10:03 AM EST - Costa Energy Inc. : reports a $1.4-million first-quarter loss and said Monday it is in default on bank covenants. The quarterly loss includes a $1.1-million writedown arising from "the lack of economic production" at Macoun, Sask. Costa said Monday it had a working capital deficiency of $2.75 million at the end of the quarter "and continues to discuss these financial challenges with its bank." January-March sales averaged 128 barrels of oil equivalent per day, 73 per cent natural gas, for revenue of $568,000. The net loss was worth five cents per share. Costa Energy Inc.
shares COE:CA are trading unchanged at $0.17.
