BelAir Energy earns 21 cents per share in year 2001
BelAir Energy Corp (2) BEC
Shares issued 26,591,999 Mar 14 2002 close $1.940
Friday Mar 15 2002 News Release
Mr. Vic Luhowy reports
BELAIR ENERGY ANNOUNCES 2001 FINANCIAL RESULTS
BelAir Energy has released its financial and operating results for the year ended Dec. 31, 2001.
Year 2001 highlights:
average daily production increased by 1.4 times to 2,492 barrels of oil equivalent (boe) per day in 2001 from 1,778 boe per day in 2000;
year 2001 exit production rate of 2,926 boe per day;
cash flow increased to $13.6-million in 2001 from $12.3-million in 2000, representing cash flow of 89 cents per weighted average share;
earnings for the year were $3.3-million, compared with $4.7-million in 2000, representing earnings of 21 cents per share;
acquired Tikal Resources Corp., bringing into BelAir the new natural gas exploration and production area of Clarke Lake in northeastern British Columbia. BelAir remains predominantly a natural gas producer (82 per cent);
drilled 37 gross (16.1 net) wells resulting in 13.2 net natural gas wells for a success ratio of 78 per cent; and
increased proved reserves by 3.8 million boe, replacing production of 900,000 boe by 4.2 times.
On the progress made during 2001, Vic Luhowy, president of BelAir, reflects: "The highlight of 2001 was the acquisition of Tikal. In Tikal, BelAir made a strategic investment in the potential for higher risk, higher reward natural gas prospects primarily in northeastern British Columbia. Last year, we initiated phase 3 of our growth strategy of increasing reserves and value by exploiting the exploration and development drilling opportunities on our large undeveloped land base. The acquisition of Tikal accelerates this exploration effort with high-impact exploration prospects in northeastern B.C. and northwestern Alberta. Together with the high-impact exploration prospects we have in western Alberta, success in our exploration program should result in substantial growth for BelAir. We continue to see strong fundamentals developing in the natural gas market in North America and we will continue to pursue a natural gas strategy in 2002. The proportion of natural gas production in BelAir has increased to 82 per cent at a time when again natural gas prices are showing increasing strength."
Financial review
In 2001, BelAir made progress by increasing average daily production but weaker prices in both natural gas and oil prices tempered these advances. Cash flow increased by 11 per cent to $13.6-million in 2001 from $12.3-million in 2000, resulting in cash flow of 89 cents per weighted average share basic in 2001, compared with $1.13 per share in 2000. BelAir's earnings in 2001 were $3.3-million or 21 cents per share, compared with $4.7-million or 44 cents per share in 2000. Average daily production in 2001 increased 32 per cent to 2,492 boe per day from 1,779 boe per day in 2000. BelAir's 2001 exit production rate was 2,925 boe per day, compared with 1,750 boe per day exit 2000. BelAir increased proved reserves by 3.8 million boe, which replaced 2001 production of 900,000 boe by 4.2 times. The increase in reserves consisted of 3.0 million boe by acquisition and 1.2 million boe by drilling with a reduction of 400,000 boe by reserves revisions.
FINANCIAL AND OPERATING SUMMARY
(millions of dollars)
2001 2000 Change
(%)
Financial
results
Petroleum
and natural
gas sales $ 31.2 $ 23.6 +32
Cash flow
from
operations $ 13.6 $ 12.3 +11
Per share
basic $ 0.89 $ 1.13 (21)
Net
earnings $ 3.3 $ 4.7 (30)
Per share
basic $ 0.21 $ 0.44 (52)
Capital
expenditures,
net of
dispositions/
acquisitions $ 25.0 $ 11.6 +116
Operations
Average
daily
production
Natural gas
(thousands
of cubic
feet) 12,198 7,687 +59
Crude oil
and natural
gas liquids
(barrels) 459 497 (8)
Barrels
of oil
per day 2,492 1,779 +40
Reserves,
(thousands
of barrels
of oil
equivalent)
Proved 9,155 6,255 +46
Probable 4,355 3,345 +30
Proved plus
probable 13,510 9,600 +41
Landholdings
Net acres 186,066 134,591 +38
Outlook
Current production is 3,300 boe per day comprising approximately 16.2 million cubic feet per day of gas and 600 barrels per day of oil and liquids. Capital expenditures for 2002 are anticipated to be $12-million. BelAir is planning to drill 20 wells primarily for natural gas in its core areas of Clarke Lake in northeastern B.C., Penhold in central Alberta and Doris in northwestern Alberta. Included in this drilling program are three high-influence exploration wells in Peco, Kaybob and Lochend in western Alberta.
WARNING: The company relies upon litigation protection for "forward-looking" statements. |
