EARNINGS / Benson Petroleum Q1 Results
BENSON PETROLEUM LTD. ANNOUNCES FIRST QUARTER 1998 OPERATING AND FINANCIAL RESULTS
CALGARY, May 27 /CNW/ - Benson Petroleum Ltd. is pleased to report
increases in operating performance in the first quarter of 1998. Crude oil
and liquids production increased by 15% to average 1,442 bbls/d and natural
gas production was up 20% to an average of 6.06 mmcfd. Reductions were
achieved in expenses with a 31% decrease in unit operating costs to $4.71 per
BOE and an 18% decline in net general and administrative costs to $1.07 per
BOE.
Financial results, however, were substantially impacted by a 46% decline
in average crude oil and liquids prices to $14.13 per bbl for the quarter
compared to $25.98 per bbl in 1997. Average natural gas prices were down 18%
to $1.74 per mcf versus $2.12 per mcf for the comparable period in 1997.
Consequently, petroleum and natural gas revenues decreased by 25% to
$3,099,000 as compared to $4,136,000 in 1997. Cash flow was $1,225,000 ($0.07
per share) for the firrt quarter, down 34% from $1,866,000 ($0.12 per share).
The drop in commodity prices was the primary reason for a loss in the quarter
of $35,000 compared to net earnings of $418,000 in the first period of 1997.
Net capital expenditures were $5,642,000 in the quarter compared to
$8,017,000 for the comparable period in 1997. The Company has reduced its
capital budget to the $8 million level due to the low crude oil price
environment.
In the first quarter, Benson participated in the drilling of eleven wells
(8.6 net) resulting in seven oil wells (6.4 net), one gas well (.7 net), and
three dry holes (1.5 net). One well was farmed out and was plugged and
abandoned. The Company operated all but one of the participation wells
including five horizontal wells. The majority of the successful oil wells
were not placed on stream until May and production contribution from these
wells will be more fully reflected in the second quarter. For the remainder
of 1998, Benson plans additional activity in East Central Alberta, Cherhill
and Hinton/Obed.
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SUMMARY OF 1998 FIRST QUARTER RESULTS
1998 1997 Change
---- ---- ------
Gross Revenue $ 3,099,000 $ 4,136,000 -25%
Cash Flow $ 1,225,000 $ 1,866,000 -34%
Cash Flow per Share $ 0.07 $ 0.12 -42%
Net Earnings $ (35,000) $ 418,000 -108%
Net Earnings per Share --- $ 0.03 -100%
Net Capital Expenditures $ 5,642,000 $ 8,017,000 -30%
Bank Debt $ 7,700,000 $10,800,000 -29%
Oil and NGL (bbls/d) 1,442 1,250 +15%
Natural Gas (mcf/d) 6,060 5,030 +20%
BOE per day 2,047 1,753 +17%
>>
Benson Petroleum Ltd. is a Calgary based exploration, development and
production company and is listed on the Toronto Stock Exchange (Symbol:BEN).
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For further information: Yook L. Mah, P.Eng., President and Chief
Executive Officer, Benson Petroleum Ltd., (403) 269-5158
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