Most shareholders should have received (or will be receiving) the notice of AGM and financial statements. I just got mine in the mail today.
AGM will be April 16, 1999 @ 14:00 MST. Pretty typical agenda (financial review, election of officers, auditors, and other matters).
As previously posted, September 1998 year-end results were: $4,337,323 revenues (cf $12,766 in 97), and net loss of $0.011/sh (cf $0.017/sh in 97).
Hey, it's been a year since the Fastway acquisition. Now if only the O&G sector would shape up. Does anybody on this thread have a background in the O&G and resource sector? Unfortunately, it's not my area at all (more familiar with technology, telecommunications, and bio sciences), so I don't understand some of the dynamics (Dynamix? <g>) of an O&G operation, such as the things that make up operating expenses and long-term operating costs (I noticed operating expenses are generally pretty close to revenues on a consistent basis -- which is actually not bad compared to the burn rate of many other small companies). Also any projections on the O&G sector would be appreciated. An investment broker I recently spoke with is upbeat regarding the resources and commodities in the next couple years.
Anyway, the following is the letter to shareholders included in the mailing. Sounds pretty positive.
---------------------------------------------------------------
Letter to Shareholders
In many ways the 1998 Fiscal Year was a milestone in the history of the Company. The year marked the closing of two acquisitions that brought the Company real assets and cash flow items that had been missing for some time.
The first acquisition, in March 1998, was Fastway Exploration Ltd. -- a geophysical data gathering company with a solid reputation and management. This acquisition gave substance to the Company and provided it with the means to make the second acquisition -- the purchase of a 25% working interest in a gas development program in Kentucky, USA. With initial encouraging and higher-than-expected results the Company looks towards continuing with another 5 well program in the summer of 1999. Ultimately the program could be as large as 40-60 wells which development will likely take up to 5 years assuming continued success and high commodity prices which have been between $2.25-2.50/mcf (USD).
Both acquisitions provide a long-term opportunity for growth in both the service and producing sides of the oil & gas industry. Furthermore, they represent the establishment of business in two countries bringing several advantages in terms of currency exchange, business cycle stage and commodity pricing.
Management recognizes two external risk factors that mitigate some of the growth opportunities over the short-term. First, the bearish sentiment toward the oil & gas industry will likely continue and suppress investor appeal. Second, the junior markets continue to be under-performing, limiting financing and accentuating the former. With the foundation laid by these acquisitions the Company will concentrate on staying the course and weathering the storm.
"J.R. Bateman"
President
--------------------------------------------------------------- |
