KERM/ Golden Trend;
Here's their last two news releases -- which are the ones that attracted my interest. Somehow the numbers just don't seem right. Why would a compnay with .24 cash flow in the first two quarters (and a projected 1-yr. cash flow of .60) be trading at $1.31?
Anyway, here it is in the company's words:
Golden Trend - 1997 Second Quarter Results
CALGARY, ALBERTA--Golden Trend Petroleum Ltd. presents its interim
report for the six months ended June 30, 1997.
GOLDEN TREND INCREASES PRODUCTION AND CASH FLOW BY 200 PERCENT
HIGHLIGHTS (compared to the first six months of 1996)
- 200 percent increase in average daily production
- 200 percent growth in cash flow
- 500 percent rise in net income
- 70 percent success rate for wells drilled
During the second quarter of 1997, Golden Trend averaged 505
boepd, an increase of 200 percent over the second quarter of 1996
and a 170 percent increase over 1996 annual production average.
Oil & gas revenues totaled $1,943,841, an increase of 120 percent.
Cash flow increased 200 percent to $980,995 ($0.24 per share)
from $319,129 ($0.09 per share).
Since the end of 1996, Golden Trend has drilled a successful well
at Marten Hills and subsequently acquired its partner's working
interest at Marten Hills. In addition, the Company drilled a
successful well at Coutts, completed the optimization project at
Coutts, and acquired a 50 percent interest in the Redwater gas
field, resulting in a current production rate in excess of 600
boepd. Golden Trend will be drilling 2 more wells at Coutts and
will optimize the Redwater area during the remainder of 1997
resulting in a projected exit rate of 800 boepd and cash flow per
Class A share of $0.60.
-30-
Golden Trend Announces Equity Offering And Drills And Cases Well At Redwater, Alberta
CALGARY, ALBERTA--Golden Trend Petroleum Ltd. (GTP.A - ASE)
announces that it has entered into an engagement agreement with
Rogers & Partners Securities Inc. to raise a minimum of $1,500,000
and a maximum of $2,500,000 through the issuance of Units. Each
Unit will be comprised of one Class "A" common share and one Class
"A" common share purchase warrant ("Warrant"), with each Warrant
exercisable into one Class "A" common share at a set price for a
period of 18 months from the closing of the offering. The
intended use of proceeds are for the acquisition of oil and gas
properties, continued development and optimization of acquired
properties and to reduce debt. Subject to regulatory approval,
the Units and Warrants will be qualified by a prospectus to be
filed in Alberta and other selling jurisdictions.
Golden Trend has, in the past week, drilled and cased a potential
gas well in its recently-acquired Redwater property. Log
interpretation of this well indicates three gas-bearing zones
totalling 15 metres of gross pay. Golden Trend holds a 50 percent
working interest in this well.
Golden Trend Petroleum Ltd. is an aggressive and growing junior
oil and gas company listed on The Alberta Stock Exchange. In the
first half of 1997, Golden Trend reached record cash flow,
production and net income levels. Current corporate production
exceeds 600 boepd and is expected to exit 1997 at 800 boepd.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Golden Trend Petroleum Ltd.
Mr. Gary Nazar
President & C.E.O.
(403) 262-9800
(403) 262-9811 (FAX)
So now can ANYONE give me more information on this outfit?
Good luck to all,
Marcman |
