EARNINGS / New Cache Petroleum reports 1st 3 months Results
CALGARY, April 30 /CNW/ - For the three months ended February 28, 1998,
gross sales increased 51% to $8.805 million from $5.816 million in 1997.
Combined production doubled to 4,979 boed from the 2,456 boed achieved in the
first quarter of 1997, with oil production staying relatively flat at 2,044
bpd compared to 1,941 bpd in 1997 and gas production rising dramatically to
29.355 mmcfd in 1998 compared to 5,151 mmcfd in the same period in 1997.
Gas prices rose to $1.89 per mcf in the first quarter of 1998, compared
to $1.71 per mcf in the same period in 1997 while oil prices declined to
$20.73 per barrel from $28.75 per barrel in 1997.
Cash flow from operations was up 20% to $3.563 million ($0.25 per share)
in the first quarter of 1998 from $2.960 million ($0.32 per share) in the
comparable period of 1997 in spite of the significantly lower oil price. A
net loss of $0.395 million ($0.03 per share) was recorded in the first quarter
of 1998 compared to a net income of $0.415 million ($0.05 per share) in the
first three months of 1997. The loss is due to a deferred tax charge of
$0.576 million resulting from the corporate acquisitions completed during
1997. The weighted average basic and fully diluted shares outstanding for the
first quarter of 1998 were 14.183 million and 15.036 million, respectively.
As at February 28, 1998, the Company had a working capital deficiency of
$6.978 million and bank debt of $26.554 million. The Company's line of credit
has been recently increased to $45 million. New Cache invested $14.848 million
in the first quarter of 1998 with $3.4 million going to the Mahaska
acquisition and $11.436 million spent on land, seismic, drilling and
facilities. This compares to $5.875 million of capital expenditures for the
same period in 1997.
The Company participated in 21 gross (10.87 net) wells in the first three
months of 1998, resulting in 4 oil wells (0.85 net), 8 gas wells (4.75 net)
and 9 abandoned wells (5.27 net). Three wells were drilled on farm-out lands
in the first quarter resulting in 2 abandoned wells and 1 potential oil well
in the Valhalla area. New Cache will have a 40% to 50% working interest in
the pool delineation wells planned for the third and fourth quarter in this
area. Subsequent to the end of the first quarter, New Cache participated in a
well (50% WI) at 6-21-58-16 W5M, resulting in a potential multi-zone gas well.
Stemming from this drilling, New Cache has new discoveries at Bronson,
Windfall, McLeod, Pine Creek and Valhalla. Internal estimates of new proved
reserves related to this activity is 2,037 mboe.
In January 1998, New Cache acquired our partner's interest in the Mahaska
property for $3.4 million. The assets acquired include 6,896 net acres of
land, an additional 10% working interest in the gas plant and an additional
55% working interest in the 6 producing and shut-in gas wells, bringing the
Company's interests to 55% and 100%, respectively.
Activity through to year end will be centered around development and
exploitation drilling on all of these discoveries. In addition, the Company
will drill development wells at Nig Creek and conduct workovers at Chigwell to
enhance production.
New Cache currently has 14.205 million common shares issued and
outstanding and 15.147 million fully diluted.
''THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE
INFORMATION CONTAINED HEREIN''
Website: www.newcache.com
E-mail Address: ncp@cadvision.com
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