EARNINGS / Goal Energy Inc reports 1997 Results
GOAL increased average 1997 production to 260 BOEPD, and with first quarter
additions, is at current levels of 500 BOEPD. Cash flow increased from
$437,812 in 1996, to $917,440 or $0.040 per share in 1997. Net earnings
doubled 1996 to $282,055 or $0.013 per share in 1997.
Oil and gas revenue doubled 1996 to $1,929,977. The Company's average oil
price declined 3% from 1996 to $24.59/Bbl. and average gas prices decreased
from $1.91/mcf in 1996 to $1.84/mcf in 1997. Gas prices have improved
dramatically in the first quarter with GOAL currently averaging over
$2.20/mcf. Royalties declined 28% from 1996 to $2.13/BOE as a result of
increased ARTC on the Cold Lake gas production. Lifting costs rose 3% to
$5.53/BOE and general and administrative expenses, including interest on
debt, decreased to $3.01/BOE from $4.12/BOE in 1996. GOAL's all in net back
decreased 6% from 1996 to $9.67/BOE in 1997.
GOAL increased proven reserves 87% after production, to 8.2 Bcf and 170,700
Bbls. at a five year average cost of finding of $4.82/BOE. GOAL's 1997
capital budget of $3.7 million was funded primarily from cash flow and bank
debt. GOAL's total debt at year-end was $2.6 million against a revolving line
limit of $3.1 million, resulting in a debt to cash flow ratio of 1.2.
GOAL's strong financial position and leverage to gas places the company in
the position to grow dramatically in the current business climate. Management
is currently evaluating potential merger candidates as a method to create a
corporate infrastructure and add reserves and deliverability which will allow
the company to continue the growth achieved over the past two years.
GOAL Energy trades on the Alberta Stock Exchange under the symbol GGY. For
more information about the company, please contact Steve Kiser at:
GOAL ENERGY INC.
#200, 340 - 12th Ave. S.W.
Calgary, Alberta, T2R 1L5.
Phone: (403) 265-3500 Fax: (403) 265-3513
E-mail: goalenergy@nucleus.com |
