FIELD ACTIVITIES / Maxx Petroleum announces Reserve Additions
MAXX PETROLEUM LTD. today announced its reserve additions for 1997 based
on a third party, independant reserve report. During 1997, the Company
added 10 million barrels of oil equivalent (BOE) on an established basis
(proven plus one- half probable) and produced 2.5 million BOE resulting in
a net increase of 7.5 million BOE and production replacement of 402%.
At year end, the Company's total reserves increased 39% to 26.6
million barrels from 19.1 million barrels at year end 1996.
Significantly, the Company's reserve life index increased 20% to 10.7
years in 1997 compared to 8.9 in 1996. Finding and development (F&D)
costs for proven reserves also improved for the year, dropping 9% to
$6.64 per BOE compared to $7.30 per BOE in 1996. F & D costs for
established reserves in 1997 increased slightly by 3% as the additions
to probable reserves were not as large as in 1996. The Company's three
year average F&D costs for established reserves dropped to $6.28 per BOE
for the three years ended December 31, 1997 compared to $6.56 per BOE for
the three years ended December 31, 1996. Operating netbacks (before G
& A and interest expenses) for 1997 were $13.55 per BOE.
Change
1997 1996 Amount %
Proven
Oil and NGL's (MBbls) 19,392 13,190 6,202 47
Natural gas (MMcf) 38,762 34,897 3,865 11
Total Proven (MBOE)* 23,268 16,680 6,588 39
Probable (risked at 50%)
Oil and NGL's (MBbls) 2,653 1,891 762 40
Natural gas (MMcf) 7,139 5,574 1,565 28
Total Probable (MBOE)* 3,367 2,448 919 38
Total established reserves (MBOE)* 26,635 19,127 7,508 39
Reserve life index years
Proven 9.4 7.8 1.6 21
Proven plus probable 10.7 8.9 1.8 20
Finding and development costs ($/BOE)*
Proven 6.64 7.30 (0.66) (9)
Proven plus probable - 1 year 6.03 5.85 0.18 3
- 3 eyar avg 6.28 6.56 (0.28) (4)
Net asset value ($)/share 2.86 2.57 11 0.29
*10 MMcf of Natural gas = 1 MBOE
Production for the month of December 1997 of 8,400 BOE/D, exceeded the target
exit rate of 8,000 BOE/D by 400 BOE/D or 5% and the 1996 exit rate of 6,100
BOE/D by 2,300 BOE/D or 38%.
Net asset value of the Company using a 15% discount factor was $2.46 per
basic share as at December 31, 1997, compared to $2.25 per share at December
31, 1996.
Maxx Petroleum Ltd. is a junior oil and gas exploration and development
company based in Calgary, Alberta. Maxx shares trade on The Toronto Stock
Exchange under the symbol "MXP" and on the American Stock Exchange under the
symbol "MMX".
For further information please contact:
Burl N. Aycock, President
Brent T. Kirkby, Vice-President, Finance
900, 606 4th Street SW
Calgary, AB
T2P 1T1
Phone: (403) 261-6666 |
