REMINGTON ENERGY LTD. ANNOUNCES FIRST QUARTER RESULTS
CALGARY, May 5 /CNW/ - Remington today released production and financial highlights for the three months ended March 31, 1997. Overall production averaged 83 mmcf/d in natural gas and 3,800 bbls/d of liquid and NGL's, up from 16 mmcf/d and 1,042 bbls/d for the same quarter in 1996. Cash flow increased to $14.5 million from $2.7 million in the first quarter of 1996. These production and cash flow figures reflect the acquisition of the B.C. Star Partnership, effective January 1, 1997.
($000's except per share numbers)
1997 1996
---- ----
- Oil & gas revenue 25,736 4,380
- Royalties & operations 7,942 1,458
- Interest & G&A 3,096 208
- Depreciation & depletion 8,111 2,403
- Cash flow 14,549 2,694
- Cash flow per share .91 .22
- Earnings 2,889 248
- Earnings per share .18 .02
- Basic weighted average 15,955 12,550
shares outstanding (000's)
The average gas price during the first quarter of 1997 was $2.26 per mcf, and liquids averaged $25.57 per barrel. During the first quarter of 1997, Remington spent a total of $36 million in capital and debt at the end of the quarter was $215 million, which subsequent to the end of the quarter was reduced by $106 million dollars through the issuance of 5.3 million common shares at $20.00 per share.
Operationally, Remington has now completed its ninth horizontal well at its West Stoddart project. Four of the nine wells are now tied in to the facility, with the balance of the wells to be tied in conjunction with the battery expansion in June 1997. In addition to the horizontal wells at West Stoddart, Remington also cased three exploratory wells in Northeast B.C., which will be completed immediately following Spring break-up. The Company is also pleased to announce that it has completed its' Cache Creek 3-D seismic program ahead of schedule which will now allow the Company to interpret the data during break up and commence development drilling on the Cache Creek discovery during the summer of 1997. The fifteen square mile 3-D program at Red Creek is currently being shot and will also be interpreted during Spring break up in order for drilling to commence during the third quarter of 1997.
Remington currently has four drilling rigs under contract and will keep those rigs operational through to Spring break up of 1998. Remington is also announcing an increase in its capital budget for 1997 from $40 million to $266 million, of which $181 million is allocated to the acquisition of the B.C. Star Partnership. The Company's capital program will continue to be reviewed on a quarterly basis.
Remington is also pleased to announce the appointment of Mr. Stan G. Weber to the position of Vice President, Finance and Chief Financial Officer. Mr. Weber has extensive experience in the oil and gas industry and will make a valuable addition to Remington's management team. |
