EARNINGS / Compton Petroleum reports 1997 Results
CALGARY, April 22 /CNW/ - Compton Petroleum Corporation (''Compton'' or
the ''Company'') is pleased to report operating results for the year ended
December 31, 1997. The year has been one of exceptional growth for the
Company highlighted by significant increases in production, revenues, cash
flow and earnings. Compton achieved a 1997 exit production rate of 4,098
barrels of oil equivalent per day (boepd) compared to 1,050 boepd in 1996.
Average daily production for 1997 rose to 2,113 boepd, comprised of 16.2
million cubic feet per day of natural gas, 295 barrels per day of natural gas
liquids and 195 barrels per day of light oil. This represents a three fold
increase over 1996 average production of 713 boepd. As a result, 1997 cash
flow from operations increased 464% to $10.0 million from $1.8 million in
1996 and net earnings increased 590% in 1997 to $3.7 million from $0.5 million
in 1996. Compton's reserves also increased significantly in 1997. Proved
plus 50% probable reserves at year end totaled 20.6 million barrels of oil
equivalent (mmboe) compared to 8.4 mmboe at year end 1996. Year end 1997
reserves are comprised of 158 billion cubic feet (bcf) of gas, 4,000,000
barrels of natural gas liquids and 800,000 barrels of light oil. Proved
reserves comprise 89% of total reserves. The Company also increased its
undeveloped land position from 63,360 net acres at year end 1996 to 140,782
net acres at year end 1997.
During 1997, Compton drilled 11 (10.5 net) wells resulting in 7 (6.5 net)
gas wells, 2 oil wells and 2 dry holes for an overall drilling success rate of
81%. The Company achieved 1997 Finding and Development Costs (F&D costs) of
$7.06 per boe as compared to F&D costs of $3.01 per boe in 1996. Included in
1997 F&D costs are $37 million of expenditures, $2.81 per boe, relating to the
acquisition and expansion of gas processing facilities and related
infrastructure, which will accommodate significant future additional
production. Costs are based upon proved plus 50% probable reserves.
Summarized financial information for the year ended December 31, 1997 and
1996 is presented below:
<<
1997 1996
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Revenues
Oil & Gas Revenues $ 17,673,456 $ 4,288,653
Royalties, net (2,452,949) (795,584)
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15,220,507 3,493,069
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Expenses
Operating 3,786,863 1,254,002
General and Administrative 902,879 278,671
Interest 270,036 150,056
Capital Taxes 224,073 29,994
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5,183,851 1,712,723
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Cash Flow from Operations 10,036,656 1,780,346
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Depletion and Depreciation 3,896,132 931,563
Deferred Taxes 2,415,221 308,500
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6,311,353 1,240,063
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Net Earnings $ 3,725,303 $ 520,283
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Earnings Per Share $ 0.06 $ 0.02
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Cash Flow Per Share $ 0.16 $ 0.06
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Outlook
Compton anticipates continued growth in 1998. The Company has
significantly increased its core area land position in Southern Alberta.
Through crown land purchases and Areas of Mutual Interest resulting from major
joint venture agreements with PanCanadian and Mobil Oil, Compton owns or has
access to 60% of the lands within a 32 township block in the Okotoks to Nanton
area. During the first quarter of 1998, the Company completed two 3D seismic
surveys covering 85 square miles in the area and has embarked upon an
aggressive drilling program. Compton's common shares trade on The Toronto
Stock Exchange under the symbol ''CMT''. |
