EARNINGS / Ionic Energy Inc. Announces Three Month Results
Ending March 31, 1998
ASE SYMBOL: IOI
MAY 25, 1998
CALGARY, ALBERTA--
/T/
HIGHLIGHTS Three months ended Five months ended
March 31, 1998 December 31, 1997
(Unaudited)
FINANCIAL
Oil and gas revenues
before royalties $ 1,173,079 $ 1,712,852
Cash flow from operations $ 546,815 $ 764,288
Per share - basic $ 0.04 $ 0.08
Net earnings $ 153,423 $ 175,702
Per share - basic $ 0.01 $ 0.02
Capital expenditures $ 4,096,604 $ 11,621,773
Long term debt $ Nil $ Nil
Total assets $ 17,438,348 $ 14,760,135
Weighted average number
of shares outstanding 15,001,487 9,482,548
OPERATING
Natural gas production
Total (mcf) 424,668 657,532
Daily (mcf/d) 4,718 4,298
Price ($/mcf) 1.81 1.74(x)
Crude oil and natural gas
liquids production
Total (bbls) 15,986 20,684
Daily (bbls/d) 178 135
Price ($/bbl) 17.46 21.90
Barrels equivalent daily
production (boe/d -10:1) 649 565
(x) restated to exclude processing revenue
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Ionic Energy Inc. announces the results of operations for the
three month period ending March 31, 1998. During this period Ionic
recorded gross revenues of $1.2 million. In comparison, for the
five months of commercial operations ending December 31, 1997,
Ionic's total gross revenues were $ 1.7 million. Cash flow from
operations was $546,815 ($0.04 per share) and net earnings were
$153,423 ($0.01 per share).
On January 1, 1998, Ionic Ventures Inc. ("Ventures") a Junior
Capital Pool Company completed its major transaction through the
acquisition by way of a reverse take-over of all of the issued and
outstanding shares of Ionic Energy Inc. Subsequently, Ventures
and Ionic Energy Inc. were amalgamated and continue the name and
operations of Ionic Energy Inc. The common shares of the company
now trade under the symbol IOI on the Alberta Stock Exchange.
Daily production of crude oil, NGL's, and natural gas averaged 649
boe/d for the quarter compared to 565 boe/d during the last five
months of 1997. Ionic remains heavily gas weighted, with natural
gas contributing seventy-three percent of average daily
production. The average sales price received for crude oil and
natural gas liquids was $17.46 per bbl during the first quarter of
1998, compared to $21.90 per bbl during the last five months of
1997. The sale price for natural gas averaged $1.81 per mcf in
1998 compared to the average $1.74 per mcf received in 1997.
Capital expenditures during the first quarter of 1998 were $4.1
million, compared to $11.6 million spent in the five months of
commercial operations in 1997. Ionic's capital program during the
first quarter of 1998 focused on the early phases of the
exploration cycle; extensive seismic and exploration drilling.
The program has proved significant potential on several
exploration prospects, enhancing its prospect inventory and
management's confidence in the prospectivity of the lands.
During the first quarter of 1998, Ionic participated in the
drilling of 8 gross wells (5.9 net) with an overall success rate
of seventy-eight percent. With seventy-four percent of these
wells classified as exploration, Ionic is pleased with the 4.2 net
gas discoveries and 0.4 net oil wells.
Ionic incurred $0.5 million on geophysical programs in the first
quarter of 1998, including the purchase of a three dimensional
seismic program on the Berrymoor property. This, and earlier
programs, have helped mature thirty drillable locations. Ionic is
proceeding immediately with ten of these locations. In addition,
the Company continues to mature forty-eight prospects on lands
currently controlled. To-date in the second quarter of 1998,
Ionic has drilled 2 gross (0.9 net) wells resulting 0.9 net
successful oil wells.
During the first quarter, Ionic commenced development of some of
its lower risk prospects. At Berrymoor, Ionic participated in the
fracture stimulation of five wells and drilled a successful infill
well. As a result of this program, production rates from this
area have quadrupled during the second quarter of 1998. An
additional seven well infill program remains to be drilled on the
property. The Company have recently secured an additional 480
acres of prospective acreage adjacent to the property.
Ionic will continue to focus on building shareholder value
through exploration activities complimented by value driven
acquisition growth opportunities. The Company intends to continue
to aggressively explore its significant west central Alberta
undeveloped land holdings. Activity will be directed towards
those natural gas and light gravity crude oil exploration and
development prospects which can be quickly brought on production.
During the second and third quarters of 1998 current production
rates of in excess of 800 boe/d are anticipated to grow as behind
pipe reserves are brought on-stream.
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