EARNINGS / Benson Petroleum reports 1997 Results
(000's except per share amounts) 1997 1996 Change
____ ____ ______
Gross Revenue 15,943 10,880 +47%
Cash Flow 7,151 4,804 +49%
Per Share 0.41 0.30 +37%
Net Earnings 1,591 1,532 +4%
Per Share 0.09 0.10 -10%
Capital Expenditures (Net of Dispositions) 10,928 3,223 +239%
Daily Production
Oil and Liquids (BOPD) 1,369 860 +59%
Natural Gas (mmcf/d) 5.04 4.93 +2%
BOEPD 1,873 1,353 +38%
Net Undeveloped Acreage 93,000 90,000 +3%
Wells Drilled 36 34 +6%
Success Rate 81% 85% -4%
Benson Petroleum Ltd. (''Benson'') achieved both record production and
financial results for the fiscal year ended December 31, 1997. Strong
commodity prices through the year and significantly higher crude oil and
liquids production volumes contributed to a 47% increase in gross revenue to
$15,943,000. Cash flow increased by 49% to $7,151,000 or $0.41 per share.
These fiscal revenue and cash flow levels are the highest ever attained by the
Company. Net earnings were up marginally to $1,591,000 or $0.09 per share,
however, higher deferred taxes in 1997 offset higher pre-tax profit.
Crude oil and liquids production increased by 59% to average 1,369 bbls/d
in fiscal 1997 as a result of additions at Cherhill, Chauvin and Edgerton.
December, 1997 production averaged 1,431 bbls/d. Gas production was up
marginally to average 5.04 mmcfd, however, December, 1997 rates averaged 5.52
mmcfd as a result of new production at Cherhill, Edgerton, and Armada. The
overall production average of 1,873 BOEPD is also a fiscal record for the
Company.
In 1997, crude oil and liquids prices averaged $22.45 per bbl, down 11%
from the $25.21 per Bbl experienced in 1996. Natural gas prices, on the other
hand, were up 28% to an average of $1.86 per mcf compared to $1.45 per mcf in
1996.
Benson participated in 32 wells (18.2 net) and farmed out 4 wells
resulting in 20 oil wells (9.7 net), 8 gas wells (4.6 net), 7 dry holes (3.4
net), and 1 service (.5 net) for an overall success rate of 81% during fiscal
1997.
The Company increased its net undeveloped land inventory to approximately
93,000 acres net of expiries and dispositions in 1997. Benson's average
working interest is 69% in this acreage which will form the basis for an
ongoing exploration and development program in 1998 and beyond.
Total capital expenditures were $10,928,000 net of dispositions compared
to $3,223,000 in 1996. At year end 1997 bank debt was less than one year's
cash flow, at $6,400,000 or approximately 0.9 times 1997 cash flow. Finding
costs for 1997 were $4.91 per BOE versus $4.74 per BOE in 1996 while finding
and development costs were $5.90 per BOE compared to $5.73 per BOE in 1996.
Despite the substantial drop in crude oil prices since December and the
prospects for continuing price weakness, the record performance and adherence
to financial prudence by the Company in 1997 has resulted in a 23% increase in
net asset value to $1.87 per share (using proven plus 1/2 probable reserve
values discounted at 15%) on a fully diluted basis compared to $1.52 per share
at year end 1996.
Benson Petroleum Ltd. is a Calgary based exploration, development and
production company listed on the Toronto Stock Exchange (Symbol:BEN). The
Toronto Stock Exchange has neither approved nor disapproved the information
contained in this press release.
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