EARNINGS / Circle Energy Reports Year End Results
CIRCLE ENERGY ANNOUNCES YEAR-END RESULTS
CALGARY, April 24 /CNW/ - Circle Energy Inc. announced a net loss of
$507,461 for the year ended December 31, 1997. Revenue for the year was
$4,784, comprised mainly of interest income, compared with $342,167 in 1996.
Our producing properties generated $181,813 in net production revenue in 1996.
In April 1996 the Company sold its producing properties to refocus on building
a significant exploration base. Industry delays of approximately six months
resulted in the Company's ten-well drilling program beginning in September
1997. Three of the first four wells have been successful and will begin
generating cash flow in May 1998.
Expenses for the reporting period were $435,350. General and
administrative expense increased by $143,051 over 1996 due to the higher
corporate activity levels required in the development of our asset base and
to support the two financings undertaken in the year. The areas of greatest
increase were geophysical services, engineering, land, legal, and corporate
communications.
Capital expenditures for the year were $1,717,051. The Company invested
$1,308,510 of this amount in Canada with the drilling of four wells, of which
three were successful gas wells, and undertaking various seismic programs
and land acquisitions in the development of our current exploration
prospects. $408,500 was invested in the United States with the majority
directed toward our Ranger Lake prospect.
The Company wrote off $76,895 of capital assets relating primarily to an
exploration well (net 25% interest) drilled and abandoned during the third
quarter. $459,376 of capital assets was written off in the comparable period
of 1996.
During 1997 the Company raised $2,236,860 in gross proceeds from two
share capital issues. Of these proceeds, $1,925,160 is attributable to
flow-through shares with the full amount renounced as qualifying expenditures
for the 1997 tax year. At December 31, 1997 the Company had no debt.
Circle Energy Inc. is a petroleum and natural gas exploration company
that holds oil and gas leases in the Brazeau, Waskatenau and Morinville areas
of Central Alberta and in Guadalupe, Lea and Quay Counties in New Mexico,
USA.
The Company's shares trade on The Alberta Stock Exchange under the symbol
CEN. |
