EARNINGS / Windsor Energy reports Financial Postion to March 31,
1998 and Updates Drilling Activity
TSE, AMEX SYMBOL: WNS
JUNE 5, 1998
CALGARY, ALBERTA--Windsor Energy Corporation announced today the
unaudited statement of earnings and statement of changes in
financial position for the three months ended March 31, 1998.
Windsor continues to move forward and has shown significant
increases in its reserves.
Thomas E. Hogan, president and CEO said, "Earnings for the first
quarter were impacted heavily by sharply lower oil prices and "El
Nino". Oil prices for our California crude production dropped
from U.S. $19.59 in 1997 to U.S. $10.87 in 1998. Windsor also
experienced significant downtime at our Rincon facility due to the
unusually bad weather in California. The Company deemed it
prudent at times to shut the facility down rather than risk an oil
spill. We also experienced times when we went several days without
electrical power and without access to the island. At one time,
all roads leading to the island were closed by the California
State Highway patrol. If there was any good news during this it
was the fact that the Island and the causeway withstood the
onslaught with relatively minor damage."
The first quarter also saw some non-recurring charges relative to
the purchase of SMK Energy.
The following lists some financial highlights for the period:
/T/
1998 1997
---- ----
Total revenue $3,201,615 $2,810,674
Net income (1,753,493) 780,061
Cash flow from operations 2,992,448 2,932,527
Assets 104,845,795 50,414,256
Shareholder equity 50,844,551 27,752,102
Net oil production - barrels 185,578 94,496
Net gas production - Mcf 273,719 160,579
Oil price/barrel (US$) 10.87 19.59
Gas price/Mcf (US$) 1.54 2.05
Earnings (loss) per share $(0.06) $0.04
Weighted average number
of shares 27,455,200 20,064,880
/T/
On the positive side of things:
Rincon Island -- The start of Windsor's water flood project is
imminent. This program will transfer a large amount of proved,
undeveloped reserves to proved producing reserves and will
increase the value of the Company. Also, the California State
Lands Commission is finishing up on a permit for 36 more wells in
the Rincon complex. This will allow Windsor to increase
production 300 to 400 percent upon its completion.
Jennings Ranch -- The Company now has a 50 percent interest in the
28,000 acre lease and anticipates drilling 23 development wells
over the next 24 months.
South Louisiana Salt Dome Project -- Continues to progress and
work has already begun on well remediation.
Hermosa Beach -- With the issuance of the California Coastal zone
permit in February, the way has been cleared to begin work on this
project. Windsor anticipates being able to spud its first well in
August. This will add substantial reserves to the Company's
books.
Lonestar -- 3D seismic on this 9,000 acre lease has been completed
and once the geological interpretation is complete the Company
will begin drilling its first well, which should occur sometime
this fall.
Bayou Carlin -- Windsor has run production casing on this well and
should be able to release the test results within the next couple
of weeks. Log indications are good.
South Pass/Antelope Ridge, Wyoming -- The Company remains very
excited about this large block it has accumulated. Again, it is
expected that Windsor will test this prospect in the fall. Success
here could add very large gas reserves.
Again, the Company wants to stress the very strong positive
position Windsor is in to develop very large oil and gas reserves.
This release contains forward-looking information. Actual future
results may differ materially. The risks, uncertainties and other
factors that could influence actual results are described in
documents filed with regulatory authorities.
Windsor is a Calgary, Alberta and Dallas, Texas based
international exploration and production company traded on the
Toronto Stock Exchange (TSE:WNS) and the American Stock Exchange
(AMX:WNS)
|
