EARNINGS / Eurogas Corporation Reports Revenues for Three Months
TSE SYMBOL: EUG
JUNE 1, 1998
Ended March 31, 1998
CALGARY, ALBERTA--EUROGAS CORPORATION announced today that
revenues for the three-month period ended March 31, 1998 were
$1,607,918, an increase of 76 percent over the corresponding
period last year. Net cash flow for the period amounted to
$447,157 compared to $329,782. Net loss for the period amounted
to $513,843 ($0.01 per common share) compared to earnings of
$125,782 for the period ended March 31, 1997. Production for the
period was 1,231 BOED, an increase from the 390 BOED during the
corresponding period last year. The primary reason for the loss
was much lower product prices experienced during the first
quarter, coupled with higher general and administrative expenses
related to the Corporation's drilling program in Tunisia.
Eurogas is currently drilling its BZM-1 well at a depth of 3160
meters on the Bazma permit in Tunisia. The well is planned to a
depth of 3800 meters to test a geophysically delineated Lower
Permian reef structure located in a large, untested Permian basin
in central Tunisia.
Eurogas, as operator, holds a 40 percent interest in the 500,000
acre Bazma permit subject to the right of the State oil company,
ETAP, to participate up to 50 percent in the development of any
discovery on the permit.
Eurogas is also pleased to announce that work has commenced on its
50 percent interest Castor project, an underground natural gas
storage project located offshore the east coast of Spain. Initial
work on the project includes a detailed geological study and
reservoir engineering, which will enable work to begin on the
basic engineering design for the gas storage facility.
Natural gas storage is an essential and integral element of a
nation's gas supply system. It is necessary for both security of
supply and dealing with peak demand periods. Spain's rapid growth
in the use of natural gas is being led by electrical power
generation, which made up only 3.7 percent of gas demand in 1996
and is expected to comprise over 25 percent of demand by the year
2000.
Eurogas Corporation is an independent oil and gas company engaged
in the development of a major oil and gas field in Russia,
exploration for oil and gas reserves in Tunisia, developing a
major gas storage project in Spain and the exploration for and
production of oil and gas in Canada. The company is listed on the
Toronto Stock Exchange (TSE) under the symbol EUG. Eurogas will
hold its Annual General Meeting at 2:30 PM on June 5,1998 at the
Westin Hotel in Calgary, Alberta. |
