EARNINGS / AltaQuest Energy Corporation Updates United Kingdom
Activities and Announces 1997 Financial Results
ASE SYMBOL: AQF
APRIL 15, 1998
CALGARY, ALBERTA--This week AltaQuest Energy Corporation
("AltaQuest") announced its most recent discovery at Newton
located in the East Midlands area of the United Kingdom. This
multizone feature appears to be four square kilometers in size
based on AltaQuest's existing 2D seismic. Porosities of 15 to 18
percent and zone thicknesses of 13 and 17 metres indicate that
this discovery has the potential of 15 to 20 million barrels of
light quality (33 degree API) recoverable reserves. A 3D seismic
program has been designed and completion and production testing
will commence as soon as regulatory approvals have been received.
AltaQuest is submitting an application to drill five wells (50
percent working interest) starting in July of this year on this
new discovery.
On its Fiskerton discovery of late 1997, a 16.5 square kilometer
3D seismic program has been shot, processed and interpreted.
Based on the interpretation, AltaQuest and partners plan to drill
five wells (24.5 percent working interest), starting in June of
this year. Once completed, these wells, and an anticipated
pipeline tie-in in June, should permit pool production to exit the
year at 2,500 BOE/d. Production from Fiskerton, together with
AltaQuest's anticipated domestic production, is expected to result
in an average of 900 BOE/d net to AltaQuest with a 1998 exit rate
of 1,500 BOE/d, not including the Newton discovery.
AltaQuest has 425,000 gross acres (with working interests ranging
from 22.5 percent to 50 percent) of land holdings in the East
Midlands area of the United Kingdom. AltaQuest and its partners
have identified 17 separate seismic anomalies on these lands and
plan to drill a minimum of eight of these over the next three
years, of which Fiskerton and Newton were the first two.
For the year ended December 31, 1997, AltaQuest reports that its
cash flow from operations increased to $467,000 ($0.05 per share)
from a loss in 1996 of $1,772. AltaQuest had a net loss in 1997
of $2,821,000 ($0.29 per share) versus a loss in 1996 of $47,000
($0.03 per share). The loss in 1997 includes a $2,500,000
writedown of properties in the Canadian cost centre pursuant to
the application of the ceiling test. The higher cash flow
reflects higher production volumes, stronger product prices and a
full year of operations in 1997 as AltaQuest was incorporated in
late March of 1996. AltaQuest became public in May 1997 by
successfully completing an offering that raised proceeds of
$2,500,000.
Production averaged 203 BOE/d in 1997, which was comprised of 85
percent natural gas and 15 percent oil and liquids. Product
prices averaged $1.97 per mcf of natural gas and $20.40 per bbl of
oil and liquids in 1997 versus $1.76 and $21.88 respectively for
such products in 1996. The Company exited 1997 with production of
650 BOE/d and currently produces 700 BOE/d.
AltaQuest is poised to capitalize on its United Kingdom
opportunities while benefiting from its gas levered domestic cash
flow.
AltaQuest Energy Corporation ("AQF") is a publicly traded company
on the Alberta Stock Exchange. |
