3Q Results below- any thoughts as to why sxn share price isn't moving up?
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FOR FURTHER INFORMATION PLEASE CONTACT:
Saxon Petroleum Inc.
Glen Tarrant
President & Chief Executive Officer
(403) 266-7111
or
Saxon Petroleum Inc.
Chris Bradley
Chief Financial Officer
(403) 266-7111
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: SAXON PETROLEUM INC.
TSE SYMBOL: SXN
OCTOBER 29, 1997
Saxon Announces 1997 Third Interim Report to the
Shareholders For the Nine Months Ended September 30, 1997
CALGARY, ALBERTA--
/T/
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
HIGHLIGHTS
Three Months Ended Nine Months Ended
September 30 Percent September 30 Percent
1997 1996 Change 1997 1996 Change
--------------------------------------------------------------
Operating
Daily sales
Oil and NGL's
(Bbls) 2,010 1,193 + 68 2,015 1,234 + 63
Gas (Mcf) 9,272 5,062 + 83 8,352 5,392 + 55
Average prices
Oil and NGL's
($/Bbl) 24.00 25.78 - 7 24.73 23.90 + 3
Gas ($/Mcf) 1.52 1.36 + 12 1.75 1.40 + 25
--------------------------------------------------------------
Financial ($000's except per share)
Production
revenue 5,737 3,465 + 66 17,601 10,144 + 73
Cash flow 2,630 1,482 + 77 7,517 3,945 + 91
Per fully
diluted
share 0.02 0.01 +100 0.05 0.04 + 25
Net income
(loss) 92 (218) - 555 (141) -
Per fully
diluted share - - - - - -
--------------------------------------------------------------
/T/
Operating
Production has been increasing throughout the third quarter and
the September average production was 3,308 barrels of oil
equivalent per day, indicating that the start-up problems at
Bigoray are behind us.
On a daily basis, oil and NGL's increased 63 percent over the
third quarter of 1996. Natural gas, on a daily basis, increased
55 percent over the third quarter of 1996. As indicated in the
second quarter, the facilities are installed in the Bigoray field
with the result that volumes have increased substantially.
Capital expenditures for the third quarter of 1997 were $7.5
million, most of which was spent on drilling and tie-in of new
wells in the Bigoray area. During the quarter the Company
drilled four new wells resulting in 3 (2.88 net) oil wells and 1
(.4 net) gas well.
Financial
Cash flow in the third quarter increased by 91 percent from 1996
third quarter cash flow. Net income in 1997 was $555,000
compared to a loss of $141,000 in 1996. Due to an increase in
production volumes for both oil and natural gas and an increase in
product prices, production revenue increased 73 percent over the
period in 1996.
Capital expenditures were partially financed by the disposition of
$4.3 million of Forest Oil Corporation shares received by Saxon as
part of the Equity Participation Agreement between Saxon and
Forest.
Other income has increased in 1997 due to revenues received from
processing third party gas and the foreign exchange gain on the
sale of the marketable securities of Forest Oil Corporation.
Corporate Update
Saxon has announced that the Board of Directors created a Special
Committee composed of its independent directors to assess the
asset base of the Company and to determine strategic alternatives
leading to the most effective way to maximize shareholder value.
The independent directors have engaged Griffiths McBurney Partners
as the financial advisor to assist in the process which is
on-going at present.
Outlook
The outlook for the Company is positive with production volumes
continuing to increase, reflecting the tie-in of successful wells
in Bigoray and completion of facility expansion.
In spite of delays, caused by poor weather and the lack of
available equipment, which have impacted the petroleum industry
Saxon is optimistic about reaching its year-end objectives.
/T/
BALANCE SHEETS
(unaudited)
September 30, December 31,
1997 1996
--------------------------------------------------------------
ASSETS
Current
Cash and deposits $ - $ 500,927
Accounts receivable 4,491,821 4,202,617
Prepaid expenses 411,347 252,520
--------------------------------------------------------------
4,903,168 4,956,064
Deferred charges 267,122 414,122
Property, plant and equipment 84,647,416 51,731,863
--------------------------------------------------------------
TOTAL ASSETS $89,817,706 $57,102,049
--------------------------------------------------------------
--------------------------------------------------------------
LIABILITIES
Current
Accounts payable and accrued
liabilities $ 5,153,154 $11,140,760
Long term debt 29,999,160 -
Provision for future site
restoration 943,733 729,816
Deferred income taxes 1,627,644 1,037,119
---------------------------------------------------------------
37,723,691 12,907,695
---------------------------------------------------------------
SHAREHOLDERS' EQUITY
Share capital 50,616,686 43,228,242
Retained earnings 1,477,329 966,112
---------------------------------------------------------------
52,094,015 44,194,354
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $89,817,706 $57,102,049
---------------------------------------------------------------
---------------------------------------------------------------
STATEMENTS OF INCOME AND RETAINED EARNINGS
(unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
REVENUE
Petroleum and
natural gas
sales $5,737,238 $3,566,464 $17,601,138 $10,245,272
Royalties (720,427) (543,437) (3,346,484) (1,690,756)
Alberta royalty
tax credit 300,000 102,237 997,950 286,237
Other income 63,652 (729,391) 195,491 -
--------------------------------------------------------------
5,380,463 2,395,873 15,448,095 8,840,753
--------------------------------------------------------------
EXPENSES
Operating 1,831,095 815,343 5,685,435 3,300,265
General and
administrative 547,966 337,654 1,451,942 994,001
Depletion,
depreciation and
amortization 2,535,018 1,158,354 6,374,870 3,557,573
Interest and
financing 347,547 170,339 706,096 939,358
--------------------------------------------------------------
5,261,626 2,481,690 14,218,343 8,791,197
--------------------------------------------------------------
Income (loss) before
income taxes 118,837 (85,817) 1,229,752 49,556
Income taxes 26,433 132,446 674,582 190,916
--------------------------------------------------------------
NET INCOME (LOSS) 92,404 (218,263) 555,170 (141,360)
RETAINED EARNINGS,
beginning of
period 1,384,925 1,080,072 966,112 1,402,906
Dividends - (197,963) (43,953) (597,700)
--------------------------------------------------------------
RETAINED EARNINGS,
end of period $1,477,329 $ 663,846 $1,477,329 $ 663,846
--------------------------------------------------------------
EARNINGS PER SHARE
Basic $ - $ - $ - $ -
Fully diluted $ - $ - $ - $ -
--------------------------------------------------------------
STATEMENTS OF CASH FLOWS (unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
1997 1996 1997 1996
--------------------------------------------------------------
Cash provided by (used in)
OPERATING
Net (loss) income $ 92,404 $(218,263) $555,170 $(141,360)
Items not involving a
current cash flow 2,537,186 1,700,331 6,961,617 4,086,402
--------------------------------------------------------------
Cash flow 2,629,590 1,482,068 7,516,787 3,945,042
Changes in non-cash
working capital 1,248,450 (266,185) (448,030) (191,579)
--------------------------------------------------------------
Cash flow after changes
in non-cash working
capital 3,878,040 1,215,883 7,068,757 3,753,463
--------------------------------------------------------------
FINANCING
Dividends - (197,963) (43,953) (597,700)
Issue of shares 548,215 194,760 7,388,444 335,767
Proceeds (repayment)
of long-term debt 445,739(10,228,405) 29,999,160(22,403,690)
Deferred charges 186,952 (30,000) 147,000 (56,130)
--------------------------------------------------------------
1,180,906(10,261,608) 37,490,651(22,721,753)
--------------------------------------------------------------
INVESTING
Capital expenditures
Exploration,
development
and corporate (7,535,495)(3,974,469)(33,533,935)(8,354,002)
Acquisitions - (2,431,253) (5,010,590)(5,320,241)
Proceeds on
disposition of
assets 109,774 176,625 109,774 1,847,607
Investments - 15,272,663 - 15,000,000
Changes in
non-cash working
capital 2,366,775 913,880 (6,625,584)16,722,778
--------------------------------------------------------------
(5,058,946) 9,957,446 (45,060,335)19,896,142
--------------------------------------------------------------
NET (DECREASE)
INCREASE IN CASH - 911,721 (500,927) 927,852
Cash and deposits,
beginning of period - 82,944 500,927 66,813
--------------------------------------------------------------
CASH AND DEPOSITS,
END OF PERIOD $ - $ 994,665 $ - $ 994,665
--------------------------------------------------------------
CASH FLOW
Basic $ 0.02 $ 0.01 $ 0.06 $ 0.04
Fully diluted $ 0.02 $ 0.01 $ 0.05 $ 0.03
--------------------------------------------------------------
/T/
Saxon is an oil and gas exploration and production company based
in Calgary, Alberta and listed on The Toronto Stock Exchange,
symbol SXN. |
