EARNINGS / Landhawk Petroleum Corporation Announces First Quarter
Results
ASE SYMBOL: LHK
MAY 29, 1998
CALGARY, ALBERTA--Landhawk's financial results during the first
quarter of 1998 reflect the difficulties being experienced in
completing the tie-ins of the four additional gas wells that were
completed during 1997. For the first three months of 1998
Landhawk generated a net loss of $138,146 or $0.014 per common
share on revenues of $148,306. Cash flow from operations for this
period was ($106,933) or ($0.011) per common share.
For the first three months of 1998, production from the six
producing wells in the Sedgewick area generated an average 266
mcfd of natural gas, while oil and liquid production averaged 22
barrels per day. As was reported in our 1997 Annual Report,
Landhawk expects to complete a further 4 wells during the third
quarter with tie-in expected by the end of the third quarter.
Once all tie-ins have been completed it is expected that total
production from the Sedgewick area will average 4 mmcfd and 150
bopd of oil and liquids.
Operations in Trinidad continue as planned with production during
the first quarter of 1998 averaging 50 bopd from 13 reactivated
wells and two flowing wells. Currently a program to complete 5
wells in by-pass pay zones is underway.
As was reported in the 1997 Annual Report, Landhawk continues to
move ahead with the expected merger of its assets and business
with those of Energy North Inc. and Electra Energy Corporation.
Further press releases will be issued as appropriate, and if the
transaction proceeds, approval of two-thirds of the votes cast at
the shareholders' meeting of all three companies, called for that
purpose, will be required.
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