EARNINGS / Remington Energy reports 1st 3 months Results
CALGARY, May 6 /CNW/ - Remington today released production and financial
highlights for the three months ended March 31, 1998. Overall production
averaged 98 mmcf/d of natural gas and 4,500 bbls/d of crude oil and NGL's, up
from 47 mmcf/d and 3,100 bbls/d for the same quarter in 1997. Cash flow
increased to $0.61 per share from $0.56 per share in the first quarter of
1997.
Three Months Ended March 31, 1998
($000's except per share numbers)
1998 1997
---- ----
- Oil & gas revenue 28,811 15,059
- Royalties & operations 11,163 4,879
- Interest & G&A 2,342 1,035
- Depreciation & depletion 10,907 5,401
- Cash flow 14,995 8,996
- Cash flow per share 0.61 0.56
- Earnings 1,809 1,779
- Earnings per share 0.07 0.11
- Capital Expenditures 33,883 36,028
(excluding acquisition)
- Average Daily Production
Oil & NGLs (bbls) 4,500 3,100
Natural Gas (mmcf) 98 47
Combined (BOE) 14,300 7,800
- Basic weighted average 24,507 15,956
shares outstanding (000's)
The average gas price during the first quarter of 1998 was $2.38 per mcf,
and liquids averaged $19.38 per barrel. During the first quarter of 1998,
Remington spent a total of $33.9 million in capital and debt at the end of the
quarter was $158.7 million.
Operating costs for oil & NGL's remain low at $4.04 per barrel, but for
gas they are higher at $0.80 per mcf. Gas operating costs have increased due
to the sour gas content at West Stoddart and Cache Creek, and is compounded by
minimal recognition of Remington's NGLs in the associated gas streams. Both of
these properties will benefit from the construction of the proposed Novagas
Canada Limited (NCL) plant at West Stoddart, which will reduce costs and
increase NGL recoveries. The NCL project received approval from the B.C.
government early last week.
Operationally, Remington has continued its aggressive exploration and
development program in 1998. Activity in the first quarter of 1998 included 23
gross (20 net) wells. This included 8 wells (7.4 net) in the West
Stoddart/Cache Creek area, 2 wells (1.5 net) at Red Creek, 10 wells (9.3 net)
at Rigel and Nig Creek and 3 wells (1.9 net) in other areas. This program
resulted in 5 (4.2 net) oil wells and 12 (11.3 net) gas wells for a 74%
success rate in the quarter.
At Red Creek, Remington now has 3 successful horizontal oil wells. At
West Stoddart, Remington and Canadian Natural Resources have agreed to work
together to unitize the property prior to September 30, 1998. At Cache Creek,
the liquid-rich gas field has contributed significantly to the continued
growth in Remington's gas production.
During the quarter Remington also closed its acquisition of the producing
assets of Okanagan Petroleums Limited for 156,930 common shares and $6.8
million. |
