Not quite for one the dilution here happened at a sweetheart price,two from what i can tell there is a convertible deb out there,which is guaranteed to dilute the stock some more,three worst case on elk is 4.50 worst case with pyrx??? DENVER, Jul 16, 1999 /PRNewswire via COMTEX/ -- PYR Energy Corporation
(OTC Bulletin Board: PYRX) today announced that for its third quarter
ended May 31, 1999, the Company had a net loss of ($237,891) or ($.023)
per common share, compared with a net loss of ($164,392) or ($.018) per
common share for the corresponding third quarter ended May 31, 1998. In
the nine months ended May 31, 1999, the Company reported a net loss of
($659,192) or ($.068) per common share compared with net income of $50,
843 or $.006 per common share for the corresponding nine month period
ended May 31,1998.
The difference in the 1999 and 1998 third quarters results primarily
from interest expense recorded in 1999 associated with convertible
debentures that were issued during fiscal 1999. The difference between
the nine month periods ended May 31, 1999 and 1998 results from
interest on the convertible notes recorded in the nine months ended May
31, 1999 and from a $556,000 gain on the sale of partial interests in
an undeveloped oil and gas prospect that was recorded during the nine
months ended May 31, 1998. The Company has had no revenues from the
sale of oil or natural gas production.
General and administrative expenses associated with the Company's
efforts to pursue primarily its California exploration projects totaled
$216,359 and $528,433 for the quarter and nine months ended May 31,
1999, respectively. This compares to $163,343 and $524,633 for the
third quarter and nine months ended May 31, 1998, respectively.
At May 31, 1999, the Company had cash of $6,517,262, total assets of
$11,179,781, current liabilities of $138,001 and total stockholders'
equity of $11,040,302. Other than a $1,478 obligation under capital
lease foroffice equipment, the Company has no outstanding long-term
debt. There were 14,068,670 common shares outstanding at May 31, 1999.
During the quarter ended May 31, 1999, the Company received $7,000,000
(less commissions, fees and related expenses of approximately $92,000)
of private placement funding through the sale of 4,375,000 shares of
its common stock and 437,500 5-year warrants to purchase an additional
share of the Company's common stock at an exercise price of $2.50.
These funds will be used primarily for additional costs associated with
the Company's East Lost Hills project, costs for additional projects in
the San Joaquin Basin of California and in certain areas of the Rocky
Mountains, and for general and administrative expenses.
let s compare to elk
In the second quarter of 1999, cash flow per share increased to 22 cents per share, up 47 per cent from 15 cents per share in the first quarter of 1999. Cash flow from operations totalled $8.0-million (37 cents per share) in the first half of 1999, unchanged from $8.0-million (37 cents per share) in the first half of 1998. Earnings were $0.5-million in the first six months of 1999, compared with a loss of $0.1-million for the same period in 1998. Cash flow and earnings are expected to improve with higher natural gas and crude oil prices over the remainder of the year.
Operational overview
Elk Point drilled 16 gross (9.0 net) wells during the first half of 1999, of which 11 gross (5.3 net) were cased as gas wells, three gross (2.2 net) were cased as oil wells and two gross (1.5 net) were dry and abandoned, for an overall success rate of 83 per cent. Extremely wet conditions in the second quarter in west central Alberta deferred a portion of the company's drilling program into the third quarter. Subsequent to June 30, 1999, the company drilled an additional two gross (0.9 net) wells resulting in two cased gas wells.
In the first half of 1999, natural gas sales averaged 28.4 million cubic feet per day, down from 35.4 mmcf/d for the same period in 1998. The company had reduced gas sales owing to commencement of gas injection at Pembina in December, 1998, upon approval of good production practice for the Pekisko C Pool. Sales of crude oil and natural gas liquids were 1,870 barrels per day in the first half of 1999, compared with 2,317 b/d in the same period of 1998, reflecting reduced spending on crude oil properties in 1998, which continued in the first half of 1999 owing to low crude oil prices.
The company continued to evaluate its diversified inventory of natural gas prospects in the second quarter of 1999. At Easyford, Elk Point drilled a successful Pekisko gas well (40-per-cent working interest) as a follow-up to the gas discovery it made on this prospect in the first quarter. The company has two additional followup locations on this prospect (40-per-cent and 24-per-cent working interests). These wells require sour gas processing capacity for production. A sour gas processing and acid gas injection project has been initiated by a third-party operator and a hearing is scheduled by the AEUB for late August to review the project. The company is seeking processing for its gas through this process.
At Cherhill, the company participated in a compression and dehydration facility that has added 0.8 million cubic feet per day net from two gas wells. Two additional wells are being completed for potential tie-in to this facility in the third quarter. The company also recently drilled and cased potential gas wells at Pembina East and Pembina Berrymore. These wells will be completed and evaluated for tie-in during the third quarter.
At True Grit in the Powder River Basin of Wyoming, the company recently participated in a unitization of four drilling spacing units. The company has identified additional locations for drilling later this year to delineate the True Grit Minnelusa C oil pool, subject to agreement of the participants in the unit. In the Powder River Basin, Elk Point has 11 additional exploration prospects identified by two-dimensional seismic.
Elk Point drilled an infill location at Elcott in southeastern Saskatchewan in the second quarter, and the well was placed on production in August, at an initial rate of 50 barrels per day.
Financial
Gross petroleum and natural gas revenue in the first half of 1999 totalled $17.8-million, compared with $19.1-million in the first half of 1998. The company received an average natural gas price of $2.26 per thousand cubic feet in the first six months of 1999, up 22 per cent from $1.86/mcf during the same period of 1998. The company realized an average oil and natural gas liquids price of $18.23 per barrel in the first half of 1999, up 6 per cent from $17.18/bbl in the first half of 1998. In the second quarter of 1999, the company received an average natural gas price of $2.40 per thousand cubic feet, compared with $2.13/mcf in the first quarter of 1999. Similarly, the price for crude oil and natural gas liquid sales improved to $20.83/bbl in the second quarter of 1999, compared with $15.76/bbl in the first quarter of 1999. This trend of higher prices is continuing in the third quarter, and is expected to continue into the fourth quarter, which will positively impact the company's cash flow and earnings.
Operating expenses were $4.7-million ($5.52 per barrel of oil equivalent) in the first half of 1999, compared with $5.0-million ($4.72/boe) in the first half of 1998. Per unit operating costs increased primarily as a result of increased processing charges on natural gas production.
General and administrative expenses totalled $1.1-million in the first six months of 1999, compared with $1.3-million for the same period in 1998. Interest expense increased to $1.9-million during the first half of 1999, from $1.3-million in the first half of 1998, as the company drew on its revolving production loan to partially finance its investment activities.
Net capital expenditures totalled $5.6-million during the first half of 1999. This comprises gross capital expenditures of $9.6-million, net of proceeds on sale of petroleum and natural gas properties of $4.0-million. Exploration expenditures amounted to $3.6-million, development expenditures amounted to $2.0-million, investments in production facilities amounted to $1.7-million, land and seismic additions amounted to $2.1-million and administrative asset expenditures amounted to $0.2-million. The petroleum and natural gas properties sold in the first half of 1999 were primarily non-producing, undeveloped prospects consistent with the company's goal to dispose of non-core assets, which will not contribute to immediate growth plans.
Debt reduction plan
Management is committed to reducing debt with a minor property disposition program, and a capital program financed by cash flow and a flow-through share issue. At the end of the second quarter, Elk Point's net debt plus working capital was $71.0-million. Subsequent to June 30, 1999, the company has completed dispositions totalling $1.5-million, the largest component of which is the disposition of its non-producing coal seam gas rights in the Powder River Basin of Wyoming. The company also raised $5.2-million net on July 16, 1999, through the issuance of 1,377,125 flow-through common shares.
Outlook
Over the remainder of 1999, natural gas development activity will be focused at Newton, Cherhill, Pembina East, Pembina Berrymore and Easyford. This will be complemented by crude oil exploration in the Powder River Basin where Elk Point use three-dimensional seismic to lower exploration risk.
At East Lost Hills, The company will continue to pursue the potential of the Temblor formation, which was demonstrated with the Bellevue No. 1 blowout. In the Greater San Joaquin Basin joint venture, further high-impact exploration commenced in June, with a well at Cal Canal. Seismic interpretation work is proceeding on the Lucky Dog and Pyramid prospects to select the best exploration targets for the company's continued exploration program in this area.
CONSOLIDATED STATEMENT OF EARNINGS
Six months ended June 30
(in thousands of dollars)
1999 1998
Revenues
Petroleum and
natural gas $ 17,786 $ 19,137
Royalties, net
of ARTC (1,817) (3,173)
Interest and
other income - 66
------- -------
15,969 16,030
------- -------
Expenses
Operating 4,708 4,997
General and
administrative 1,085 1,310
Interest 1,938 1,332
Depletion,
depreciation and
amortization 7,801 8,005
------- -------
15,532 15,644
------- -------
Earnings before
income taxes 437 386
Income taxes
Current 235 352
Deferred (reduction) (280) 139
------- -------
(45) 491
------- -------
Earnings (loss) $ 482 $ (105)
======= =======
Earnings per share 2 cents 0
so here we are elk trading at ca 5 times cash flow, pricey but acceptable, earning money on an actual business and upside from elh almost free, pyrx has a buck a share elh and little else apart from a conv deb the terms of which are unknown to me |
