EARNINGS / Spire Energy reports 1997 Results
CALGARY, April 6 /CNW/ - The year ended December 31, 1997 was a year of
exceptional financial performance for the Company. Spire achieved a 61%
increase in revenue, a 78% increase in cash flow and a 94% increase in net
earnings. The Company also improved operating netbacks by 21% to $1.15/MCF
from $0.95/MCF and all in cash netbacks by 23% to $0.92/MCF from $0.75/MCF.
Year ended December 31
1997 1996 Change
Financial
Revenue, net of royalties $ 5,610,697 $ 3,495,340 +61%
Funds flow from operations 3,589,783 2,014,874 +78%
Per share 0.26 0.17 +53%
Per MCF 0.92 0.75 +23%
Net earnings 1,263,283 650,444 +94%
Per share 0.09 0.05 +80%
Capital expenditures 8,989,330 4,941,772 +82%
Total assets 18,872,875 9,941,804 +90%
Long term debt 3,522,801 3,255,070 +8%
Shareholders' equity $ 10,721,234 $ 4,126,343 +160%
Common shares outstanding
Weighted average 14,076,768 11,512,853 +22%
At period end 16,267,645 12,396,945 +31%
Operations
Production
Natural gas (MCFD) 10,679 7,378 +45%
Average wellhead price per MCF $ 1.67 $ 1.41 +18%
Field netback per MCF $ 1.15 $ 0.95 +21%
The Company had another successful year with the drill bit in 1997,
achieving a success rate of 81% with 17 (16.6 net) successful gas wells out of
21 (20.6 net) wells drilled. This resulted in a 25% increase in reserves to
34.0 BCF of natural gas, which replaced production for the year by 275%.
Finding and on stream costs for the year were $0.97/MCF for proven reserves
and $0.83/MCF for proven plus probable reserves. Spire's three year rolling
average finding and on stream costs are $0.50/MCF for proven reserves and
$0.45/MCF for proven plus probable reserves.
Year ended December 31
1997 1996 Change
Drilling
Wells drilled - Gross (Net)
Gas completions 17 (16.6) 8 (6.7)
Dry and abandoned 4 (4.0) 3 (2.8)
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21 (20.6) 11 (9.5) +91%
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Reserves
Natural gas reserves (MMCF)
Proven 29,776 24,452 +22%
Probable 4,208 2,718 +55%
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Total 33,984 27,170 +25%
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Present value at 15% pre-tax $ 29,988,000 $ 22,380,000 +34%
Land
Undeveloped land (net acres) 20,829 9,309 +124%
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