BelAir Energy Announces 2000 Financial Results-Another Record Year
CALGARY, ALBERTA-BELAIR ENERGY CORPORATION (TSE: BEC - news) announces record financial and operating results for the year ended December 31, 2000.
2000 Highlights
* Average daily production increased by 1.3 times to 1,266 barrels of oil equivalent (boe) per day in 2000 from 961 boe per day in 1999.
* 2000 exit production rate of 1750 boe per day.
* Cash flow almost quadrupled to $12.3 million in 2000 from $3.2 million in 1999, representing cash flow of $1.13 per weighted average share.
* Earnings for the year more than quadrupled to $4.7 million in 2000 from $1.0 million in 1999, representing earnings of $0.44 per share.
* Acquired CrownJoule Exploration Inc., making BelAir predominantly a natural gas producer.
* Drilled 23 gross (10.7 net) wells resulting in 7.4 net natural gas wells and 0.9 net oil wells for a success ratio of 78%.
On the progress made during 2000, Vic Luhowy, President of BelAir reflects, ``We are well into Phase Three of our growth strategy of increasing reserves and value by exploiting the exploration and development drilling opportunities that we have on our large undeveloped land base. In 1999, we saw that strong fundamentals were developing in the natural gas market in North America and we pursued a natural gas acquisition strategy in 2000, resulting in the acquisition of CrownJoule Exploration Inc. With this acquisition, the proportion of natural gas production in BelAir from 37% to 67% at a time when natural gas prices increased from $2.80 per mcf in December 1999 to $12 per mcf that we received in December 2000.''
Financial Review
With growing production and the strength in both natural gas and oil prices, BelAir recorded substantial growth in 2000. Cash flow almost quadrupled to $12.3 million in 2000 from $3.2 million in 1999, resulting in cash flow of $1.12 per weighted average share basic in 2000 compared to $0.53 per share in 1999. Operating netbacks in 2000 increased 141% to $31.77 from $13.19 per boe in 1999. BelAir's earnings in 2000 were $4.7 million or $0.44 per share compared to $1.0 million and $0.17 per share in 1999. Average daily production in 2000 increased 32% to 1,266 boe per day from 961 boe per day in 1999. BelAir's 2000 exit production rate was 1750 boe per day compared to 1150 boe per day exit 1999.
Financial (in millions of dollars,
except per share) 2000 1999 % Change
* Petroleum and Natural Gas Sales 23.6 9.0 +162%
* Cash Flow from Operations 12.3 3.2 +284%
* Per share basic $1.13 $0.53 +113%
* Net Earnings 4.7 1.0 +370%
* Per share basic $0.44 $0.17 +159%
* Capital expenditures, net of
dispositions/acquisitions 11.6 4.0 +190%
* Long Term Debt 10.5 3.7 +184%
* Shareholders Equity 26.2 11.7 +124%
Common Shares Outstanding at Year End
(in millions of shares, except per share)
* Basic 14.3 7.1 +102%
* Fully Diluted 16.4 7.8 +110%
* Weighted Average Shares Outstanding 10.9 6.0 +82%
* Share Price at Year End $2.45 $1.50 +63%
Operations
* Average Daily Production
* Crude Oil and NGLs (barrels) 497 597 (17)%
* Natural Gas (thousands of
cubic feet) 7,687 3,632 +112%
* Boe per day 1,266 961 +32%
* Reserves, (thousands of barrels of
oil equivalent)
* Proved 4,126 1,998 +107%
* Probable 2,137 989 +116%
* Proved plus Probable 6,263 2,987 +110%
Land Holdings
* Net Acres 134,591 76,486 +76%
Outlook
Current production is 1,900 boe per day comprised of approximately 16 million cubic feet per day of gas and 300 barrels per day of oil and liquids. Capital expenditures for 2001 are anticipated to be $23 million, more than double the $11 million spent in 1999. BelAir is planning to drill 50 wells (23 net) primarily for natural gas in its focus areas of Crossfield and Penhold in central Alberta and Doris in northwestern Alberta.
According to Vic Luhowy, ``During 2000, we made great strides in implementing Phase Three of our growth strategy of creating shareholder value through the drill bit, by drilling 23 wells. This strategy will be accelerated by drilling 50 wells in 2001. We will complement this strategy with further acquisitions and by continuing the consolidation our assets into our core areas in central and northwestern Alberta.''
In the interests of all shareholders, the Directors of BelAir approved the implementation of a shareholders rights plan effective March1, 2001. The plan is subject to the approval of The Toronto Stock Exchange and the ratification by the shareholders of BelAir at the next annual meeting of shareholders to be held in May 2001. BelAir is not aware of any interest by anyone to acquire a controlling interest in the company.
Based in Calgary, BelAir is involved in the exploration and exploitation of petroleum reserves in Western Canada. BelAir is listed on The Toronto Stock Exchange (TSE) and trades under the symbol ``BEC''.
This news release may contain forward-looking information. 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.
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Contact:
BelAir Energy Corporation
Victor M. Luhowy
President and Chief Executive Officer
(403) 265-1411
(403) 263-8119
E-mail: vluhowy@belairenergy.com
or
BelAir Energy Corporation
Ken MacRitchie
Vice President and Chief Financial Officer
(403) 265-1411
E-mail: kmacritchie@belairenergy.com
Website: www.belairenergy.com |
