EARNINGS / Pinnacle Resources Announces Financial and Operating
Results for 1997
TSE, ME SYMBOL: PNN
MARCH 13, 1998
CALGARY, ALBERTA--PINNACLE RESOURCES LTD. announces the following
audited financial and operational results for the year ending
December 31, 1997.
/T/
FINANCIAL HIGHLIGHTS
($ thousands, except where noted)
THREE MONTHS ENDED YEAR ENDED
December 31 December 31
Percent Percent
1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Oil and gas
sales 59,549 35,981 +66 172,210 126,806 +36
Cash flow 28,943 17,660 +64 88,018 68,483 +29
Per share
basic ($) 0.87 0.75 +16 3.33 2.95 +13
Per share fully
diluted ($) 0.87 0.70 +24 3.28 2.80 +17
Net earnings 3,115 2,550 +22 13,207 11,125 +19
Per share basic
and fully
diluted ($) 0.08 0.11 -27 0.50 0.48 +4
Capital
expenditures 312,731 16,104 +1842 706,363 107,097 +560
Weighted average
common shares
outstanding (thousands)
Basic 26,460 23,190 +14
Fully diluted 29,569 25,186 +17
Common shares outstanding
at December 31, (thousands)
Basic 40,284 23,494 +71
Fully diluted 43,282 25,408 +70
OPERATING HIGHLIGHTS
--------------------------------------------------------------
Oil production
Thousands of
barrels 1,967 973 +102 5,231 3,603 +45
Barrels per day 21,381 10,576 +102 14,330 9,846 +46
Average selling
price ($Cdn
per barrel) 18.15 20.85 -13 19.34 21.27 -9
WTI ($US per
barrel) 19.94 24.53 -19 20.61 22.02 -6
Gas production
Million cubic
feet 11,276 8,062 +40 37,349 31,883 +17
Million cubic
feet per day 123 88 +40 102 87 +17
Average selling
price ($Cdn per
thousand cubic
feet) 2.12 1.95 +9 1.90 1.57 +21
/T/
During 1997, Pinnacle drilled a total of 291 gross wells with an
average working interest of 84 percent. Pinnacle operated 98
percent of these wells. The results included 152 oil wells, 73
gas wells, 5 service wells and 61 dry holes. The 1997 capital
expenditure program, which included the acquisition of HCO Energy
Ltd. and Wascana Acquisitions Inc., totalled $706,363 and, is
estimated to have added 129 million barrels of oil equivalent of
proven and probable reserves. Year end 1997 proven and probable
reserves totalled 119 million barrels for oil and natural gas
liquids and 560 billion cubic feet for natural gas. 1997 reserve
additions, including acquisitions, were found or acquired with
finding and on stream costs of $7.20 per barrel of oil equivalent
on a proven basis and $5.45 per barrel of oil equivalent on a
proven and probable basis. Additions to proven and probable
reserves replaced 1997 production by 18 times for oil and by 9
times for gas. Pinnacle's current production stands at
approximately 31,000 barrels of oil and natural gas liquids per
day and 130 million cubic feet of natural gas per day.
Pinnacle is a rapidly growing intermediate oil and gas exploration
and development company whose common shares are listed and trade
on the Toronto Stock Exchange and the Montreal Exchange under the
symbol PNN. |
