EARNINGS / Westminster Resources Ltd. Reports 1997 Results
WESTMINSTER RESOURCES LTD.
TSE SYMBOL: WML
APRIL 22, 1998
CALGARY, ALBERTA--Westminster Resources Ltd. is pleased to report
Operating and Financial results for the year ending December 31,
1997.
The company achieved an exit 1997 production rate of 3200 boepd
compared to a 1996 exit of 550 boepd, an increase of 500 percent.
Average production increased to 905 boepd in 1997 from 245 in
1996, an increase of 300 percent. 1997 production was comprised
of 605 barrels of oil per day and 3.0 mmcf/d of natural gas. The
company participated in the drilling of 46 gross wells (10 net) in
1997 resulting in 33 oilwells, 3 gaswells, 3 water injection wells
and 7 dry and abandoned wells for a 78 percent drilling success.
Oil and gas sales net of royalties improved 146 percent in 1997 to
$6.48 million from $2.63 million in 1996. In 1997, the average
selling price for oil was C$25.87 per barrel, down 13 percent from
the 1996 average of C$29.73 per barrel. Westminster sold its
natural gas at an average price of C$1.65 per thousand cubic feet
in 1997. Cash flow per share was $0.14 in 1997 with earnings of
$0.02/per share. In 1996 cash flow per share was $0.15 with
earnings of $0.08/per share. The average number of shares
outstanding was 17,356,000 in 1997 compared to 12,979,000 in
1996.
Westminster's reserve base was substantially increased in 1997.
Established reserves (proved + 50 percent probable) increased to
12,331 mmboe from 1,710 mmboe in 1996, a 600 percent increase.
Proved plus probable reserves increased from 1,975 mmboe in 1996
to 15,195 mmboe in 1997. The company has a reserve life index of
9.5 years proved, and 14.7 years proved plus probable. Capital
expenditures during 1997 were approximately $57.5 million (net of
divestitures) resulting in a finding cost of $5.41/boe for
established reserves and $4.34/boe for proved plus probable
reserves. Included in the 1997 capital expenditures was a
significant portion of undeveloped land, acquired through Crown
Land sales and as a part of several acquisitions in core prospect
areas. These lands were acquired in 1997 to provide the basis for
multi-well exploration and development drilling programs in 1998.
Westminster has interests in 608,554 acres of land (142,425 net)
at the end of 1997 as compared to 120,000 acres (20,747 net) in
1996.
Westminster's 1998 capital budget of $32.7 million will be
allocated as follows:
/T/
Exploration Drilling $ 8.5 million
Development Drilling $12.0 million
Facilities $ 6.2 million
Land Acquisition $ 5.0 million
Seismic Acquisition $ 1.0 million
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$32.7 million
/T/
The Capital Budget is largely directed towards the development of
gas reserves in the company's core gas prospect areas of
Helmet/Peggo, July Lake, Savanna Creek and Hamburg/ Chinchaga. In
the first quarter of 1998, Westminster will concentrate on the
drilling and tie-in of Jean-Marie gas production in the
Helmet/Peggo area of northeast British Columbia. The company is
constructing a gas plant capable of processing up to 20 mmcf/d of
natural gas from lands in the area.
Westminster expects to participate in the drilling of 35 wells (10
net) in 1998 in Alberta, British Columbia and Saskatchewan.
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