EARNINGS / Saxon Announces Audited 1997 Results
TSE SYMBOL: SXN
FEBRUARY 18, 1998
CALGARY, ALBERTA--Saxon Petroleum Inc. reported net income for
year ended December 31, 1997 of $61,542 ($0.00 per share) compared
to $358,993 ($0.00 per share) for the year ended December 31,
1996. Cash flow for this same period was $9,276,105 or $0.06 per
fully diluted share versus $6,360,280 or $0.05 per fully diluted
share in the 1996. The results for 1997 include a charge of $1.0
million for costs associated with the share evaluation and
enhancement process. If these costs are excluded, the net income
would be $0.6 million ($0.00 per share) and cash flow would be
$10.3 million ($0.07 per share).
Production volumes in 1997 averaged 2,868 barrels of oil
equivalent per day (BOE/D) for a 53 percent increase over the
corresponding period in 1996. Exit rates for production in
December 1997 were 3,220 BOE/D compared to 2,440 BOE/D in December
1996. In addition to increased production, Saxon improved its
netbacks to $12.84 per BOE in 1997 versus $11.76 per BOE in 1996.
/T/
Percent
1997 1996 Change
------------------------------------------------------------
Net Income $0.06 million $0.4 million (85)
Per share, fully diluted - - -
Cash flow from operations $9.3 million $6.4 million 45
Per share, fully diluted $0.06 $0.05 20
Revenues $23.8 million $15.3 million 56
Total productoin -
BOE's/day 2,868 1,875 53
Oil and NGL's production/
Bbl/day 1,968 1,306 51
Average Oil and NGL
price/Bbl $24.45 $25.30 ( 3)
Natural gas production/
Mcf/day 8,996 5,694 58
Average Gas price/Mcf $1.89 $1.48 28
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/T/
Saxon continued the development of its Bigoray operations and
devoted the majority of its capital expenditures of $49.9 million
to this field. Saxon is currently expanding its waterflood to
remove production restrictions from certain wells in Bigoray.
Expenditures were also made in Kaybob South, increasing natural
gas production for that area. In addition, further Kaybob South
gas will be tied-in in early 1998 after the completion of a
pipeline extension by the partner in the area.
The Board of Directors is continuing to review several
alternatives with respect to the share value enhancement program
which was announced in August 1997. Included in this evaluation
is the scope of the 1998 capital expenditure program and in this
regard an announcement will be forthcoming in the near future. |
