EARNINGS / Sunfire Energy reports 12 months results
CALGARY, Dec. 30 /CNW/ - Higher oil and natural gas prices helped to
overcome reduced production volumes to give Sunfire Energy Corporation
improved financial results for its fiscal year ended July 31, 1997.
Net earnings improved to $205,545 (5 cents per share) from $66,107 (2
cents per share), and cash flow from operations rose to $740,034 (18 cents per
share) compared with $551,609 (13 cents per share) in the previous year. Gross
revenues, net of royalties, increased by 15% to $1,228,107 from $1,072,051 in
1996.
Natural gas production declined to 1,038 Mcf per day from 1,330 Mcf per
day in 1996, while daily oil and liquids production decreased to 34 Bbls from
43 Bbls. The Company's average gas price rose to $2.10 per Mcf from $1.37 per
Mcf, and average oil prices were also higher at $27.95 per Bbl from $23.56 per
Bbl.
During the fiscal year, the Company operated the drilling of five
exploratory wells with an average 44% working interest. This drilling
activity resulted in four gross (1.87 net) gas wells. Two of the gas wells
will be placed on production in October and are expected to increase the
Company's gas production by 50%. Undeveloped landholdings increased by 21% to
66,934 gross (24,540 net) acres. In the forthcoming fiscal year, the company
is intending to drill a number of high reward exploratory prospects on these
lands, while continuing to develop its core natural gas holdings to their full
potential. |
