EARNINGS / Berkley Petroleum Corp. Announces 1997 and First Quarter
1998 Results
TSE, ASE SYMBOL: BKP
APRIL 15, 1998
CALGARY, ALBERTA--Berkley Petroleum Corp. is pleased to announce
1997 and first quarter 1998 operating and financial results.
Major highlights include:
1) a 2.7 fold production increase between first quarter 1997 and
first quarter 1998, with first quarter 1998 average production of
19,134 boepd,
2) the company more than doubled the proved and proved plus
probable reserve base during 1997,
3) the expanded development project inventory, through new
discoveries and acquisitions, is capable of delivering more than
100 MMCFPD of new gas production during the next 12 months.
1997 net revenue was $45.8 million, cash flow was $28.1 million
and earnings were $6.9 million. Average production was 7,386
boepd, production was increased significantly late in the fourth
quarter of 1997 to the levels observed in the first quarter of
1998. As reported with the nine month 1997 financial results,
unitization and GPP delays in the large pools at Midale, Carstairs
and Pembina resulted in less than projected production, cash flow,
and earnings for the entire year. All of these pools are on
stream now, as well as new gas pools at Siphon, Taylor, Obed and
Musreau.
/T/
Year Earnings(x) Earn/Share Cash(x) CF/Share Net Revenue(x)
---- ---------- ---------- ------ -------- -------------
1997 6.9 0.13 28.1 0.51 45.8
1996 10.8 0.25 26.2 0.61 36.5
(x) Millions of dollars
/T/
The total proved and probable reserve addition in 1997 was 50.6
million barrels, bringing the year end 1997 total proved and
probable reserve base to 93.5 million barrels from 45.6 million
barrels at year end 1996. Capital expenditures during 1997 were
$242.3 million, yielding a 1997 finding cost of $6.05/boe on
established reserves and $4.79/boe on proved plus probable
reserves. Included in the 1997 capital expenditures were $40.0
million on facilities, the majority of which was allocated to
development of reserves discovered and booked in 1995 and 1996, as
well as $45 million of undeveloped land expenditures with no
associated reserve booking. This undeveloped land, much of which
came with late 1997 property acquisitions, is the subject of 1998
development projects and reserves will be booked this year. The
company's five year rolling average F&D cost on proved reserves is
$5.78/boe, on established reserves is $4.75/boe, on proved plus
probable reserves $3.79/boe. First quarter activities have taken
the company well beyond the 100 million boe or 1.0 TCFE reserve
level.
First quarter 1998 net revenue was $26.4 million, a 123 percent
increase over first quarter 1997. First quarter 1998 cash flow
was $16.7 million, a 78 percent increase over the corresponding
period in 1997. First quarter 1998 earnings were $3.1 million.
Average production during the first quarter was 19,134 boepd,
consisting of 6651 bopd oil and liquids and 125 MMCFPD of natural
gas. First quarter 1998 gas production was 2.8 times greater than
the 1997 comparison period. Average gas price received during the
first quarter was $1.55/MCF, average oil price was $22.05/bbl.
/T/
Year Earnings(x) Earn/Share Cash(x) CF/Share Net Revenue(x)
---- ---------- ---------- ------ -------- -------------
Q1'98 3.1 0.05 16.7 0.27 26.4
Q1'97 3.7 0.07 9.3 0.19 11.9
(x) Millions of dollars
/T/
Berkley drilled or participated in 33 wells during the first
quarter resulting in 14 gas wells (6.3 net), 13 oil wells (6.4
net) and six dry holes (2.7 net).
The company has cased the first six wells in the Foothills Belt
exploration program, all of these discoveries are currently being
tested and assessed. Two new gas pools were discovered in the NWT
with the winter 1998 exploration program, including the previously
reported Arrowhead N-65 well which flowed gas at rates of 28
MMCFPD. In the Musreau area of Alberta, the company now has
interests in one producing deep well and two cased potential deep
gas wells that are currently being tested. In S.E. Saskatchewan,
new pool discoveries have been made at Stoughton and Talmage
during the first quarter and will be brought on production during
the second quarter. The company is encouraged by recent
discoveries made in the Winnipegosis and Winnipeg Sand horizons,
both of which have regional implications. New pool discoveries
were also made at Owl and Obed in Alberta, early in 1998.
The majority of the upcoming development projects and production
additions are natural gas. Berkley has over 100 MMCFPD of new gas
production to bring on stream over the next 12 months, from new
discoveries and acquisitions in Alberta and NEBC. Included in
these projects are Alberta Foothills tie-ins, a new plant and
facilities at Owl in Alberta, an expansion of facilities and
production at Wildhay, Alberta, new facilities and further
development of the Musreau discovery in Alberta, gas projects at
Fireweed, Fort St. John and Halfway R. - Blueberry West in NEBC.
Oil production additions during the corresponding period are
estimated at 3000 bopd, primarily from SE Saskatchewan and
Carstairs.
The 1998 production forecast remains unchanged at 27,500 boepd.
(11,000 bopd oil and liquids, 165 MMCFPD natural gas.) The
company is currently targeting a 1998 exit production rate of
between 33,000 and 35,000 boepd.
Berkley Petroleum's News Release for the past 14 months can be
accessed electronically through the Canadian Corporate News
website at cdn-news.com |
