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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Craig C who wrote (6889)	10/14/1999 10:05:00 AM
From: mark calgary	Respond to of 24939

As talked about earlier excellent results are on their way for many small companies - check this out !! Danoil expects to exceed 1999 forecast Danoil Energy Ltd DAN Shares issued 23,832,088 1999-10-13 close $1.8 Thursday Oct 14 1999 Mr. Jack Lee reports Danoil Energy will exceed its 1999 forecast of production and cash flow. In its 1998 annual report, Danoil forecast cash flow for 1999 to be $8.1-million (35 cents per share). This forecast has now been increased to $12.3-million (53 cents per share). Production averaged 3,600 barrels of oil equivalent per day in July with cash flow exceeding $1.0-million per month in the third quarter. Fourth quarter volumes and cash flow are expected to be significantly higher. Stronger than expected oil prices have resulted in a reactivation of virtually all of Danoil's shut-in oil and the recent drilling of five infill wells. All five wells were successful and were placed on production early in the fourth quarter at an average rate of 50 barrels of oil per day each. At least five more follow-up wells will be drilled before year-end. As a part of this program the company has hedged 1,000 barrels per day (bpd) from Jan. 1, 2000, to June 30, 2000. The hedge has a floor price, West Texas Intermediate converted to Canadian dollars of $28.17 and a ceiling price of $32.77. At these prices the company expects a payout of less than one year for these wells. The drilling program at Judy Creek continues to be very positive. Danoil recently completed its best well in the area (96-per-cent working interest), it drill stem tested at 3.8 million cubic feet per day (mmcf/d) and will be tied in and on production before year-end. It is currently expected that three additional wells will be drilled in the area before year-end, bringing the total wells drilled and/or recompleted in the area to 11. Danoil expects that in excess of 50 per cent of its overall gas production will come from Carson and Judy Creek in the year 2000. To date capital expenditures have not kept pace with growth in cash flow and therefore, debt levels continue to drop. Danoil estimates current net debt at approximately $19.5-million, $9.0-million lower than at this time last year. The debt to cash flow ratio is expected to be approximately 1.0, annualizing fourth quarter cash flow. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 1999 Canjex Publishing Ltd.

To: Craig C who wrote (6889)	10/14/1999 12:18:00 PM
From: SofaSpud	Respond to of 24939

Quite a few juniors were pretty close to the edge by the end of the first quarter. Bank lines used up, that kind of thing. If we had had another two quarters of $10 oil, Probe wouldn't be the exception, IMO. I agree with your observation that the service side has been slow to pick up. Part of it was plain bad weather. But I do think that several companies whose balance sheets got ugly have had to walk a tightrope -- use improved cash flow to clean up the balance sheet, at the expense of drilling to take advantage of higher prices. The market is, of course, extremely unforgiving -- some of the former princesses are now considered toads because they haven't grown, haven't been able to afford to grow. If we still have $20 oil in mid-2000, there will be a ton of money coming into the sector. But my guess is that we won't see U.S. buyouts from this point. Crestar, for example, was being shopped at $12, so why buy over $20? The exception might be if East Lost Hills lives up to its hype -- I would think Berkley would be taken out in a New York minute if they proved up multi TCFs. BWDIK.