VKR.UN results look excellent as well...
Viking Energy first half results improve
Viking Energy Royalty Trust VKR.UN
Shares issued 24,045,850 Aug 16 close $8.15
Thu 17 Aug 2000 News Release
Mr. A. Kirk Purdy reports
HIGHLIGHTS
Six months ended June 30
(thousands of dollars)
2000 1999
Financial
Revenue $ 41,971 $ 25,340
Funds from operations 22,310 10,618
Net income 12,925 592
Cash available for
distribution 22,101 10,394
Cash available,
per unit $0.94 $0.51
Distributions 16,018 7,668
Distributions,
per unit $0.68 $0.38
Investor netback per
boe $17.50 $8.34
Operating
Daily Production
Oil and liquids (bbl/d) 5,820 5,731
Natural gas (mcf/d) 11,112 12,057
Total (boe/d at 10:1) 6,931 6,937
Average prices
Crude oil ($/bbl,
before hedging) $38.96 $19.81
Crude oil ($/bbl,
after hedging) $33.01 $20.01
Liquids ($/bbl) $29.06 $12.12
Natural gas ($/mcf) $3.53 $2.24
HIGHLIGHTS
Three months ended June 30
(thousands of dollars)
2000 1999
Financial
Revenue $ 21,353 $ 13,632
Funds from operations 11,020 6,270
Net income 6,306 1,279
Cash available for
distribution 10,881 6,200
Cash available,
per unit $0.46 $0.29
Distributions $8,983 $4,244
Distributions,
per unit $0.38 $0.20
Investor netback per
boe $17.10 $9.97
Operating
Daily Production
Oil and liquids (bbl/d) 5,831 5,590
Natural gas (mcf/d) 11,160 12,447
Total (boe/d at 10:1) 6,947 6,835
Average prices
Crude oil ($/bbl,
before hedging) $39.01 $22.76
Crude oil ($/bbl,
after hedging) $32.41 $21.95
Liquids ($/bbl) $27.87 $14.75
Natural gas ($/mcf) $4.18 $2.30
As a result of steady production levels and significantly higher commodity
prices for the six-month period ended June 30, 2000, Viking generated total
cash available for distribution of $22.1-million or 94 cents per unit,
compared with $10.4-million or 51 cents per unit for the same period in
1999. Including an additional top-up paid on Aug. 15 of 10 cents per unit,
the trust distributed $18.4-million or 78 cents per unit compared with
$7.7-million or 38 cents per unit during the same period last year. The
August top-up of $2.4-million was the second top-up this year, and
represents excess cash available from the second quarter of operations. In
the second quarter, Viking had cash available for distribution of
$10.9-million or 46 cents per unit. The trust distributed $8.9-million or
38 cents per unit compared with $4.2-million or 20 cents per unit in the
second quarter of 1999. All remaining undistributed cash has been committed
to the trust's capital program, including the acquisition of additional
properties in the Pembina area earlier this year.
Commodity prices continue to be substantially higher compared with last
year. Average West Texas Intermediate (WTI) oil prices for the second
quarter increased 62 per cent to $28.62 (U.S.) per barrel from an average
of $17.65 in the same period last year. Average natural gas prices were
$4.18 per thousand cubic feet, up 82 per cent compared with the second
quarter of 1999. The six-month average for WTI this year was $28.68 (U.S.)
per barrel, nearly double the $15.32 (U.S.) in 1999, and natural gas
averaged $3.53 per thousand cubic feet, up 58 per cent from last year.
Daily production for the second quarter increased slightly over the same
period last year to 6,947 barrels of oil equivalent (boe). Six-month
production was steady at 6,931 boe per day.
Viking is currently active with in-fill drilling in the Channel Lake area
of Alberta. Upon completion later this year, initial net production to the
trust is expected to increase by about 7.0 million cubic feet per day of
gas from the 100-well program. At Bellshill, Viking is participating in a
13-well in-fill drilling program to be completed late in 2000, which should
initially add 250 barrels per day of oil production.
the second quarter, Viking divested its interest in a non-core lower
reserve-life property for $1.2-million, and sold its interest in a
compression facility for $1.1-million. These funds were applied against
current year development activities.
At June 30, the trust's net debt stood at $55.0-million, or 1.3 times the
estimated cash flow for 2000. If all remaining outstanding warrants are
exercised by their expiry date of Sept. 14, 2000, the trust will receive an
additional $5.5-million to be applied against its debt, further
strengthening the balance sheet.
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