EARNINGS / Sunfire Energy reports 1st 3 months results
CALGARY, Jan. 2 /CNW/ - Sunfire Energy Corporation's financial results
for the three month period ended October 31, 1997, were impacted by
operational problems and the disposition of a producing oil property. The
extended shut-down of a non-operated compression facility resulted in the loss
of five and one half weeks of production. This plant currently handles over
fifty percent of the Company's natural gas production.
Revenues for the period declined to $187,293 from $268,114 reported in
the prior year. Consequently, cash flow at $111,493 (2 cents per share) and
net income at $40,163 (1 cent per share) were lower by 23% and 37%
respectively compared with 1996.
During the period the Company participated with a 19% working interest in
the drilling of three wells adjacent to its gas production facilities at
Thorhild. This activity resulted in two gross (0.51 net) gas wells. Both
these wells will be immediately tied-in and placed on production.
Elsewhere, the Company has farmed out one of the ten sections it
holds at Morinville for an exploratory well which will test a Leduc reef
oil prospect. This well will be drilled early in 1998. If successful, the
Company will retain a 27.5% working interest after payout of drilling,
completion and equipping costs from net production revenue. |
