CORPORATE NEWS RELEASE
„„ TRACER PETROLEUM CORPORATION „„
„„ NASDAQ Symbol: TCXXF „„ Dateline: Calgary, AB, Canada
„„ VSE Symbol: TPC „„ Date: Friday, April 16, 1999
TRACER PETROLEUM ANNOUNCES 1998 ANNUAL FINANCIAL
RESULTS
TRACER PETROLEUM COPRORATION (“Tracer”) reports a net loss of $12,845,716
for the year-ended December 31, 1998 (all figures in Cdn. Dollars), or $3.46 per share. This
compares to net income for 1997 of $496,650, or $0.13 per share. Included in the loss for
the year was a reduction in the carrying value of Indonesian assets of $9,106,729, or $2.45 per
share. The majority of this reduction in the carrying value, $6,649,665 was previously
reported in the 3
rd
quarter of 1998.
Oil and gas revenues for the year were $1,965,778, compared to $3,302,367 for the previous
year. The drop in revenues is primarily a result of lower realized prices for Indonesian crude.
Revenues reflect continued production from Tracer's 4.25% interest in the Talisman-operated
Ogan Komering Block on Sumatra, Indonesia. Gross production from Ogan Komering Block
ended the year at approximtely 15,000 barrels of oil per day.
Other revenue for the year included $154,672 from the rental of the Company's Indonesian-based
oil rig. This is down slightly from revenue of $160,048 from rig rental for the previous
year. Administrative expenses during 1998 totaled $513,140, compared with $1,227,203 for
1997. The significant reduction in administrative expenses can be attributed primarily to a
reduction in consulting and professional fees.
The Company exited the year with total assets of $3,669,117 ($0.99 per share), no net debt,
and shareholder's equity of $3,404,212 ($0.92 per share). Tracers' balance sheet puts it in a
favorable position when considering possible acquisitions, and when pursuing financing for
these acquisitions.
The Company is pursuing the possible acquisition of low-risk, high-potential oil and gas
development projects in the Islamic Republic of Iran. Discussions with representatives of the
National Iranian Oil Company are continuing. |
