Company Review. Great Potential with Oil Discovery in UK.
Cirque Energy Ltd
CIQ
Shares issued 37832080
1998-03-09 close $0.65
Tuesday Mar 10 1998
Mr Glen Phillips reviews the company
During the quarter, the company participated in eight wells, one gas well and two
dry holes. Exiting the third quarter at an average of 518 b/d, the company is
producing 750 b/d. Once the Turin, Alberta battery becomes fully operational the
production is expected to reach 1,000 b/d.
International
The Fiskerton discovery has been placed on a 60 day production test and is being
flowed on a restricted choke at 320 b/d. Indications are that the well, when
placed on pump, will produce at a rate of 800 b/d. Application has been made for
five additional wells to be drilled on the Fiskerton site, two of which are scheduled
for June/July drilling. A pipeline to facilitate the movement of up to 10,000 b/d is
also planned for June. Although the company suspects this pool to be of major
significance, a 17 sq km 3D seismic program is underway to further evaluate this
structure and two additional adjoining structures. The eighth round UK licence in
which Cirque participated was just announced and Cirque was awarded four
blocks adding an additional 79,100 gross acres to its land holdings.
Domestic
At Turin, the company has increased its land holdings to 8,800 gross acres. Five
additional sq miles of 3D seismic has been processed increasing the potential
undrilled spacing units to 40 drilling locations. One well will be drilled in the fourth
quarter. Five wells are on production, with four scheduled to be turned back on at
the completion of the battery.
In the W5M area of northern Alberta, Cirque has farmed out interests in two
blocks of 100% lands that will see the drilling of two deep gas tests at no cost to
the company.
Substantial production additions from new discoveries internationally and
domestically will increase daily production to 2,000 b/d by December. Product
pricing in the short term will continue to plague the industry but Cirque's strength
will come from the development of its recent and future exploratory success.
STATEMENT OF EARNINGS
Nine months ended December 31
1997 1996
Revenue
Oil and gas
sales $ 2,812,322 $ 2,959,813
Royalties (433,852) (465,796)
----------- -----------
2,378,470 2,494,017
----------- -----------
Expenses
Operating costs
- oil and gas 1,119,218 773,067
General and
admin 540,927 353,724
Site restoration
costs 101,000 45,000
Depreciation,
depletion and
amortization 1,222,500 992,000
----------- -----------
2,983,645 2,163,791
----------- -----------
Earnings
(loss) before
the undernoted (605,175) 330,226
Interest and
other income 183,191 119,775
----------- -----------
Net earnings
(loss) $ (421,984) $ 450,001
=========== ===========
Earnings per
share $(0.01) $0.01 |
