EARNINGS / Siga Resources Announces Third Quarter Report to
Shareholders for the Period Ending March 31, 1998
ASE SYMBOL: SIG
JUNE 18, 1998
CALGARY, ALBERTA--
REPORT TO THE SHAREHOLDERS
During the third quarter we completed a private placement of
common shares which netted the Company $60,000.00. The private
placement consisted of 600,000 common shares at $0.10 per share.
We also completed a debt repayment plan under which the Company
retired nearly all of its outstanding debt. The settlement
consisted of $0.25 cash and $0.75 common shares at $0.10 per
common share for each $1.00 of debt outstanding.
As a result of the Corporate restructuring we issued 1,059,156
common shares out of treasury and now have issued and outstanding
common shares totalling 12,048,809. We also have a positive
working capital position and, as of April 30, 1998, have no long
term debt.
Subsequent to the end of the quarter, the halt trading order was
lifted by The Alberta Stock Exchange and our shares began trading
again on May 14, 1998 after an 18 month hiatus.
We are pleased to enclose our Third Quarter Financial Statements
for the nine month period ended March 31, 1998.
Revenues net of royalties for the nine month period were
$130,260.00, while expenses totalled $142,440.00. Depreciation
and Depletion accounted for $46,982.00 of the expenses. The
Company had a loss of $12,180.00 for the period.
At March 31, 1998 the Company had a positive working capital
position of $18,621.00.
Our Pembina well was down from mid March 1998 because of a severe
waxing off problem, resulting in a loss of revenue. The problem
was rectified during the quarter and the well is now producing
normally.
Management is currently considering several opportunities to move
the company forward and hope to be able to announce additional
positive news to the shareholders in the very near future.
I wish to thank all of our shareholders for being so patient with
us during the last eighteen months.
/T/
SIGA RESOURCES LIMITED
BALANCE SHEET
AS AT MARCH 31
(PREPARED WITHOUT AUDIT)
1998 1997
ASSETS
Current
Cash $35,760 $4,278
Accounts Receivable $69,313 $79,896
Prepaid Expenses $1,600
------- -------
$105,073 $85,774
Capital Assets $333,739 $434,988
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$438,812 $520,762
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LIABILITIES
Current
Accounts Payable $80,202 $211,824
Current Portion of Bank
Loan $6,250 $68,750
-------- --------
$86,452 $280,574
Long Term Debt -
Site Restoration Costs $30,400 $11,000
-------- --------
$116,852 $291,574
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SHAREHOLDER'S EQUITY
Share Capital $1,229,440 $1,063,443
Deficit ($907,480) ($834,255)
---------- ----------
$321,960 $229,188
$438,812 $520,762
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SIGA RESOURCES LIMITED
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDING MARCH 31
(PREPARED WITHOUT AUDIT)
1998 1997
OPERATING
Net Income (Loss) ($12,180) ($68,816)
Depletion, Depreciation
and Amortization $46,982 $52,878
------- -------
$34,802 ($15,938)
(Increase) Decrease in Non-
Cash Working Capital ($110,261) $65,911
-------- -------
($75,459) $49,973
FINANCING
Issue of Share Capital $165,997 $6,850
Decrease in Long
Term Debt ($62,500) ($50,000)
-------- -------
$103,497 ($43,150)
Cash Available for Capital
Expenditures $28,038 $6,823
-------- -------
Capital Expenditures
Purchase of Capital
Assets, net $ 10 ($19,178)
---- -------
Increase in Cash $28,048 ($12,355)
Cash, Beginning of Period $7,712 $16,633
------ -------
Cash, End of Period $35,760 $4,278
------- -------
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SIGA RESOURCES LIMITED
STATEMENT OF OPERATIONS AND DEFICIT
FOR THE NINE MONTHS ENDING MARCH 31
(PREPARED WITHOUT AUDIT)
1998 1997
REVENUE
Production
(net of royalties) $130,260 $154,265
-------- --------
EXPENSES
Depreciation and
Amortization $46,982 $52,878
General and Administrative $22,198 $71,698
Interest and Bank Charges $2,070 $6,227
Operating $71,190 $92,278
------- -------
$142,440 $223,081
-------- --------
Income(Loss) for the Period ($12,180) ($68,816)
Deficit, Beginning
of Period $895,300 $765,439
-------- --------
Deficit, End of Period $907,480 $834,255
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-------- --------
/T/
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