EARNINGS / Cirque Energy Corp. Improved Financial Results - TSE Listing
CALGARY, Nov. 23 /CNW/ - Increased oil and gas sales helped Cirque Energy
Corp. post improved revenues while recording a modest loss for the 6 months
ending September 30, 1998. Revenue net of royalties increased to $1,541,000
for the six months ended September 30, 1998 from $1,470,000 in September 30,
1997. Net loss from operations improved 17% to $227,000 (0.02 per share) for
the 6 months 1998, from a $266,000 (0.03 per share) loss for 6 months 1997.
Cash flow for the 6 months ending September 30, 1998 declined to $312,000
(0.03 per share) from $582,000 (0.06 per share) in 1997. Future improvement
in Cirque's financial status will come from increased gas sales at winter
prices, and increased oil sales in both Canada and the UK.
Current Canadian production has increased to 511 bopd and 2.7 mmcf/d (781
boepd). The bulk of the production gains have come from the Turin property in
Southern Alberta. In November three new gas wells and two new oil wells were
tied in to the oil and gas processing facility. A second gas compressor was
purchased and installed at the Turin Battery site increasing the gas capacity
to 6.0 mmcf/d. Approximately 70% of Cirque's Net 3.0 mmcf/d has been locked
in for the five winter months at $3.05 per mcf.
In the United Kingdom construction has commenced on the pipeline
connecting the Fiskerton Pool to the Welton Oil & Gas processing facility. The
F1 and F3 wells will be placed on pump and commence production at a combined
rate estimated at 1,000 to 1,200 bopd. Assuming no delays, regulatory and/or
weather, production is expected to commence in mid December 1998. Cirque
operates the UK project with a 48.2% working interest.
Cirque's net exit rate at December 31, 1998 for Canadian and UK
production is expected to reach 1,200 boepd.
The shares of Cirque Energy Corp. began trading on the Toronto Stock
Exchange (TSE) under the symbol CQU on November 12, 1998.
Cirque is currently planning its 1999 drilling program, which will
consist of a minimum of two wells in the UK, and a 5 well development program
in Turin, Alberta. Additional gas prospects in W5 will be drilled on 100%
Cirque land at no cost to the company this winter. A pipeline linking the UK
Reepham oil discovery to the Fiskerton site is also on the books. All
drilling projects in the oil prone areas will be monitored relative to an
improvement in crude prices in 1999. |
