ENERGY TRUST / APF Announces Year-End Results; Company Also Agrees
to Acquire Long-Life Saskatchewan Assets
TSE SYMBOL: AY.UN
APRIL 16, 1998
CALGARY, ALBERTA--APF Energy Trust released today its financial
and operating results for the 12-month period ended December 31,
1997, its first full year of operations.
The year was highlighted by the acquisition of $32 million in
assets, which significantly increased production, revenue and cash
flow. APF exited 1997 with daily production of 2,412 barrels of
oil equivalent, comprising 15,352 Mcf of natural gas, 627 Bbl of
oil and 250 Bbl of natural gas liquids. This represented an
increase of more than 90 percent over the 1996 exit rate.
The purchase of assets at Countess, Alberta ($8 million) increased
APF's holdings in this core area, while the takeover of Bayridge
Resources Limited ($24 million) added properties at Caroline (an
existing core area), Joarcam and Pembina, Alberta.
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OPERATING HIGHLIGHTS 31-Dec-97 31-Dec-96
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Production
Gas (Mcf/d) 15,352 6,621
Oil (Bbl/d) 627 507
NGL (Bbl/d) 250 96
Total (Boe/d) 2,412 1,266
Average Prices
Gas ($Cdn/Mcf) 2.06 2.86
Oil ($Cdn/Bbl) 22.48 29.00
NGL ($Cdn/Bbl) 22.00 31.36
Total ($Cdn/Boe) 21.24 28.98
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APF received an average price of $21.24 per Boe during the year,
inclusive of net hedging gains. The average price for gas was
$2.06/Mcf, while oil and natural gas liquids were sold for $22.48
and $22.00 per barrel, respectively.
Net operating income was $10.8 million ($3.09 per unit) on revenue
of $19.6 million and net earnings were $0.856 million ($0.24 per
unit).
During 1997, APF declared cash distributions of $6.2 million
($1.775 per unit). At a December 31, 1997 closing unit price of
$9.10, this represented a cash distribution rate of 20 percent.
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FINANCIAL HIGHLIGHTS 31-Dec-97 31-Dec-96
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Revenue ($000) 19,605 1,137
Per unit ($) 5.60 0.33
Net operating income ($000) 10,837 708
Per unit ($) 3.10 0.22
Distributable income ($000) 6,213 601
Per unit ($) 1.78 0.17
Cash distributions ($000) 5,285 --
Per unit ($) 1.51 --
Net earnings ($000) 856 352
Per unit ($) 0.24 0.10
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/T/
Cash distributions received by unitholders during the fiscal year
amounted to $5.3 million ($1.51 per unit), of which 39.5 percent
was taxable as income. The balance of 60.5 percent was a return of
capital, which reduced a unitholder's adjusted cost base.
Since completing its initial public offering 16 months ago, the
Trust has distributed or declared distributions of $8.4 million
($2.40 per unit). In addition to these distributions, a working
capital reserve of $2.1 million ($0.60 per unit) was built-up
during 1997. This reserve will be available to fund development
and exploitation initiatives, as well as to ensure that
unitholders continue to receive consistent cash distributions
during periods of commodity price weakness or unforseen decreases
in production.
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Balance Sheet (000$) 31-Dec-97 31-Dec-96
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ASSETS
Current assets 5,843 16,431
Capital assets 46,753 20,755
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52,596 37,186
LIABILITIES
Current 3,714 1,169
Long term debt 21,900 4,100
Deferred income tax 43 0
Site restoration 485 4
EQUITY
Share capital 10 10
Unitholders' account 32,194 32,296
Retained earnings 1,208 352
Distributions declared (6,948) (735)
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52,596 37,186
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Capital assets increased to $46.7 million, reflecting the Countess
and Bayridge transactions. Both acquisitions were financed through
APF's credit facilities.
In other news, APF Energy Inc. announced that it has signed a
letter of intent with two limited partnerships to acquire assets
in the Gleneath and Steelman areas of Southeast Saskatchewan. The
acquisition will add approximately 93 Boe/day of production and
848 Mboe (proved plus one-half probable) of reserves. Cash flow
for 1998 has been estimated at $450,000. The purchase price of
$2.4 million will be satisfied by the payment of $1.2 million in
cash and the issuance by APF Energy Trust of 137,143 trust units
at $8.75 per unit.
The transaction is subject to approval by The Toronto Stock
Exchange and the partnerships' limited partners.
/T/
APF ENERGY TRUST
MARKET & INVESTOR INFORMATION
Date of IPO Dec. 17/96
TSE symbol AY.UN
Units outstanding 3,500,000
Issue price $10.00
Dec. 31/97 closing price $9.10
52-week high $10.30
52-week low $8.65
Recent price $9.50
Market capitalization $33,250,000
Distributions since IPO $2.40/unit
1997 distributions $1.78/unit
1997 Distribution rate 19.6 percent
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