Carmanah Reports First Quarter
1999 Results
CALGARY, ALBERTA--Carmanah Resources Ltd. (''CKM'' - TSE) today released operating
and financial results for the three months ended March 31, 1999.
While higher daily oil production was achieved at Camar in Indonesia in the reporting period
compared to 1998, lower oil prices and higher financial charges resulted in negative cash flow and
an increased loss. Production at Camar was suspended in March 1999 and the Company has
hired an international investment banker to assist in its efforts to sell or otherwise reduce its
interests in Indonesia and Venezuela to meet lender requirements. An indicative proposal to
acquire Carmanah's interests at Langsa in Indonesia has been accepted by the Company, subject
to certain conditions. This transaction is targeted to close prior to June 30, 1999. If completed, it
would provide sufficient funds to repay senior secured indebtedness and improve working capital.
Despite significant encouragement from core and log analysis at the ONV-78 well at Onado,
Venezuela, disappointing test results were obtained. The joint venture is examining well results
with a view to determining future plans for this prospective block. A large international oil
company is reviewing of the Northeast Natuna PSC with a view to formulating a proposal to
participate in further exploration activity on this block.
Carmanah is receiving cooperation from its lenders and creditors as it attempts to redress its
balance sheet through asset sales or other forms of divestment.
Summary Results
---------------
Three Months Ended March 31,
1999 1998
---- ----
Financial
---------
Revenue ($000) 2,078 1,742
Cash flow used in operations ($000) (1,000) (718)
Per share ($) (0.02) (0.02)
Loss ($000) (2,050) (1,785)
Per share ($) (0.05) (0.05)
Weighted average shares o/s (MM) 41.8 35.6
Operating
---------
Production (net BOPD)(1) 1,628 928
Crude oil price ($/bbl) 19.67 20.58
(1) Production at Camar, Indonesia was suspended in March 1999. Daily production is
calculated for onstream days.
Oilmaster |
