EARNINGS / Courage Energy Inc. Reports 1997 Financial and Operating
Results
TSE SYMBOL: CEO
APRIL 14, 1998
CALGARY, ALBERTA--COURAGE ENERGY INC. (T.S.E. - C.E.O.) today
announced their 1997 financial and operating results.
/T/
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PERCENT
PRODUCTION 1997 1996 CHANGE
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Equivalent barrels per day 1,820 1,540 +18
Oil Production (bpd) 964 887 +9
Ngl Production (bpd) 224 148 +51
Gas Production (mcf/d) 6,320 5,050 +25
Average Oil and Ngl Price/bbl
($Cdn) 20.21 23.99 -16
Average Gas Price/mcf ($Cdn) 2.16 1.77 +22
FINANCIAL
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Revenue ($000) 13,483 12,074 +12
Cash Flow from Operations ($000) 6,105 6,504 -6
Per Share - basic ($) 0.27 0.32 -16
Per Share - fully diluted ($) 0.27 0.31 -16
Earnings ($000) 970 1,819 -47
Per Share - basic ($) 0.04 0.09 -55
Per Share - fully diluted ($) 0.04 0.09 -55
Capital Expenditures ($000) 14,646 10,882 +35
Debt plus working capital ($000) 9,382 4,382 +114
Average Common Shares (000) 22,227 20,313 +9
Net Asset Value per Share ($) 2.11 1.52 +38
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PERCENT
RESERVES 1997 1996 CHANGE
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Oil & Ngl (mbbl)
Proven 3,233 2,189 +48
Probable 1,715 1,155 +48
Natural Gas (mmcf)
Proven 25,250 11,116 +127
Probable 10,003 4,032 +148
Total Proven + Probable (mboe) 8,473 4,858 +74
Present Value of Reserves
($000 discounted at 12.5 percent)
Proven 44,623 27,792 +61
Proven + Probable 61,031 38,158 +60
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FINDING AND DEVELOPMENT COST
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PROVEN PROVEN + 50 PERCENT PROVEN +100 PERCENT
PROBABLE PROBABLE
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$4.68/boe $3.94/boe $3.41/boe
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/T/
The Company's 1997 drilling results and reserve additions were the
most significant in its history. The only factor that temporarily
hindered its corporate performance was the delay in bringing new
reserves on production. Courage's revenue and cash flow were
virtually unchanged between 1996 and 1997, however, the Company
has built a solid platform for growth. There is substantial
productive capability at Leduc where Courage expects to gain
access to a sour gas plant in 1998. Courage has demonstrated
strong operational and financial performance, and achieved a
production replacement ratio of 5.57, a recycle ratio of 2.92, and
a reserve life index of 10.7 years at a finding and development
cost of $3.94/boe in 1997.
Reserves
The Company had its petroleum and natural gas properties evaluated
by McDaniel and Associates Consultants Ltd. Effective January 1,
1998. The McDaniel Report is summarized as follows:
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SUMMARY OF WORKING INTEREST RESERVES
as of January 1, 1998
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OIL (Bbls) NGL (Bbls) GAS (Mcf) Total BOE
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Proven remaining 2,464,200 768,300 25,250,300 5,757,530
Probable
additional 1,381,900 333,300 10,002,500 2,715,450
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Total 3,846,100 1,101,600 35,252,800 8,472,980
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PRESENT WORTH VALUES
Discounted At
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Undiscounted 10 12.5 15
Percent Percent Percent
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Proven
remaining $73,511,100 $48,331,200 $44,622,600 $41,477,700
Probable
additional 53,764,700 19,451,600 16,407,900 14,078,900
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TOTAL RESERVE
VALUE $127,275,800 $67,782,800 $61,030,500 $55,556,600
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/T/
Courage Energy Inc. is a Canadian oil and natural gas company.
The principal business is the exploration, development and
production of oil and natural gas. The common shares of Courage
are listed on the Toronto Stock Exchange under the symbol "CEO". |
