EARNINGS / Seven Seas Petroleum 1997 Results
SEVEN SEAS ANNOUNCES 1997 RESULTS OF DEVELOPMENT STAGE OPERATIONS
HOUSTON, Texas, April 1 /CNW/ - SEVEN SEAS PETROLEUM INC. (Amex: SEV;
Toronto: SVS.U) today announced a net loss of $4,096,628 or $.12 per share for
the fourth quarter ended December 31, 1997. For the year, Seven Seas' had a
net loss of $7,927,935 or $.27 per share as compared to a net loss of
$2,194,637 or $.17 per share in 1996.
Seven Seas Petroleum Inc.
Results of Development Stage Operations
(In thousands except per share data)
Fourth Quarter Ended Year Ended
December 31 December 31
1997 1996 1997 1996
Revenue 588 222 1,567 575
Costs and Expenses 4,847 1,140 9,789 2,834
Less: Minority
Interest (162) (64) (294) (64)
Net Loss 4,097 854 7,928 2,195
Loss Per Common
Share (Basic
and Diluted) $.12 $.07 $.27 $.17
Weighted Average
Number of Common
Shares Outstanding 32,505 12,972 32,505 12,972
Summary:
The Company's results of operations have been presented as a development
stage enterprise; thus, period to period comparisons of such results and
certain financial data may not be meaningful or indicative of future results.
During 1997, the Company continued its development and delineation of its
Emerald Mountain oil discovery. Oil revenues and lease operating expenses
pertained solely to the Company's share of crude oil produced during
production testing of the Company's wells on Emerald Mountain, which comprised
four wells in 1997 and two wells in 1996. Revenues from oil sales were
$779,767 and $233,682 in 1997 and 1996, respectively. Lease operating expenses
were $907,218 and $252,504 in 1997 and 1996, respectively.
Interest income increased from $341,599 in 1996 to $787,189 in 1997. The
increase was the consequence of higher cash balances resulting from the
private placements of the Company's securities.
General and administrative costs under US GAAP were $8,714,333 in 1997 as
compared to $2,454,884 in 1996. This increase was primarily attributable to
severance costs paid to former executive officers and recognition of
compensation expense related to a change in the exercise period of stock
options held by such executives. In addition, the Company expanded its
operating activities and added to its professional staff in the U.S. and
Colombia.
Depreciation and amortization increased from $111,334 for the year ended
December 31, 1996 to $148,065 for the year ended December 31, 1997. The
increase was primarily attributable to the amortization of costs incurred in
issuing the Special Notes in August 1997. As of December 31, 1997, the Company
has not recorded depletion of its proved oil and gas property as only
insignificant quantities of oil have been produced during its production
testing plan.
GHK Company Colombia, a wholly owned subsidiary of Seven Seas, is the
operator of the Emerald Mountain project. Seven Seas holds a 57.7% interest in
the Emerald Mountain project which encompasses the Dindal and Rio Seco Blocks. |
