CALGARY - Progress Energy Resources Corp. (TSX:PRQ), the target of a controversial takeover bid that has been given the cold shoulder from the Canadian government, reports third-quarter cash flow from operations plunged to $22.7 million.
The Calgary-based oil and gas company, which did not report net income, said that amounted to diluted cash flow of 10 cents per share, down sharply from $51.6 million, or 22 cents per share in the year-ago quarter.
Petroleum and natural gas revenue sank to $83.1 million from $114 million in the quarter a year earlier.
The company said production volumes fell due to shut-ins and the deferral of tie-ins and completions representing about 10 to 15 per cent of production. It produced an average of 43,045 barrels of oil equivalent per day during the quarter.
Malaysian state-owned oil company Petronas has extended the deadline for its takeover for Progress Energy in the hopes it can convince Ottawa the $6-billion deal would be of net benefit to Canada.
The Canadian arm of Petronas said earlier this week that its deadline had been extended by 30 days to Nov. 30 and may be extended twice more if the transaction still has not obtained regulatory approval.
Both companies have met with Industry Canada to try to find out why the government rejected their deal just before midnight on Oct. 19 — a move that dismayed many observers.
While federal Industry Minister Christian Paradis said he was "not satisfied that the proposed investment is likely to be of net benefit to Canada,'' the companies were given 30 days to take another run at winning approval.
Shares in Progress, which declared results after markets closed, fell 20 cents or $20.30 in trading Thursday on the Toronto Stock Exchange.