Kerm / Wolverine Energy Corp.
Here's a first cut at info. As with the last one, please ask specific questions on the things
I don't cover, and I'll see if the answers are in the package.
WVE: ASE; listed Sept. 1995; currently $0.75
2nd qrtr unaudited results (Q3 report will be mailed when avail, approx. 3 wks)
Q2 YTD
Revenue:
Prod. $320,229 $670,565
Royalties (63,217) (102,429)
Oth. 29,173 33,206
Total 286,185 601,342
Expenses
Operation 121,678 261,348
Admin 99,492 172,161
Depl, etc. 52,839 121,239
Interest 23,309 23,361
Total 297,318 578,109
Net income (11,133) 23,233
_____________________________
Balance Sheet (June 30)
CA
Receivable 570,280
Prepaid Ex. 9,921
Tot 580,201
Property & Equip. 1,310,427
Assets: 1,890,628
CL
Bank debt 7,441
Payables 297,987
Tot 305,428
Revolving production loan 800,000
O/S shares: 3,250,000
o/s warrants: 794,800
Production averaged 218 boe/d, roughly half oil. Average operating cost
is $8.66/boe, for a netback of $7.91/boe.
They have undertaken a $6.1 million capital spending program, which
they indicate will be financed by a combination of common equity and
flow-through shares. About half each to Alliance and Ghost River.
This is the part that must have piqued your interest, Kerm. The press
release on October 2 indicated that they have a farm-in agreement to
acquire a 100% WI in the West Ghost River project.
"Based on well performance and reserves estimates of the offsetting
Ghost River Gas Unit where Wolverine Energy is already a working interest
owner, the Company expects the 2-32 well to flow at rates of up to
10mmscfd/d (1,000 BOED) with recoverable reserves as high as 15 Bcf
(1,500,000 BOE's)."
Bottom line - they think their production will be up to 1,200 BOE/d by
early 1997.
I called the president, Wayne Dowhaniuk, to make sure that the 1,000 boe/d
wasn't a typo. He said it wasn't. He is (naturally) very enthusiastic and upbeat
about things that are happening.
OK Kerm -- over to you. |
