Gentry Announces Impressive First Quarter Results
CALGARY, May 29 /CNW/ - Gentry Resources Ltd. ("Gentry") is pleased to
announce financial and operating results for the quarter ended March 31, 2001.
HIGHLIGHTS
- Gross revenues of $4,082,508 were 36% higher than the $2,992,751
recorded in the first three months of 2000.
- Cash flow was up 8% to $1,451,801 from $1,347,537 in the first three
months of 2000.
- Gentry recorded a profit of $827,868, up 58% from $524,068 recorded in
the corresponding period of 2000.
- Production was up 10% to 1,295 boe/d from 1,177 boe/d in the
comparative three-month period. Gentry's current production is 1,610
boe/d.
- Gentry completed its amalgamation with Sloane Petroleums Inc. effective
March 1, 2001.
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Financial Highlights
Three months ended March 31
2001 2000 % Change
------------------------------------------------------------------------
Gross Revenue 4,082,508 2,992,751 36%
Cash Flow From Operations 1,451,801 1,347,537 8%
Cash Flow Per Common Share 0.070 0.064 9%
Net Income 827,868 524,068 58%
Net Income Per Common Share 0.040 0.025 60%
Capital Expenditures, including the
acquisition of Sloane 2,646,138 524,071 405%
Weighted Average Number Of Common
Shares 20,832,969 21,216,092 (2%)
Operational Highlights
Three months ended March 31
2001 2000 % Change
------------------------------------------------------------------------
Production
Crude Oil and NGLs (bbls/d) 891 865 3%
Natural Gas (mcf/d) 2,426 1,869 30%
Oil Equivalent (boe/d)(1) 1,295 1,177 10%
------------------------------------------------------------------------
Commodity Prices
Crude Oil ($/bbl) $25.64 $31.25 (18%)
Natural Gas ($/mcf) $9.29 $3.14 196%
(1) Gas is converted into boe on the basis of 6 mcf per boe.
OPERATING PERFORMANCE
Crude oil and ngls volumes increased 3% to 891 bbls/d during the first
three months of 2001, compared to 865 bbls/d in the corresponding period in
2000. Natural gas sales increased 30% to 2,426 mcf/d from 1,869 mcf/d a year
ago.
FINANCIAL PERFORMANCE
Production revenues for the first three months of 2001 increased 36% to
$4,082,508, compared with $2,992,571 in the corresponding period in 2000. Cash
flow from operations increased 8% to $1,451,801 ($0.070 per share) compared to
$1,347,537 ($0.064 per share), while net income after taxes was $827,868
($0.040 per share) compared to $524,068 ($0.025 per share) a year ago,
representing a 58% increase.
This year's three-month crude oil and ngl prices averaged $25.64 per
barrel compared to $31.25 per barrel in the first quarter of 2000. Natural gas
prices were up significantly, averaging $9.29 per mcf compared to $3.14 per
mcf in the corresponding period.
DRILLING UPDATE
The Company has embarked on a nine-well drilling program in the West
Provost area along with a three-well drilling program in its Provost East
property, both located in central Alberta. These programs will target both
Viking and Ellerslie gas and, typical of the area, all well locations are
close to pipeline and gas plant infrastructure. The Company owns varying
working interests ranging from 23% to 32% in these lands.
In the Thornbury area of northeastern Alberta, a four-well drilling
program commenced in January resulted in three gas wells and one dry hole.
These wells are expected to average approximately 300 to 350 mcf/d with
reserves of one bcf per section. The Company has an 18.3% working interest in
these lands, which consist of 93 sections.
Gentry will begin exploration immediately on its recently announced
blocks of land totaling 55 sections (35,200 acres) of deep hydrocarbon rights,
located in southern Alberta. Five exploration wells will be drilled by the
fourth quarter of 2001 along with acquiring a 3D seismic program to fulfill
Gentry's earn-in commitment on the lands. Following earn-in, Gentry will
continue to operate and explore the remaining lands.
In southwest Saskatchewan, two wells will be drilled prior to the end of
the second quarter on the Company's Baldwinton lands, where drilling results
to date have added reserves at approximately $2.15 per barrel. Gentry
maintains a 30.5% working interest in these lands.
In the Dollard Unit of southwest Saskatchewan, additional infill wells
are planned for the third quarter of 2001. Typical of Gentry's assets, this
property has a long life, low decline reserve base that results in steady,
predictable cash flow. This unit possesses a high recovery factor due in part
to excellent reservoir characteristics and a strong natural water drive
mechanism. Gentry and the operator are the only two partners in this unit.
The Company is preparing a large seismic program to evaluate prospective
oil-bearing reservoirs on various Company lands in southwest Saskatchewan.
Gentry is continuing to acquire significant tracts of land in this region of
the province.
In the Benson Unit of southeastern Saskatchewan, the Company recently
participated in three horizontal wells that have been oriented to maximize the
benefit from a new pressure maintenance scheme. The Company expects to see
production increases from this injection scheme in the coming months. Gentry
maintains a 10.9% working interest in this core property.
In southwestern Manitoba, Gentry holds the largest working interest the
Virden Roselea Unit next to the operator, Chevron Canada. This property is
also characteristic of the Company's asset base in that it has long-life
reserves with low decline rates and significant infill drilling potential. The
operator plans to drill seven infill wells prior to the end of the third
quarter of 2001.
The Company's increased level of drilling activity is continuing to
generate strong cash flow and production performance to maintain Gentry
consistent growth trend.
Gentry currently has 21,232,594 common shares issued and outstanding and
trades on the Toronto Stock Exchange under the symbol "GNY".
For further information: Hugh Ross, President & Chief Executive Officer,
(403) 264-6161, Ketan Panchmatia, Chief Financial Officer, (403) 264-6161, R.
Gordon McKay, Chief Operating Officer, (403) 264-6161, Roger Fullerton,
Manager, Investor Relations, (952) 929-7243, Website: www.gentryresources.com,
Email: gentry@gentryresources.com |
