Promised delivered..Hegco's latest media releases show great bottom -line progress.
Two important facts among many. Hegco's daily production in January (increases are on the way) is fully one-fifth of Ultra Petroleum's current daily production. (30 mmcfe vs 6028 mcfe)
Hegco's total projected revenue for ' 01(without expected increases) is almost equal to Ultra's total for ' 00. ($l8M for Hegco vs $21M for T.UP)
T.UP is currently trading at ten times V.HEG
What will it take to wake this market up?
Press Release
HEGCO Canada, Inc. Reports Highest Monthly Revenue in Company History
EDMOND, OKLAHOMA--HEGCO Canada, Inc. (``HEG'' CDNX) reports revenue from January 01, 2001 as the highest in Company history. The Company earned gross revenue of $1,009,937 (Cdn 1,507,369) for the month of January, 2001. This is an increase of 174% compared to average monthly revenues for the 1st Qtr. of this fiscal year, and a 57% increase compared to the average monthly revenue for the 2nd Qtr. of this fiscal year.
January, 2001 1st Quarter 2nd Quarter
------------- ------------- -------------
Gross Revenue US $1,009,937 US $1,106,061 US $1,928,562
Average Mo. Revenue US $1,009,937 US $ 368,687 US $ 642,854
Production for the month of January, 2001 averaged 6,028 mcfe/d compared to 3,276 mcfe/d average for the first six months of this fiscal year.
About HEGCO Canada, Inc.
HEGCO Canada, Inc. (CDNX: HEG) is a junior oil and gas company registered in Alberta, Canada, and headquartered in Edmond, Oklahoma. The company is actively engaged in oil and natural gas production through the acquisition (sole and joint venture) and development of mid-continent North America oil and gas fields.
HEGCO has a strong and growing asset base composed of nine projects, located in the United States (northern Oklahoma, eastern Oklahoma, Mississippi, Arkansas) and Alberta, Canada. The Company has one wholly owned subsidiary; HEGCO Inc. HEGCO Inc. has three wholly owned subsidiaries, Red Leaf Energy Inc., Nemaha Services Inc. and Iron Thunder Drilling Inc. For more information, visit the company's web site at www.hegco.com.
Hegco Canada, Inc. Reports Second Quarter Profit
EDMOND, OKLAHOMA--HEGCO Canada Inc (HEG-CDNX) reports that for the second quarter of fiscal year 2001 the Company has achieved profitability.
HEGCO earned US$54,326 (Cdn$81,083) for the quarter ended December 31, 2000 on revenues of US$1,928,562 (Cdn$2,878,450) for the quarter. Cash Flow from operations for the quarter was US$180,438 (Cdn$269,310) and Cash Flow EBITDA for the quarter was US$633,942 (Cdn$946,182).
Company President and CEO, Rodney Babb, commented ``the current expansion and continued growth of the company's production and revenue base is the direct result of the promises delivered at last year's Annual General Meeting''. Company Operations Manager, Brian Ennis, commented ``production has already been increased beyond the second quarter results and will continue to grow throughout the remainder of this and next fiscal year''. In addition to increasing the production from the company's current asset base, Mr. Babb and Ennis are very excited about additional growth opportunities that the company is currently pursuing. Mr. Ennis also commented, ``these are exciting times in the Natural Gas Business. HEGCO is well positioned with our longstanding relationships within the industry to significantly increase the company asset base by making additional strategic producing property acquisitions and also partnering with successful companies in drilling opportunities. HEGCO is an enjoyable place to work. Mr. Foley, Company Geological Manager, and I are glad to be here''
For the six months ended December 31, 2000, the Company reported Revenue of US$3,034,623 (Cdn$4,529,288) or Cdn$0.091 per share (all per share amounts noted herein are on a diluted basis), as compared to Revenue of US$1,117,080 (Cdn$1,667,284), or Cdn$0.0335 in the first six months of 1999. Cash flow EBITDA for the first six months was US$619,146 (Cdn$924,099), or Cdn$ 0.0185 per share, as compared to US$(196,534) (Cdn$(293,334)), or Cdn$(0.0059) in the corresponding period of 1999.
Comparison Three Months Second Quarter
All Figures are expressed in US Currency
Dec-00 Sep-00
3 months 3 months
Revenue
Oil & Gas (Net of Royalites and Taxes) $1,485,026 $ 884,793
Oil & Gas Servicing $ 384,450 $ 209,530
Other $ 59,086 $ 11,738
Total $1,928,562 $1,106,061
Expenses
Oil & Gas Production $ 660,513 $ 482,084
Oil & Gas Servicing $ 122,802 $ 124,121
General and Administrative $ 511,305 $ 514,652
Depletion & Depreciation $ 126,112 $ 79,034
Interest $ 453,504 $ 11,648
Total Expenses $1,874,236 $1,211,539
Net Gain (Loss) $ 54,326 ($105,478)
Comparison Six Months Second Quarter
All Figures are expressed in US Currency
Dec-00 Dec-99
6 months 6 months
Revenue
Oil & Gas (Net of Royalties and Taxes) $2,369,819 $ 596,487
Oil & Gas Servicing $ 593,980 $ 483,472
Other $ 70,824 $ 37,121
Total $3,034,623 $1,117,080
Expenses
Oil & Gas Production $1,142,597 $ 216,249
Oil & Gas Servicing $ 246,923 $ 234,348
General and Administrative $1,025,957 $ 863,017
Depletion & Depreciation $ 205,146 $ 111,554
Interest $ 465,152 $ 33,558
Total Expenses $3,085,775 $1,458,726
Net Gain (Loss) ($51,152) ($341,646)
The following table summarizes the company's production and commodity
price realizations for the 2001 and 2000 quarters ended December 31:
Production 12/31/00 12/31/99
Natural Gas (Mcf) 470,164 34,956
Liquids (bbls) 19,922 26,246
Equivalent (Mcfe/d) 3,276 1,069
Gas and liquids production for the first six months of fiscal 2001 increased 206 % as shown on the above chart over the prior year's comparable period. Production revenues for the six months ended December 31, 2000 totaled US$2,369,819 (Cdn$3,308,145), an increase of 297% than the prior years comparable period. It must be noted that the Alberta properties were only in production for 4 months of the six-month period.
The Company's wholly owned subsidiary Nemaha service's revenue was US$593,980 (Cdn$886,537) compared to US$483,472 (Cdn$721,600) the prior year results an increase of 22% for the period. Nemaha Service operations have traditionally been accretive to company's results.
About HEGCO Canada, Inc.
HEGCO Canada, Inc. (CDNX: HEG) is a junior oil and gas company registered in Alberta, Canada, and headquartered in Edmond, Oklahoma. The company is actively engaged in oil and natural gas production through the acquisition (sole and joint venture) and development of mid-continent North America oil and gas fields.
HEGCO has a strong and growing asset base composed of nine projects, located in the United States (northern Oklahoma, eastern Oklahoma, Mississippi, Arkansas) and Alberta, Canada. The Company has one wholly owned subsidiary; HEGCO Inc. HEGCO Inc. has three wholly owned subsidiaries, Red Leaf Energy Inc., Nemaha Services Inc. and Iron Thunder Drilling Inc. For more information, visit the company's web site at www.hegco.com.
Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information (``forward-looking statements (information)''). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including rates of inflation, natural gas prices, crude oil prices, reserve estimates, drilling risks, future production of oil and gas, changes in future. |
