EARNINGS / Bellator Exploration Announces 1997 Results
BELLATOR EXPLORATION INC. - ANNOUNCES RESULTS FOR THE THREE
MONTHS AND YEAR ENDED DECEMBER 31, 1998
1998-04-24
CALGARY, ALBERTA
BELLATOR EXPLORATION INC. (TSE - BEX) is pleased to announce record results
for the three months and year ended December 31, 1997.
Gross revenues for the year ended December 31, 1997 increased by 1052% to
$7.9 million from $0.7 million for 1996. Cash flow increased to $3.7 million
($0.14 basic or $0.13 fully diluted per share) from a cash flow deficit of
$0.1 million ($0.01 basic or $0.01 fully diluted per share). Net earnings for
1997 were $1.2 million ($0.05 per share) versus a loss of $0.8 million ($0.07
per share) for the same period in 1996.
Gross revenues for the three months ended December 31, 1997 increased 490% to
$2.6 million from $0.4 million for the same period in 1996. Cash flow for the
fourth quarter increased by 489% to $0.3 million ($0.01 basic or $0.01 fully
diluted per share) from $0.1 million ($nil basic or $nil fully diluted per
share) for the fourth quarter of 1996. Net income increased to $52 thousand
($nil per share) for the fourth quarter of 1997 versus a loss of $31 thousand
($nil per share) for 1996.
The financial and operational highlights follow:
Three months ended Year ended
December 31 December 31
------------------------------------------------------
1997 1996 % 1997 1996 %
$ $ Change $ $ Change
------------------------------------------------------
FINANCIAL
$ thousands, except per share amounts)
Gross revenues 2,633 446 490 7,903 686 1,052
Cash flow from
operations 336 57 489 3,742 (69) -
Basic per share 0.01 nil - 0.14 (0.01) -
Fully diluted per
share 0.01 nil - 0.13 (0.01) -
Net earnings (loss) 52 (31) - 1,220 (782) -
Per share nil nil - 0.05 (0.07) -
Three months ended Year ended
December 31 December 31
---------------------------------
% %
1997 1996 Change 1997 1996 Change
PRODUCTION
Oil and natural
gas liquids:
Barrels per day 2,281 192 1,088 1,297 79 1,542
========================================================
Operating
Netback
($ per barrel)
Sales price $10.01 $18.11 (45) $12.73 $19.38 (34)
Royalties 1.40 3.83 (63) 1.94 3.37 (42)
Operating
costs 5.70 6.41 (11) 6.17 7.11 (13)
--------------------------------------------------------
Netback $2.91 $7.87 (63) $4.62 $8.90 (48)
========================================================
Natural Gas:
mcf per day 3,427 1,310 162 2,900 330 779
========================================================
Operating Netback
($ per mcf)
Sales price $1.69 $1.05 61 $1.77 $1.05 69
Royalties 0.25 0.14 79 0.32 0.14 129
Operating
costs 0.50 0.31 61 0.52 0.31 68
--------------------------------------------------------
Netback $0.94 $0.60 57 $0.93 $0.60 55
========================================================
Combined totals:
Barrels of oil
equivalent*
Daily
Production 2,624 323 712 1,587 112 1,317
=========================================================
Operating Netback
($ per boe)
Sales price $10.91 $15.01 (27) $13.64 $16.76 (19)
Royalties 1.56 2.83 (45) 2.17 2.78 (22)
Operating
costs 5.60 5.08 10 5.98 5.93 01
-------------------------------------------------------------
Netback $3.75 $7.10 (47) $5.49 $8.05 (32)
==========================================================
* (10 mcf gas = 1 barrel of oil equivalent (boe))
DRILLING PROGRAM
Year ended December 31, 1997 Year ended December 31, 1996
-------------------------------------------------------------
Gross Net Gross Net
Oil 22 22.0 3 3
Natural Gas 2 2.0 0 0
Dry 2 0.8 3 3
----------------------------------------
26 24.8 6 6
====================================
Success Rate 97% 50%
================ ============
UNDEVELOPED LANDS
As at December 31,
--------------------------
1997 1996
--------------------------
Gross acres
Sounding-Hoosier area 45,991 43,172
Lloydminster Area 17,181 2,280
Other 768 5,957
--------------------------
Total Gross acres 63,940 51,409
==========================
Net acres
Sounding-Hoosier area 36,376 35,915
Lloydminster area 17,181 2,280
Other 768 4,364
--------------------------
Total Net acres 54,625 42,559
==========================
Average working interest 85% 83%
==========================
RESERVES
As at December 31,
--------------------------
1997 1996
--------------------------
Oil and natural gas liquids:
(millions of barrels)
Proved 41.0 1.6
Probable 17.8 0.9
--------------------------
58.8 2.5
==========================
Natural gas:
(billions of cubic feet)
Proved 7.9 6.3
Probable 2.9 2.2
--------------------------
10.8 8.5
==========================
CAPITAL EXPENDITURES
($ millions)
Years ended December 31,
--------------------------
1997 1996
--------------------------
Land and acquisitions 29.2 3.6
Drilling 16.5 1.0
Facilities and equipment 17.7 0.5
Other 0.2 0.1
--------------------------
63.6 5.2
==========================
NET FINDING AND ON-STREAM COSTS
($/boc)
Years ended December 31,
----------------------------
1997 1996
____________________________
Proved reserve additions 2.45 2.29
============================
Proved plus probable reserve additions 1.88 1.55
============================
CONDENSED BALANCE SHEET
($ thousands) As at December 31,
-----------------------------
1997 1996
-----------------------------
Assets
Current assets 2,263 284
Capital assets 66,220 5,044
-----------------------------
68,483 5,328
=============================
Liabilities and Shareholders' Equity
Current liabilities 8,096 1,151
Long-term debt 4,867 1,455
Deferred credits 61 532
Shareholders' Equity 55,459 2,190
-----------------------------
68,483 5,328
=============================
COMMON SHARE DATA
(millions of shares) 1997 1996
-----------------------------
Weighted average:
(years ended December 31)
Basic 26.0 12.3
=============================
Fully diluted 28.4 13.3
=============================
Outstanding
(as at December 31)
Basic 45.8 16.7
=============================
Fully diluted 50.6 18.3
=============================
The year ended 1997 was the most successful year in Bellator's short history.
Strategic acquisitions and exploitation of existing properties resulted in
production increasing from approximately 500 boe per day to over 4,000 boe
per day with a 20-fold increase in reserves.
During 1997 Bellator drilled 26 gross (24.8 net) wells with an overall
success rate of 97%. The successful drilling program coupled with the
various acquisitions resulted in finding and development costs of $2.45 per
boe on a proved basis or $1.88 boe on a proved and probable basis.
During the first quarter of 1998 the Company acquired 2 highly prospective
light oil properties in the West Central area of Alberta, which are scheduled
to be drilled in Q3 1998 and could provide significant upside potential. In
addition, Bellator has recently drilled 3 gross (3 net) wells resulting in 1
oil discovery in the Lloydminster area and 2 gas wells in the
Sounding-Hoosier area.
The company's planned diversification throughout 1998 will allow Bellator to
exit the year as a stronger company with significant remaining upside in its
heavy oil properties for the next cycle of stronger oil prices.
Bellator's annual General Meeting will be held at 3:00 p.m. on June 3, 1998
in the Devonian Room at the Calgary Petroleum Club. |
