Subj: Stockwatch: Hegco Canada Inc - News Release
Date: 5/31/01 1:04:59 PM Pacific Daylight Time
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Hegco Canada earns $245,108 in nine months
Hegco Canada Inc HEG
Shares issued 46,815,157 May 30 close $0.50
Thu 31 May 2001 News Release
Mr. Michael Cederstrom reports
For the third quarter of fiscal year 2001 the company has increased its
profitability.
For the nine months ended March 31, 2001, the company reported revenue of
$5,842,162 (U.S.) ($8,987,942 (Canadian)) or 18 Canadian cents per share
(all per share amounts noted herein are on a diluted basis), as compared
with revenue of $1,673,432 (U.S.) ($2,574,511 (Canadian)), or five Canadian
cents in the first nine months of 2000 an increase of 249 per cent. Cash
flow EBITDA (earnings before interest, taxes, depreciation and
amortization) for the first nine months was $1,315,527 (U.S.) ($2,023,888
(Canadian)), or four Canadian cents per share as compared with (one
Canadian cent) for the similar period of last year.
As of March 31, 2001, the company has reduced its obligation for the
forward sale of gas to West Coast Energy by the sum of approximately
$3,976,722 (Canadian) or 27 per cent in just six months of repayment.
STATEMENT OF EARNINGS
Nine months ended March 31
2001 2000
Revenue
Oil and gas (net
of royalties
and taxes) $ 4,820,018 $ 921,235
Oil and gas
servicing 889,090 692,397
Other 133,054 59,800
----------- -----------
Total 5,842,162 1,673,432
----------- -----------
Expenses
Oil and gas
production 2,939,612 296,908
Oil and gas
servicing 356,218 329,276
General and
admin 1,230,805 1,333,019
Depletion and
depreciation 334,820 165,295
Interest 735,599 71,709
----------- -----------
Total
expenses 5,597,054 2,196,207
----------- -----------
Net gain
(loss) $ 245,108 $ (522,775)
=========== ===========
Hegco earned $326,260 (U.S.) ($501,938 (Canadian)) for the quarter ended
March 31, 2001, on revenues of $2,807,539 (U.S.) ($4,319,290 (Canadian))
for the quarter. Cash flow from operations for the quarter was $455,934
(U.S.) ($701,437 (Canadian)) and cash flow EBITDA for the quarter was
$726,381 (U.S.) ($1,117,509 (Canadian)).
The following table summarizes the company's production for the first three
quarters of 2000:
Production 3/31/01 12/31/00
Natural
gas (mcf) 474,372 470,164
Liquids
(bbl) 21,398 19,922
Equivalent
(mcfe/d) 5,509 3,276
Production 9/30/00 Year to Date
Natural
gas (mcf) 127,107 1,071,643
Liquids
(bbl) 15,977 57,297
Equivalent
(mcfe/d) 2,477 5,166
Gas and liquids production has increased every quarter this fiscal year.
Production increased 32 per cent from the first quarter to the second
quarter and an additional 68 per cent from the second quarter to the third
quarter. Production revenues for the nine months ended March 31, 2001,
totalled $4,820,018 (U.S.) ($7,415,412 (Canadian)), an increase of 423 per
cent over the prior year's comparable period. It must be noted that the
Alberta properties were only in production for seven months of the
nine-month period.
The company will host a conference call on Friday, June 1, 2001, at 4 p.m.
ET. The number for the conference call will be 800-886-9041 with a
participant code number of 127145. The call is scheduled for a 30-minute
duration.
WARNING: The company relies upon litigation protection for
"forward-looking" statements.
(c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com |
