Hi bobby;
Anyone following Gentry...and care to comment on today's NR:
Gentry Poised for Record 1999 Production Volumes and Cash Flows, Provides 2000 Estimates
CALGARY, Jan. 24 /CNW/ - Gentry Resources Ltd. (``Gentry') is pleased to
provide results of its 1999 exploration and development activities, along with
its 1999 and 2000 production and cash flow estimates.
During 1999, Gentry participated in the drilling of 38 wells (8 net),
resulting in 15 oil wells (3.4 net), 18 gas wells (3.4 net), and 5 dry wells
(1.3 net), for an overall success rate of 87%. Total 1999 capital expenditures
for land, seismic, drilling and production was approximately $4.6 million.
The success of Gentry's drilling programs have the Company estimating
1999 exit rates of 1,090 boe (barrels of oil equivalent) per day, comprised of
2.1 million cubic feet per day of natural gas and 880 barrels per day of oil
and liquids. This 72% increase in production, up from an exit rate of 632 boe
per day in 1998, will enable Gentry to report record production revenues of
approximately $6.5 million and approximately $1.9 million ($0.10 per share)
for cash flow.
Production revenues for 2000, assuming no future drilling after the first
quarter program and an oil price of $20.50 USD per barrel for West Texas
Intermediate and $2.50 per mcf for natural gas, are forecast at $11,150,000.
Cash flow is forecast at $3.6 million ($0.17 per share) with total average
production volumes of 1,246 boe per day. The Company's current bank debt
stands at $5.3 million.
Gentry's inventory of drilling prospects and growth opportunities in six
different project areas in its core areas of central Alberta and southeast
Saskatchewan, together with its healthy balance sheet, will allow the Company
to continue its track record of successful, value-added growth throughout
2000.
Based on the projected 1999 figures, the Company's average growth rate
over the five-year period from 1995 to 1999 is 38% for production and 40% for
cash flow. The recent recovery of oil prices in conjunction with the
Company's strong balance sheet and significantly increased production volumes
will enable the Company to internally generate higher risk, higher reward
drilling programs. The Company's focus will be on natural gas in areas where
Gentry can take larger working interests and more actively manage its growth.
The Company trades on the Toronto Stock Exchange and currently has
21,262,180 shares issued and outstanding.
ADVISORY: Certain information regarding Gentry including management's
assessment of future plans and operations may constitute forward-looking
statements under applicable securities law and necessarily involve risks
associated with the exploration, production, marketing and transportation of
crude oil, liquids and natural gas. Consequently, actual results may differ
materially from those anticipated in the forward-looking statements. |
