David / Gulfstream Resources - Page 1 of Many
THREE MONTH REPORT
Three Months Ended Dec 31, 1996
To the Shareholders:
Gulfstream Resources Canada Limited had a first quarter profit of
$1,359,814 or 2.5 cents per common share ($1,979,106 or 4.0 cents per
common share for the same period in 1995) on 55,365,098 shares
outstanding at December 31, 1996.
First quarter earnings include a gain on sale of securities of
$343,756 but do not include sales or earnings from the Al-Rayyan oil
field offshore Qatar.
The Company's gas marketing subsidiary was sold during the period and
its operating results are not included for the period.
Production from Qatar's Al-Rayyan oilfield commenced November 12,
1996. The field was producing at 32,000 bbls per day by calender year
end which was considered the conclusion of the start up period for
accounting purposes. Cumulative production to December 31, 1996 was
1.15 million barrels. All revenues during the period were credited to
the accumulated oil and gas expenditure pool. Reporting of income and
cash flow will commence as of January 1, 1997.
On December 31, 1996, the Company paid an initial dividend of one cent
per common share to shareholders of record at December 20, 1996.
The Annual General Meeting of Shareholders is scheduled for 3:00 p.m.
on March 26, 1997, at The Westin Hotel in Calgary,Canada.
J. Angus McKee
Chairman and C.E.O.
Gulfstream Resources Canada Limited Consolidated Statement
of Operations and Deficit for Six Month Period Ended
December 31, 1996 (Unaudited)
1996
1995
REVENUES
$
$
Sales
5,992,075
8,152,823
Interest income
48,962
140,487
Gain on foreign exchange
--
121,197
Other income
343,756
13,739
-------------
-------------
6,384,693
8,428,246
-------------
-------------
EXPENSES
Cost of Sales
2,846,972
4,163,715
Administration
513,640
236,549
Loss on foreign Exchange
96,768
--
Depreciation and depletion
63,836
7,163
-------------
-------------
3,521,216
4,407,427
--------------
--------------
INCOME BEFORE INCOME TAXES
2,863,477
4,020,819
Income taxes
1,503,663
2,041,713
-------------
-------------
NET INCOME FOR THE PERIOD
1,359,814
1,979,106
Retained earnings at beginning of period
14,353,519
8,930,933
-------------
-------------
15,713,333
10,910,039
Less: Dividends paid on common shares
553,651
--
-------------
-------------
Retained earnings at end of period
15,159,682
10,910,039
==========
==========
Net income per common share
2.5
4.0
==========
==========
Gulfstream Resources Canada Limited Consolidated Statement
of Changes in Financial Position for Six Month Period Ended
December 31, 1996(Unaudited)
1996
1995
OPERATING ACTIVITIES
$
$
Net Income for the period
1,359,814
1,979,106
Depreciation and depletion
63,836
7,136
(Increase) Decrease in operating acticities
1,442,724
336,666
-------------
-------------
2,886,374
2,322,935
-------------
-------------
INVESTING ACTIVITIES
Expenditures on oil and gas
(9,477,482)
(4,361,742)
Additions to fixed assets
(144,607)
(24,526)
Disposal of marketable security
182,000
--
-------------
-------------
(9,440,089)
(4,386,268)
-------------
-------------
FINANCING ACTIVITIES
Bank loan
10,284,000
4,093,500
Proceeds from issues of common shares
449,720
52,050
Dividends paid on common shares
(553,651)
--
-------------
-------------
10,180,069
4,145,550
-------------
-------------
INCREASE IN CASH
3,606,354
2,082,217
Cash position at beginning of period
3,527,575
9,089,780
-------------
-------------
Cash position at end of period
7,133,929
11,171,997
==========
==========
Gulfstream Resources Canada Limited Consolidated Balacance
Sheet as at December 31, 1996 and 1995 (Unaudited)
ASSETS
1996
1995
CURRENT ASSETS
$
$
Cash and short-term investments
7,133,929
11,171,997
Accounts receivable
2,334,296
5,639,718
Condensate inventory
405,443
434,192
Prepaid expenses
182,280
336,851
-------------
-------------
10,055,948
17,582,758
-------------
-------------
LONG-TERM INVESTMENTS
--
546,000
-------------
-------------
OIL AND GAS INTERESTS
44,784,517
15,164,358
FIXED ASSETS
764,701
116,150
-------------
-------------
45,549,218
15,280,508
-------------
-------------
Less: accumulated depreciation and depletion
340,578
108,301
-------------
-------------
45,208,640
15,172,207
-------------
-------------
55,264,558
33,300,965
==========
==========
Liabilities and Shareholders' Equity
1996
1995
CURRENT LIABILITIES
$
$
Bank loan
10,284,000
4,093,500
Accounts payable and accrued liabilities
4,147,322
4,953,534
Income taxes payable
1,607,280
2,148,788
-------------
-------------
16,038,602
11,195,822
-------------
-------------
COMMITMENTS AND
CONTINGENCIES
--
--
-------------
-------------
SHAREHOLDERS' EQUITY
Share capital
24,066,304
11,195,104
Retained earnings
15,159,682
10,910,039
-------------
-------------
39,225,986
22,103,143
-------------
-------------
55,264,986
33,300,965
==========
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