EARNINGS / Tusk First Quarter 1998
TSE SYMBOL: TKE
JUNE 2, 1998
CALGARY, ALBERTA--TUSK Energy Inc. announces that during the
quarterly period ended March 31, 1998 production averaged 552
boepd, a 16 percent decrease from the 658 boepd average of the
first quarter 1997. Oil prices, which averaged over $8.00 per
barrel lower than in the first quarter of 1997 and lower average
daily production were the main cause in the drop in cash flow to
$326,310 for the quarter compared to $833,138 for the three month
period ended March 31, 1997. Cash flow per share was $0.04 per
share compared to $0.11 per share last year. Capital spending
during the quarter was $992,232 compared to $384,047 one year
earlier. As of the end of the first quarter long term debt was
$4,299,747.
/T/
Profit Cash
First per Cash Flow Net
Quarter Profit share Flow per share Revenue
------- ------ ----- ---- --------- -------
1998 $134,010 $ 0.02 $326,310 $ 0.04 $ 886,005
1997 $267,538 $ 0.03 $833,138 $ 0.11 $1,240,713
/T/
While first quarter results were disappointing compared to those
of the prior year, the second quarter started well for the company
as a consequence of a successful well at Meekwap. During the
month of April average production was 865 boepd, annualized cash
flow was $3.6 million and annualized cash flow per share was
$0.40.
TUSK's primary producing area continued to be Meekwap, Alberta
which represented 80 percent of TUSK's overall production during
the quarter. TUSK operates over 90 percent of its net production.
During the quarter TUSK participated in the drilling of 3 wells
resulting in one abandoned well (0.20 net) at Pine Creek and a
successful oil well at Meekwap (0.17 net). A deep exploratory
test at Strachan (TUSK 10 percent BPO, 30 percent APO) spudded in
mid-February and reached intermediate casing depth of 3,420 metres
by the end of the quarter. The Strachan well reached total depth
of more than 4,300 metres in late April. The Meekwap well went on
production in April and has averaged 1,800 boepd (315 boepd net)
with no water production. Drilling of a second well at Meekwap
(0.17 net) commenced on May 31, 1998.
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