EARNINGS / Place Resources reports 1997 Results
CALGARY, Feb. 25 /CNW/ -
Year ended December 31, 1997
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Record cash flow of $5.2 million ($0.42 per share) was posted for 1997,
essentially unchanged from the $5.2 million ($0.41 per share) reported in the
prior year. Revenue was $11.8 million in 1997, while net income of $1.2
million ($0.10 per share) was up 61 percent compared to the $.7 million ($0.06
per share) reported a year earlier. Increased net income was the result of
reduced non-cash expenses relating to the low cost base of the Company's
reserves.
Oil and liquids production of 1,014 barrels per day grew by 10 percent
over the prior year, while natural gas production declined to 4.2 million
cubic feet per day (mmcf). During 1997, Place received an average price of
$23.06 per barrel of oil and liquids and $1.89 per mcf of natural gas which
compares to $22.63 and $1.48 in the prior year.
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Summary Year ended December 31 Fourth Quarter
------- % Increase % Increase
1997 1996 (Decrease) 1997 1996 (Decrease)
---- ---- ---------- ---- ---- ----------
($000's)
Revenue 11,765 11,516 2 3,018 3,493 (14)
Cash Flow 5,222 5,157 1 1,441 1,574 (8)
Net Income 1,208 749 61 530 215 147
Per Share ($)
Cash Flow 0.42 0.41 1 0.11 0.13 (9)
Net Income 0.10 0.06 61 0.04 0.02 148
Production per day
Oil and NGL's
(bbls) 1,014 920 10 1,029 1,028 -
Natural gas
(mmcf) 4.2 6.7 (38) 4.7 6.4 (26)
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Fourth Quarter - 1997
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Fourth quarter cash flow was $1.4 million ($0.11 per share) down slightly
from $1.6 million ($0.13 per share) in the previous year. Revenue for the
quarter was $3.0 million compared to $3.5 million in 1996. Net earnings for
the quarter were up by 114% to $0.5 million ($0.04 per share) from ($0.02 per
share) in the prior year.
Oil and liquids production of 1,029 barrels per day at an average price
of $22.04 per barrel, when compared to 1,028 barrels per day in 1996 at $25.30
per barrel, resulted in lower oil and gas revenues for the quarter. Natural
gas production declined to 4.7 mmcf per day, resulting in lower gas revenues,
but were partially offset by higher gas prices of $1.93 per mcf, up from $1.75
per mcf received a year earlier.
Outlook
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1997 was a year of reserve growth and restructuring, as Place sold mature
non-operated gas properties and invested the proceeds in Place operated, light
oil properties and facilities and two gas wells. In the fourth quarter, Place
added gas production from two Kiskatinaw gas wells at Mulligan, Alberta, and
completed installation of the Charlie Lake waterflood, also at Mulligan. Place
operates the Mulligan field, with an 80% working interest in the gas wells and
89% in the waterflood.
1998 is already off to a good start. In the first quarter, Place has
completed unitization and commenced water injection in the Charlie Lake
waterflood at Elmworth, Alberta. Place operates and owns 59% of the
waterflood. From both the Mulligan and Elmworth waterfloods, the production
rates are anticipated to increase for two to three years to peak production
rates. This, combined with Place operating more of its production, and
hedging 50% of its 1998 oil and gas production at average oil and gas prices
of $27.03 per barrel (WTI at Edmonton) and $1.82 per mcf (Alberta NIT)
respectively, bodes well for 1998 cash flow and earnings.
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Reserves (Proven + 1/2 Probable) 1997 1996 % Increase
---- ---- ----------
Oil and NGL's (thousand bbls) 5,344 4,594 16
Natural Gas (bcf) 26.1 25.3 3
Present Value (15%) ($000's) 55,321 45,759 21
NAV per share 3.67 3.03 21
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