Here are some facts and future projections on Tusk prospects. This information part of the presentation on Oct 15th in Calgary.
> 1. Return on equity estimated at 12-15% for fiscal 1998.
> 2. Current production 850 boepd.
> 3. Finding costs this year less than $4 per boe
> 4. Debt/cash flow ratio currently 1.5x
> 5. Current annualized cash flow $3.1 million
> 6. Current annualized cash flow per share $0.30
> 7. Meekwap wells: 4-21 initial production 1834 boepd, April, 1998
> current production 1400 boepd
> cumulative production 215,000 barrels of oil
> still no water, still flowing
> 1-20 initial production 900 boepd, June, 1998
> current production 800 boepd
> cumulative production 75,000 barrels of oil
> still no water, still flowing
> 8. Land interests increased to the east of the Unit from 6% to 70% with acquisition of partner interests.
> 9. 3-D seismic survey to begin in a few weeks in that area
> 10. Plan one well at Meekwap before year end (TUSK 17%)
> 11. Plan active drilling program in 1999 - 3 wells in first quarter (TUSK 17-70%)
> 12. At Strachan TUSK has 30% average working interest in 27 contiguous sections
> 13. Swan Hills discovery made in approx. geographic centre of lands
> 14. Hope to be drilling shallow well at Strachan in 1st quarter 1999
> 15. Swan Hills scheduled to be on production January, 1999
> 16. Upside Potential Low Case 4 wells @ Meekwap, 2 @ Strachan
> 1520 boepd (1999 exit)
> Net capital: $2.8 million
> Median Case 6 Meekwap, 4 Strachan
> 2180 boepd (1999 exit)
> Net Capital $6.0 million
> High Case 8 Meekwap, 5 Strachan
> 2960 boepd (1999 exit)
> Net Capital $7.8 million
> 1999 exit rate include existing base production adjusted for declines.
> 17. Why invest in TUSK? Exceptional return on equity
> Major upside potential (Strachan, Meekwap)
> Excellent finding costs (less than $4 per barrel)
> Two flagship properties (Meekwap/Strachan)
> Record of growth
> Low debt/cash flow ratio of less than 1.5x
> Operate major properties
>
> Meeting will be held next week with partners to discuss future plans at Strachan. |
