EARNINGS / Genesis Exploration 1st Quarter Results
GENESIS REPORTS FIRST QUARTER RESULTS FOR 1998
CALGARY, April 24 /CNW/ - Genesis Exploration Ltd. drilled 9 (8 net) gas
wells and 3 (3 net) oil wells out of 17 (15.5 net) total wells in the first
quarter of 1998. Average working interest in wells drilled was 91%. The 71%
success rate resulted in estimated additional reserves of 3.7 million boe
proven and 1.5 million boe probable. The first quarter drilling program
consisted of 14 (12.5 net) exploration wells and 3 (3 net) development wells.
Genesis expects to drill 12 wells in the second quarter emphasizing the
development and exploration around the Company's existing infrastructure in
the Windfall, Fir and Pine Creek areas. Capital expenditures net of proceeds
of dispositions in the first quarter were $20,037,000 (1997 - $9,174,000).
Capital expenditures by categories were land $2.3 million, seismic $3 million,
drilling and completions $14.3 million and tangibles $1.8 million with
proceeds of disposition $1.4 million.
First quarter 1998 cash flow of $2,807,000 ($0.10/share) was up 23%, from
first quarter 1997 of $2,288,000 ($0.12/share). Earnings for the three months
ended March 31, 1998 were $3,961,000 or $0.14/share (1997-$809,000 or
$0.04/share) on revenue of $6,322,000 (1997-$4,832,000). Production for the
first quarter of 1998 averaged 4,040 boe/d (1997 - 2,342 boe/d). Product
prices were down significantly from 1997 levels with oil and NGLs averaging
$16.11/bbl (1997 - $24.75) and natural gas averaging $1.81/mcf (1997 - $2.09)
for an overall average of $17.38/boe (1997 - $22.86).
First quarter earnings were enhanced by the sale of the Company's
indirect interest in the Alliance Pipeline project for $8.7 million. The sale
was completed in early January and resulted in a before tax gain of $4.9
million ($3.2 million after tax). First quarter production, cash flow and
earnings were reduced by the sale of producing properties in the Sangudo area
and two weeks of downtime at the Windfall gas plant. Approximately 50% of the
Company's production is processed through the Windfall plant. The Sangudo
disposition was part of the plan to rationalize operations where plant
bottlenecks have made production planning difficult. The Company is currently
producing 5,300 boe/d, 2/3 of which is natural gas, and has current behind
pipe capability of 800 boe/d which will be tied in immediately after break up.
Genesis Exploration Ltd. will be holding its Annual General Meeting on
Thursday May 7, 1998 at 3:00 p.m. in the Main Boardroom at Suite 350, 333 -
5th Ave. S.W., Calgary, Alberta. |
