Looks pretty impressive to me:
TriGas Announces Record 1999 Results
CALGARY, March 14 /CNW/ -
1999 HIGHLIGHTS
- Proved reserves (evaluated by Gilbert Laustsen Jung) rose 65% to 7.7
mmboe (weighted 84% to proved natural gas reserves)
- Net asset value improved 65% to $2.36 per share
- Annual production was replaced by a factor of 6 times with net proved
reserve additions of 3.6 million boe
- Finding and onstream costs for net proved reserve additions of $5.52
per boe
- Recycle ratio of 3.0 for net proved reserve additions
- Cash flow increased 525% to $7.2 million
- Net income grew to $3.0 million from a prior year loss of $0.6 million
- Fourth quarter natural gas prices averaged $3.45 per mcf
TriGas Exploration Inc. is pleased to report record financial and
operating results for the year ended December 31, 1999. Strong reserve and
production growth coupled with increased commodity prices contributed to
significant value creation for shareholders. The company achieved major
improvement in all performance criteria.
- Record cash flow and earnings
- Cash flow increased 525% to $7.2 million
- Cash flow per share was up 428% to $0.21 per share
- Net income improved to $3.0 million ($0.09 per share)
- Fourth quarter cash flow of $0.10 per share was up 100% from third
quarter 1999
- Higher sales volumes
- Natural gas sales volumes rose 158% to 14.5 mmcf per day
- Crude oil and NGL sales volumes increased 168% to 193 barrels per day
- Total sales volumes for the year increased 159% to an average 1,643
boe per day at 10:1 (2,609 boe per day at 6:1)
- Fourth quarter production of 2,223 boe per day at 10:1 (3,504 boe per
day at 6:1) was up 24% from third quarter 1999
- Higher revenue and sales prices
- Revenue increased 236% to 16.8 million
- Natural gas prices rose 27% to average $2.81 per mcf
- Oil and NGL prices jumped 59% to average $26.01 per bbl
- Oil equivalent prices increased 31% to average $28.02 per boe
- Fourth quarter sales prices averaged $3.45 per mcf on natural gas and
$31.96 per bbl on oil and NGLs, with a weighted average price on an
oil equivalent basis of $34.19 per boe
- Improving operating efficiencies
- Operating netback increased 73% to $16.67 per boe
- Cash flow netback rose 138% to $11.97 per boe
- Operating costs decreased 24% to $6.70 per boe
- Substantial growth in reserves
- Gilbert Laustsen Jung evaluated 100% of the company's 1999 reserves
- 100% of reserve additions were generated by the company's exploration
and development program
- Substantial net proved reserve additions of 3.6 mmboe despite
revisions to prior estimates arising primarily from a change in
engineering firms
- Proved natural gas reserves increased 55% to 64.5 bcf and accounted
for 84% of total proved reserves
- Total proved reserves were up 65% to 7,691 mboe at 10:1 (11,993 mboe
at 6:1)
- Total proved plus probable reserves rose 45% to 11,120 mboe at 10:1
(17,297 mboe at 6:1)
- Higher net asset value
- Present value of future cash flow of proved reserves rose 79% to
$86.7 million at a 10% discount factor
- Net asset value increased 53% to $2.36 per share using the present
value of proved plus half probable reserves (``established
reserves') at a 10% discount factor
- Cost-effective growth in shareholder value
- Net proved reserve additions replaced production by 6.0 times
- Net asset value of $2.36 per share is up 53% from 1998 and by a
factor of 2.7 times the $0.86 per share historical value of equity
issued
- Finding and onstream costs at 10:1 for net reserve additions were
$5.52 per boe proved and $4.95 per boe proved plus probable
- Recycle ratio of 3.0 for net proved reserve additions
- Comparative corporate performance
- The company posted excellent results in the key criteria used to
compare the company's performance against other companies. Once all
corporate year end results are reported, TriGas expects to achieve:
- Top decile finding and onstream costs of $5.52 per boe proved
(measures profitability based on the cost to find and place on
stream a barrel of oil equivalent)
- Top decile recycle ratio of 3.0 on net proved reserve additions
(measures the efficiency of a company's reinvestment strategy based
on the operating netback on a barrel of oil equivalent divided by
the finding and onstream cost per boe)
- Top decile net proved reserve additions equal to 6 times annual
production volumes (measures reserve rate of growth as a multiple
of production)
- Top decile commodity prices of $28.02 per boe (indicates the
quality of the company's oil, NGLs and natural gas as well as the
relative success of marketing and risk management strategies)
<<
FINANCIAL
($ thousands, except per share amounts)
Three months ended Twelve months ended
December 31 December 31
-------------------------------------------------------------------------
1999 1998 1999 1998
-------------------------------------------------------------------------
Production revenue 6,993 2,340 16,802 5,003
Cash flow from operations 3,428 570 7,179 1,148
Per share - basic 0.10 0.02 0.21 0.04
Per share - fully diluted 0.10 0.02 0.20 0.04
Net income (loss) 2,222 (63) 2,956 (648)
Per share - basic 0.07 0.00 0.09 (0.02)
Per share - fully diluted 0.06 0.00 0.08 (0.02)
Net capital expenditures 6,263 2,034 19,978 24,724
Long term debt 17,798 11,465 17,798 11,465
Working capital deficiency 5,847 2,646 5,847 2,646
Shares outstanding (thousands)
Weighted average
Basic 34,011 28,263 34,011 28,263
Fully diluted 35,866 31,171 35,866 31,171
Year end
Basic 35,558 33,755 35,558 33,755
Fully diluted 37,818 35,525 37,818 35,525
PRODUCTION
Natural gas (mcf per day) 19,204 10,590 14,498 5,630
Oil and NGLs (bbls per day) 303 122 193 72
Total (boe per day) 10:1 2,223 1,181 1,643 635
Total (boe per day) 6:1 3,504 1,887 2,609 1,010
-------------------------------------------------------------------------
RESERVES
(Corporate reserves as at December 31, 1999 evaluated by Gilbert
Laustsen Jung)
December 31
-------------------------------------------------------------------------
1999 1998
-------------------------------------------------------------------------
Natural Gas (bcf)
Proved 64.5 41.6
Proved plus Probable 92.7 68.2
Oil and NGLs (mbbls)
Proved 1.2 0.5
Proved plus Probable 1.9 0.9
Total barrels of oil equivalent (mboe)
Proved - 10:1 7,691 4,671
Proved - 6:1 11,993 7,446
Proved plus Probable - 10:1 11,120 7,686
Proved plus Probable - 6:1 17,297 12,235
-------------------------------------------------------------------------
PRESENT VALUE OF FUTURE CASH FLOW
($ thousands - before income taxes) Proved Proved plus Probable
1999 1998 1999 1998
-------------------------------------------------------------------------
Discounted at 10% 86,700 48,508 117,700 73,760
Discounted at 12% 81,600 44,990 109,700 67,612
Discounted at 15% 75,100 40,635 99,500 60,150
-------------------------------------------------------------------------
NET ASSET VALUE
($ thousands except per share data) December 31 December 31
1999 1998
-------------------------------------------------------------------------
Established reserves at 10% 102,200 61,134
Value of undeveloped land 5,278 4,900
Working capital (deficiency) (5,847) (2,646)
Long-term debt (17,798) (11,465)
-------------------------------------------------------------------------
Net asset value - basic 83,833 51,923
Common shares outstanding (thousands) 35,558 33,755
-------------------------------------------------------------------------
Net asset value per share 2.36 1.54
-------------------------------------------------------------------------
NET CAPITAL EXPENDITURES
($ thousands) 1999 1998
-------------------------------------------------------------------------
Land 1,575 1,427
Seismic 1,388 1,236
Drilling and completions 11,198 8,086
Equipping 2,136 1,091
Production and gathering facilities 2,975 3,791
Property acquisitions - 10,186
Property dispositions - (1,482)
Administrative 706 389
-------------------------------------------------------------------------
Total finding and onstream expenditures 19,978 24,724
-------------------------------------------------------------------------
PRODUCT PRICES Three months ended Twelve months ended
December 31 December 31
-------------------------------------------------------------------------
1999 1998 1999 1998
-------------------------------------------------------------------------
Natural gas ($mcf) 3.45 2.28 2.81 2.21
Oil and NGLs ($/bbl) 31.96 13.88 26.01 16.36
Weighted averaged ($/boe) 10:1 34.19 21.88 28.00 21.40
-------------------------------------------------------------------------
NETBACKS
($/boe) Three months ended Twelve months ended
December 31 December 31
-------------------------------------------------------------------------
1999 1998 1999 1998
-------------------------------------------------------------------------
Operating netback 21.49 11.66 16.67 9.63
Cash flow netback 16.76 6.48 11.97 4.95
-------------------------------------------------------------------------
RESERVE CONTINUITY Natural Gas Crude Oil and NGL
(billions of cubic feet) (millions of barrels)
Proved Probable Total Proved Probable Total
-------------------------------------------------------------------------
Total Reserves at
December 31, 1998 41.6 26.6 68.2 0.5 0.4 0.9
Additions 32.5 5.4 37.9 0.7 0.2 0.9
Revisions of prior
estimates (4.3) (3.8) (8.1) 0.1 0.1 0.2
Net Reserve Additions 28.2 1.6 29.8 0.8 0.3 1.1
Production (5.3) (5.3) (0.1) (0.1)
Total Reserves at
December 31, 1999 64.5 28.2 92.7 1.2 0.7 1.9
-------------------------------------------------------------------------
NET RESERVE ADDITIONS AND FINDING COSTS
1997-1999 1999 1998 1997
Cumulative
-------------------------------------------------------------------------
Net capital expenditures ($ thousands) 51,705 19,978 24,724 7,003
Proved
Net reserve additions (mboe) - 10:1 7,301 3,620 2,380 1,301
Net reserve additions (mboe) - 6:1 11,348 5,500 3,742 2,106
Finding and onstream costs ($/boe) - 10:1 7.08 5.52 10.39 5.38
Finding and onstream costs ($/boe) - 6:1 4.56 3.63 6.61 3.32
-------------------------------------------------------------------------
Proved plus probable
Net reserve additions (mboe) - 10:1 9,740 4,033 4,020 1,687
Net reserve additions (mboe) - 6:1 15,095 6,013 6,307 2,775
Finding and onstream costs ($/boe) - 10:1 5.31 4.95 6.15 4.15
Finding and onstream costs ($/boe) - 6:1 3.43 3.32 3.92 2.52
-------------------------------------------------------------------------
RECYCLE RATIO
1999 1998 % Change
-------------------------------------------------------------------------
Operating netback per boe / finding and onstream
costs per boe
Net proved reserve additions 3.0 0.9 226
Net proved plus probable reserve additions 3.4 1.6 116
Cash flow netback per boe / finding and onstream
costs per boe
Net proved reserve additions 2.2 0.5 349
Net proved plus probable reserve additions 2.4 0.8 200
-------------------------------------------------------------------------
>>
OUTLOOK FOR 2000
- TriGas and its competitors continue to find and bring on stream greater
than anticipated gas volumes in the Acme area resulting in curtailed or
restricted production on a few of the company's key wells due to pipeline and
plant capacity limitations. Although the company significantly increased
reserves in the Acme area, production volumes in the first quarter are well
below productive capability entirely as a result of these limitations.
Expansion of company owned pipeline infrastructure and installation of new
compression facilities is currently underway to handle current production
capacity and forecast increased volumes from the company's ongoing drilling
program.
- TriGas has secured an option (and budgeted funds in 2000) that provides
the opportunity to increase the company's ownership position up to an
approximate 27% interest in the +120 mmcf per day processing plant at East
Crossfield in order to improve operating efficiencies and enhance the
company's competitive position in the region.
- The company plans an active capital expenditure program for 2000
exceeding $30 million.
- Activity levels will continue in south central Alberta to expand the
company's existing Wabamun gas properties in the Acme, Beiseker, Irricana and
Lone Pine areas and will increase in south central and west central Alberta to
evaluate and develop the company's growing Mississippian gas prospect
inventory.
- The company has 2 drilling rigs under long-term contract and expects to
operate over 80% of its 2000 drilling program.
- Commodity prices are tracking above budget forecasts and we are
expecting record cash flows and earnings for 2000.
NOTICE TO THE READER
The corporation information contained herein contains forward-looking
(forecast) information. The reader is cautioned that assumptions used in the
preparation of such information, although considered reasonable to TriGas at
the time of preparation, may prove to be incorrect. Actual results achieved
during the forecast period will vary from the information provided herein and
the variations may be material. There is no representation by TriGas that the
actual results achieved during the forecast period will be the same in whole
or in part as those forecast.
<<
TRIGAS EXPLORATION INC.
BALANCE SHEETS
as at December 31
1999 1998
$ $
-------------------------------------------------------------------------
ASSETS
Current
Cash - 4,515
Accounts receivable 4,503,228 3,151,126
Inventory 1,402,330 -
Prepaid expenses and deposits 99,739 75,772
-------------------------------------------------------------------------
6,005,297 3,231,413
Property and equipment 50,489,423 36,851,023
Deferred income taxes 476,637 444,832
-------------------------------------------------------------------------
56,971,357 40,527,268
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
Current
Accounts payable and accrued liabilities 11,852,340 5,877,342
-------------------------------------------------------------------------
Long-term debt 17,798,375 11,465,000
Future abandonment and site restoration 396,558 287,638
SHAREHOLDERS' EQUITY
Share capital 26,134,015 25,063,051
Retained earnings (deficit) 790,069 (2,165,763)
-------------------------------------------------------------------------
26,924,084 22,897,288
-------------------------------------------------------------------------
56,971,357 40,527,268
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TRIGAS EXPLORATION INC.
STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(DEFICIT)
for the years ended December 31
1999 1998
$ $
-------------------------------------------------------------------------
Revenue
Petroleum and natural gas sales 16,802,028 5,002,972
Royalties, net of ARTC (2,789,828) (697,570)
-------------------------------------------------------------------------
14,012,200 4,305,402
-------------------------------------------------------------------------
Expenses
Production 4,012,842 2,034,761
General and administrative 1,701,695 591,989
Interest 1,020,698 500,142
Depletion, depreciation and site restoration 4,222,811 1,795,859
-------------------------------------------------------------------------
10,958,046 4,922,751
-------------------------------------------------------------------------
Earnings (loss) before taxes 3,054,154 (617,349)
Large corporations tax 98,322 30,411
-------------------------------------------------------------------------
Earnings (loss) for the year 2,955,832 (647,760)
Deficit, beginning of year (2,165,763) (1,518,003)
-------------------------------------------------------------------------
Retained earnings (deficit), end of year 790,069 (2,165,763)
-------------------------------------------------------------------------
Earnings (loss) per share
Basic 0.09 (0.02)
Fully diluted 0.08 (0.02)
-------------------------------------------------------------------------
TRIGAS EXPLORATION INC.
STATEMENTS OF CASH FLOWS
for the years ended December 31
1999 1998
$ $
-------------------------------------------------------------------------
Operating Activities
Earnings (loss) for the year 2,955,832 (647,760)
Add items not requiring cash
Depletion, depreciation and site restoration 4,222,811 1,795,859
-------------------------------------------------------------------------
Cash flow from operations 7,178,643 1,148,099
Changes in non-cash working capital
related to operations 3,196,599 (325,218)
-------------------------------------------------------------------------
Cash provided by operating activities 10,375,242 822,881
-------------------------------------------------------------------------
Financing Activities
Issue of common shares and warrants,
net of costs 3,265,289 6,801,573
Proceeds from long term debt 6,333,375 11,465,000
-------------------------------------------------------------------------
Cash provided by financing activities 9,598,664 18,266,573
-------------------------------------------------------------------------
Investing Activities
Expenditures on property and equipment (19,978,421) (16,019,606)
Acquisition of property and equipment - (10,186,201)
Proceeds on disposal of property and equipment - 1,481,751
-------------------------------------------------------------------------
Cash used in investing activities (19,978,421) (24,724,056)
-------------------------------------------------------------------------
Decrease in cash during the year (4,515) (5,634,602)
Cash position, beginning of year 4,515 5,639,117
-------------------------------------------------------------------------
Cash position, end of year - 4,515
-------------------------------------------------------------------------
Cash flow from operations per share
Basic 0.21 0.04
Fully diluted 0.20 0.04
>> |
