FIELD ACTIVITIES / Backer Petroleum Update
BACKER PETROLEUM CORP. - ANNOUNCEMENTS
1997-12-23
VANCOUVER, B.C.
Backer Petroleum Corp. (Trading Symbol: "BCM") announces that...
Darwin wells to add 250 BOE per day..
With the onset of cold weather, the Company's Darwin gas property, located 60
miles north of Peace River,Alberta, is now accessible. Pipeline and
construction crews have been mobilized by the operator, and operations will
commence before the end of December.
Natural gas processing facilities capable of handling up to 10 million cubic
feet (Mmcf) per day and a gas sales line will be constructed to which three
gas wells drilled last winter, in which Backer holds a 30% working interest
before payout (18% after payout), will be connected. It is expected that all
construction will be completed in early to mid February, 1998.
Gas transmission agreements have been executed with Nova Gas Transmission,
and the anticipated onstream date for natural gas sales is mid February,
1998.
Backer's share of daily gas production is forecast at 2.5 Mmcf per day or the
equivalent of 250 barrels of oil per day. Depending on gas prices, Backer's
share of Darwin gas sales will increase cash flow by $60,000 per month.
Three additional wells are planned to be drilled in January or February 1998.
Contingent on drilling resultsand surface conditions, the additional wells
may be tied-in before 1998 spring break-up, further increasing Backer's 1998
cash flow.
Third Quarter Results...
Operating cash flow was $783,854 for the nine months ended September 30,
1997. Net income was $278,980.
Earnings and Cash Flow per Share...
There were 6,769,064 Common shares, and 68,781 Preferred shares convertible
to 412,686 Common shares outstanding at September 30, 1997, as well as
Options to purchase a further 325,000 Common shares. Earnings per share on a
total 7,506,750 fully diluted shares were 3.72 cents for the nine months.
Cash Flow per share, fully diluted, was 10.44 cents per share for the nine
months ended September 30, 1997.
Continuance out of B.C. into Alberta...
Effective October 29, 1997, the Company has been continued out of the
jurisdiction of the Company Act (British Columba) and into the jurisdiction
of the Alberta Business Corporations Act. The continuance was approved by
Special Resolution of the shareholders of the Company at an Extraordinary
General Meeting held October 7, 1997. The Certificate of Continuance was
issued by the Alberta Registries October 29, 1997. |
