EARNINGS / Alliance Energy reports 1st 3 months Results
Alliance Energy Inc. (Alberta Stock Exchange trading symbol "AEI") is pleased
to provide the following information to its shareholders with respect to the
financial results for the three months ended February, 1998.
Summary:
1998 1997 Change
Gross oil & gas revenue 1,015,695 613,308 66%
Operating expenses 340,740 237,699 43%
General and administrative expenses (G&A) 45,741 95,674 (52%)
Net Earnings 105,727 45,258 134%
Net Earnings per Share $0.01 $0.00
Funds from Operations 511,637 207,286 147%
Funds from Operations per Share $0.03 $0.02
Production volume (BOE) 57,939 26,016 123%
BOE/D 644 289 123%
Oil Price (BOE) $17.53 $23.57 (26%)
Net Back after G&A (BOE) $7.90 $8.36 (5%)
Shares Outstanding at period 15,002,583 13,837,583 8%
Cash flow from operations has increased 147% from $207,286 in 1997 to
$511,637 in 1998. Cash flow per share has increased from $0.02/share in 1997
to $0.03/share in 1998. Daily production increased 123% from 289 BOE/D in
1997 to 644 BOE/D in 1998 mainly due to successful drilling in the Lost Horse
Hill area.
Even though the product prices has decreased $6.04 from $23.57/BOE in 1997 to
$17.53/BOE in 1998 the net back after G & A per BOE has remained fairly
consistent being $8.36/BOE in 1997 to $7.90/BOE in 1998. This is due to the
reduced operating expenses on a BOE basis from $9.14/BOE in 1997 to $5.88/BOE
and general and administrative expenses have been reduced from $3.68/BOE to
$0.79/BOE in 1998. Light and medium oil accounts for 92% of production
volume, heavy oil accounts for 6% and gas accounts for 2%.
Earnings have increased 134% from $45,258 in 1997 to $105,727 in 1998.
A total of 2 wells (1.5 net) have been drilled in this quarter, resulting in
1 oil well (0.5 net) and 1 dry hole (1.0 net). The Company is currently
drilling another well in Lost Horse Hills (0.5 net). The Company plans to
drill 7 (3.1 net) more wells in S.E. Saskatchewan during the year. At
present, the Company is producing 700 BOE/D.
Annual General Meeting to be held at 3:00pm Thursday April 30, 1998 at the
Calgary Petroleum Club. |
