Here's the PR.
I think it's great! They wanted to be averaging 2000BOPD by July and they hit their target. From the AGM, SIY's expected production year end 2001 is 3,000 - 3,500 BOPD. I believe this number reflects only the Nukhul/Gharandal zones. The volume has been increasing so I think we're getting some buying in anticipation of the Thermal recovery. Let's see, NO DEBT, hit target of 2000 BOPD, six additional wells starting in November, positive net earnings per share and in week or so we'll start to drain the elephant. Looks good to me!
Scimitar Hydrocarbons Corporation - News Release
Scimitar net earnings improve in six months
Scimitar Hydrocarbons Corporation SIY
Shares issued 38,983,142 2000-08-25 close $0.8
Monday Aug 28 2000 News Release
Mr. Angus Mackenzie reports
During the second quarter ended June 30, 2000, Scimitar was extremely active and completed the first phase of its five-well drilling program for the Issaran field with the drilling of Issaran No. 13 and No. 14 wells. This resulted in a dramatic increase of 361 per cent in the oil production service fee to $4,109,070 from $890,159 in the previous fiscal quarter. Capital expenditures increased from $502,075 ending June 30, 1999, to $3,226,075 for the six months ended June 30, 2000. Scimitar will continue to finance the second phase of the drilling and development program and the thermal recovery pilot test from its positive cash flow.
HIGHLIGHTS
Six months ended June 30
2000 1999
Financial
Gross
revenues $4,109,070 $ 890,159
Cash flow
from operations 1,723,742 (231,132)
Cash flow
per share 0.04 (0.01)
Net earnings 1,239,427 (5,646,336)
Net earnings
(loss) per share 0.03 (0.21)
Operating
Production
(heavy oil) bbl/d 1,220 611
Average
sales price $28.77 $12.11
Scimitar carried out maintenance and work overs in addition to the drilling of the new wells during the six months, which resulted in the daily production rate peaking over 2,000 barrels of oil a day with a maximum of 2,098 barrels of oil a day. The company plans to commence the second phase of its development program by drilling up to six additional wells beginning in November, 2000.
Plans for the thermal recovery of the 500 million barrels of dolomite reserves is under way with the shipping of the induction heating tool in August, 2000. The induction heating tool will be used in the Issaran No. 2 well by the first week of September, 2000, and a three-month pilot test period will be used to evaluate the tool prior to using this technology in additional wells. Scimitar is encouraged by the results that were achieved by the use of this tool in a similar fractured carbonate reservoir in Bahrain.
By continuing to maintain its development program, Scimitar expects to achieve its targets as stated at the annual general meeting held on May 16, 2000. |
