EARNINGS / BXL Energy - First Quarter 1998 Results
ASE SYMBOL: BXL
MAY 14, 1998
CALGARY, ALBERTA--BXL is pleased to report its operating and
financial results for the three months ended March 31, 1998 with
comparatives:
/T/
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Highlights Three months
ended March 31
1998 1997 Percent
Change
--------------- --------
Operating
Average daily production
Oil and NGLs (barrels
- bbls) 346 173 100
Natural gas (thousand
cubic ft. - mcf) 3,782 1,206 214
Equivalent barrels
(10 mcf = 1 boe) 724 293 147
Average selling prices
Oil and NGLs ($ per bbl) 19.84 29.35 (32)
Natural gas ($ per mcf) 1.68 2.33 (28)
Operating netbacks
Oil and NGLs ($ per bbl) 13.98 18.03 (22)
Natural gas ($ per mcf) 0.73 1.25 (42)
Equivalent barrels ($
per boe) 10.49 15.78 (34)
Financial ($ 000's except per share amounts)
Oil and gas sales 1,190 709 68
Gas management contract fees 87 96 (9)
Cash flow from operations 540 383 41
Per share (basic) 0.03 0.02 50
Net earnings 20 177 (89)
Per share (basic) - 0.01 (100)
Capital expenditures 1,659 1,980 16
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/T/
Successful drilling in the fourth quarter of 1997 and the first
quarter of 1998 resulted in substantial production increases.
Production climbed to 724 boe per day in the first quarter of
1998, a 147 percent increase over the 293 boe per day during the
first quarter of 1997. Oil and NGLs production increased 100
percent to 346 barrels per day as new wells at Gift/Little Horse
and Wilson Creek were brought on stream. Natural gas production
reached 3,782 mcf per day in the first quarter of 1998, an
increase of 214 percent over first quarter 1997 levels. Gas
production increases occurred at Wilson Creek where new wells were
tied-in and to a lessor extent, volumes from the December 1997
acquisition were added.
Oil and gas revenues totalled $1,190,000 during the first quarter
of 1998, a 68 percent increase over the $709,000 reported for the
same period in 1997.
Although selling prices declined, BXL's production profile of
light oil and sweet natural gas resulted in netbacks of $13.98 per
barrel of oil & NGLs and $0.73 per mcf of natural gas ($10.49 per
boe). First quarter 1998 royalty rates declined to 18 percent of
revenue ($3.20 per boe) from 24 percent of revenue ($6.34 per boe)
during the same period last year. More favourable royalty rates
are primarily the result of successful drilling at Gift/Little
Horse where new production qualifies for the Alberta Royalty Tax
Credit or in certain circumstances a Crown royalty holiday. On a
per unit basis, production expenses declined marginally to $4.56
per boe (1997 - $4.74 per boe) as decreases in lifting costs at
Gift/Little Horse were offset by higher costs at Tweedie. Natural
gas netbacks are expected to increase in the second quarter as a
result of higher selling prices and reduced operating costs.
Cash flow from operations was $540,000 ($0.03 per share) for the
three months ended March 31, 1998, a 41 percent increase over the
$383,000 ($0.02 per share) recorded last year.
Capital expenditures during the quarter were $1,659,000, 49
percent of which was spent on drilling, completing and equipping
wells at Gift/Little Horse and Wilson Creek and 29 percent was
spent on facilities and gathering lines at Gift/Little Horse and
Tweedie.
During the first three months of 1998 BXL participated in five
(0.8 net) wells resulting in three (0.7 net) oil wells and two
(0.1 net) dry holes. At Wilson Creek, BXL drilled one (0.3 net)
Cardium oil well which is currently production testing. At
Gift/Little Horse the company drilled two (0.4) oil wells which
were tied in and placed on production early in the second quarter.
Based on recent drilling success, BXL has a substantial
exploration program planned for the balance of the year. More
immediate plans include two (1.0 net) high impact natural gas
prospects in Wilson Creek, the first of which will spud in early
June.
BXL Energy Ltd. is engaged in the acquisition, exploration,
development and production of oil and gas reserves in Alberta.
BXL is listed on The Alberta Stock Exchange and has approximately
19.9 million shares outstanding.
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