HURRICANE HYDROCARBONS LTD. FINANCIAL RESULTS FOR THE
YEAR ENDED JUNE 30, 1996
CALGARY, Oct. 29 /CNW/ - Hurricane Hydrocarbons Ltd. announces that its
net earnings for the year ended June 30, 1996 amounted to $85,203 compared to
$5,108 in the previous year. Cash flow from operations increased from $65,777
to $170,938. Hurricane is in the process of acquiring 100% of the common
voting shares, representing 89.5% of the equity of Yuzhneftegaz, a joint stock
company owned by the Republic of Kazakstan. The US$120 million acquisition is
scheduled to close on November 3O, 1996. Subsequent to year end, Hurricane
closed a $55 million private placement of special warrants and paid an initial
US$30 million to the Republic of Kazakstan as a refundable deposit. The
balance of the proceeds of the offering has been retained by Hurricane as
working capital.
Hurricane has retained Deloitte & Touche, Chartered Accountants to
perform certain due diligence work prior to closing the Yuzhneftegaz
acquisition and Fluor Daniel Williams Brothers, an operating company of Fluor
Daniel which is a major North American engineering, procurement and
construction management company, has performed a review of the field
facilities and operations in Kazakstan and is currently preparing its
recommendations. Hurricane and Fluor Daniel Williams Brothers have entered
into a letter of intent to establish an alliance for the management of
operations for the fields operated by Yuzhneftegaz.
Yuzhneftegaz is a 25% partner with Hurricane in the Qyzylkiya, Aryskum
and Maibulak fields of the Turan Petroleum Joint Enterprise and a 50% partner
in the South Kumkol field. In addition, the assets of Yuzhneftegaz include
the Kumkol field, currently producing approximately 50,000 barrels of oil per
day, as well as interests in other joint enterprises based in Central
Kazakstan. Proved and probable oil reserve estimates for Yuzhneftegaz
consolidated by McDaniel & Associates Consultants Ltd. in a recent report, are
in excess of 300 million barrels. Net present value at a 15% discount rate,
with the probable reserves risked at 50%, is estimated to be in excess of US$1
billion.
Hurricane's shares are listed on the Alberta Stock Exchange and the
Toronto Stock Exchange under the symbol ``HHL.A''. Hurricane has a total of
31,473,539 shares outstanding on a fully diluted basis.
The Toronto Stock Exchange and Alberta Stock Exchange have neither
approved nor disapproved the information contained herein.
For further information: John J. Komarnicki, President and Chief Executive Officer, Hurricane
Hydrocarbons Ltd., (403) 221-8435, Fax (403) 221-8425
13:21e 29-OCT-96 |
