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Friday April 16, 10:24 pm Eastern Time
Company Press Release
SOURCE: Tracer Petroleum Corporation
Tracer Petroleum Announces 1998 Annual Financial Results
CALGARY, Alberta, April 16 /PRNewswire/ -- Tracer Petroleum Corporation (Nasdaq: TCXXF - news; Vancouver: TCP - news; ''Tracer'') reports a net loss of $12,845,716 for the year-ended December 31, 1998 (all figures in Cdn. Dollars), or $3.46 per share. This compares to net income for 1997 of $496,650, or $0.13 per share. Included in the loss for the year was a reduction in the carrying value of Indonesian assets of $9,106,729, or $2.45 per share. The majority of this reduction in the carrying value, $6,649,665 was previously reported in the 3rd quarter of 1998.
Oil and gas revenues for the year were $1,965,778, compared to $3,302,367 for the previous year. The drop in revenues is primarily a result of lower realized prices for Indonesian crude. Revenues reflect continued production from Tracer's 4.25% interest in the Talisman-operated Ogan Komering Block on Sumatra, Indonesia. Gross production from Ogan Komering Block ended the year at approximately 15,000 barrels of oil per day.
Other revenue for the year included $154,672 from the rental of the Company's Indonesian-based oil rig. This is down slightly from revenue of $160,048 from rig rental for the previous year. Administrative expenses during 1998 totaled $513,140, compared with $1,227,203 for 1997. The significant reduction in administrative expenses can be attributed primarily to a reduction in consulting and professional fees.
The Company exited the year with total assets of $3,669,117 ($0.99 per share), no net debt, and shareholder's equity of $3,404,212 ($0.92 per share). Tracers' balance sheet puts it in a favorable position when considering possible acquisitions, and when pursuing financing for these acquisitions.
The Company is pursuing the possible acquisition of low-risk, high-potential oil and gas development projects in the Islamic Republic of Iran. Discussions with representatives of the National Iranian Oil Company are continuing.
Copies of the Annual Audited Financial Statements and a detailed Management Discussion and Analysis will be mailed to shareholders together with Proxy documentation on May 4, 1999. Tracer's Annual General Meeting will be held in Calgary, AB, on June 4, 1999. The Annual Audited Financial Statements, and Management Discussion and Analysis can be found on the Company's Web-site at www.hostec.com/tracer and can also be found on SEDAR. |
