ENERGY FUNDS / Shiningbank Energy Announces First Quarter
Financial Results
TSE SYMBOL: SHN.UN
MAY 20, 1998
CALGARY, ALBERTA--Shiningbank Energy Income Fund today announced
its financial results for the first quarter ended March 31, 1998.
Revenues totalled $7.5 million on average production of 4,017
barrels of oil equivalent per day (boepd) for the quarter compared
to $8.3 million on average production of 3,627 boepd for the first
quarter of 1997. Net earnings for the quarter were $82,000 ($0.01
per Trust Unit), down from $1.3 million ($0.21 per Trust Unit) for
the three months ended March 31, 1997. The Fund distributed $0.37
per Trust Unit for the quarter.
Four property acquisitions were completed in the quarter,
resulting in additions of over 400 boepd to the Fund's production
and 2.0 million boe of established (proved plus one-half probable)
reserves at a cost of approximately $4.50 per boe. These
acquisitions resulted in replacement of 140 percent of the Fund's
original 1998 production estimates. Sixty-five percent of the
acquired reserves are natural gas, in keeping with the Fund's
focus on natural gas production and reserves. These acquisitions
were funded from existing credit lines. The accompanying table
provides important statistics from first quarter 1998.
Shiningbank provides its unitholders with a high-quality asset
base, a strong financial position and experienced management. Its
oil production is high quality, light gravity crude oil providing
optimum netbacks. Approximately 60 percent of Shiningbank's
production is from natural gas which management believes will
enjoy significantly stronger pricing in late 1998 and 1999.
Shiningbank Energy Income Fund is a conventional oil and gas
royalty trust and its units are listed on The Toronto Stock
Exchange under the symbol "SHN.UN".
/T/
Shiningbank Energy Income Fund
First Quarter 1998 Highlights
Three months ended
March 31,
Financial ($ thousands
except per Trust Unit amounts) 1998 1997
--------------------------------------------------------------
Oil and natural gas sales 7,537 8,301
Net earnings 82 1,339
Per Trust Unit 0.01 0.21
Distributable income 2,771 2,996
Per Trust Unit 0.37 0.40
Capital expenditures 9,663 2,763
Long term debt 27,736 9,960
Unitholders' equity 52,930 62,990
Operations
--------------------------------------------------------------
Daily production volumes
Oil (Bopd) 1,281 1,069
Natural gas (Mmcf/d) 23.3 23.2
Natural gas liquids (Bopd) 403 241
Oil equivalent (Boe/d) 4,017 3,627
Average prices
Oil (C$/bbl) $ 21.03 $ 26.43
Natural gas (C$/mcf) $ 2.19 $ 2.54
Natural gas liquids (C$/bbl) $ 16.70 $ 21.56
Oil equivalent (C$/boe) $ 20.85 $ 25.43
Field netback per boe $ 10.58 $ 15.12
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