FINANCING / Tri Link Resources reports 1st 9 months results
To the end of the third quarter of Tri Link's fiscal year, production volumes
were 13 percent higher than the same period of the prior year. Oil price
realizations were 9 percent lower than last year, while gas prices increased
by 7 percent. Highlights for the first nine months of the year include:
.. two new pool discoveries during the third quarter, bringing the total
for the year to date to 4 new pools
.. based on an independent, mid-year reserve evaluation, the Company
expects finding costs for the year to be maintained at attractive
levels
.. continued momentum on building oil production with oil volumes up by 6,
9 and 12 percent over the respective first, second and third quarters of
the prior year
.. gas production has remained relatively constant during this year, as
expected, but was 31 percent higher than the prior year
.. cash flow has remained at the same level as the prior year, at $39.4
million or $1.87 per share this year compared to $1.89 last year
.. as a result of weaker oil prices and a higher depletion provision,
earnings declined 14 percent to $9.5 million ($0.45 per share) compared
to last year's $11.1 million ($0.53 per share)
Tri Link continues its aggressive exploration strategy. Commencing in the
fourth quarter, and continuing over the next year, the Company will drill a
number of deep test wells throughout the 300,000 acre Hazelwood Project.
These tests are designed to evaluate the productive potential of deeper
zones and, over time, are anticipated to complement existing production from
shallower zones in this project area.
Current industry conditions are challenging, with commodity price outlooks
not strong, in the near term. Management continues to take a longer term view
through the inevitable commodity price cycles. Tri Link's reserve base,
primarily composed of long reserve life, light and high quality medium crude
oil, provides the underlying support to withstand periods of price weakness.
The Company's strong land and technical bases provide the foundation to
generate long term growth.
TRI LINK RESOURCES LTD.
FINANCIAL AND OPERATING SUMMARY
Three Months Ended Nine Months Ended
December 31, December 31,
1997 1996 %+/- 1997 1996 %+/-
------- ------- ------ ------ ------- -----
Financial
----------
Revenue, net of
royalties ($000) 25,230 23,466 +8 68,621 62,377 +10
Cash flow from
operations ($000) 14,419 15,195 -5 39,397 39,392 -
Earnings ($000) 3,814 4,525 -16 9,482 11,062 -14
Cash flow from
operations per share
- basic ($) 0.68 0.73 -7 1.87 1.89 -1
Cash flow from
operations per share
- fully diluted ($) 0.68 0.69 -1 1.80 1.80 -
Earnings per share
- basic ($) 0.18 0.22 -18 0.45 0.53 -15
Earnings per share
- fully diluted ($) 0.18 0.20 -10 0.44 0.51 -14
Capital expenditures
($000) 45,933 26,221 +75 107,056 68,933 +55
Long term debt ($000) 121,130 71,730 +69
Average common shares
(000) 21,022 20,858 + 1
Average production volumes
--------------------------
Oil (bbl/d) 12,196 10.908 +12 11,176 10,237 +9
Gas (mcf/d) 32,525 30,216 +8 33,146 25,388 +31
Total (boe/d) 15,449 13,930 +11 14,491 12,776 +13
Average sales prices
---------------------
Oil($/bbl) 23.31 26.36 -12 23.23 25.53 -9
Gas ($/mcf) 1.60 1.46 +10 1.47 1.37 +7
Per barrel oil equivalent
-------------------------
Selling price,
including hedging 21.76 23.81 -9 21.28 23.17 -8
Royalties 4.01 5.50 -27 4.06 5.42 -25
operating expense 4.56 4.13 +10 4.69 4.17 +12
Field netback 13.19 14.18 -7 12.53 13.58 -8
Administrative expense 1.47 0.97 +52 1.20 0.97 +24
Interest expense 0.90 0.57 +58 0.78 0.66 +18
Cash taxes 0.69 0.77 -10 0.67 0.74 -9
Corporate netback 10.13 11.87 -15 9.88 11.21 -12
(1) Administrative costs include approximately $400,000 associated with the
terminated corporate reorganization proposal
For further information contact:
J. Bernie McCashin
Vice President, Corporate Affairs OR
G. W. Burns
President and C.E.O.
Telephone (403) 262-4601 |
