FIELD ACTIVITIES / MMRL announces Record Production & Reserve Growth
TORONTO, Feb. 12 /CNW/ - MMRL is pleased to announce that it achieved
record production in 1997 accompanied by a 64% increase in total oil and gas
reserves.
The Company is also pleased to report another exploration success onshore
in the UK. It has made an oil discovery on its Keddington prospect with
initial production of 200 barrels per day.
Crude oil and natural gas liquids production in 1997 averaged 6,514
barrels per day, a 21% increase over the previous year. Natural gas production
averaged 14.1 mmcf per day representing an increase of 38% over 1996.
Reserves increased on a proven and probable basis by 64% to 45 million
BOE as of December 31, 1997. On a proven and half probable basis, reserves
increased by 43% and on a proven basis reserves increased by 14%. This is the
largest increase in total reserves by volume for the company in its history
and represents a reserve replacement ratio of 4.5 times on a proven and half
probable basis.
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Crude Oil Natural Future Net Cash Flow
(as at December & NGLs Gas ($000's, discounted)
31, 1997) (mbbls) (mmcf) BOE(x) 0% 10% 15%
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Proven 15,486 49,834 21,855 254,023 164,643 140,919
Probable 13,364 61,961 23,140 268,623 132,913 102,165
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Total 28,850 111,795 44,995 522,646 297,556 243,084
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Proven & Half
Probable 22,168 80,814 33,425 388,334 231,099 192,002
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(x) The Company has adopted the international practice of reporting
barrels of oil equivalent for its activities outside Canada using a
6:1 conversion ratio for gas to oil. For Canadian activities, a 10:1
conversion ratio continues to be used.
In the past year, MMRL's UK exploration drilling program got well
underway resulting in the discovery of two new major oil pools and a doubling
of reserves at its Saltfleetby discovery. This onshore success, along with its
new initiatives offshore in the UK sector of the North Sea, led to the
considerable growth in reserves as well as contributing to a finding and
development cost of $4.76 per BOE on a proven plus half probable basis.
The Company's drilling results are summarized as follows:
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1997
Gross Net
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Oil Wells 29 18
Gas Wells 19 6
Dry and Abandoned Wells 23 13
Injector Wells 1 0
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Total Wells 72 37
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Success Ratio 68% 65%
>>
The Company expanded its UK onshore undeveloped land base substantially
in 1997 and an application for exploration licences totaling a further three
quarters of a million acres was submitted late in the year. An announcement of
the results of this licence application is expected shortly. These onshore
interests along with its 1997 offshore UK acquisitions provide a wide range of
exploration and development opportunities for MMRL.
MMRL invested heavily in 1997 in projects which are expected to
contribute to its long term growth. A large inventory of exploration and
development projects was assembled during the year and exploitation of these
opportunities will be aggressively pursued in 1998.
Audited financial results for 1997 are expected to be available in late
March. The Company's shares trade on the Toronto Stock Exchange under the
symbol MM. |
