ENERGY TRUSTS / ARC Energy Trust reports 1st 3 months Results
CALGARY, May 15 /CNW/ - (AET.UN - TSE) - ARC Energy Trust (''the Trust'')
announces the results for the first quarter ending March 31, 1998.
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Three Months Ended
March 31, 1998 March 31, 1997 Variance
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OPERATING
Production
Crude Oil (Bbls/d) 4,365 2,707
Natural Gas Liquids (Bbls/d) 2,113 1,775
Natural Gas (Mmcf/d) 41.1 28.4
Oil Equivalent (Bbls/d) 10,583 7,324 +45%
Average Prices ($Cdn)
Crude Oil ($/Bbl) $20.13 $29.41
Natural Gas Liquids ($/Bbl) $14.75 $21.24
Natural Gas ($/Mcf) $1.83 $2.24
Oil Equivalent ($/Bbl) $18.40 $24.78 -26%
FINANCIAL
($000s except per unit amounts)
Revenue Before Royalties 17,521 16,332 +7%
Cash Flow 8,252 9,053 -9%
Net Income 436 3,713 -88%
Cash Distributions 7,681 7,640 +1%
Per Unit 0.30 0.40
>>
Production during the quarter was up 45 percent from the same period in
1997 to 10,583 barrels of oil equivalent (boe) per day comprised of 6,478
barrels per day of crude oil and natural gas liquids and 41.1 million cubic
feet per day of natural gas. This increase in production was the result of
acquisitions completed during the second and third quarters of 1997.
Despite significantly increased production, revenue before royalties
increased only 7 percent due to weak commodity prices, especially for crude
oil and natural gas liquids. The average prices for the quarter were
$20.13/bbl for oil, $1.83/mcf for gas and $14.75/bbl for natural gas liquids.
On an oil equivalent basis, the average price was $18.40/bbl which was 26
percent lower than the first quarter of 1997. Cash flow during the quarter
was $8.3 million with net income of $0.4 million.
Operating costs were $4.66 per boe, general and administrative costs net
of recoveries and reimbursements were $0.76 per boe and management fees were
$0.33 per boe, resulting in overall costs of $5.75 per boe. This compares to
$6.58 per boe for the first quarter of 1997. Capital expenditures of $3.0
million in the quarter were directed towards development drilling,
recompletions and tie-ins in Buick Creek, Marten Hills, Minnehik Buck Lake and
Mitsue areas. In addition, production and waterflood optimization activities
were undertaken in the House Mountain, Midale and Pembina Properties.
The Trust also participated in the drilling of an oil well in the Meekwap
area which production tested over 1,800 boe/d (188 boe/d net to the Trust).
The well will be tied-in in the second quarter and performance at this level
will increase the field's existing production capacity by 50 percent. Other
drilling locations in the area have been identified and the operator is
soliciting partner approval to proceed immediately with another well.
The significant decrease in crude oil and natural gas liquids prices
which occurred during the first quarter has created challenges for the oil and
gas industry. However, despite the commodity price reductions, the Trust was
able to maintain its monthly distribution at $0.10 per unit through the first
quarter. We will continue to monitor commodity prices and their impact on
distributable income. Provided that commodity prices remain consistent with
current forward markets, monthly distributions are expected to remain at $0.10
per unit through the year.
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