EARNINGS / Highridge Exploration First Quarter
Highridge First Quarter Production Increases 29 Percent
CALGARY, ALBERTA--HIGHRIDGE EXPLORATION LTD. ("HRE" - TSE)
production increased 29 percent to 13.8 MMcf/d and 1,130 Bbl/d
(2,512 BOE/d) in the first quarter despite plant problems which
reduced production in January by 750 BOE/d. Current production is
restricted to 2,900 BOE/d due to gas plant restrictions and wells
waiting for completion and tie in representing approximately 800
BOE/d. The McLeod plant will be expanded again in July that will
provide Highridge with approximately 5 MMcf/d of additional
capacity. Highridge has also reached agreement with an offsetting
plant owner for up to 8 MMcf/d (6 MMcf/d net) of plant capacity.
Compression and pipe have been acquired and construction will be
completed by August 1998. These agreements should provide for
expected gas processing needs through to year-end 1998.
During the first quarter Highridge increased it's undeveloped land
base 13 percent to 138,000 net acres. A farmin and option
position of 44,800 gross acres (70 sections) of exposure is also
available. During the quarter Highridge drilled 11 wells
resulting in 4 (2.1 net) oil wells and 6 (3.2 net) gas wells for a
success rate of 82.5 percent. Two additional wells were farmed
out resulting in one gas well.
/T/
The following summarizes our results for the quarter ended March 31, 1998:
First Quarter Change
1998 1997 (Percent)
Natural Gas Production (Mcf/d) 13,820 10,696 29
Oil Production (Bbl/d) 662 473 40
NGL Production (Bbl/d) 468 401 17
Total (BOE/d) 2,512 1,944 29
Gas Price ($/Mcf) 2.02 2.25 (10)
Oil Price ($/Bbl) 19.13 24.97 (23)
NGL Price ($/Bbl) 17.53 26.24 (33)
Net Revenue ($000) 3,747 3,533 6
Production Expenses ($000) 1,079 883 22
Production Expenses ($/BOE) 4.77 5.04 (5)
General & Administrative
Expenses ($000) 323 363 (11)
General & Administrative
Expenses ($/BOE) 1.43 2.08 (31)
Cash Flow ($000) 2,070 2,259 (8)
Per Share ($/share) 0.16 0.18 (11)
Net Earnings ($000) 349 809 (57)
Per Share ($/share) 0.03 0.06 (50)
/T/
Highridge is a public energy company active in Central Alberta in
Canada. The common shares of Highridge are listed on The Toronto
Stock Exchange and trade under the symbol "HRE".
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FOR FURTHER INFORMATION PLEASE CONTACT:
Highridge Exploration Ltd.
Ross D.S. Douglas
President & Chief Executive Officer
(403) 269-2229
(403) 262-4323 (FAX)
investor@highridgeltd.com
highridgeltd.com |
