Telephone:
(416) 861-1484
www.enernorth.com
Certain
statements contained herein constitute “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform
Act”), which reflect the Company’s current expectations regarding the future
results of operations, performance and achievements of the Company. The Company
has tried, wherever possible, to identify these forward-looking statements by,
among other things, using words such as “anticipate,” “believe,” “estimate,”
“expect” and similar expressions. These statements reflect the current beliefs
of management of the Company, and are based on current available information.
Accordingly, these statements are subject to known and unknown risks,
uncertainties and other factors which could cause the actual results,
performance or achievements of the Company to differ materially from those
expressed in, or implied by, these statements. (See the Company’s Annual
Information Form and Annual Form 20 F for Risk Factors.) The Company is not
obligated to update or revise these “forward-looking” statements to reflect new
events or circumstances.
Suite
301, 2 Adelaide Street West, Toronto, Ontario, M5H 1L6, Telephone: 416 861-1484,
Facsimile: 416 861-9623 www.enernorth.com