EARNINGS / Granger Energy Reports First Quarter Results
ASE SYMBOL: GAS.A GAS.B GAS.C
APRIL 30, 1998
CALGARY, ALBERTA--GRANGER ENERGY CORP. (GAS.A) today announced its
operating and financial results for the three month period ended
February 28, 1998
Granger posted a 24 percent increase in total production to 631
BOE/d, 90 percent of which was oil. The average net oil price
received decreased 20 percent to $20.81 per barrel and net
production revenue decreased 3 percent compared to the same period
last year. Net revenues include an oil hedging gain of $2.05 per
barrel produced. The Company hedged 300 bpd of production at an
average fixed price of over US$20.00 per barrel from January 1,
1998 to April 30, 1998 and a further 200 bpd at a fixed price of
US$20.40 for the balance of 1998. These contracts will shelter
about 65 percent of Granger's net production from low spot oil
prices through to the end of the year.
Operating expenses increased 43 percent to $384,000 as a result of
increased corporate production and high costs at the sold Majestic
project. Cash flow declined 13 percent to $465,000 ($0.10 per
share) from $534,000 ($0.19 per share) in 1997. Net income
declined to $69,000 ($0.01 per share) from $191,000 ($0.07 per
share) over the same prior period.
/T/
THREE MOS. ENDED FEB. 28, 1998
Percent
Production 1998 1997 Change
---- ---- -------
Oil (bpd) 565 438 +29
Natural gas (mcf/d) 660 708 -07
Barrels of oil equivalent 631 509 +24
Average prices
Oil (per bbl) $20.81 $26.17 -20
Natural Gas (per mcf) $1.53 $2.35 -35
Cash Flow $464,701 $533,561 -13
Per share $0.10 $0.19 -47
Net Income $69,016 $191,151 -63
Per share $0.01 $0.07 -85
Class A Shares outstanding-
weighted average 4,867,593 2,871,186 +70
/T/
Granger has arranged to sell its heavy oil interests at
Majestic/Atlee-Buffalo, together with other minor properties, for
approximately $3,900,000. Proceeds will firstly be applied to
eliminate bank debt with the remainder added to working capital to
total approximately $2,000,000. Company production will total
approximately 400 bopd of light and medium gravity oil plus 200
mcf per day of natural gas after the sale.
The Company also announced that it is seeking a corporate merger,
acquisition or sale in order to maximize shareholder value. The
investment banking firm of Griffiths McBurney & Associates has
been engaged to assist in identifying a suitable candidate and the
solicitation of proposals is now under way.
GRANGER'S Class A shares are listed on the Alberta Stock Exchange
under the trading symbol "GAS.A".
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