EARNINGS / Shiningbank Energy Announces Third Quarter Financial
Results
TSE SYMBOL: SHN.UN
NOVEMBER 18, 1998
CALGARY, ALBERTA--Shiningbank Energy Income Fund today announced
its financial results for the quarter and nine months ended
September 30, 1998. Revenues totalled $7.6 million on average
production of 4,450 barrels of oil equivalent per day (boepd) for
the third quarter compared to $7.5 million on average production
of 3,476 boepd for the comparable quarter of 1997. For the first
nine months revenues were $22.1 million, down from $22.7 million
for the first nine months of 1997. The Fund distributed $0.35 per
Trust Unit for the quarter compared to $0.40 per Trust Unit in
1997 and has distributed a total of $1.07 per unit in 1998.
Twelve month trailing distributions aggregate $1.47 per Trust
Unit.
Property acquisitions in excess of $15 million were completed in
the quarter. These acquisitions bring the Fund's total reserve
replacement to date in 1998 to 325 percent of the Fund's original
1998 production estimates. In excess of 1,000 boepd has been
added to the Fund's production in 1998 and the gas weighting has
been maintained at over 60 percent. These acquisitions were funded
from existing credit lines bringing total debt to $39.2 million at
September 30 and leaving over $6 million of unused lines.
Shiningbank provides its unitholders with a high-quality asset
base, a strong financial position and experienced management. Its
oil production is high quality, light gravity crude oil providing
optimum netbacks. Approximately 60 percent of Shiningbank's
production is from natural gas which management believes will
enjoy significantly stronger pricing in late 1998 and 1999.
Shiningbank Energy Income Fund is a conventional oil and gas
royalty trust and its units are listed on The Toronto Stock
Exchange under the symbol "SHN.UN".
/T/
Shiningbank Energy Income Fund
Third Quarter Highlights
Three months ended Nine months ended
September 30, September 30,
Financial ($Thousands except
per unit amounts) 1998 1997 1998 1997
--------------------------------------------------------------
Oil and natural gas sales 7,612 7,525 22,090 22,722
Net earnings (loss) (437) 541 (389) 2,407
Cash flow 2,863 3,245 8,527 10,445
Distributable income 3,041 2,996 8,433 8,987
Per unit 0.35 0.40 1.07 1.20
Acquisition and
development 16,089 1,001 29,481 13,557
Long term debt 39,168 13,185 39,168 13,185
Unitholders' equity 57,185 58,067 57,185 58,067
Operations
--------------------------------------------------------------
Daily Production
Oil (Bopd) 1,116 1,301 1,250 1,162
Natural gas (Mmcf/d) 28.1 19.4 24.2 21.6
Natural gas liquids(Bopd) 521 232 446 238
Oil equivalent (Boe/d) 4,450 3,476 4,114 3,557
Average Prices
Oil (Cdn$/Bbl) $ 18.53 $ 23.23 $ 19.27 $ 25.45
Natural gas (Cdn$/Mcf) $ 1.97 $ 2.48 $ 2.09 $ 2.28
Natural gas liquids
(Cdn$/Bbl) $ 13.11 $ 14.38 $ 14.27 $ 18.93
Oil equivalent
(Cdn$/Boe) $ 18.60 $ 23.53 $ 19.67 $ 23.49
/T/
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