I am no relation to Peter Marshall of SYNCRUDE ( ie Discovery/Aurora Mines) SEE todays news, they are raising $150 M US$:
Expansion, I say! Joint Infomation Sharing Part is my guess:
( As Declared with / to / for BIRCH MOUNTAIN! )
RE:
Alberta Energy Company Ltd -
Globe says AEC offering aims for $150-million (U.S.)
Alberta Energy Company Ltd AEC
Shares issued 139,738,444 1999-09-14 close $46.2
Wednesday Sep 15 1999
The Globe and Mail reports in its Wednesday, Sept. 15, edition that Alberta Energy Co. has filed with the Alberta Securities Commission and with the United States Securities and Exchange Commission for a $150-million (U.S.) offering of preferred securities. The Globe's Investment News column reports that the offering of unsecured junior subordinated debentures will be led by Merrill Lynch & Co. and the money raised will be used to repay short-term debt and for general corporate purposes. AEC says the securities have received a preliminary rating of triple-B-minus by Standard & Poor's, baa2 by Moody's Investors Service, B double-plus by Canadian Bond Rating Service and pfd-2 (low) by Dominion Bond Rating Service.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Alberta Energy Company Ltd -
Alberta Energy second quarter results
Alberta Energy Company Ltd AEC
Shares issued 124,095,545 1999-07-20 close $47.85
Wednesday Jul 21 1999
Mr. Gwyn Morgan reports
Alberta Energy experienced record second quarter cash flow of $222-million, up 123 per cent compared with the same period in 1998. On a fully diluted per-share basis, cash flow from operations increased 86 per cent to a record $1.60 per share. Cash flow from operations in the second quarter increased as a result of the following factors:
42-per-cent increase in produced natural gas sales to 842 million cubic feet per day;
20-per-cent increase in natural gas prices to $2.19 per thousand cubic feet;
56-per-cent increase in liquids sales to 95,292 barrels per day
20-per-cent increase in average liquids prices to $20.59 per barrel
Cash flow was also increased during the second quarter by a cash tax recovery of $42-million, which did not have an impact on net earnings. Net earnings increased 249 per cent to $18.5-million. On a fully diluted per-share basis, second quarter earnings were up 180 per cent to 14 cents. Revenues, net of royalties, increased 47 per cent from $398-million to $584-million
"AEC's strategy of aggressively building our natural gas assets is now paying off. Natural gas sales represent about 60 per cent of our forecast total 1999 sales on a barrel of oil equivalent (boe) basis (6 to 1), making AEC the fourth largest gas producer among the independent exploration and production companies in North America," said AEC president and chief executive officer, Gwyn Morgan. The company increased produced gas sales by 42 per cent to 842 million cubic feet per day. The company's average gas price increased 20 per cent to $2.19 per thousand cubic feet in the second quarter. AEC also injected an average of 18 million cubic feet per day into its storage systems during the quarter.
Second quarter field production was below field capability of approximately 940 million cubic feet per day, due to significant outages on the Nova and Westcoast gas transmission systems. Nevertheless, AEC expects to have a produced gas storage inventory of approximately 15 billion cubic feet at the beginning of the winter heating season.
Mr. Morgan reiterated the company's 1999 produced natural gas sales target of 900 million cubic feet per day, making AEC the largest independent publicly traded natural gas producer in Canada. He also reaffirmed AEC's gas sales target of one billion cubic feet per day in 2000.
Second quarter liquids sales increased 56 per cent to 95,292 barrels per day. The acquisition of Pacalta Resources Ltd., completed May 4, 1999, contributed 27,448 barrels per day to second quarter sales, while Canadian conventional liquids sales increased 38 per cent to 35,715 barrels per day. Production at Syncrude averaged 30,467 barrels per day in the second quarter, down marginally from the comparable quarter in 1998, reflecting scheduled maintenance conducted during the past quarter. AEC's average liquids price for the second quarter was $20.59 per barrel, compared with $17.14 per barrel in second quarter 1998.
The company expects total liquids production to exceed 100,000 barrels per day in 1999, approximately 75 per cent of which is light and medium liquids. The company also reaffirmed its target for 2000 of approximately 135,000 barrels per day.
"With improved oil prices, we have reactivated our heavy oil drilling program in the second half of the year by adding 40 wells in the Suffield and Pelican Lake areas," said Mr. Morgan. The benchmark WTI oil price averaged $15.36 (U.S.) in the first half of the year and has risen as high as $20 (U.S.) recently.
"AEC is very disciplined in applying criteria for growth, value and strategic fit on any acquisition it makes. The acquisition of Pacalta Resources met these criteria. Ecuador's Oriente basin is providing a platform for strong growth in our international business unit," said Mr. Morgan. The acquisition added 212 million barrels of proven and probable medium gravity oil reserves and large blocks of high-potential exploration lands. It was financed by the issuance of 15.1 million common shares, $81-million in cash and assumption of $331-million of Pacalta debt.
Due to insufficient export pipeline transportation capacity, Pacalta's current pipeline allocation is approximately half of its 80,000 barrel per day total productive capacity. "AEC's pipeline group is working with members of a consortium to launch a new export pipeline," said Mr. Morgan.
The company's domestic exploration and development drilling program also continued its momentum during the first half. The company has drilled 404 gross wells year-to-date, including 335 gas wells, 43 oil wells and three cased for further evaluation, for a 94-per-cent success rate. AEC's average working interest is also 94 per cent.
The company expects to drill another 255 gross wells during the second half of 1999, including 19 wells through its international business unit.
AEC is the third largest exploration landholder in Canada. Approximately 80 per cent of the company's 7.2 million net acres is gas prone.
In June, AEC's board of directors approved plans for a commercial steam-assisted gravity drainage (SAGD) project at the company's Foster Creek location on the Primrose Air Weapons Range in northeastern Alberta. The project is currently in the regulatory approval process.
"This $240-million facility is expected to produce 20,000 barrels per day beginning in late 2001, and to result in reserve additions of 145 million barrels proven and probable. It is also expected to be one of the lowest cost thermal recovery projects, with operating costs below $5 per barrel. We have delineated enough resource in the area of our SAGD pilot project to support 100,000 barrels per day of production in the medium-term," said Mr. Morgan.
Following asset dispositions in early 1999, the midstream business segment maintained first-half operating cash flow at $56-million. First-half operating cash flow from gas storage increased 75 per cent to $15-million as a result of higher storage revenues. Commercial operation commenced in April at AEC's Wild Goose project, California's first independent gas storage facility.
The refurbishment program for the Platte pipeline was completed during the quarter. Throughput on Platte is expected to improve in the second half of the year as oil production in Western Canada increases.
"AEC has maintained a strong balance sheet, and this strength was one of the reasons that AEC was able to respond to both the Amber and the Pacalta opportunities," said Mr. Morgan.
AEC's upstream and midstream business segments are financed with separate capital structures. The upstream debt-to-cash flow ratio, on a trailing basis at the end of the second quarter, was 2.2 times. This ratio excludes acquisition-related debt and cash flow for which there is less than 12 months reported operations. On a corporate basis, debt-to-capitalization, excluding indirect pipelines debt and related capitalization, was 42 to 58.
Capital investment for the first six months was $526-million in the upstream and $54-million in the midstream segments, excluding the Pacalta acquisition. The company now forecasts 1999 capital investment for direct core programs to be $1-billion. The increase results primarily from the approval of the SAGD project, an expanded domestic gas exploration program and the expansion of Pacalta's drilling program in Ecuador.
AEC has received investment grade credit ratings of A and A-low in Canada and BBB+ in the United States, and at June 30, 1999, had more than $500-million in unused lines of credit.
"AEC's business plan is based on a very clear objective of sustainable, internally generated growth complemented by value-added acquisitions," said Mr. Morgan. "We have successfully executed our strategy of being in the strongest gas production, reserves, storage, and exploration position in the Canadian industry. This, plus our growing base of liquids assets and our profitable midstream businesses, all add up to a very strong outlook for our shareholders.
"In 1995, we embarked on an aggressive five-year plan to become one of Canada's strongest independent oil and gas companies. We have achieved that goal in four years and are now positioned to embark upon our new, ambitious goal of becoming a leading global super-independent," said Mr. Morgan.
OPERATING HIGHLIGHTS
Three months ended June 30
1999 1998
Operating Highlights
Produced gas sales
(mmcf/d) 842 591
Canadian conventional
oil
Sales (bbl/d) 31,112 20,489
Syncrude sweet blend
Sales (bbl/d) 30,467 32,368
NGLs sales (bbl/d) 4,603 5,456
International oil
sales (bbl/d) 29,110 2,611
Prices
Produced gas ($/mmbtu) 2.19 1.83
Canadian conventional
oil ($/bbl) 18.67 11.44
Syncrude ($/bbl) 25.16 20.47
NGLs ($/bbl) 19.70 19.90
International oil
($/bbl) 17.99 14.91
Six months ended June 30
1999 1998
Produced gas sales
(mmcf/d) 876 684
Canadian conventional
oil
Sales (bbl/d) 30,490 21,316
Syncrude sweet blend
Sales (bbl/d) 30,401 28,426
NGLs sales (bbl/d) 5,317 5,970
International oil
sales (bbl/d) 15,494 2,271
Prices
Produced gas ($/mmbtu) 2.11 1.87
Canadian conventional
oil ($/bbl) 16.43 11.66
Syncrude ($/bbl) 22.18 21.02
NGLs ($/bbl) 15.50 20.03
International oil
($/bbl) 17.87 17.91
CONSOLIDATED STATEMENT OF EARNINGS
Three months ended June 30
(in millions of dollars)
1999 1998
Revenues, net of
royalties
Upstream $ 448.9 $ 275.3
Midstream 135.1 122.4
------ ------
684.0 397.7
Costs, expenses and
other
Operating 124.6 115.8
Cost of product
purchased 225.1 163.7
General and
administrative 9.3 8.0
Interest, net 43.9 20.8
Depreciation, depletion
and amortization 133.0 82.7
Gain on sale of assets -- --
------- -------
Earnings before the
undernoted 48.1 6.7
Minority interest,
AEC Pipelines, L.P. 4.6 4.6
Income taxes (recovery) 25.0 (3.2)
------- -------
Net earnings $ 18.5 $ 5.3
======= =======
Earnings per share 14 cents 5 cents
CONSOLIDATED STATEMENT OF EARNINGS
Six months ended June 30
(in millions of dollars)
1999 1998
Revenues, net of
royalties
Upstream $ 895.7 $ 531.6
Midstream 263.5 251.0
------ ------
1,159.2 782.6
Costs, expenses and
other
Operating 237.4 239.7
Cost of product
purchased 507.2 288.0
General and
administrative 18.4 15.3
Interest, net 79.0 30.1
Depreciation, depletion
and amortization 254.6 181.5
Gain on sale of assets 34.6 --
------- -------
Earnings before the
undernoted 97.2 28.0
Minority interest,
AEC Pipelines, L.P. 9.2 9.1
Income taxes (recovery) 51.7 11.4
------- -------
Net earnings $ 36.3 $ 7.5
======= =======
Earnings per share 28 cents 7 cents
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
Alberta Energy Company Ltd -
Alberta Energy plans Buffalo Hills summer program; Syncrude Aurora generator starts up
Alberta Energy Company Ltd AEC
Shares issued 124,095,545 1999-07-13 close $46.6
Wednesday Jul 14 1999
Mr. John Auston of Ashton mining reports
The Buffalo Hills and joint venture lands encompass 5.5 million acres in north-central Alberta, where 32 kimberlites have been discovered to date, most of them diamondiferous. This summer's program will include ground geophysical surveys to investigate aeromagnetic anomalies with possible kimberlite signatures, as well as the continuation of heavy mineral sampling.
The Cayo lands comprise 21 million acres in Northern Alberta. In 1998 and early 1999, approximately 230,000 line kilometres of regional aeromagnetic surveys were completed over portions of these lands. Promising aeromagnetic anomalies are now being investigated by detailed airborne and ground magnetic surveys in conjunction with heavy mineral sampling.
The results of each of these programs will be used to define targets for drilling in the coming winter season.
The joint venturers on the Alberta exploration programs are Ashton Mining of Canada Inc., Alberta Energy Company Ltd. and Pure Gold Minerals Inc. Under arrangements reported in Stockwatch Dec. 22, 1998, the interests of the joint venturers in the Buffalo Hills and joint venture lands upon completion of the current programs will be Ashton, 45 per cent; Alberta Energy, 45 per cent; and Pure Gold, 10 per cent. In accordance with the same arrangements, the corresponding interests for the Cayo lands, after completion of the current programs, will be Ashton 35 per cent; Alberta Energy 35 per cent; and Pure Gold 30 per cent. Ashton is the operator of all of the programs.
Mr. Peter Marshall of Syncrude reports
The first unit of Syncrude's Aurora project -- an 80 megawatt gas turbine generator -- officially started up on July 7, two months ahead of the Aug. 31 schedule which was in place last year when construction began.
"To have finished construction and started up the GTG well ahead of our schedule is an extraordinary achievement," said Derrick Kershaw, general manager of the Aurora project. "Our commitment to streamline the various aspects of engineering, construction and commissioning allowed us to meet and beat our goal for startup of the GTG. I am very proud of all of the people who accomplished this feat."
In addition to the GTG, the project also includes two substations at Aurora and Mildred Lake, as well as a 260-kilovolt transmission power line to the main Mildred Lake site. The new GTG will provide power to the Mildred Lake site in advance of the Aurora startup, which is scheduled for May, 2000.
The 80 megawatts produced by the GTG is equivalent to 1 per cent of Alberta's entire electricity generating capacity (7.6 thousand megawatts according to the EUB's Alberta's Energy Resources-1998 in Review). The GTG produces enough power for a city of roughly 100,000. With the GTG in operation, Syncrude will draw less power from the provincial grid, meaning more power is available for other users.
"There are many benefits from the new GTG. Besides having another assured power supply for our operations right here at Syncrude, the new GTG uses natural gas as a fuel and is a greenhouse gas efficient source of power," said Mr. Kershaw. "We will also be able to reduce our import of power from the grid, which will result in operating cost savings for us this year."
As with all of Syncrude's gas turbine generators, waste heat recovery systems have been installed. GTG exhaust gases will be used to heat water used in the extraction process of separating the bitumen. Waste heat recovery by Syncrude already reduces CO2 emissions by approximately 150,000 tonnes per year.
Although Syncrude is increasing its electrical generating capacity, the company remains very focused on reducing energy demands in the extraction and production processes. New technologies used by Syncrude, including a low energy hydrotransport/extraction process, will use 40 per cent less energy than current processes. Other energy efficient measures taken by Syncrude include replacing the dragline and bucketwheel mining processes with more energy efficient trucks and shovels.
Syncrude has established a target of a 1.6-per-cent energy efficiency gain per year. From 1988 to 1997 Syncrude has reduced the energy used to produce a barrel of crude oil by 12 per cent. By 2008, Syncrude will reduce CO2 emission per barrel by 45 per cent.
The $60-million GTG is the first unit to be completed of the second stage of Syncrude 21. Approved by Syncrude's owners last June, the $900-million second stage includes the first production train of the Aurora project and the second phase of the upgrader debottleneck.
The Syncrude project is a joint venture operated by Syncrude Canada Ltd. and owned by AEC Oil Sands, LP, AEC Oil Sands Limited Partnership, Athabasca Oil Sands Investments Inc., Canadian Occidental Petroleum Ltd., Canadian Oil Sands Investments Inc., Gulf Canada Resources Limited, Imperial Oil Resources, Mocal Energy Ltd., Murphy Oil Company Ltd. and Petro-Canada.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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