EARNINGS / Seven Seas Petroleum reports 1st 3 months Results
HOUSTON, May 15 /CNW/ -- SEVEN SEAS PETROLEUM INC.
(Amex: SEV; TSE: SVS.U) today announced a net loss of $1.1 million or $.03 per
share and $0.7 million or $0.3 per share for the three months ended March 31,
1998 and 1997, respectively.
3 Months to March 31: 1998 1997
Revenue 184 433
Net income (1,115) (722)
Basic and diluted net loss per share (0.03) (0.03)
For the three months ended March 31, 1998, the Company had capital
expenditures of $10.0 million for the acquisition, exploration, and
development of its oil and gas properties with respect to its interests in
Colombia.
For the three months ended March 31, 1998 and March 31, 1997, the Company
had oil sales of zero and $0.3 million, respectively, solely from production
testing of the Company's wells on Emerald Mountain. Although the Company
intends to continue to sell oil resulting from production tests, significant
production is not expected until further evaluation and development of the
field is completed through the drilling of additional wells and construction
of producing facilities and pipelines. The Company has received preliminary
plans for the construction of pipelines and producing facilities, and
permitting and final planning for pipelines and production facilities is now
proceeding. Completion of the first phase of these facilities is scheduled to
occur in 1999.
GHK Company Colombia, a wholly owned subsidiary of Seven Seas, is the
operator of the Emerald Mountain project. Seven Seas holds a 57.7% interest
in the Emerald Mountain project which encompasses the Dindal and Rio Seco
Blocks.
Seven Seas Petroleum Inc. is an international oil and gas exploration and
production company. For more information, contact Herbert C. Williamson III,
Chief Financial Officer at 713-622-8218.
Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act. The statements involve risks that could significantly
impact Seven Seas Petroleum Inc. These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.
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