EARNINGS / Encal Energy Ltd reports 1997 Results
CALGARY, Feb. 24 /CNW/ - Encal Energy Ltd. (TSE: ENL, NYSE: ECA)
announces its operating and financial results for the year ended December 31,
1997.
1997 Highlights
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Production
- 1997 production averaged 22,436 BOE per day compared to 17,803 BOE per
day in 1996, an increase of 26%
- Production during the fourth quarter averaged 24,855 BOE per day, an
increase of 27% over the same period in 1996.
- The exit production rate exceeded 26,000 BOE per day.
- Approximately 10,500 BOE per day of new production was added at an
average cost of below $15,000 per BOE per day.
Exploration
- Finding and development costs inclusive of all additions and revisions
were $6.92/BOE proven and $5.46/BOE proven plus probable.
- Net proven plus probable reserve additions amounted to 15.7 million
barrels of crude oil and NGL and 132.1 billion cubic feet of natural
gas or 28.9 million barrels of oil equivalent.
- These reserve additions exceeded annual total production by a multiple
of 3.5 times on a proven plus probable basis.
- 85% of reserve additions were generated by the drilling program
- 1997 was the most active year in Encal's history with the drilling of
181 gross wells resulting in 66 gas wells and 75 oil wells for an
overall success rate of 78%.
- Undeveloped land inventory for future exploration activity increased
by 20% to 719,500 net acres.
Financial
- 1997 revenue increased 35% to $167.8 million compared to $124.3
million in 1996.
- Funds from operations increased 27% to $84.1 million ($0.81 per share)
from $66.2 million in 1996 ($0.64 per share).
- Net earnings for the year ended December 31, 1997 were $13.0 million
($0.12 per share) compared to $11.5 million ($0.11 per share) in 1996.
- Net capital expenditures totalled $157.6 million in 1997 compared to
$109.3 million in 1996. The capital program was financed by cash
flow, debt and proceeds from the sales of minor properties.
- Net Asset Value per share increased 17% during 1997 to $5.08 per basic
common share from $4.35 in 1996.
- 1997 was another year where Encal improved its cost structure, with
General and Administrative costs averaging $1.07 per BOE ($1.26 per
BOE in 1996) and operating costs averaging $4.28 per BOE ($4.29 in
1996).
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1997 Financial Results
----------------------
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Year Ended December 31
($ thousands except per share amounts) 1997 1996 % Change
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Financial
Petroleum and Natural Gas Sales 167,846 124,294 +35
Average Product Prices
Natural Gas ($/mcf)
(after hedging losses) 1.87 1.61 +16
Crude Oil ($/bbl)
(after hedging losses) 23.38 24.08 -3
Natural Gas Liquids ($/bbl) 21.45 20.72 +4
Funds from Operations 84,101 66,195 +27
Per Common Share Basic 0.81 0.64 +27
Fully Diluted 0.77 0.62 +24
Net Earnings 13,031 11,518 +13
Per Common Share Basic 0.12 0.11 +9
Fully Diluted 0.12 0.11 +9
Net Capital Expenditures 157,558 109,280 +44
Long Term Debt 143,414 64,046 +124
Total Debt (including Working
Capital Deficiency) 153,823 79,007 +95
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Share Information (thousands)
Shares Outstanding at December 31
Basic 104,784 103,992 +1
Fully Diluted 110,577 109,922 +1
Weighted Average Shares Outstanding
for the Year
Basic 104,421 103,851 +1
Fully Diluted 110,334 108,111 +2
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1997 Operating Results
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Three Months % %
ended Dec 31 Change Year Ended Dec 31 Change
1997 1996 1997 1996
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Production
Natural Gas
(mcf per day) 137,981 120,306 +15 130,197 105,713 +23
Crude Oil
(bbls per day) 8,180 5,447 +50 6,931 5,432 +28
Natural Gas Liquids
(bbls per day) 2,877 2,068 +39 2,485 1,800 +38
Total
(BOE per day) 24,855 19,546 +27 22,436 17,803 +26
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1997 1996
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Reserves
Crude Oil and NGL (mbbls)
Proven 28,489 19,748 +44
Proven plus Probable 40,912 28,680 +43
Natural Gas (bcf)
Proven 410 351 +17
Proven plus Probable 605 520 +16
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Present Value of Future Cash Flow
Proven % Change Proven Plus Probable % Change
------ -------- -------------------- --------
1997 1996 1997 1996
---- ---- ---- ----
($ Millions -
Before Income Taxes)
Discounted at 10% 537 411 +31 739 571 +29
Discounted at 15% 441 339 +30 589 456 +29
The corporate reserves are prepared by Gilbert Laustsen Jung Associates
Ltd. as of January 1, 1998.
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1997 1996
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Drilling Activity Gross Net Gross Net
----- --- ----- ---
Natural Gas Wells 66 39.9 49 33.3
Crude Oil Wells 75 47.3 54 24.9
Dry Holes 40 31.2 40 25.5
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Total Wells 181 118.4 143 83.7
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Success Rate (%) 78 74 72 70
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1997 1996
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Net Capital Expenditures
($ thousands)
Land and Lease 18,013 20,581
Seismic 8,880 7,339
Drilling and Completions 72,996 41,129
Property Acquisitions 56,470 24,645
Property Dispositions (40,161) (12,343)
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Total Finding Expenditures 116,198 81,351
Facilities 38,887 26,071
Miscible Fluid and Other 2,473 1,858
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Total Finding and Development Expenditures 157,558 109,280
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Cumulative
1995-1997 1997 1996 1995
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Reserve Additions and Finding Costs
Net Capital Expenditures
($ thousands) 307,249 157,558 109,280 40,411
Proven
Net Reserve Additions (mBOE) 43,447 22,754 13,927 6,766
Finding Costs ($/BOE) 5.14 5.11 5.84 3.83
Finding and Development Costs
($/BOE) 7.07 6.92 7.85 5.97
Proven Plus Probable
Net Reserve Additions (mBOE) 51,435 28,876 14,941 7,618
Finding costs ($/BOE) 4.34 4.02 5.44 3.40
Finding and Development Costs
($/BOE) 5.97 5.46 7.31 5.30
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