Richard / Tusk Energy
For reference:
AUGUST 28, 1996
TUSK Energy Announces First Half Results Continue Growth Trend
CALGARY, ALBERTA--TUSK Energy Inc. financial and operating results for
the first half of 1996 demonstrate continued growth in production,
cash flow and cash flow per share.
Production averaged 438 boepd, a 35 percent increase over the 326
boep/d average of the first half of 1995. Cash flow per share
increased to $0.18 per share and cash flow was $840,879 for the first
half, a 63 percent increase over the same period one year earlier.
Capital spending during the half was $2,419,296 compared to $723,388
one year earlier. As of the end of the first half long term debt was
$2,737,500, approximatly 1.6 times annualized cash flow.
Profit Cash
First per Cash Flow
Half Profit share Flow per share Revenue
----- -------- ------- -------- --------- ----------
1996 $354,009 $ 0.08 $840,879 $ 0.18 $1,529,715
1995 $227,322 $ 0.06 $514,822 $ 0.13 $ 964,708
TUSK's primary producing area continued to be Meekwap, Alberta which
represented 44 percent of TUSK's overall production.
During the first six months of 1996 TUSK purchased a 1.27 percent
interest in the Spirit River Unit which produces light oil from the
Halfway Formation and the purchase of an 80 percent interest in a gas
well in the Keho area of Alberta. In April, 1996, TUSK sold its
producing oil property at Hazlet, Saskatchewan.
During the period, an aggressive land acquisition program increased
land inventory 5-fold to more than 18,000 net acres on 14 new
prospects. Drilling on these prospects will begin during the winter.
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The following was taken out of the annual report of Pan Atlas Energy
whose year ended September 30th.
ADDING STRTEGIC CORE AREAS: Company completed an acquisition of a
16.73% working interest and 0.87% net profits interest in the D-2A
Meekwap Unit, making us one of the two largest owners with substantial
influence over the properties exploration activities. we have
allocated $7.8 million of our 1997 capital program to acquire and
develope this 11 square mile unit. Subsequent production in October
is a net 500 boe/d. Multiple horizonal wells are planned along with
optimazation of facilities and well production.
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The nine month reported current production at 800 boe/d. If my math
serves me right, shouldn't production been around around a current
938 boe/d. The 438 boe/d 6 month number was an average. I just
checked the first quarter report and average production was 500 boe/d.
The acquisition was identical for both companies. In case of Pan
Atlas, resulting production was a total increase in production, for
there wasn't any interest prior. So, increase in production would of
been identical for each.
I am wondering if they have experienced sizable declines in the wells
that were producing at June end. This is a key question you can ask
along with, where these declining wells are located if such is the case.
This concerns me.
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