Gentry Resources Ltd. Announces Record 2000 Financial and Operating Results
CALGARY, April 19 /CNW/ - Gentry Resources Ltd. ("Gentry") is pleased to
announce its record financial and operating results for the year ended
December 31, 2000.
HIGHLIGHTS
- Gentry's gross revenues for 2000 were $13,151,082, doubling the
$6,587,642 in 1999.
- Cash flow reached a record high of $4,529,637, up 134% from the
previous year's figure of $1,939,617.
- Gentry's net income was a record $1,986,795, up 4,264% in 2000 compared
to $44,849 in 1999.
- Daily average production volumes for the year rose to 1,170 boe/d, up
33% from 1999.
- Reserves grew by 20% to 4,902 mboe compared to the previous year's
total of 4,089 mboe.
- The net present value of proven and probable reserves, discounted at
10%, grew 31% to $33.8 million.
- Gentry participated in the drilling of 38 wells in 2000, resulting in
an overall success rate of 92%.
<<
Three months ended Dec 31 Year ended Dec 31
2000 1999 % 2000 1999 %
change change
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Financial
Revenue $3,501,871 $2,332,043 50% $13,151,082 $6,587,642 100%
Cash Flow 879,295 752,487 17% 4,529,637 1,939,617 134%
Per share 0.043 0.035 23% 0.217 0.098 121%
Net Income 440,639 113,885 287% 1,986,795 44,849 4330%
Per share 0.022 0.005 340% 0.095 0.002 4650%
Capital
Expenditures 1,769,624 975,597 81% 3,378,876 3,418,029 (1)%
Long-term
Debt 4,015,451 4,994,607 (20)% 4,015,451 4,994,607 (20)%
Weighted
Average of
Shares
outstanding 20,459,551 21,611,446 (5)% 20,878,731 19,785,339 6%
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Production
Oil & Liquids
(bbls/d) 836 802 4% 837 649 29%
Gas (mcf/d) 1,896 1,872 1% 1,997 1,374 45%
Barrels of
oil equivalent 1,152 1,115 3% 1,170 878 33%
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Average Prices
Oil & Liquids
per barrel $25.82 $24.22 7% $30.12 $21.87 38%
Gas per mcf $8.69 $3.16 175% $5.42 $2.81 93%
Barrel of Oil
Equivalent $33.04 $22.74 45% $30.80 $20.36 50%
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Reserves (Proven &
Probable)
-------------------------------------------------------------------------
Oil & Liquids (mbbls) 3,693 3,218 15%
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Gas (mmcf) 7,253 5,225 39%
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Oil Equivalent (mboe) 4,902 4,089 20%
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Net Present Value @
10% (thousands) 33,778 25,786 31%
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(Note: boe's have been calculated by converting gas at a ratio of 6 mcf
equals 1 boe, unless otherwise stated.)
>>
Production revenues for 2000 doubled to $13,151,082 from $6,587,642 in
1999. Cash flow from operations increased 134% in 2000 to $4,529,637, from
$1,939,617 the previous year. On a per share basis, this amounted to $0.217
per share, up from $0.098 per share in 1999. The Company had a record net
income of $1,986,795 in 2000, ($0.095per share) versus $44,849 ($0.002 per
share) in 1999. These increases were largely a result of higher commodity
prices, higher production volumes from the Company's successful drilling
programs, and the inclusion of a full year of production from the assets of
Barra Resources Inc., the company Gentry acquired in the third quarter of
1999.
The Company's drilling program was particularly successful in 2000, with
the Company participating in the drilling of a total of 38 wells during the
year that resulted in 28 successful oil wells, 6 successful gas wells, 1
capped well and 3 wells that were dry and abandoned for an overall success
rate of 92%. Building on the Company's increased size and momentum, Gentry is
now taking larger working interests in its various drilling programs.
Crude oil and natural gas liquids accounted for 72% of Gentry's 2000
production, with natural gas accounting for 28%. Oil and NGL production
averaged 837 bbls/d during the year, up 29% from 1999 levels, while natural
gas production reached 1,997 mcf/d, a 45% improvement over 1999 figures. On a
boe basis, Gentry averaged 1,170 boe/d, an increase of 33% over the 878 boe/d
produced in 1999.
Proved plus probable reserves grew by 20% to 4,902 mboe compared to the
previous year's total of 4,089 mboe. The net present value of these reserves,
discounted at 10%, was $33.8 million, versus $25.8 million in 1999,
representing a 31% increase. Gentry continues to maintain a long reserve life
index, which stands at 11.5 years.
Finding and development costs on a proved basis were an impressive $3.20
per boe versus $2.33 per boe in 1999. On a proved and probable basis, finding
and development costs are $2.68 for 2000 versus $1.65 in 1999.
In the first quarter of 2000, the Company participated in a three-well
drilling program in the Thornbury area of north-east Alberta, resulting in two
gas wells and one abandoned well. In addition, five wells from the previous
drilling program were tied-in. Future plans include continuing to develop and
increase the reserves and deliverability of the existing field. The Company
owns an 18.3% working interest in the Thornbury lands, which currently produce
376 mcf/d net to Gentry.
At Baldwinton, the recent infill drilling program has added significantly
to the Company's overall production and reserves. In 2000, six wells were
drilled into this reservoir, resulting in five producing oil wells and one
producing gas well. Product from the gas well will be used to run the
Baldwinton facilities. The Company and its partners have recorded several
seismic lines in this area and identified a significant number of locations
that are to be drilled later this year. Gentry owns a 30.5% working interest
in the Baldwinton lands, which currently produce 432 bbls/d, net to Gentry.
In Provost, five successful wells were drilled in 2000. Three of the
wells were gas wells while the remaining two were drilled for oil. Nine
additional locations are currently under review for drilling in the second and
third quarter of 2001. The Company maintains working interests in the Provost
area varying from 26 to 32%.
In the third quarter, Gentry participated in the drilling of a well in
the Grizzly area of northwestern Alberta. The well was dry and was
subsequently abandoned. By virtue of participating in the well, Gentry has
earned a 50% interest in the surrounding lands and is currently reviewing
other prospects.
Also in the third quarter, the Company participated in a horizontal
injection scheme that is expected to increase both production and reserves in
the Benson area of southeastern Saskatchewan. Additionally, the Company is
participating in the drilling of three horizontal wells that have been
oriented for maximum benefit from the newly pressured reservoir. The Company
expects to see benefits from the injection scheme within six months. Gentry
maintains a 10.9% working interest in this core property.
In the fourth quarter, Gentry participated in the drilling of one
successful gas well in the Carrot Creek area, of west central Alberta. The
well, in which Gentry owns a small working interest, is currently producing
approximately one mmcf/d.
Also in the fourth quarter, Gentry announced that it had entered into a
Business Combination Agreement with Sloane whereby Gentry and Sloane would
Amalgamate and carry on business as Gentry. This transaction was completed
March 1, 2001 and resulted in Gentry adding 619 mboe of proven reserves and 2
mmcf/d to its production profile.
Gentry holds a 40% interest in Stratic Energy Corporation ("Stratic"), a
company focused exclusively on international exploration, primarily in north
and west Africa. During 2000, Stratic completed strategic planning for an
ambitious yet balanced program of exploration initiatives in Côte d'Ivoire and
Gabon, West Africa.
Early in the third quarter of 2001, Stratic will participate in the
drilling of its first international well onshore Gabon. Stratic holds a 35%
working interest in the 325 square kilometer Ofoubou Ankanni Block. A road has
been constructed to the drilling location and a drilling rig has recently been
contracted.
Stratic also holds an 11% working interest in the 793 square kilometer
shallow water Block CI-102, and a 10% interest in the more than four times
larger deeper-water Block CI-103, both located offshore Côte d'Ivoire. Stratic
and its partner, Canadian Natural Resources, are currently processing and
interpreting a large 3D seismic survey over portions of the joint venture's
two exploration blocks.
In late March of 2001, Canadian Natural Resources ("CNRL") announced that
it discovered oil in the adjoining deep water offshore Block CI-40. Two drill
stem tests on selected intervals from the Baobab 1X well resulted in a
combined flow rate above 6,700 bbls/d of 22-23 degrees API oil. Baobab lies
just south of the Espoir field, which is currently being redeveloped by CNRL
and immediately offsets Stratic's blocks to the east.
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 looks forward to reporting on its progress as the year
unfolds and building upon its successes to date.
-30-
For further information: Hugh Ross, President & Chief Executive Officer,
(403) 264-6161; Ketan Panchmatia, Chief Financial Officer, (403) 264-6161;
Roger Fullerton, Manager, Investor Relations, (612) 929-7243,, Website:
www.gentryresources.com Email: gentry@gentryresources.com
To request a free copy of this organization's annual report, please go to
www.newswire.ca and click on reports@cnw.
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