EARNINGS / Fox Energy Releases Third Quarter Results
CALGARY, Dec. 1 /CNW/ - Fox Energy Corporation reported its financial and
operating results for the nine month period ended September 30. The Company
has recorded its ninth consecutive quarter of profitability and positive cash
flow.
FINANCIAL & OPERATING HIGHLIGHTS
For the nine months ended September 30,
Financial 1998 1997 % Change
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Revenue $ 1,521,279 $ 1,195,907 + 27
Cash flow $ 754,499 $ 646,465 + 17
Per share - basic $ 0.042 $ 0.041 + 2
Net earnings $ 16,481 $ 198,319 - 92
Per share - basic $ 0.001 $ 0.013 - 92
Net capital expenditures $ 826,479 $ 4,918,493 - 83
Shares outstanding 17,769,857 16,258,557 + 9
Net Operating Results
Gas production (Mcf/d) 1,954 476 + 311
Oil and NGLs (Bbls/d) 111 181 - 39
Barrels of oil equivalent (BOE/d) 306 229 + 34
Operating expense ($/BOE) 4.88 5.76 - 15
G & A expense ($/BOE) 2.41 3.70 - 35
Royalty expense ($/BOE) 2.21 3.10 - 29
Operating netback ($/BOE) 10.57 13.00 - 19
Average gas price ($/Mcf) 1.75 1.90 - 8
Average oil price ($/Bbl) 17.93 24.86 - 28
Average BOE price ($/BOE) 17.66 21.86 - 19
The Company has implemented a major capital expenditure program on the
Medicine Hat Hilda Gas Project in southeast Alberta. The program comprises
the drilling of 12 new wells and the installation of 10 siphon strings in 10
existing wells to improve productivity. The project, which is currently
underway, is anticipated to increase Fox's share of natural gas production
initially by up to one million (1 MMcf/d) cubic feet per day.
The Company's production mix is currently 70% natural gas and 30% light
oil. With current strong gas prices, the Company is forecasting higher
revenues and cash flow for fourth quarter 1998.
Fox raised $300,000 through a fully subscribed limited private placement
of 1,500,000 common shares.
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