MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING MONDAY, MARCH 16, 1998 (5)
UPDATES ON KERM'S TOP 21 - SPEC 15 - SERV 9 COMPANIES
CALGARY, March 16 - Wolverine Energy Corp. (WVE-ASE) announced that it has tapped into a very significant natural gas reservoir in the West Ghost River area (100% working interest) located about 65 kilometers west of Calgary. Wolverine Energy Corp. recently completed drilling two horizontal legs into the Mount Head formation.
The two horizontal sections were drilled from the Wolverine Salter 8-29-26-8W5M well (100% working interest). One horizontal leg was drilled into the Upper Mount Head formation and encountered just over 310 meters of horizontal gas pay. This horizontal leg flowed natural gas immediately after drilling and is currently being completed for production. Production testing will be completed later in March.
The second horizontal leg drilled off of the 8-29 well reached a length of just over 360 meters in length and targeted the Lower Mount Head and Turner Valley formations. Wolverine Energy expects to resume drilling in this lower leg at a later date to continue development of these two formations. The Company expects to be able to develop the Mount Head and Turner Valley formations in the West Ghost River area and sees the same potential in its South Ghost River (100% working interest) project area.
Wolverine Energy Corp. continues to pursue its natural gas growth strategy in the southern Alberta foothills and northeastern British Columbia through drilling and property acquisitions. Wolverine Energy expects natural gas to provide significant growth opportunities for the Company and will focus its 1998 capital programs in this area.
Edmonton March 16 - Hyduke Capital Resources Ltd. (HYD/ASE) announced the financial results of the company for the nine months ended January 31, 1998.
Sales for the three quarters ended January 31, 1998 were $22,871,000. This compares to sales for the entire fiscal year ended April, 1997 of $15,107,000. As such Hyduke is on track to achieve its goal of doubling sales on a year-to-year basis.
Earnings reflected even better performance as the efficiencies of integrating The Hyduke Group of Companies starts to show on the bottom line. E.B.I.D.T.(earnings before interest, depreciation and taxes) for the nine month period ended January 31, 1998 exceeded $2,761,000.
BW Rig Manufacturing division finished taking occupancy of an additional 10,000 square feet of manufacturing facility space on March, 1998. This brings the total available repair space for BW Rig to 42,000 square feet situated on a 4.5 acre lot. This has increased operational capacity by 280 percent from March 1, 1997 to March 1, 1998.
Calgary March 13 - Granger Energy Corp. (GAS.A/ASE) announced that it has retained Griffiths McBurney & Partners ("Griffiths") as Financial Advisor to assist in evaluating options to maximize shareholder value. Griffiths will seek proposals for the acquisition or merger of Granger and a data room will be available for interested parties in the near future.
Granger is a well-financed junior energy company with operated production, drilling prospects and approximately 40,000 net acres of land located in Alberta and Saskatchewan. Production is currently over 600 barrels of oil equivalent per day, 90 percent of which is oil.
Calgary March 16 - Granger Energy Corp. (GAS.A/ASE) reports that it has accepted an Offer to Purchase its 20 percent interest in a heavy oil project at Majestic, Alberta plus other minor holdings in central Alberta for approximately $3.9 million, subject to normal closing conditions and adjustments. The sale includes approximately 12,300 net acres of land and a gas gathering/compression system in the Atlee-Buffalo/Majestic area. Closing is scheduled for April 30, 1998.
Following closing, the Company will have approximately 200 thousand cubic feet of gas and 400 barrels per day of light and medium gravity oil production, 65 percent of which is hedged on a net revenue barrel basis at $US20.40 per barrel until the end of 1998.
Granger will also have approximately $2 million of working capital and $3 million of unused credit lines available for investment.
The Company had previously announced its intention to seek proposals for sale or merger through its financial advisors Griffiths McBurney & Associates, and a data room is expected to be open shortly.
Calgary March 13 - Pinnacle Resources Ltd. (PNN/TSE) announced financial and operational results for the year ending December 31, 1997. (financial figures reported in $ Thousands)
Oil & Gas sales for 1997 was $172,210 vs $126,806 in 1996.
Cash flow was $88.018 in 1997 compared to $68,483 in 1996. Fully diluted cash flow per share amounted $3.28 in 1997 vs $2.80 in 1996.
Net earnings was $13,207 compared to $11,125 in the previous year. Fully diluted earnings per share was $0.50 in 1997 vs $0.48 in 1996.
There are 25,408,000 fully diluted shares outstanding.
Crude oil production averaged 14,330 bbl's/d compared to 9,846 bbl's/d last year. Natural gas producrtion was 102 mmcf/d compared to 87 mmcf/d in 1996.
During 1997, Pinnacle drilled a total of 291 gross wells with an average working interest of 84 percent. Pinnacle operated 98 percent of these wells. The results included 152 oil wells, 73 gas wells, 5 service wells and 61 dry holes. The 1997 capital expenditure program, which included the acquisition of HCO Energy Ltd. and Wascana Acquisitions Inc., totalled $706,363 and, is estimated to have added 129 million barrels of oil equivalent of proven and probable reserves. Year end 1997 proven and probable reserves totalled 119 million barrels for oil and natural gas liquids and 560 billion cubic feet for natural gas. 1997 reserve additions, including acquisitions, were found or acquired with finding and on stream costs of $7.20 per barrel of oil equivalent on a proven basis and $5.45 per barrel of oil equivalent on a proven and probable basis. Additions to proven and probable reserves replaced 1997 production by 18 times for oil and by 9 times for gas. Pinnacle's current production stands at approximately 31,000 barrels of oil and natural gas liquids per day and 130 million cubic feet of natural gas per day.
For further information, including results for the 4th quarter, go to
techstocks.com
Calgary - March 12 - Tarragon Oil and Gas Limited (TN/TSE) announced operating and financial results for the year ended December 31, 1997. (financial figures reported in $ Thousands)
Oil and gas revenue in 1997 was $250,909 vs 199,406 in 1996.
Cash flow was $137,571 compared to $110,330 in the previous year. Fully diluted cash flow per share amounted to $2.49 vs $2.18 a year ago.
Net earnings was $32,742 in 1997 compared to $28,391 in 1996. Fully diluted earnings per share was $0.61 compared to $0.58 in 1996.
Tarragon achieved record cash flow and earnings in 1997 primarily through a 22 percent increase in total production as average commodity prices remained relatively flat when compared to 1996. Conventional oil production averaged 12,150 barrels per day in 1997, essentially the same as the 12,394 barrels per day one year ago. Heavy oil production increased to 2,864 from 918 barrels per day in 1996. Natural gas production also grew to 174.3 million cubic feet per day, up from 133.2 million cubic feet per day last year.
Conventional oil wellhead price decreased 9 percent to $23.19 per barrel from $25.51 per barrel in 1996. Heavy oil wellhead price suffered most of the year from the widening differentials, dropping to $13.80 per barrel compared to $20.76 one year ago. Natural gas wellhead prices, however, were strong posting a 12 percent gain to $2.10 per thousand cubic feet for the year. The Company incurred a net gain of $149,000 in 1997 from various hedging activities, compared to a total hedging loss of $15 million last year.
Tarragon participated in the drilling of 220 (157.4 net) wells in 1997, resulting in 65 (37.6 net) oil wells, 73 (52.4 net) gas wells, 31 (28.5 net) service wells and 51 (38.9 net) dry holes. The overall success ratio was 76.8 (75.3 net) percent.
Capital expenditures incurred in 1997 amounted to $273.9 million, including $204.7 million on exploration and development, $109.1 million on asset acquisitions and $39.9 million of proceeds from the sale of properties. Total proved (plus probable) reserves at year end as assigned by independent engineers were 91 (141.9) million barrels of crude oil and natural gas liquids and 673 (794) billion cubic feet of natural gas. Undeveloped land holdings at year end 1997 totalled 2.4 million net acres, up from 1.9 million net acres at the end of last year.
The 1997 capital program replaced production 450 percent (750 percent), yielding a finding and development cost of $5.16 ($3.07) per barrel equivalent. During the last three years, Tarragon expended a total of $715 million in its capital programs, achieving an average finding and development cost of $6.10 ($4.36) per barrel equivalent, and replacing production 390 percent (550 percent).
Long-term debt (net of working capital) totalled $362.4 million at year end, a reduction from $414.7 million at the end of the third quarter. This reduction was attributable to a property disposition program in the fourth quarter for proceeds of $35 million and an equity issue of one million flow-through common shares for proceeds of $14.5 million. After giving effect to the disposed properties, daily production at year end 1997 approximated 10,500 barrels of conventional oil, 3,500 barrels of heavy oil and 185 million cubic feet of natural gas.
On February 13, 1998, Tarragon announced a business combination agreement with Unocal Canada Limited whereby Tarragon will acquire substantially all of the petroleum and natural gas assets of
Unocal in Alberta and British Columbia in exchange for 21 million Tarragon common shares and a $100 million subordinated debenture.
An annual and special meeting of the Tarragon shareholders has been scheduled for April 15, 1998 (with a record date of March 10,
1998) to approve this transaction and to deal with other appropriate matters. An Information Circular - Proxy Statement describing this transaction will be mailed on or around March 17, 1998 to all registered shareholders.
For further information, including results for the 4th quarter, go to
techstocks.com
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