CORP / OGY Petroleums - Corporate Update
TSE SYMBOL: OGY
FEBRUARY 12, 1998
CALGARY, ALBERTA--OGY Petroleums Ltd. ("OGY") is pleased to
provide a preliminary summary of its comparative 1997 year end
results and an update of the Company's first quarter 1998
activity.
/T/
HIGHLIGHTS Percent
Year ended December 31 1997 1996 Change
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FINANCIAL (thousands)(x) Preliminary
Oil and Gas Revenue $9,970 $3,104 +221
Cash Flow 5,270 1,711 +210
Capital Expenditures 17,843 3,862 +362
PER SHARE
Cash Flow 0.27 0.11 +173
OPERATING
Average Daily Production
Oil (bbls) 627 65 +864
Gas (mcf) 4,816 4,100 + 17
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Average Selling Price
Oil ($/bbl) (xx) $22.71 $27.44 - 17
Gas ($/mcf) 1.99 1.66 + 20
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Average Number of Common Shares
Outstanding (thousands) 19,508 15,943 + 22
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/T/
(xx) After hedging 350 BOPD at U.S. $22.02
OGY posted solid gains in all areas of corporate performance in
1997. Growth through exploration accounted for the majority of
OGY's 1997 success. Production volume growth through exploration
and development drilling accounted for an increase of over 1000
barrels of oil equivalent (BOE) per day during 1997. Combined
with the growth in production from the producing properties
purchased, OGY took its production from approximately 300 BOE per
day to over 1800 BOE per day by year end 1997.
The majority of this production growth resulted from two new pool
discoveries made by OGY in 1997. A Lloydminster oil pool in
Edgerton is presently producing about 225 BOPD net to OGY (50
percent) and in the Provost area, the Company's Fleeinghorse oil
pool has had ten successful oil wells drilled into it and these
wells are producing between 50 and 150 BOPD. OGY's net share of
production from this pool (66 2/3 percent) will be over 600 BOPD
by month's end. Future development plans for this property will
be timed to the construction and installation of a battery and
related facilities, expected to be completed by mid-year.
To date in 1998, OGY has drilled seven wells, resulting in six oil
wells and one water injection well. An additional 15 wells will
be drilled during the first half of this year with an expanded
program planned for the remainder of 1998. Current production is
expected to average over 2200 BOE per day by the end of this month
(February) and continued growth will be realized on a quarterly
basis throughout the rest of this year. |
