EARNINGS / Progress Energy Ltd. Announces First Quarter 1998
Results
ASE SYMBOL: PGX.A PGX.B
JUNE 2, 1998
CALGARY, ALBERTA--Progress Energy Ltd. (Progress) is pleased to
announce our first quarter results for 1998, the first full
quarter of operations. Highlights for the quarter included:
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assembling a team of seven senior professionals,
drilling 9 operated wells,
completing 3 acquisitions to provide drilling locations
with some production,
increasing production from 335 bbls/d to 520 bbls/d,
completing five farm in transactions,
increasing undeveloped land to control 19,360 acres in Alberta and,
developing 15 new drilling locations.
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Production rates averaged 395 bbls/d of light sweet crude over the
quarter. The average price received was $21.25/bbl and netbacks
were a strong $13.68/bbl. This resulted in production revenue of
$755,545, cash flow was $406,497 and net earnings were $83,880.
Cash flow per Class A share outstanding was $0.04 and earnings per
Class A share was $0.01. Progress Energy has 11,602,000 Class A
shares and 1,170,000 Class B shares outstanding.
Progress Energy operates 100 percent of our production in our core
area of south east Saskatchewan - Manitoba. Progress currently
operates 910 bbls/d (520 net) of light sweet oil produced from the
Bakken formation. We are developing 3 new pools ranging in size
from 2 to 6 million barrels of oil in place and control 180,000
net acres of undeveloped land in this area.
In Alberta we are establishing 3 new core areas: East central
Alberta, the Peace River Arch and in the Whitecourt area. We now
control over 19,000 acres in these core areas.
Progress has started a 15 well drilling program to be completed
over the summer of 1998. We expect to participate in over 40
wells in our first year of operations and to initiate and operate
most of these wells. Our planned expenditures of approximately $1
million per month on drilling and completion operations should
fuel our growth in 1998. Starting the second quarter we had over
$6 million working capital and no debt.
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