TOP TWENTY UPDATE / KERMS FAVORITE / NEWPORT PETE
NEWPORT PETROLEUM CORPORATION
TSE SYMBOL: NPP
NOVEMBER 13, 1996
Newport Petroleum Announces Financial and Operating Results
CALGARY, ALBERTA--NEWPORT PETROLEUM CORPORATION is pleased to
announce its financial and operating results for the nine months
ended September 30, 1996.
Nine Months Ended
September 30
Percent
1996 1995 Change
--------------------------
FINANCIAL
(thousands except per share amounts)
Revenue from oil and gas
sales ($) 33,870 15,787 +115
Cash flow from operations ($) 17,795 7,157 +149
Per share - basic 0.52 0.25 +108
- fully diluted 0.49 0.25 +96
Net earnings ($) 4,983 1,940 +157
Per share - basic 0.15 0.07 +114
- fully diluted 0.14 0.07 +100
Average shares outstanding 34,015 28,301 +20
Capital expenditures ($) 37,267 16,096 +132
OPERATING (units as noted)
Production
Natural gas (mmcf/d) 46.8 22.4 +109
Natural gas liquids (bbl/d) 1,177 717 +64
Crude oil (bbl/d) 977 693 +41
Total (BOE/d) 6,832 3,649 +87
Average sales price
Natural gas ($/mcf) 1.64 1.40 +17
Natural gas liquids ($/bbl) 19.54 15.94 +23
Crude oil ($/bbl) 23.43 21.58 +9
During the first nine months of 1996, the Company's production
averaged 6,832 barrels of oil equivalent per day (BOE/d), an
increase of 87 percent from 3,649 BOE/d during the same period in
1995. The higher production volumes combined with stronger
commodity prices resulted in cash flow from operations and net
earnings being sharply higher for the nine months ended September
30, 1996.
Newport drilled 37 (17.3 net) wells in the first nine months
resulting in 16 (7.4 net) gas wells, 6 (2.8 net) oil wells and 15
(7.1 net) wells which were dry and abandoned.
Financial and operating results for the third quarter of 1996 are
summarized in the following table.
Three Months Ended
September 30
1996 1995
------------------
FINANCIAL
(thousands except per share amounts)
Revenue from oil and gas sales ($) 12,963 5,235
Cash flow from operations ($) 6,401 2,257
Per share - basic 0.18 0.07
- fully diluted 0.17 0.07
Net earnings ($) 1,403 775
Per share - basic 0.04 0.03
- fully diluted 0.04 0.03
Average shares outstanding 35,716 31,458
Capital expenditures ($) 16,502 6,407
OPERATING (units as noted)
Production
Natural gas (mmcf/d) 60.0 26.6
Natural gas liquids (bbl/d) 1,237 720
Crude oil (bbl/d) 931 695
Total (BOE/d) 8,165 4,073
Average sales price
Natural gas ($/mcf) 1.49 1.18
Natural gas liquids ($/bbl) 20.37 15.21
Crude oil ($/bbl) 24.01 20.93
The completion, early in the third quarter, of a major development
project at George/Dunvegan contributed to a 126 percent increase
in natural gas production volumes during the third quarter as
compared to a year earlier. Newport's first horizontal well
drilled at Cecil is currently being placed on production at an
allowable-restricted rate of 240 bbl/d. The Company is currently
producing approximately 70 mmcf/d of natural gas and 3,000 bbl/d
of crude oil and natural gas liquids.
During the third quarter, the Company increased its 1996 capital
budget from $40 million to $50 million. Approximately 75 percent
of the revised budget was expended during the first nine months of
1996. Since January 1996, Newport has acquired interests in over
95,000 net acres of undeveloped land and will continue its active
exploration/development program in western Alberta and
northeastern British Columbia.
On November 4, 1996, the Company closed an issue of 4 million
common shares at a price of $6.85 per common share for gross
proceeds of $27.4 million. Newport's preliminary 1997 capital
budget has been set at $75 million and includes a planned 85 well
drilling program.
-----------------
Kerm's Footnote: Production is averaging 6,800 boe/d and current
production is 10,000 boe/d, that's almost 50 % of average YTD.
Annual report will be smashing and looks like growth will continue at
high rate due to continuous and quiet acquisition of acreage in
their core areas od operation. |
