EARNINGS / Corker Resources Inc. Announces Succesful Rights Offering
and First Quarter Fiscal Results
ASE SYMBOL: CRK
JUNE 1, 1998
CALGARY, ALBERTA--On May 28, 1998, the Company's Rights Offering
closed. The Offering was over-subscribed, raising approximately
$1,500,000 before expenses. The money will be used to reduce bank
debt, fund new drilling ventures and accelerate Corker's gas
development program at Hanna.
Corker recently filed its financial results for the first quarter
of its current fiscal year. For the three month period ended
March 31, 1998, the Company had a net loss of $49,768 after income
taxes ($0.01 per share, fully diluted) on revenues of $279,876.
Cash flow from operations was $41,432 ($0.01 per share, fully
diluted) for the same period. The company's average production for
the quarter was 1,432 mcf/d and 51 bopd. Production from Corker's
Liege gas field was shut down for approximately 17 days during the
period for facilities rationalization and repairs. After
acquiring two properties at Liege in 1997, the Company
consolidated compression at one site resulting in a surplus
compressor which was subsequently sold, together with an extra
camp facility, for approximately $340,000 net to Corker. Liege is
now producing at capacity.
Corker's shallow gas development drilling program in the Hanna
area of southern Alberta was completed early in the quarter.
Altogether, 41 wells (7.6 net) were drilled, five of which were
step-outs used to evaluate Company leases for future development.
Construction of the gathering system and plant to place 36 (8.05
net) of the Company's wells on stream was completed in April.
Production from this field is currently 700 mcf/d net to Corker.
Present plans call for the drilling of 15 (2.8 net) additional
development wells at Hanna later this fall, to be followed by
another development program in late 1998 or early 1999 with as
many as 31 (5.8 net) wells being drilled.
The Company's current production is 2,500 mcf/d and 51 bopd.
Corker has an active gas drilling program planned for this summer,
with participation in at least three exploratory wells in Alberta
and one in B.C. |
