NEWS RELEASE......
International Rochester 1999 first quarter report
International Rochester Energy Corp ROH
Shares issued 8,980,290 Apr 23 close $0.39
Mon 26 Apr 99 Company Review
Mr. William Trickett reviews the company
The company's primary focus is the exploration and development of the
210,000 acre Alcaravan and 32,000 acre Miradores Association contracts in
Colombia's prolific Llanos Basin. The first well under these contracts was
drilled on the Palo Blanco prospect in 1997. The well tested at a rate of
4,116 barrels of oil a day and production facilities have been constructed.
Quarterly Highlights
Appointment of William A. Trickett as president and CEO.
Corporate office moved to Calgary, Alta.
Economic evaluation of Palo Blanco field prepared based on 3-D seismic.
Completion of the spur oil pipeline to facilitate production from the Palo
Blanco field.
Since becoming president and CEO, I have focused efforts on assessing our
Colombian assets and developing a viable long-term strategy for the
company. In the current economic environment of depressed oil prices,
international oil and gas assets are undervalued and the company's stock
price does not reflect the underlying value of its assets. It is essential
for Rochester to generate revenue and cash flow in the short-term. While
production from the Palo Blanco discovery well is scheduled to commence in
the near-term, management continues to evaluate other strategic
alternatives to achieve early production and cash flow.
Review of Operations
Production from testing of the Estero No. 1 well continued until Nov. 1998,
with the trucking of oil to the Guaremina pumping station owned by
Braspetrol. During the quarter ended Dec. 31, 1998, construction of the
spur oil pipeline connecting the Palo Blanco oilfield to the main pipeline
between the Guarimena and Santiago oilfields was completed. This spur
pipeline is 12 inches in diameter and should accommodate sufficient volumes
of oil to allow further development of the field. Production from the
Estero No. 1 well is expected to commence flowing through the pipeline
within a few months.
Financial
Rochester ended the quarter with $1.4-million in the bank which is
sufficient to cover the immediate cash requirements. Management is actively
investigating financing alternatives to enable continued growth of the
company. Capital expenditure during the period totalling $1,230,576 related
mainly to completion of the spur oil pipeline.
The company recorded a loss for the period of $613,340 which was 5 per cent
higher than for the same period of the previous year, mainly as a result of
increased management fees and the financing cost of extending payment terms
on the amount due to Harken de Colombia Ltd.
CONSOLIDATED STATEMENTS OF LOSS
AND DEFICIT
Three months ended Dec. 31
1998 1997*
Expenses (income)
Finance 303,611 273,946
Interest income (34,086) (40,226)
General and
administrative 46,311 98,231
Professional fees 173,533 181,089
Management fees 52,000 17,500
Loss on foreign
exchange 24,799 5,534
--------- --------
Loss before the
following: 566,168 536,074
Amortization of
convertible note
issue cost 47,172 47,172
--------- --------
Loss for the
period 613,340 583,246
Deficit -
beginning
of period 5,094,371 2,853,237
Deficit - end
of period 5,707,711 3,436,483
========= =========
Loss per share 7 cents 8 cents
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