EARNINGS / AltaQuest Energy Corporation Releases First Quarter
Results and Updates U.K. Activities
ASE SYMBOL: AQF
MAY 29, 1998
CALGARY, ALBERTA--ALTAQUEST ENERGY CORPORATION (Symbol - AQF)
reports that for the three-month period ended March 31, 1998,
revenues net of royalties, rose to $842,000 as compared to
$216,000 for the same period in 1997. Cash flow from operations
was substantially higher at $390,000 ($0.04 per share) versus
$51,000 ($0.01) last year. The Company had a loss of $19,000 for
the three months ended March 31, 1998 versus earnings of $5,000 in
1997, both amounts of an insignificant per share figure. These
results reflect higher production volumes of 591 BOE/d as compared
to 125 BOE/d achieved in 1997. AltaQuest's average volumes for
the quarter were comprised of 68 percent gas and 32 percent light
oil and natural gas liquids. Average product prices for the
period were $1.92/mcf and $18.06/bbl.
AltaQuest has raised $5.0 million via special warrants that will
be released once a prospectus clears. These funds will assist
AltaQuest in carrying out its 1998 capital expenditure program,
currently estimated to be $7.0 - $9.0 million. The Company
estimates that with this financing it will exit 1998 with a debt
level that is less than one year projected cash flow.
AltaQuest is currently underway with its 3D seismic program on its
latest U.K. discovery in Newton (50 percent W.I.). The program
should be completed and interpreted by the end of June. The
discovery well, Newton-on-Trent #1, will be completed the first
week of June and subsequently production tested. Once the 3D
seismic and production test are complete it is anticipated that
delineation wells will commence drilling in August.
On its Fiskerton discovery (24.5 percent W.I.) delineation wells
have been picked and it is anticipated that drilling will commence
in mid June. A pipeline is planned to be built in September that
will enable the existing gross production volumes to be increased
to 600 - 800 bopd.
AltaQuest plans to drill eight wells in the U.K. this year, three
of which are exploration wells. AltaQuest has currently completed
a 40 kilometer 2D seismic program and plans another 75 kilometer
2D program on its lands in the East Midlands. These programs
enable the Company to evaluate sixteen prospects.
The Company is currently reviewing opportunities with local
drilling rig contractors in an effort to move a drilling rig from
western Canada to the United Kingdom.
AltaQuest is a publicly traded company on The Alberta Stock
Exchange. |
