EARNINGS / Brigdon Resources reports 1st 9 months Results
CALGARY, Feb. 27 /CNW/ - Brigdon Resources Inc. (TSE - BRG.A) of Calgary
today released its operating and financial results for the nine months ended
December 31, 1997.
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Nine Months Ended December 31
1997 1996
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Revenue $2,672,000 $3,471,000
Cash Flow $1,176,000 $2,049,000
Cash Flow Per Share $ 0.08 $ 0.16
Net Earnings $ 146,000 $ 961,000
Net Earnings Per Share (Basic) $ 0.01 $ 0.07
Average Daily Production
(MCF equivalent) 5,494 7,540
>>
The decline in revenue, cash flow and daily production was substantially
attributable to the loss of more than 3,000 mcf per day of production from one
key well. Product sales for the last quarter averaged 5,000 mcf equivalent
per day, with an average gas price of $1.97 per mcf and an average liquids
price of $28.74 par barrel.
Sales have increased 30% since the beginning of 1998 and the company
expects continuing significant increases in production. Since the beginning
of 1998, Brigdon has built pipelines to and placed on production five wells.
The average working interest in these wells is 72%. They include a 100 mcf
per day Belly River gas well and Basal Quartz gas wells producing between 250
mcf per day and 2,000 mcf per day. The company is currently completing a
Basal Quartz zone in one well and reworking the Basal Quartz and Glauconite
zones in a second well. These workovers should add 500 - 1000 mcf per day of
production. Three wells require further testing and pipeline connections.
At current prices and production the company's annualized cash flow would
be about $2,600,000 ($0.17 per share). In addition to product income, Brigdon
has begun to earn fees from the ''custom'' processing of gas at the Red Willow
plant. This processing income stream is expected to grow to more than $35,000
per month by the end of the next quarter.
During the three-month period ended December 31, 1997, Brigdon drilled
three wells. Two were excellent gas discoveries with combined gas flows in
excess of 3,000 mcf per day and very positive engineer's assessments. One
well was abandoned. These wells were drilled in partnership with a major
international company. Brigdon paid an average 25% of costs and retain an
average 52.5% working interest in the completed wells.
Brigdon is working on a potential fifteen drilling locations. Through
the end of 1998, Brigdon plans to drill between seven and ten of these
locations. A rig is contracted to drill a minimum of seven locations. This
drilling program will be operated by Brigdon and substantially financed by
cash flow and the participation of joint venture partners.
BRIGDON RESOURCES INC.
J. PHILLIP PIFFER, PRESIDENT |
