EARNINGS / Backer Petroleum Corp. reports 1997 Results
Results...
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Backer Petroleum Corp. ("Backer") announces that the
Company's audited results for the fiscal year ended December 31, 1997
indicate gross revenue of $4,691,202, compared to $5,000,275 for 1996; and
net operating cash flow of $772,767 compared to $2,064,501 last year.
Currently there are 6,804,564 common shares issued and outstanding.
Oil and Gas Operations...
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The Company announces that activity subsequent to the year end 1997 has
significantly increased the Company's production base and cash flow.
Darwin, Alberta
Production from the Darwin property, 60 miles north of Peace River, commenced
in mid-February 1998 and subsequent to the tie-in of a fourth gaswell in
March, sales volumes to Backer's 30% working interest reached 3.0 MMCF per
day in late March and averaged 2.6 MMCF per day, or 260 barrels of oil
equivalent ("BOE") per day for the entire month. With an average gas price of
$1.82 per MCF, Darwin has provided a significant increase to the Company's
cash flow.
Two gaswells were drilled at Darwin in February 1998, including the well
placed on production in March. These two wells completed the earning
requirements of a multi-well farmin initiated in 1996. Backer now holds a 30%
before payout (18% after payout) working interest in 4 producing gaswells and
2 capped gaswells, a 30% interest in a 10.0 MMCF per day gas processing
facility, gas gathering system and sales gas pipeline, and between a 10% and
50% working interest in 32 sections of land at Darwin. The Company
anticipates that as many as four additional wells will be drilled in January
1999 when the drilling season resumes after freeze-up.
Recent Acquisitions
Backer completed two property acquisitions subsequent to year end, adding
approximately 55 BOE per day to the Company's net production. Total
consideration for both acquisitions was $850,000.
Backer and its partners were also successful at a recent Alberta Crown land
sale in acquiring a 480 acre parcel adjacent to a producing oilwell. The
Company anticipates that a multi-well development drilling program operated
by Backer will begin on this property during the second quarter of 1998.
Post year end activity has increased Backer's net production by approximately
350 BOE per day to a total approaching 900 BOE per day.
(signed)
David M. Mercier
President
Toronto Stock Exchange - "BCM"
Suite 750, 500-4th Avenue S.W.
Tel: 403-264-6962
Fax: 403-265-8256 |
