Gentry Announces Record First Half Results
08:21 EDT Monday, August 28, 2000
CALGARY, Aug. 28 /CNW/ - Gentry Resources Ltd. ("Gentry") is pleased to announce financial and operating results for the six months ended June 30, 2000.
HIGHLIGHTS
- Gross revenues of $6,246,655 were 188% higher than the $2,168,362 recorded in the first six months of 1999.
- Cash flow was up 489% to $2,664,620 from $452,375 in the first six months of 1999.
- Production was up 65% to 1,039 boe/d from 628 boe/d in the comparative six-month period.
- Gentry recorded a profit of $1,117,184 versus a loss of $257,404 in 1999.
- The Company's ratio of bank debt to annualized cash flow was a very healthy 0.75:1.
Three months ended June 30 Six months ended June 30
2000 1999 % 2000 1999 %
change change
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Financial
Revenue $3,253,904 $1,215,572 168% $6,246,655 $2,168,362 188%
Cash Flow 1,317,083 300,687 338% 2,664,620 452,375 489%
Per share 0.062 0.016 388% 0.126 0.025 404%
Net Income
(loss) 593,116 (78,442) n/a 1,117,184 (257,404) n/a
Per share 0.028 (0.004) n/a 0.053 (0.014) n/a
Capital
Expenditures 521,730 606,226 (14)% 1,045,801 1,900,445 (45)%
Long-term Debt 4,020,000 2,585,861 55% 4,020,000 2,585,861 55%
Weighted Average
of Shares
outstanding 21,111,554 18,254,732 16% 21,162,252 18,279,318 16%
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Production
Oil & Liquids
(bbls/d) 805 523 54% 835 536 56%
Gas (mcf/d) 2,219 1,049 112% 2,044 922 122%
Barrels of
oil equivalent 1,027 628 64% 1,039 628 65%
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Average Prices
Oil & Liquids
per barrel $31.99 $20.63 55% $31.60 $18.36 72%
Gas per mcf $4.51 $2.45 84% $3.88 $2.32 67%
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OPERATING PERFORMANCE
Crude oil and ngls volumes increased 56% to 835 bbls/d during the first six months of 2000, compared to 536 bbls/d in the corresponding period in 1999. Natural gas sales increased 122% to 2,044 mcf/d from 922 mcf/d a year ago.
FINANCIAL PERFORMANCE
Production revenues for the first six months of 2000 increased to $6,246,655 compared with $2,168,362 in the corresponding period in 1999, representing a 188% increase. Cash flow from operations increased 489% to $2,664,620 compared to $452,375 while net income after taxes was $1,117,184 compared to a loss of $257,404 a year ago.
This year's six-month crude oil and ngl prices averaged $31.60 per barrel compared to $18.36 per barrel in the first six months of 1999. Natural gas prices were up 67%, averaging $3.88 per mcf compared to $2.32 per mcf in the corresponding period.
ACTIVITY
Early in the first half of 2000, the Company participated in a three-well drilling program in the Thornbury area of northeastern Alberta, which resulted in two successful gas wells and one abandoned well. A total of five wells from the previous drilling program were also tied in and put on production in April. Additional compression was added to a number of wells in the field and further plant compression is planned for later this year to add to overall production volumes.
Future plans also include the evaluation of a deeper Devonian prospect which was the focus of a recent seismic program, as well as continuing to develop and increase the reserves and deliverability of the existing field. Several wells are planned for late in the fourth quarter this year. The Company owns an 18.3% working interest in the Thornbury lands.
At Baldwinton, the Company and its partners have recorded several seismic lines in this area and identified five locations to be drilled in late September. Gentry owns a 30.5% working interest in the Baldwinton lands.
In the Benson area, five horizontal wells and one vertical well are planned to be drilled early in the fourth quarter. Three of the horizontal wells will be dual leg wells. The Company holds a 10.9% working interest in this core property.
In the West Provost area two gas wells were drilled early in the first half of the year. The Company anticipates drilling a number of other locations prior to year end. Gentry owns varying working interests, from 26% to 32%, in the Provost lands.
In Gentry's Steelman lands, where the Company owns working interests from 2.7% to 19.9%, two horizontal wells are scheduled for drilling in the third quarter of 2000. The Steelman Units have excellent potential for additional horizontal wells.
Sloane Petroleums Inc. ("Sloane"), a company that is 41% owned by Gentry, also had a strong six months of operations. In the fourth quarter of 1999 Sloane participated in a significant pool extension to an existing gas discovery in the Provost area of southern Alberta. This highly successful well was tied in late March, increasing Sloane's production to approximately 140 boe/d. Sloane and its partner have since acquired additional land holdings in the area, and a second location was recently drilled and is currently being tested. A single joint delivery test flowed gas at a rate of 5 mmcf/d and further results of the well will be available in approximately two weeks.
Gentry also holds a 40% interest in Stratic Energy Corporation ("Stratic"), a company focused exclusively on international exploration, primarily in Africa. Stratic is planning for an ambitious yet balanced program of exploration initiatives in Cote d'Ivoire with Ranger Oil and in Gabon with Energy Africa. In July, Stratic completed a financing raising gross proceeds of $1,750,000 to help fund its exploration programs in West Africa.
The Company's increased level of drilling activity will continue to generate strong cash flow and allow production performance to continue the growth trend Gentry has consistently maintained. The Company has considerable financial flexibility due to the Company's ratio of total debt to forward year's cash flow being less than 1 to 1. The Company will continue to seek value-added acquisition and drilling opportunities within its core areas of focus.
Gentry currently has 20,732,305 shares issued and outstanding and trades on the Toronto Stock Exchange under the symbol "GNY". |
