This is a report I found ,that talks about Berkley and the TV.,NOT A PROM ,for Berkely . SAM
BERKLEY PETROLEUM CORP.
“BKP” tse October 22/98 C$10.90
Berkley Petroleum is a mid-tier Canadian oil and gas exploration and
production company currently undergoing a significant growth phase
through acquisitions and successful exploration. The company has
experienced very large production increases for both oil and gas in
the first half of 1998, which will provide even stronger earnings and
cash flows in the last half of 1998 and all of 1999.
FINANCIALS
First half year financial figures ending June 30/98 are impressive:
Revenue $50,500,000 up 234% / Cash flow $27,700,000 up 62% / Cash flow
per share $0.42 up 40% with first half production averaging 18,000
BOE/PD, up 158%.
The company expects to exit 1998 with production over 30,000 BOE/PD
and enter 1999 with a 70% natural gas and 30% oil mix. In 1999, gas
production is estimated to reach 200 MMCFPD. Gas prices are expected
to increase over the winter period and continue strong through to mid
1999.
A large portion of recent production increases are from higher
net-back pools which will provide a large impetus to earnings and cash
flow in the last half of 1998 and forward. STOCKPROPHET estimates
that cash flows could double from first half levels.
The company is on target to be a most profitable producer. Berkley
continues to add reserves at a favorable C$4.85 BOE. The companies
current reserves are all premium quality light oil. Significant gas
reserves have been added from the prolific Alberta Foothills and
Musreau areas, plus several locations in Northeast British Columbia.
The company has an exploration budget of C$50 million for the last
half of 1998, which should be covered by second half cash flows.
Berkley has been an aggressive acquisitor of assets over the past 12
months in Southeast Saskatchewan, N.W. Territories and Northern
British Columbia. Berkley is now moving from the junior status to
mid-tier producer with impressive 1998 success rates. The low oil
price environment has created an opportunity to enter near the
companies 52 week low. If you are convinced that the bottom of the
low world oil prices has been reached and is now on its way back, then
Berkley's target could approach its 52 week high of C$18.00.
Due to exploration successes in 1998 in the Alberta Foothills, North
West British Columbia, as well as the North West Territories, Berkley
will be expanding there exploration and production budget to $185
million for the 15 month period ending December 31, 1999.
In the Alberta Foothills, natural gas developments are planned for
1999 at Turner Valley, Redcap and Voyager areas following significant
discoveries in 1998 and should have new gas production on stream from
at a minimum of four new properties, in addition to further testing on
several other properties in the area.
“BKP” plans a large development of the Halfway River-Blueberry West
property in Northern British Columbia and have a target of 5,000 BOEPD
due to a significant deep oil discovery on its 100% interest property.
In the North West Territories, Berkley plans to participate in at
least ten drilling locations this winter in at least four new gas
plays, including testing two current discoveries.
Berkley is continually pursuing acquisitions of properties that
compliment existing areas of production, and is in discussions with a
major regarding shut-in and undeveloped properties in North East
British Columbia.
Berkley has recently issued 3 million flow-through shares on a private
placement basis at $10.25 per share, half of which will be taken down
by management, directors and employees. This is a very positive sign.
Part of this new flow-through share issue is being taken down by
“Canada Dominion Resources Partnership” who believe Berkley is one of
Canada's premier finders of oil and gas with gas now accounting for
70% of total production. Canada Dominion acquired 146,400
flow-through shares at C$10.25
Berkley's production and very substantial land base of over 1.7
million acres is in the prolific part of the Western oil and gas
basin. A fact not overlooked by Canada Dominion.
STOCKPROPHET believes gas prices will move upwards starting directly
and through-out this coming season; combined with new pipeline
capacity coming on stream later this year, will provide a demand for
all the gas capacity available. We expect the third quarter results
ending September 30/98 will be released within the next few weeks and
will again show strength while operating in a low oil price
environment. This is a first class company expanding within its'
means and resources available, with a management team completely
capable of administering the new mid-tier status.
|
