EARNINGS / Torex Resources reports 1997 Results
CALGARY, April 7 /CNW/ - Torex Resources Inc. reports financial results
for the year ended December 31, 1997.
Revenues increased by 27% to reach $5.63 million in 1997 compared to
$4.43 million in 1996. Cash flow jumped to $1.65 million in 1997, a 41%
increase over the $1.17 million generated in 1996. On a per share basis, cash
flow increased from $0.21 per share in 1996 to $0.25 in 1997. Net income
declined from $25,036 ($.004 per share) in 1996 to $2,843 ($0.00 per share) in
1997.
Average production for the year increased by 21% to 717 boepd, which
consisted of 4.1 mmcfd of natural gas and 305 bopd of oil and NGL. In 1996,
production averaged 594 bopd consisting of 2.9 mmcfd of natural gas and 303
bopd of oil and NGL. The corporation's light to medium gravity crude oil
averaged $25.14 per barrel compared to $24.87 in the previous year. Natural
gas sales averaged $1.88 per mcf versus $1.58 mcf in 1996.
Capital expenditures on land, drilling and seismic totaled $4.4 million
for the year while the corporation also disposed of $2.25 million of mature,
low working interest, non-core properties. The net capital expenditures of
$2.14 million for 1997 represent a 37% increase over the $1.6 million spent
in 1996. A total of 7 (5.1 net) wells were drilled during the year resulting
in 4 (2.6 net) oil, 2 (2 net) gas, and 1 (0.5 net) dry and abandoned well for
an overall drilling success rate of 86%.
In December of 1997, Torex concluded a special warrant financing for
gross proceeds of $5.6 million. Final receipts, for the prospectus dated March
3, 1998 were received which qualified the common shares issued from the
exercise of 4,310,714 special warrants (3,100,000 basic and 1,210,714 flow
through) previously issued by the corporation. The corporation currently has
11.5 million shares outstanding.
Torex ended the year with no debt and $2.2 million of working capital.
Torex will use its existing working capital, cash flow and credit facilities
to pursue the most aggressive capital program in the company's history, which
is expected to be 7 to 10 million dollars.
During the first quarter of the year, the company drilled 4 operated
wells resulting in 2 oil (1.5 net), 1 (0.5 net) natural gas, and 1 (0.5 net)
dry and abandoned wells. The two oil wells were drilled at the Neptune,
Saskatchewan core area and are currently being flow lined to company operated
facilities. The natural gas well was drilled at the Alderson, Alberta core
area and is currently being evaluated.
|
