EARNINGS / Wolverine Energy reports 1997 Results
CALGARY, April 7 /CNW/ - Wolverine Energy Corp. (WVE-ASE) posted record
numbers in 1997. The attached table outlines the highlights for 1997 that saw
the Company drill 22 wells (20.8 net) and added a new core area at year-end.
The
Company completed a very aggressive capital program that saw reserves nearly
triple as Wolverine Energy completed its first full cycle exploration project
during 1997.
The Company continued to use the acquisition and development strategy as
its main source of growth as a third core area (100% working interest) in
southern Alberta was added at year end which adds both crude oil and natural
gas reserves. The new property has existing production and comes with
significant development drilling potential and operated infrastructure. In
addition, Wolverine Energy also completed the acquisition of another 100%
owned and operated producing property in the Alliance area in the fourth
quarter. Both of these acquisitions are key to the Company's development
strategies and provide not only producing reserves, but also facility
infrastructure and undeveloped reserve potential.
The full effect of the 1997 capital program will not be seen until 1998
as the Company inventoried land and seismic data to step up its full cycle
exploration efforts. In addition, much of the new production from the fourth
quarter drilling program came on stream just at the year ended. The Company
began directing its capital spending towards natural gas at the end of 1997,
and expects a significant portion of the 1998 budget to be spent on acquiring
and developing natural gas reserves.
During the first quarter of 1998, Wolverine Energy successfully drilled
its first horizontal well on the West Ghost River project. Production testing
has just been completed and results will be released later in April when the
Company has analyzed the test data and a new independent engineering report is
completed to determine the full reserve potential in the West Ghost River and
South Ghost River areas.
For additional information on the Company, visit us at our website
www.wolverine-energy.com
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HIGHLIGHTS
1997 1996
End of December End of December % Change
------------------------------------------------------------------------
FINANCIAL
Revenue before Royalties $ 3,938,848 $ 1,507,018 161%
Funds Flow from Operations $ 1,170,348 $ 290,512 303%
Per Share (Basic) $ 0.11 $ 0.09 22%
Net Earnings $ 279,579 $ 120,867 131%
Per Share (Basic) $ 0.03 $ 0.04 -25%
Capital Expenditures $12,288,504 $ 4,351,341 182%
Long Term Debt $(4,237,266) $ -
Shareholders Equity $ 8,616,638 $ 4,518,411 91%
Common Shares Issued and
Outstanding 11,761,986 10,223,300 15%
Weighted Average Shares
Outstanding 10,494,575 3,343,447 214%
------------------------------------------------------------------------
OPERATING
Crude Oil Production (BOPD) 392 142 176%
Price ($/BBL) $ 21.06 $ 25.56 -18%
Natural Gas (Mcf/d) $ 1,440 853 69%
Price ($/Mcf) $ 2.04 $ 1.86 10%
Average Production (BOEPD) 536 227 136%
Average Production (BOEPD)
including Badger/Montag
Acquisition 591 227 160%
Exit Production (BOEPD) 1,250 400 215%
Proven Reserves (MBOE) 2,820 1,027 175%
Proven and Risked Probable
Reserves (MBOE) 3,678 1,092 237%
Present Value of Reserves
(at 10% Disc.) $26,084,000 $ 7,841,000 233%
(at 15% Disc.) $21,109,000 $ 7,151,000 195%
Finding and Onstream Costs
Per BOE (proven reserves) $ 6.18 $ 4.24 46%
Per BOE (proven + probable
reserves) $ 4.42 $ 3.99 11%
------------------------------------------------------------------------
EXPLORATION AND DEVELOPMENT
Wells Drilled
Gross 22.0 2.0 1000%
Net 20.8 2.0 940%
Success Rate 100% 100%
Producing Land (Hectares)
Gross 25,640 21,400 20%
Net 7,377 3,329 122%
Undeveloped Land (Hectares)
Gross 11,072 5,760 92%
Net 9,712 5,360 81%
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