EARNINGS / Tracer Petroleum Announces Annual Financial Results
All Amounts in Canadian $ Unless Noted Otherwise
VANCOUVER, British Columbia, April 15 /PRNewswire/ -- Tracer Petroleum Corporation (OTC BB:TCXUF) (Nasdaq:TCXWF VSE:TCP) is pleased to announce that the year ended Dec. 31,1997 marked the first profitable year in the history of the Company. Net income for the year of $496,650 compared favorably to a loss in 1996 of $1,762,455. Income per share was $0.01 (1996 - loss per share $0.05) which reflected continued production from the Company's 4.25% interest in the Ogan Komering Block (''OK Block''), and more importantly, the long-awaited sale of the Company's Canadian properties and a portion of the Company's investment in Eurogas Corporation. Revenue from the OK Block decreased to $3,097,356 from $3,407,409, mainly due to successful completion in recovering of past cost pools, thereby causing us to enter taxable status. The anticipated cash flow from the planned gas utilization project for the OK Block was not realized as the Operator continues to be in discussions with Indonesian authorities over specific terms in the Plan of Development. It is not known at this time when these discussions will finalize. In the meantime, oil production continues at over 16,000 barrels per day.
Loss from oil and gas operations before administrative expenses was $794,297, compared to a loss of $1,250,786 in 1996, due to reduced allowances for depletion, amortization and other write-downs, plus reduction of expenses associated with Canadian operations.
Other revenue included $160,048 from the rental of the Company's Indonesian-based oil rig, (1996 - $ nil), and a gain on the sale of our Canadian properties of $543,842. The gain on the sale of Eurogas shares was the most noteworthy contributor to Company operations. The Company realized a gain of $1,760,048 (1996 - $579,671) on the sale of the securities, capitalizing on the significantly higher share prices seen on anticipated results of an exploration well being drilled in Tunisia.
Administrative expenses compared favorably with those incurred in 1996 and included all travel and related expenses incurred in the Company's efforts to identify a farm-in partner during 1997.
Copies of the Annual Audited Financial Statements and a detailed Management Discussion and Analysis will be mailed to all shareholders together with Proxy documentation on Friday, April 17, 1998. Tracer's Annual General Meeting will be held in Vancouver, B.C. on May 22, 1998 at 2 p.m. at the Four Seasons Hotel.
In other news, Tracer is proceeding with preparations for the drilling of the step-out well from the Company's Ngurit 1 gas discovery. The rig is on site, and completion of necessary contracts, permits and other administrative matters is in progress. An announcement concerning the spudding of this well will be made as soon as all arrangements are finalized. In addition, efforts are proceeding with the due diligence review of the three development blocks under option as announced in the Company's News Release on April 6. |
