EARNINGS / American Leduc reports 1st 3 months & 1997 Annual Results
CALGARY, Feb. 02 /CNW/ - American Leduc Petroleums Limited today released
its first quarter results for the period ended November 30, 1997. At the same
time, the Company reported the results for the year ended August 31, 1997.
First quarter - ended November 30, 1997
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First quarter results include one-time restructuring and contract
settlement expenses of $350,300 related to the change in management on the
retirement of the President and other senior officers in October 1997. At the
time of the change, the Edmonton corporate office was closed and consolidated
into the exploration and production office facility in Calgary. Mr. Victor
Stobbe, President and Chief Executive Officer of American Leduc said ''having
one office will streamline our operations as well as reduce costs''.
Revenue, net of royalties, for the quarter ended November 30, 1997 was
$662,664, down from $734,947 last year due to lower production levels. Oil
production declined 9% to 268 barrels per day from 295 per day in the same
quarter of the prior year. Wet weather in Alberta in September and October
hindered the trucking of oil and emulsions at the Company's major oil
property. In November, production levels climbed to 360 barrels per day.
Natural gas production was 454 mcf per day for the quarter ended November 30,
1997, compared to 604 for the prior year.
Cash flow from operations was $340,729 ($0.023 per share), excluding the
$350,300 one-time charge for the reorganization. Including this charge, a
cash flow deficiency of $9,571 ($0.001 per share) was reported compared to
cash flow of $298,966 (0.021 per share) in the first quarter of the prior
year.
A loss of $204,423 ($0.014 per share) was recorded for the three months
to November 30, 1997 compared to net earnings of $42,919 ($0.003 per share) in
the prior year. The one-time restructuring charge contributed a loss of
$0.034 per share to this year's results, eliminating the $0.010 per share in
net earnings from operating activity.
Subsequent to the first quarter, two wells were drilled on the Company's
Little Horse oil property. Preliminary results indicate that these wells
could increase production from the area by up to 20%. In addition, at least
three wells are planned on American Leduc's land in the Gift area and are
expected to be completed before the 1998 spring breakup.
Year ended August 31, 1997
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Revenue, net of royalties, for 1997 was $2,953,868, an increase of 21%
from $2,439,894 in 1996. Daily oil production was 310 barrels compared to 281
barrels in 1996. Natural Gas production was basically unchanged at 580 mcf
per day.
Cash flow from operations almost tripled to $1,123,818 ($0.080 per share)
in 1997 from $387,636 ($0.028 per share) in 1996.
Net earnings for 1997 were $205,364 ($0.015 per share) compared to a loss
of $1,948,800 ($0.139 per share) in 1996. The 1996 loss included a $1,260,000
writedown of oil and gas assets under that year's ceiling test.
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Summary
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1) Three Months ended November 30: 1997 1996
---------------------------------- ---- ----
Production per day
Oil (bbls) 268 295
Natural gas (mcf) 454 604
Revenue, net of royalties $ 662,664 $734,947
Cash flow (deficiency) from operations $ (9571) (1) $298,966
Per share $ (0.001) $ 0.021
Net earnings (loss) $(204,423) (1) $ 42,919
Per share $ (0.014) $ 0.003
Note: (1) The first quarter results to November 30, 1997 include a
one-time reorganization charge of $350,300.
2) Year ended August 31: 1997 1996
------------------------ ---- ----
Production per day
Oil (barrels) 310 281
Natural gas (mcf) 580 573
Revenue, net of royalties $ 2,953,868 $ 2,439,894
Cash flow from operation $ 1,123,818 $ 387,636
Per share $ 0.080 $ 0.028
Net earnings (loss) $ 205,364 $(1,948,800)
Per share $ 0.015 $ (0.139)
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