Oilexco Incorporated - Third Quarter Interim Report & Press Release
Calgary, Alberta--
Oilexco Incorporated announces its third quarter interim
financial and operating results for the nine months ended
September 30, 1999 and updates its current activities.
Financial Highlights
During the first nine months of 1999, Oilexco achieved
significant improved operating results over the comparable period
of 1998. Cash flow for the first nine months of 1999 was $222,405
as compared to a deficit of $475,875 for the first nine months of
1998. Oilexco realized a loss of $60,699 on revenues of
$1,038,039. This compares with a loss of $2,929,851 on revenues
of $491,662 for the comparable period of 1998.
For the nine months ended June 30 1999 1998
(Unaudited)
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Oil and gas revenues 706,939 459,690
Other revenue 414,264 31,972
Income (loss) (60,699) (2,917,242)
Income (loss) per share 0.00 (0.16)
Cash flow (deficit) 222,405 (475,875)
Cash flow (deficit) per share 0.01 (0.02)
Production (boe/day) 111 86
Average prices realized ($/boe) 23.56 19.49
Oil and gas revenues increased due to increased commodity prices
in the third quarter, in addition to increased production
volumes. Production in the first nine months of 1999 increased
29% to an average of 111 boe/d compared to 86 boe/d in the same
period in 1998. Production exiting the period increased to 143
boe/d.
Quarterly Review and Update
Oilexco has nominated a volume of crude oil from the Republic of
Iraq, for a crude oil purchase contract under Phase VII of the
Oil for Food Program. Oilexco cannot proceed with this contract
until Phase VII of the Program is approved by the UN Security
Council. If granted, this contract will be the third contract
granted to Oilexco by Iraq under the Oil for Food Program. The
Company also continues its discussions on oil field development
and exploration projects in Iraq. UN approval must be received or
sanctions must be lifted, prior to commencement of oil field
operations.
Workover operations were completed on the Byrd #2 well in Monroe
County, Alabama to increase oil deliverability and to reduce
water production. The operations were successful and the well was
placed back on production in September. During the quarter an
exploratory well was drilled on Oilexco's lands in the project
area. Oilexco declined to participate for technical reasons. The
well was drilled and abandoned at no cost to the Company. Oilexco
holds a 12.5% working interest in prospect area and has to date
drilled two successful Jurassic Smackover wells for a 100%
success rate. Several offset locations to these wells have been
identified based on the interpretation of 30 square miles of
proprietary 3D seismic data.
On April 23, 1999, Oilexco entered into a Joint Exploration
Agreement with Talisman Energy Inc. ("Talisman"). The Company has
committed, on a best efforts basis, to raise up to $40 Million
CAN, to participate in western Canadian based exploration and
development opportunities. Subject to certain conditions being
met, Oilexco has secured an investor to finance Oilexco's
obligations under the Joint Venture Agreement. Oilexco believes
it is close to satisfying those conditions.
Outlook
The Company will continue to focus its activities on its: Joint
Exploration Agreement with Talisman Energy Inc., US Gulf Coast
projects in Alabama, western Canadian prospect areas in Alberta
and Saskatchewan, and on its international opportunities in the
Republic of Iraq. Oilexco is endeavoring to report improved
financial results and cash flows in successive quarters.
For further information, please contact Arthur S. Millholland,
President or Brian Ward, CFO, at (403) 262-5441. Oilexco is a
Calgary based oil and gas exploration company listed on the
Canadian Venture Exchange under the trading symbol OIL. |
