TPH Triumph related - reserves updated by McDaniels using us$25 WTI and $5 nymex gas.....
Still suspect this one will be picked off in the days ahead.
Holding a position & I've added boldings.
newswire.ca
Triumph Reports Significant Increase in Net Asset Value Per Share at December 31, 2000
CALGARY, Feb. 7 /CNW/ - TRIUMPH ENERGY CORPORATION is pleased to report
its petroleum and natural gas reserves as at December 31, 2000, independently
evaluated by McDaniel & Associates Consultants Ltd. Proved reserves consist of
5.1 million barrels of oil and natural gas liquids (NGLs) and 29.7 billion
cubic feet of natural gas. Approximately 80% of total proved reserves are
categorized as proved producing and 11% as proved undeveloped. Proved plus
probable reserves consist of 7.4 million barrels of oil and NGLs and 43.3
billion cubic feet of natural gas.
Triumph's successful natural gas exploration program in west central
Alberta, combined with high commodity prices resulted in an increase in its
net asset value per share to $3.49 at December 31, 2000, up 58% from $2.21 at
December 31, 1999.
Triumph was successful in reducing its finding and development (F&D)
costs during 2000 to $8.02 per boe (10 mcf equates to 1 boe) using proved
reserves only. Replacement cost using proved reserves, was $9.72 per boe,
giving the Company a recycle ratio of approximately 2.3 times for 2000.
Long-term debt, net of working capital, decreased 35% to $25.0 million at
December 31, 2000, representing less 1.0 times cash flow from operations.
The following table summarizes the Company's reserves at December 31,
2000:
<<
Oil & Natural
NGLs Gas Combined mboe Combined mboe
(mbbl) (mmcf) 10 mcf equals (6 mcf equals
1 (boe) 1 boe)
-------------------------------------------------------------------------
Reserves
Proved Producing 4,328 21,064 6,434 80% 7,839 78%
Proved Non-
Producing 325 4,494 774 9% 1,074 11%
Proved Undeveloped 465 4,185 884 11% 1,163 11%
-------------------------------------------------------------------------
Total Proved(x) 5,118 29,743 8,092 100% 10,075 100%
Probable 2,314 13,599 3,674 4,581
-------------------------------------------------------------------------
Total Proved and
Probable 7,432 43,342 11,766 14,656
-------------------------------------------------------------------------
(x)Future capital costs of $5.4 million are required to develop
certain reserves included as proved.
The following table summarizes the present worth of the Company's
reserves at December 31, 2000:
$Value/boe $Value/boe
Discounted (10 mcf equals (6 mcf equals
at 12% ($m) 1 boe) 1 boe)
-------------------------------------------------------------------------
Present Value (before
income taxes)
Proved Producing $94,759 $14.73 $ 12.09
Proved Non-Producing 12,565 16.23 11.70
Proved Undeveloped 10,041 11.36 8.63
-------------------------------------------------------------------------
Total Proved 117,365 14.50 11.65
Probable 31,168 8.48 6.80
-------------------------------------------------------------------------
Total Proved and
Probable $148,533 $12.62 $10.13
-------------------------------------------------------------------------
The following table summarizes Triumph's finding and development costs
and replacement costs for 2000:
Capital Expenditures ($m)
Exploration and development expenditures $26,371
Property acquisitions 149
Head office expenditures 105
-------------------------------------------------------------------------
Total capital expenditures (A) $26,625
Proceeds from sale of property(x) (16,479)
-------------------------------------------------------------------------
Net capital expenditures (B) $10,146
-------------------------------------------------------------------------
(x)Proceeds from sale of property does not include $8.4 million received
resulting from the sale of the Manyberries Pipeline System
Proved Total
Producing Proved
(10:1) (6:1) (10:1) (6:1)
-------------------------------------------------------------------------
Reserves (mboe)
Additions (C) 2,442 3,268 3,316 4,538
Dispositions (981) (1,542) (1,612) (2,496)
Revisions 589 679 (660) (725)
-------------------------------------------------------------------------
Net reserve additions (D) 2,050 2,405 1,044 1,317
-------------------------------------------------------------------------
Finding & development cost
per boe (A)/(C) $10.90 $ 8.15 $ 8.03 $ 5.87
Replacement cost per boe (B)/(D) $ 4.95 $ 4.22 $ 9.72 $ 7.70
2000 (E) Cash flow from
operations per boe $22.51 $18.41
Recycle ratio (times) - Cash
flow/replacement cost per boe 2.3 2.4
-------------------------------------------------------------------------
The following table summarizes the Company's net asset value at December
31, 2000. The present worth of the Company's reserves were calculated using
12% and 15% discount rates, before income taxes. (Reserves include total
proved and half of probable):
(000's except per Discount rate Discount rate
share amounts) equals 12% equals 15%
1999 2000 Change 1999 2000 Change
-------------------------------------------------------------------------
Oil and natural
gas reserves $105,415 $132,949 26% $96,251 $123,179 28%
Undeveloped land 7,845 8,287 6% 7,845 8,287 6%
Proprietary seismic 1,529 1,669 9% 1,529 1,669 9%
Debt, net of
working capital
(est.) (38,192) (24,985) -35% (38,192) (24,985) -35%
-------------------------------------------------------------------------
Net asset value $76,597 $117,920 54% $67,433 $108,150 60%
-------------------------------------------------------------------------
Shares outstanding
Basic 34,704 33,742 -3% 34,704 33,742 -3%
Fully diluted 37,022 36,597 -1% 37,022 36,597 -1%
Net asset value per share
Basic $2.21 $3.49 58% $1.94 $3.21 65%
Fully diluted $2.21 $3.38 53% $1.96 $3.11 59%
-------------------------------------------------------------------------
The following table summarizes the commodity price forecast used by
McDaniel & Associates to determine the present worth of the Company's
reserves at December 31, 2000:
AECO
WTI Edmonton NYMEX Spot
Crude Light Natural Natural US/CAN
Oil Oil Gas Gas Exchange
Year (US$/bbl) (C$/bbl) (US$/mmbtu) (C$/GJ) (US$/C$)
-------------------------------------------------------------------------
2001 US$25.00 $36.90 US$5.00 $6.68 US$0.660
2002 US$23.00 $32.80 US$4.00 $5.08 US$0.680
2003 US$22.40 $31.00 US$3.70 $4.52 US$0.700
2004 US$22.30 $29.90 US$3.40 $3.99 US$0.720
2005 US$22.70 $30.00 US$3.33 $3.83 US$0.730
Five Year
Average US$23.08 $32.12 US$3.89 $4.82 US$0.698
-------------------------------------------------------------------------
>>
Activity Update
Triumph's winter drilling program is underway with wells currently
drilling at Ferrier, Cow Lake and Colt/Fir. During the first quarter, the
Company expects to drill 10 to 12 wells in its core producing areas. Current
production is approximately 13.0 mmcf/d of natural gas and 2,200 barrels per
day of light oil and natural gas liquids.
Triumph expects to release full details of its 2000 audited financial
results after the Board of Directors completes its review of the Company's
financial audit and the results of the independent reserve report on or about
March 26, 2001.
Triumph Energy Corporation is a growth oriented oil and gas exploration
and production company with activity focused in western Canada. The Company's
common shares trade on the Toronto Stock Exchange under the symbol "TPH". The
Toronto Stock Exchange has neither approved nor disapproved of the contents
hereof.
-30-
For further information: William A. Friley, Jr., Triumph Energy
Corporation, President and Chief Executive Officer, Sadiq H. Lalani, Senior
Vice President and Chief Financial Officer, Telephone: (403) 266-1227,
Facsimile: (403) 262-5786, Email: triumph@triumphenergy.com, Website:
triumphenergy.com |
