CALGARY, ALBERTA--BELAIR ENERGY CORPORATION (BEC : TSE) announces that it has increased its estimate of cash flow in the fourth quarter of 2000 to $5.5 million ($0.43 per weighted average share, basic). This cash flow is more than double the $2.6 million achieved in the third quarter of 2000. Total 2000 cash flow is estimated to be approximately $12 million ($1.10 per weighted average share, basic). The increase in cash flow is the result of production increases from BelAir's drilling program in the second half of 2000 as well as strong gas prices during that period. In the third and fourth quarters of 2000, BelAir has concentrated on bringing newly drilled natural gas reserves into production to the point that BelAir's daily production is 80% natural gas and is almost 2000 barrels of oil equivalent per day (``boepd''). None of BelAir's production is hedged.
BelAir expects to release the full details of its audited financial results on or about February 22, 2000.
BelAir also announces that its capital expenditure program for 2001 will be $23 million, which is more than double the $11 million capital expenditure program completed during 2000.
The 2001 capital program consists primarily of drilling in BelAir's existing core exploration areas of Crossfield, Penhold and Doris. BelAir expects to drill 50 gross (23 net) wells this year, most of which will be drilling on natural gas prospects. During 2000, BelAir drilled 23 gross (10.7 net) wells resulting in 15 gross (7.4 net) gas wells, 3 gross (0.9 net) oil wells and 5 gross (2.4 net) wells were abandoned for an overall success rate of 78%.
``We are well into Phase Three of our growth strategy of increasing reserves and production by drilling,'' stated Victor M. Luhowy, President and CEO of BelAir Energy. ``Following up on the success of our drilling program during 2000, our exploration team has generated a solid list of drilling prospects on our large undeveloped land base and on new farm-in areas. The success of our drilling program this year should result in average production of 2300 boepd for 2001. Last year at this time, we were producing just over 1000 boepd''.
Based in Calgary, BelAir is involved in the exploration and exploitation of petroleum reserves in western Canada. BelAir's common shares are listed on the TSE and trade under the symbol ``BEC''.
Actual future results may differ materially from those contemplated. The risks, uncertainties and other factors that could influence actual results are described in documents filed with regulatory authorities. |
