Magin Energy announces updated reserves value and issuer bid
CALGARY, April 13 /CNW/ - MAGIN ENERGY INC. (TSE: MGY) announces that,
based on price forecasts effective April 1, 2000 used by Paddock Lindstrom &
Associates (``Paddock'), Magin's present value cash flow of established
(proven plus 50% probable) reserves using a 10 percent discount factor
increased to $249.8 million from $224.5 million, or 11 percent.
The following table compares the pricing forecasts used by Paddock at
January 1, 2000 to the increased pricing forecasts at April 1, 2000:
<<
January 1, 2000 April 1, 2000
Crude oil - 2000 (USD WTI) 21.00 26.00
Crude oil - 2001 (USD WTI) 20.00 21.00
Natural gas - ($Cdn per million
British thermal unit) 2.67 3.06
Natural gas - ($Cdn per million
British thermal unit) 2.75 3.08
>>
Magin calculates net asset value per common share based on the pre-tax
value of its established reserves. Based on price forecasts at April 1, 2000,
using 10 and 15 percent discount factors, the net asset value calculation per
basic Magin common share is $5.82 and $4.74, respectively.
Magin Energy Inc. also announces that it has issued a Normal Course
Issuer Bid through the facilities of The Toronto Stock Exchange.
Commencing April 17, 2000 and ending April 16, 2001, the Corporation may
purchase up to 1,696,000 of its common shares (being 5% of the issued and
outstanding shares of 33,928,366), provided that no more than 2% of the issued
shares will be purchased in any given 30-day period. Magin purchased 100,100
shares in the past 12 months pursuant to a previous normal course issuer bid
that will expire on April 14, 2000 at an average price of $2.42 per share.
The Corporation intends to purchase shares pursuant to the Issuer Bid
whenever the market price of the shares would warrant using the Corporation's
funds for such purposes. All shares purchased under the Issuer Bid will be
cancelled, thereby increasing the respective proportionate share interests of
all remaining shareholders.
-30-
For further information: Magin Energy Inc., (403) 265-1899, Magin
Website: www.magin.com, Glenn R. Carley, Chairman and CEO, Glen A. Yeryk,
President and COO, Shivon M. Crabtree, VP Finance and CFO
MAGIN ENERGY INC. has 31 releases in this database.
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