TOP TWENTY UPDATE / STAMPEDER EXPLORATION
STAMPEDER EXPLORATION LTD.
NYSE, TSE SYMBOL: SDX
NOVEMBER 13, 1996
Stampeder Exploration Continues to Record Financial and
Operational Growth
CALGARY, ALBERTA--Stampeder Exploration Ltd. announced that cash
flow from operations for the nine months ended September 30, 1996
totalled $40,942,000, an increase of 52 percent over $26,858,000
realized for the same period last year. Cash flow per share was
$0.90 for the nine months, up 27 percent from $0.71 in 1995.
Average production for the first three quarters of 1996 was 12,860
boe/d, a 36 percent increase from 9,478 boe/d produced in the
first three quarters of 1995. These results do not reflect the
acquisition of Morgan Hydrocarbons Inc. that closed early in the
fourth quarter.
In the third quarter of 1996, average production increased to
15,545 boe/d, up 47 percent over 1995 third quarter production of
10,552 boe/d. Cash flow from operations was $15,613,000 in the
quarter, a 56 percent increase over $9,991,000 for the same
quarter in 1995. Cash flow per share increased to $0.32 per
share, a 23 percent increase over 1995 third quarter cash flow per
share of $0.26, notwithstanding that, as a result of Stampeder's
equity offering in March 1996, Stampeder had 25 percent more stock
outstanding in the third quarter of 1996 than it did in 1995.
"Stampeder is well ahead of its growth targets. We have increased
our production with the purchase of Ballistic Energy, which was
highly focussed with large working interests in several light oil
fields with exploitation potential in Saskatchewan. In addition,
Ballistic has 300,000 net acres of undeveloped lands. At the same
time, we completed the sale of certain light oil properties to
Maximum Energy Trust, which resulted in proceeds of approximately
$132,000,000. The completion of the Ballistic Energy acquisition
and the subsequent sale to the royalty trust had the result of
adding exploration potential in southern Saskatchewan and 3,000
boe/d of light oil production from two core areas" said Jeff
Tonken, President and Chief Executive Officer of Stampeder.
Stampeder's third quarter results reflect the first full quarter
of operational and financial results attributable to its
acquisition of Ballistic Energy Corporation but do not reflect the
acquisition of Morgan Hydrocarbons Inc. that closed early in the
fourth quarter.
/T/
3 months ended 3 months ended
Sept. 30, 1996 Sept. 30, 1995
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Financial
---------
petroleum and natural gas sales $31,328,000 $21,121,000
gas marketing sales $70,240,000 $29,744,000
total revenues, net of royalties $95,443,000 $47,788,000
cash flow from operations $15,613,000 $ 9,991,000
basic per share $ 0.32 $ 0.26
fully diluted per share $ 0.31 $ 0.25
earnings before extraordinary
item $4,251,000 $3,733,000
basic per share $ 0.09 $ 0.10
fully diluted per share $ 0.09 $ 0.10
net earnings $4,251,000 $3,764,000
basic per share $ 0.09 $ 0.10
fully diluted per share $ 0.09 $ 0.10
capital expenditures $36,682,000 $10,981,000
9 months ended 9 months ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
Financial
---------
petroleum and natural gas sales $77,433,000 $57,917,000
gas marketing sales $232,825,000 $83,165,000
total revenues, net of royalties $297,971,000 $131,449,000
cash flow from operations $40,942,000 $26,858,000
basic per share $ 0.90 $ 0.71
fully diluted per share $ 0.86 $ 0.68
earnings before extraordinary
item $12,939,000 $10,218,000
basic per share $ 0.29 $ 0.27
fully diluted per share $ 0.29 $ 0.27
net earnings $12,939,000 $15,228,000
basic per share $ 0.29 $ 0.40
fully diluted per share $ 0.29 $ 0.39
capital expenditures $241,423,000 $59,567,000
3 months ended 3 months ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
Operational
-----------
average daily production (boe/d) 15,545 10,552
crude oil (bbls/d) 11,907 9,198
natural gas (mcf/d) 27,373 9,763
NGLs (bbls/d) 901 378
average sales price:
crude oil (per bbl) $ 26.71 $ 22.05
natural gas (per mcf) $ 1.39 $ 1.22
NGLs (per bbl) $ 17.02 $ 12.94
average netback (per boe) $ 13.23 $ 13.35
9 months ended 9 months ended
Sept. 30, 1996 Sept. 30, 1995
-------------- --------------
Operational
-----------
average daily production (boe/d) 12,860 9,478
crude oil (bbls/d) 10,195 8,339
natural gas (mcf/d) 20,148 8,514
NGLs (bbls/d) 650 288
average sales price:
crude oil (per bbl) $ 25.59 $ 23.45
natural gas (per mcf) $ 1.40 $ 1.23
NGLs (per bbl) $ 17.36 $ 12.64
average netback (per boe) $ 13.60 $ 13.53
/T/
Earnings before extraordinary item in the first nine months of
1996 increased by 27 percent to $12,939,000, or $0.29 per share,
from $10,218,000, or $0.27 per share, recorded in the first nine
months of 1995. Petroleum and natural gas sales increased by 34
percent during the first three quarters of 1996 to $77,433,000
from $57,917,000 in the comparative period on average prices of
$25.59 per bbl of oil, $1.40 per mcf of natural gas and $17.36 per
bbl of NGLs.
Earnings before extraordinary item in the third quarter of 1996
increased by 14 percent to $4,251,000, or $0.09 per share, from
$3,733,000, or $0.10 per share, recorded in the third quarter of
1995, while petroleum and natural gas sales increased by 48
percent to $31,328,000 from $21,121,000 in the comparative period
on average prices of $26.71 per bbl of oil, $1.39 per mcf of
natural gas and $17.02 per bbl of NGLs.
Stampeder's natural gas marketing subsidiary, StampGas Inc.,
continued to show significant growth, increasing revenues in the
first nine months of 1996 by 180 percent to $232,825,000 from
$83,165,000 realized in the first nine months of 1995. Sales
volumes likewise increased to 112 bcf from 61 bcf over these same
time periods. Effective October 1, 1996, StampGas joined with
Stampeder's oil marketing arm, StampOil, to become Stampeder
Energy, a division of Stampeder.
Stampeder spent approximately $53.1 million on exploration and
development in the first nine months of 1996, including the
drilling of 96 (94.2 net) wells that resulted in 67 (67.0 net) oil
wells, 5 (4.2 net) gas wells and 24 (23.0 net) dry and abandoned
wells. Stampeder's oil and gas operations in the third quarter
continued to focus on the development of its heavy oil property at
Kerrobert in southwestern Saskatchewan. Stampeder has
successfully drilled 16 horizontal wells on this property in 1996,
bringing the total number of wells on production to 26. Stampeder
expects its steam enhanced oil recovery project to be operational
by the summer of 1997.
Subsequent to the end of the third quarter, Stampeder acquired
Morgan Hydrocarbons Inc. The acquistion moved Stampeder into the
top 15 producers in Canada, more than doubling its current daily
production to 38,000 boe/day. In early November, a preliminary
prospectus was filed by Viking Energy Royalty Trust to whom
Stampeder intends to sell certain oil and gas properties for
proceeds of approximately $140,000,000. Stampeder intends to
apply these proceeds against existing bank indebtedness upon
completion of the sale, which is expected to close in December
1996.
Stampeder Exploration Ltd. is a Calgary based oil and gas company
listed on the New York Stock Exchange and The Toronto Stock
Exchange under the symbol "SDX".
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Kerms Footnote: Company is financially putting itself on firm footing
and as a result, is being setup for shares to accelerate in value. I
anticipate new and large institutional interest. Being among the 15
top producers in Canada and a new listing on the NYSE along with
a sound growth record will be the catalyst. Stampeder is definitely
an aggressive explorer to watch in Canada. |
