EARNINGS TOP 20 LISTED / Canadian 88 Energy Corp. Announces Record
1997 Increases in Natural Gas Reserves, Production, Earnings and
Cashflow
ASE, TSE, AMEX SYMBOL: EEE
APRIL 15, 1998
CALGARY, ALBERTA--Canadian 88 Energy Corp. of Calgary, Alberta
announced today that it achieved record increases in operations
and financial results for the fiscal year ending December 31,
1997.
Record reserve increases were achieved in 1997. Total proven plus
risked probable natural gas reserves increased 32 percent to 835
bcf in 1997 from 632 bcf in 1996 while total proven natural gas
reserves increased 54 percent to 710 bcf in 1997 (1996 - 450 bcf).
Similarly, total proven plus risked probable natural gas liquids
and oil reserves increased 83 percent to 39.8 mmbbls (1996 - 21.8
mmbbls) while total proven natural gas liquids and oil reserves
increased 115 percent to 34.2 mmbbls in 1997 (1996 - 15.9 mmbbls).
Total production during 1997 was 3.3 bcfe, resulting in a record
proved reserve replacement ratio of 13.2 to 1 (1996 - 11.7 to 1),
one of the highest reserve replacement ratios achieved in Canada
for 1997.
Canadian 88 continued as the leading deep Western Canada
sedimentary basin driller utilizing high resolution 3-D seismic
technology during 1997. The highly successful 1997 deep foothills
natural gas drilling and exploitation program resulted in an 82
percent drilling success rate. Finding and development costs for
proven reserves was only $0.34 per mcfe, or $3.36 per boe, which
again ranks Canadian 88 as one of the lowest finding cost
exploration companies in Canada as evidenced by a recent industry
survey which ranked Canadian 88 as the number one lowest cost
explorer in 1997. The Company's five year (1993-1997) weighted
average finding and development cost for proven reserves was only
$0.33 per mcfe, or $3.29 per boe.
Revenues for the year rose 30 percent to $72.9 million (1996 -
$56.2 million). Higher natural gas prices and record natural gas
and natural gas liquids production increases resulted in a 23
percent increase in cash flow to $34.1 million ($0.37 per share)
from $27.7 million ($0.38 per share) in 1996. Net income
increased to a record $17.5 million ($0.19 per share), up 83
percent from $9.5 million ($0.13 per share) in 1996.
Average daily production increased 15 percent during 1997 to
record levels of 90.0 mmcf equivalent per day from 78.5 mmcf
equivalent per day in 1996. Gas production increased 16 percent
to average 66 mmcf per day (1996 - 57 mmcf per day). Natural gas
liquids and oil production increased 11 percent to average 2,399
barrels per day (1996 - 2,166 barrels per day).
Canadian 88's average natural gas price for 1997 increased 29
percent to $2.08 per mcf (1996 - $1.61 per mcf), one of the
highest reported average natural gas prices achieved within our
peer group in 1997. Average natural gas liquids and oil prices
during 1997 decreased 3 percent to $23.38 per barrel (1996 -
$24.13 per barrel).
Canadian 88 ranks as one of the top ten oil and gas producers in
Alberta land and lease purchasers in 1997 according to a recent
Daily Oil Bulletin article. The Company continues to maintain a
high working interest (91 percent) in its undeveloped lands.
Canadian 88's undeveloped land position in Western Canada at the
end of 1997 increased 17 percent to 400,000 net acres. In
addition, Canadian 88 has 215,000 net acres (100 percent working
interest) of undeveloped lands in the Northwest Territories.
The attached addendum summarizes Canadian 88's 1997 audited
financial and operating statistics.
Canadian 88 Energy Corp. (EEE) is an independent public oil and
gas Company with head offices in Calgary, Alberta, Canada.
/T/
Canadian 88 Energy Corp.
1997 Financial and Operating Statistics
Year Ended Percent
December 31 Change
-------------------- -------
1997 1996
---- ----
FINANCIAL:
(000's except per
share amount)
Production Revenues $ 72,928 $ 56,199 30
Cash Flow from Operations$ 34,051 $ 27,705 23
Net Income $ 17,524 $ 9,570 83
PER COMMON SHARE:
Cash Flow from Operations$ 0.37 $ 0.38 -3
Net Income $ 0.19 $ 0.13 46
Average Common Shares
(000's) 91,186 73,505 24
OPERATIONS:
PRODUCTION VOLUMES:
Oil & NGL's (bbls/d) 2,399 2,166 11
Natural gas (mmcf/d) 66 57 16
Sulphur (lt/d) 445 201 121
SALES PRICES:
Oil & NGL's ($/bbl) $ 23.38 $ 24.13 -3
Natural Gas ($/mcf) $ 2.08 $ 1.61 29
Sulphur ($/lt) $ 1.51 $ 4.95 -69
CAPITAL EXPENDITURES
(000'S):
Property Acquisition $ 13,914 $ 962 1346
Exploration & Development 98,899 46,718 112
Plants & Facilities 29,561 23,546 26
Land & Lease 14,382 9,747 48
------- -------
$ 156,756 $ 80,973 94
------- -------
------- -------
TOTAL PROVEN RESERVES:
Crude Oil & NGLs (mbbls) 34,234 15,908 115
Gas (bcf) 710 460 54
Sulphur (mlt) 6,208 3,625 71
TOTAL PROVEN PLUS 50 PERCENT
PROBABLE RESERVES:
Crude Oil & NGLs (mbbls) 39,841 21,762 83
Gas (bcf) 835 632 32
Sulphur (mlt) 6,822 5,222 31
UNDEVELOPED LAND (NET ACRES):
Western Canada 400,000 341,000 17
Northwest Territories 215,000 215,000 0
PERCENT
AVERAGE
WORKING
DRILLING RESULTS: GROSS NET INTEREST
------- ----- --------
Gas 33.0 31.6 96
Oil 4.0 4.0 100
Dry & Abandoned 8.0 8.0 100
------- ----- --------
Total Wells 45.0 43.6 97
/T/ |
