PRESS RELEASE #1:
Press Release
Grey Wolf Announces First Quarter Results
May 20, 1999 -- The Company's activity continued at a high level during the first quarter.
For the three months ended March 31, 1999, oil and gas sales before royalties increased 229% to $3,403,440 and cash flow increased by 259% to $1,672,591 ($.013 per share) compared to the first quarter of 1998. Average prices realized for the three months were $12.55 per barrel for oil and natural gas liquids and $2.05 per mcf for natural gas.
A total of nine wells were drilled, resulting in six gas wells and three abandonments. Two of the abandonments were exploration wells, one in the NWT, the other at Cranberry in northern Alberta. Additionally, the Company participated in 20 workovers during the first three months.
A three dimensional seismic program was completed on the Company's Springburn, Alberta prospect. This is a Slave Point oil play in which Grey Wolf holds a 35% working interest. Several locations have been identified for drilling and it is anticipated that two wells will be drilled this summer.
Completion activities on the Whiskey Creek prospect, in which the Company will have a 50% working interest, are expected to commence after breakup. This well, Quirk Creek 16-19-21-04 W5M, was drilled in 1998 pursuant to a farmin agreement with an industry partner.
Grey Wolf is pleased and proud to advise that the Company received a safety award for accident-free operations during 1998 at all six of the gas facilities that it operates. These awards acknowledge the high quality of our team in the field.
The Company's 91% weighting to natural gas has helped to maintain a very strong balance sheet. We look forward to reporting results of the above-mentioned activities in future communications.
Three Months Ended
March 31,
1999
1998
% Change
Production
Natural gas (mcfpd) 16,537
4,768
247%
Oil & natural gas liquids (bpd) 189
126
50%
Prices
Natural gas ($/mcf) $2.05
$1.79
15%
Oil & natural gas liquids $12.55
$15.46
-19%
Financial
Oil & gas revenue $3,403,440
$1,035,561
229%
Net earnings (loss) $4,585
$(136,653)
n/a
Net earnings (loss) per share -
-
-
Cash flow from operations $1,672,591
$465,664
259%
Cash flow from operations per share $0.013
$0.006
117%
Capital additions $3,004,584
$1,431,465
110%
Sale of property, plant and equipment $1,023,030
-
n/a
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For More Information Contact:
Grey Wolf Exploration Inc.
1200, 300 - 5th Avenue S.W.
Tel: (403) 262-1949
FAX: (403) 262-1969
Internet: info@greywolf.ca
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