EARNINGS / Shiningbank Energy Announces Record Financial Results
TSE SYMBOL: SHN.UN
MARCH 19, 1998
CALGARY, ALBERTA--Shiningbank Energy Income Fund today announced
its financial results for the year ended December 31, 1997, its
first full year of operations. Net earnings for the year were
$3.2 million ($0.45 per Trust Unit), up from $1.4 million ($0.26
per Trust Unit) for the six months ended December 31, 1996.
Revenues totalled $31.3 million on average production of 3,531
barrels of oil equivalent per day (boepd) for the year, up from
$12.6 million on average production of 3,070 boepd for 1996. The
Fund distributed $1.60 per Trust Unit for the year in four equal
quarterly distributions. This represented a 17.6 percent after
tax cash-on-cash yield based on the year-end unit price of $9.10.
The Fund's credit lines at year-end were less than 60 percent
drawn allowing several new acquisitions to be made in early 1998
in a substantially improved acquisition market. The accompanying
table provides important statistics from the 1997 year.
Shiningbank provides its unitholders with a high-quality asset
base, a strong financial position and experienced management. Its
oil production is high quality, light gravity crude oil providing
optimum netbacks. Over 60 percent of Shiningbank's production is
from natural gas which management believes will enjoy
significantly stronger pricing in late 1998 and 1999. Highlights
for 1997 include a significant increase in Shiningbank's reserve
life index, maintenance of a high Net Asset Value per unit,
replacement of twice our 1997 production with new reserves, and
the payment of a high-yield distribution.
Shiningbank Energy Income Fund is a conventional oil and gas
royalty trust and its units are listed on The Toronto Stock
Exchange under the symbol "SHN.UN".
/T/
Shiningbank Energy Income Fund
1997 Highlights
Financial
($ thousands except per Trust Unit amounts) 1997 1996
--------------------------------------------------------------
Oil and natural gas sales 31,343 12,619
Net earnings 3,186 1,371
Per Trust Unit 0.45 0.26
Distributable income 11,983 4,374
Per Trust Unit 1.600 0.827
Capital expenditures 19,453 75,196
Long term debt 18,095 27,176
Unitholders' equity 55,678 44,285
Net asset value 66,453 51,392
Per Trust Unit 8.87 9.72
Operations
--------------------------------------------------------------
Daily production volumes
Oil and NGLs (Bopd) 1,456 1,066
Natural gas (Mmcf/d) 20.8 20.0
Oil equivalent (Boe/d) 3,531 3,070
Oil equivalent exit (Boe/d) 4,050 3,700
Average prices
Oil and NGLs (C$/bbl) $24.97 $28.16
Natural gas (C$/mcf) $ 2.39 $ 1.92
Oil equivalent (C$/boe) $24.32 $22.34
Field netback per boe $13.24 $13.28
Established reserves (Proven + 50 percent Probable)
Oil and NGLs (Mbbl) 7,017 4,955
Natural gas (Bcf) 53.6 61.4
Oil equivalent (Mboe) 12,372 11,095 |
