TOP TWENTY SELECTION UPDATE / GENESIS EXPLORATION
GENESIS ANNOUNCES THIRD QUARTER RESULTS
CALGARY, November 14 /CNW/ - Genesis Exploration Ltd. more than tripled
its revenue and cash flow for the nine months ended September 30, 1996
compared with 1995 with revenue reaching $7,128,000 (1995 - $1,912,000) and
cash flow $2,948,000 (1995 - $ 857,000). Net income for the period was
$772,000 (1995 - $208,000). Cash flows have been negatively impacted by a
one-time royalty adjustment for a retroactive reclassification of the
Company's Saskatchewan oil production. This adjustment is being appealed. The
Company further anticipates a strong positive cash adjustment in the fourth
quarter as a result of a third party processor reviewing their current
allocation procedures for the Company's Northern Alberta gas and NGL streams.
On a per share basis, the Company's nine month cash flow was $0.20 compared to
$0.08 in 1995.
Production for the third quarter averaged 1,624 BOE/d compared to 523
BOE/d in 1995 with approximately 52% being oil and NGLs. Average product
prices improved to $19.30/BOE for the nine months ended September 30, 1996
from $16.16/BOE in 1995 and $18.50/BOE for the first six months of 1996.
Capital expenditures for the nine months amounted to $12.7 million with
$4 million of this being spent on purchasing all remaining interests from
partners in our core area of Delta/Tompkins in Southwest Saskatchewan together
with some additional interests in Southeast Alberta. To September 30, 1996,
Genesis has drilled 14 gross (9.6 net) wells and one water source well. Net
success rate stands at 81%. The Company plans to drill an additional 12-14 new
wells before year end.
In late September, Genesis conducted a share offering by way of private
placement of 2,000,000 Special Warrants at $3.40 each. The issue was fully
subscribed and closed on October 7, 1996. The Company has now cleared its
final prospectus qualifying the issuance of common shares upon the exercise of
the Special Warrants. |
