Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: GVTucker who wrote (7030)	1/5/2000 10:09:00 AM
From: RIK	Read Replies (1) \| Respond to of 24920

Wednesday January 5, 8:32 am Eastern Time Company Press Release Pursuit Announces Results of Year End Reserves Evaluation and Strategic Initiative CALGARY, ALBERTA--Pursuit Resources Corp. has received the year end independent engineering evaluation of its oil and gas reserves effective December 31, 1999. Proved reserves have increased over the previous year to 5.51 million barrels of crude oil and natural gas liquids and 86.8 billion cubic feet of natural gas. Proved plus probable reserves amount to 7.31 million barrels of crude oil and natural gas liquids and 101.0 billion cubic feet of natural gas resulting in a net present value, calculated at a 10% discount rate, before tax of $151.5 million. Based on estimated capital expenditures of $13 million in 1999, finding and development costs were $5.00 per barrel of oil equivalent on a proved basis and $5.75 per barrel of oil equivalent on a proved plus probable basis. This evaluation confirms a strong year of efficient growth for the Company during 1999 in which Pursuit's proved reserves additions replaced 171% of production. Pursuit will exit the year with an average fourth quarter production rate of approximately 4,500 barrels of oil equivalent per day and expects 1999 cash flow to exceed it previous estimate of $0.60 per share. Year end 1999 debt, net of working capital, is estimated to be approximately $34 million. The Company expects production to average 5,100 barrels of oil equivalent per day in 2000. Despite these strong results the trading value of Pursuit's shares continues to be well below the underlying value of the Company's asset base and does not reflect Pursuit's strong business fundamentals and future growth potential. The current share price restricts the ability of Pursuit to raise additional equity capital without diluting existing shareholder value. As a result, the opportunities for the Company to expand its business and enhance the value of its assets is limited, particularly during the current period of strong commodity prices. As a consequence, the Pursuit Board of Directors has retained Peters & Co. Limited as its financial advisor to assist the Board in evaluating alternatives to increase shareholder value. Peters & Co. has commenced a process which will provide access to Pursuit's corporate, financial and operating information to parties who may have an interest in acquiring, or merging with Pursuit. Contact: Pursuit Resources Corp. D. Nolan Blades President and Chief Executive Officer (403) 264-6256