EARNINGS / CrownJoule Exploration Announces Results of First
Years' Operations
CROWNJOULE EXPLORATION LTD.
TSE SYMBOL: CJE CJE.WT
MAY 6, 1998
CALGARY, ALBERTA--CrownJoule Exploration Ltd. ("CJE" - TSE) is
pleased to announce results from its first full year of operations
ending January 31, 1998.
"It has been a tremendous first year", states company President
and Chief Executive Officer, George Wilson. "We started the
company in October, 1996 with a shared vision, but no assets or
production. We spearheaded the acquisition of an under-developed
asset at Doris, and through active drilling and development this
past winter, including the construction of a new gas plant, we
have substantially increased reserves, and more than doubled
production and cash flow. In addition to our development success,
we acquired over 100 sections of highly prospective Crown land on
which we have just completed 150 kms. of seismic and plan to drill
up to ten locations. As a 99 percent gas and liquids company, our
opportunities in the next few years look very exciting".
At year end, total reserves were 36.86 billion cubic feet of gas
equivalent (33.68 Bcf of gas and 318,000 barrels of NGL's). This
84 percent increase in reserves contributed to an asset base
valued at more than $30 million. Production averaged 6.8 million
cubic feet of gas equivalent per day, while year end exit rate
production had climbed to 11.65 million cubic feet of gas
equivalent per day. Cash flow reached $2.057 million at year end
and is expected to reach $5 million next year based on average
daily production of 12.9 million cubic feet of gas equivalent per
day. Finding costs equated to $0.25/Mcf, while total finding and
onstream costs were $0.42/Mcf.
During 1997, CrownJoule aggressively expanded its land holdings in
a large focus area encompassing Doris and surrounding lands. The
company spent over $1.4 million to acquire over 68,160 acres
(31,466 net) paying an average $45.00 per acre to create a large
contiguous land spread in an area with excellent exploration
potential. 1997 acreage acquisitions pushed CrownJoule's
undeveloped acreage position to 168,207 acres (63,890 net) in
total.
CrownJoule's drilling success rate over the year was 82 percent,
drilling a total of 17 wells (7.41 net), ten of which were
classified as exploration wells. The company's success rate in
the Doris field itself was 92 percent, casing 11 out of 12 wells
drilled. At year end, five of these 11 wells were awaiting
completion and tie-in.
The following summarizes the highlights of CrownJoule's year:
NATURAL GAS RESERVES (Mmcf)
Total Proved 23,516
Total Probable 10,168
Total Proved & 1/2 Probable 28,600
Total Proved and Probable 33,684
NATURAL GAS LIQUIDS RESERVES (Mstb)
Total Proved 224
Total Probable 94
Total Proved & 1/2 Probable 271
Total Proved & Probable 318
(x)TOTAL RESERVES (Mmcfe) RESERVE VALUE (000)
NPV 10 NPV 15
Percent Percent
------- -------
Total Proved 25,766 $ 30,894 $ 27,029
Total Probable 11,098 $ 8,142 $ 6,033
Total Proved &
1/2 Probable 31,315 $ 34,965 $ 30,046
Total Proved &
Probable 36,864 $ 39,036 $ 33,062
(x)McDaniel & Associates Consultants Ltd. (98-02-01)
UNDEVELOPED LAND
Gross Acres 168,207
Net Acres 63,890
(x)Value (000) $ 4,269
(x) Seaton -Jordan Associates Ltd. (98-02-01)
NET ASSET VALUE (000) NPV 10 Percent NPV 15 Percent
-------------- --------------
Proved & 1/2 Probable $35,070 $30,151
Per Share (Basic) $2.74 $2.35
CrownJoule is also pleased to announce the following audited
financial results for the periods ending January 31, 1998 and
1997.
4TH QTR. YEAR END JAN 31
-------- ---------------
1998 1998 1997
---- ---- ----
OPERATIONS
Natural Gas Production (Mcf/d) 9,969 6,360 167
NGL Production (Bbls/d) 61 44 3
Gas Price Average ($/Mcf) 2.14 1.91 1.60
NGL Price Average ($/Bbl) 27.09 22.61 22.50
FINANCIAL ($000)
Total Revenues 2,122 4,387 39
Cash Flow from Operations 945 2,057 30
Per Share ($/share) 0.11 0.24 0.07
Net Earnings (Loss) (296) (205) 30
Per Share ($/share) (0.03) (0.02) 0.07
Working Capital (1,426) 6,284
Long Term Debt 3,538 0
Shareholders' Equity 24,193 6,775
COMMON SHARES OUTSTANDING (000)
Weighted Average 8,613 447
End of Period 12,808 447
SHARE TRADING ($/share)
High $2.25
Low $1.16
Close $1.30
Volume (7 months) 1,507,137
CrownJoule is an oil and gas exploration company whose Common
Shares and Purchase Warrants are traded on The Toronto Stock
Exchange under the trading symbols "CJE" and "CJE.WT"
respectively.
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