Going in a positive direction today, even the share price (gggggg).
Grey Wolf second quarter results
Grey Wolf Exploration Inc GWX
Shares issued 127,043,413 Jul 30 close $1.40
Tue 3 Aug 99 News Release
Mr. D.A. Engle reports
For the three month period ended June 30, 1999, oil and gas sales increased
260 per cent to $3,518,000 and cash flow from operations increased 244 per
cent to $1,969,000 (15 cents per share) compared with the second quarter of
1998. Production during this period averaged 16,027 thousand cubic feet per
day of natural gas and 196 barrels per day of oil and natural gas liquids
compared with 5,247 mcfpd and 117 barrels per day during the corresponding
period in 1998. On a barrel of oil equivalent (boe) basis (10 mcf = one
barrel) production during the second quarter of 1999 increased by 180 per
cent to 1,799 boepd, up from 642 boepd during the second quarter of 1998.
Average price realizations for the second quarter were $2.20 per mcf and
$17.63 per barrel compared with $1.92 and $16.07 in 1998.
For the six months ended June 30, 1999, oil and gas sales increased 237 per
cent to $6,785,000 and cash flow from operations increased by 251 per cent
to $3,542,000 (28 cents per share) compared with the first half of 1998.
Production for the period averaged 16,281 mcfpd of natural gas and 193 bpd
of oil and natural gas liquids compared with 5,009 mcfpd of natural gas and
121 bpd of oil and natural gas liquids during the first half of 1998. On a
boe basis, total production increased 193 per cent to 1,821 boepd in 1999
from 622 boepd in 1998. Average prices realized for the six-month period
were $2.12 per mcf for gas and $15.15 per barrel for oil and natural gas
liquids compared with $1.86 and $15.75 in 1998.
Capital expenditures rose 20 per cent during the first six months of 1999
amounting to $2,705,000 compared with $2,253,000 in the prior year period.
Of this amount $2,015,000 was spent on drilling and work-overs; $349,000 on
production facilities; and $259,000 on land and geophysical projects.
Gas sales for the second quarter were below expectations due to plant
turnarounds and industry pipeline curtailments.
To date, Grey Wolf has participated in the drilling of 11 wells in Alberta.
Six of the wells have been completed as gas producers; and casing has
recently been set on a development well at Windfall (24 per cent working
interest) and an exploratory well at Dawson (35 per cent working interest).
Three of the wells were dry holes.
Grey Wolf has agreed to purchase net 48,000 acres (25 per cent working
interest) of undeveloped acreage and proprietary seismic data in west
central Alberta from New Cache Petroleums Ltd. Concurrently Grey Wolf and
New Cache will enter into a farm-out agreement whereby Grey Wolf will earn
additional interests in New Cache's undeveloped lands by committing to
spend $6-million in exploration and development work on the lands over the
next three years.
The transaction is expected to close mid-August, 1999.
Grey Wolf acquired, by farm-in, an additional 30 per cent interest in a
well and spacing unit in the Quirk Creek area of Alberta (16-19-21-4 W5M)
and in two sections of land offsetting the well, for a non-convertible
overriding royalty.
The well was initially drilled to the Turner Valley formation and
established gas reserves in that zone. Grey Wolf intends to test and
complete the sweet gas in the Rock Creek formation that is above the
Mississippian. Grey Wolf will own 50 per cent of all formations in the well
and lands and will operate the well. Operations will commence as soon as
the well licence and surface leases are transferred to Grey Wolf.
In the Northwest Territories, the company remains enthusiastic about the
exploration potential with almost 116,000 acres bordering the Norman Wells
field. Although Grey Wolf was disappointed by the 1998-1999 winter drilling
activity in the area, valuable information gained from the two shallow dry
holes have refined leads and the company hopes to drill a deeper (6,000 to
7000 foot) exploratory test within two years.
Evaluation of well data obtained from last winter's drilling season is
currently being used to reinterpret geologic leads at the company's Slave
Point Reef play in northern Alberta and British Columbia. Some fields in
the area hold reserves of 400 billion cubic feet of gas and 15 million
barrels of oil. The company plans to drill two exploratory wells this
winter.
Three Months Ended June 30
1999 1998
Production
Natural gas (mcfpd) 16,027 5,247
Oil and natural gas
liquids (bpd) 196 117
Total (boepd) 1,799 642
Prices
Natural gas ($/mcf) 2.20 1.92
Oil and natural gas
liquids ($/bbl) 17.63 16.07
Financial
Oil and gas
revenue $3,518,335 $ 976,210
Net earnings
(loss) 195,680 (85,358)
Net earnings (loss)
per share 1.5 cents 1 cent
Cash flow from
operations $1,868,912 $ 542,689
Cash flow from
operations per
share 14.7 cents 70 cents
Capital additions $(299,765) $ 821,736
Property
dispositions $ 20,119 $ 657,053
Six Months Ended June 30
1999 1998
Production
Natural gas (mcfpd) 16,281 5,009
Oil and natural gas
liquids (bpd) 193 121
Total (boepd) 1,821 622
Prices
Natural gas ($/mcf) 2.12 1.86
Oil and natural gas
liquids ($/bbl) 15.15 15.75
Financial
Oil and gas revenue $6,784,545 $2,011,771
Net earnings
(loss) 200,265 (222,011)
Net earnings (loss)
per share 1.6 cents 3 cents
Cash flow from
operations $3,541,503 $1,008,353
Cash flow from
operations per
share 27.9 cents 13 cents
Capital additions $2,704,819 $2,253,201
Property
dispositions $1,043,149 $ 657,053
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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