EARNINGS / Corker Resources Inc. Announces Year-End Results and
Other Corporate News
ASE SYMBOL: CRK
MAY 6, 1998
CALGARY, ALBERTA--CORKER RESOURCES INC. is pleased to announce its
financial results for its first fiscal year ended December 31,
1997. The Company raised $873,457 (net) through its founders, its
initial public offering and a private placement which generated
the following year-end results:
/T/
Gross oil and gas revenue $1,270,899
Net Income $ 519,003
Cash flow from operations $ 601,518
/T/
Based on the weighted average number of fully diluted shares
outstanding, this represents net income per share of $0.09 and
cash flow of $0.10 per share.
An evaluation of Corker's oil and gas reserves by an independent
consulting engineering firm indicated the Company's reserves to be
worth a net present value of $5,700,000 (12 percent discount) and
$5,100,000 (15 percent discount) risking probable reserves at 50
percent.
Based on these figures and after taking into consideration debt
and undeveloped land, the Company's estimated net asset value on a
fully diluted basis is estimated to be $0.65 (12 percent discount)
or $0.57 (15 percent discount). Corker's reserves are
approximately 93 percent gas and 7 percent oil.
Corker exited 1997 at 48 barrels of oil per day (bopd) and 1.6
million cubic feet of gas per day (mmcf/d). Currently the company
is at approximately 48 bopd and 2.4 mmcf/d.
Corker recently announced a rights offering to all shareholders of
record as of the close of business on Thursday, May 7, 1998.
Shareholders of record will receive one right for each common
share held, and may acquire additional common shares on the basis
of two rights plus $0.50 per share for each new share. A Rights
Offering Circular describing the particulars of this offering will
be sent to each shareholder of record. The rights may be
transferred or sold in accordance with conditions outlined in the
Offering Circular. The common shares began trading on an
ex-rights basis at the opening of business on May 5, 1998. The
expiry date of the offering is May 28, 1998.
Proceeds from the offering, approximately $1,500,000, if fully
subscribed, will be used to accelerate the Company's development
drilling program at Hanna Garden (40 gross wells, 7.3 net), drill
one development well at Alderson (0.375 net) and participate in an
exploratory well in northeastern British Columbia (0.10 net) and
reduce current bank debt.
|
