MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING TUESDAY, FEBRUARY 17, 1998 (5)
KERMS TOP 21 - SPEC 15 - SERV 9 COMPANIES IN THE NEWS
Draig Energy Ltd.(DRA/ASE) reported that the fourth quarter of 1997 was the best quarter in the company's history.
Draig earned a record $147,276.00 during the final three months of fiscal 1997. Cashflow was $463,686.00 ($0.06 per share) during the same period.
For the year ended November 30, 1997 the company earned $146,522.00 ($0.03 per share) on revenues of $1,629,923.00 and cashflow amounted to $614,229.00 ($0.105 per share).
Proved Producing Reserves increased to 1,698,800 BOE year end up 78 percent from 950,400 at year end 1996.
The record results of the fourth quarter reflect the impact of the acquisitions and subsequent development of properties at Brent, Hanna and Chigwell during the latter part of 1997.
So far in 1998 Draig has successfully drilled and completed five wells at Hanna for the Second White Specks. The company recently placed two of these well on production with the remaining tie-ins to be completed by the end of the first quarter. At Brent we are currently testing a previously abandoned well and have licensed three new wells, the first of which began drilling February 17, 1998.
During 1998 Draig has budgeted 25 (14 net) wells with a capital program of $6,400,000.00. Draig has pre-approved financing in place for strategic acquisitions in 1998.
The company exited fiscal 1997 producing 705 BOE per day and budgets to exit 1998 at 1,400 BOE per day.
KERMS WATCHLIST OF COMPANIES IN THE NEWS
Chieftain International, Inc. (CID/TSE & AMEX) reported record financial and operating results for 1997. Cash flow from operations, net of preferred dividends, was US$49.5 (C$70.7) million or US$3.63 (C$5.19) per basic common share. Net income after preferred dividends was US$5.2 (C$7.5) million or US$0.38 (C$0.55) per basic common share.
Average daily gas production was 77.6 million cubic feet per day (mmcfd) in 1997 compared with 71.8 mmcfd during 1996. Average daily production was 78.0 mmcfd during the fourth quarter of 1997 compared with 79.9 mmcfd during the comparative quarter of 1996. Average daily oil and natural gas liquids production was 2,636 barrels per day (bd) compared with 2,340 bd in 1996. Average daily production was 3,104bd during the fourth quarter of 1997 compared with 2,614 bd during the 1996 period.
The average price received for natural gas in 1997 was US$2.33 (C$3.33) per thousand cubic feet (mcf) compared with US$2.09 (C$2.86) in 1996. The average price received for oil and ngls was US$18.94 (C$27.07) per barrel compared with US$20.99 (C$28.75) in the 1996 period.
Chieftain has no debt. The Company reports financial information in U.S. dollars. For convenience, Canadian dollar equivalents are provided using exchange rates as at December 31, 1997 and 1996.
Financial results for 1997, with comparative amounts for 1996 and other table data can be found at Message 3457336
CE Franklin Ltd. (CFT/TSE.- CFT/AMEX) announced today revenue for the fiscal year ended December 31, 1997 of $417 million, an increase $158 million from the same period last year. The 61 percent increase in sales out-performed the 30 percent increase in drilling activity in western Canada in 1997.
Net income for 1997 increased $4.5 million or 66 percent to $11.2 million due mainly to the growth in sales. The increase would have been greater on a directly comparable basis as the 1996 earnings included non-reoccurring gains from an asset disposal and tax benefit.
Earnings per share (basic) for 1997 increased 63 percent from 1996 to $0.70 due mainly to growth in net income. Earnings per share fully diluted were $0.65.
"We are, of course, very happy with the results we were able to generate for all our stakeholders in 1997," comment John Gilbank, Chairman and Chief Executive Officer. "We have been able to continue capturing market share and creating economies of scale as we have grown to be clearly the supply leader in the Canadian oil patch. As for 1998, we are looking forward to a good year of drilling by historical standards, especially in the first and fourth quarters."
CE Franklin is Canada's largest distributor of supplies to the oil and gas drilling and production industry. Through its 43 locations across Canada, the Company sells pipe, valves, pumps, fittings, and maintenance supplies and provides complete customer inventory procurement and management services. The Company also manufactures and packages specialized products for the energy industry.
OTHER COMPANIES IN THE NEWS
Westfort Energy (WT/TSE) announced that the company has filed an application with the Mississippi State Oil and Gas Board to drill a well to 17,300 feet to the Norphlet Formation in Pelahatchie Field, Rankin County, Mississippi. The permit is expected to be granted at the next regular meeting of the Board to be held on March 19th. Immediately upon the granting of this approval, the company will commence operations for the drilling of its first Norphlet well in compliance with the terms of its previously announced farm-out agreement.
Artemis Energy Limited announced that private placement proceeds will be allocated toward a five well drilling program in the gas prone Mikwan area of Alberta. The first well in the drilling program has been cased as a horizontal Glauconite oilwell.
Dalton Resources Ltd. (DAL/ASE) reported drilling has commenced at its Strachan Prospect. The well Apache et al Strachan, 3-22-38-9W5M started drilling Friday, February 13, 1998. The well is licensed to a projected depth of 4479 m and is expected to reach total depth within 90 days.
Range Petroleum Corporation (RAN/VSE) announced that it joins with Amoco Canada Petroleum Company Ltd. in conducting a 3-D seismic program covering 236 square kilometres (91 square miles) in Alberta.
The seismic program will evaluate several promising Devonian leads as well as other prospective horizons. Range and its 50% partner will pay 60% of the cost of the seismic program estimated to total $3.2 million to participate 50-50 with Amoco in the prospect area. In addition to acquiring an interest in 9,600 acres of existing leases from Amoco, Range will benefit from significant 3-D seismic programs previously conducted by Amoco in the area. The seismic program is situated near currently producing prolific oil and gas fields with existing processing and marketing infrastructures in place.
This seismic program is currently underway. Completion of the field acquisition portion is scheduled for late March 1998 with interpretation to be completed by May/June, 1998.
Elsewhere, Range has contracted Precision Drilling Rig No. 372-D for the drilling of test well ''Range-Talon-Progress 11-29-78-9 W6M'' at Progress, Alberta. Anticipated spud date is on or about February 25, 1998. For further details please see news release dated November 25, 1997.
INTERNATIONAL COMPANIES IN THE NEWS
Doreal Energy Corporation (DOY/ASE)announces that the Alijubarrota #1 exploration well, drilled by Mohave Oil and Gas Corporation in the Lusitanian Basin of onshore Portugal, has reached total depth of 2,686 meters (8,864 feet). Casing will be run to total depth and an evaluation program will begin shortly to test the hydrocarbon indications as observed on electric logs. Doreal has a 10 percent working interest in the exploration well and will earn a 9.35 percent revenue interest in the project.
Further to a letter of intent executed September 7, 1996, Leopardus Resources Limited, (LEP/VSE) has entered into an acquisition agreement with Zarara Petroleum Resources ("Zarara") of Dubai, UAE, a company controlled by senior management of the Company, to acquire its rights in the Temane Permit Area in Mozambique (the "Temane Permit"). In consideration, the Company will issue 2,610,241 common shares having a deemed value of US $1,027,600 (CDN $1,461,735) at CDN $0.56 per share, subject to standard resale restrictions. A finder's fee of 188,548 shares will be payable with respect to this transaction.
The Temane Permit consists of an area of approximately 11,770 square kilometres encompassing the coastal city of Vilankulo, and contains the second largest proven gas field in the Republic of Mozambique. This property is the subject of an engineering report and valuation prepared by Sproule International Ltd., geological and petroleum engineering consultants, a copy of which has been filed with the Vancouver Stock Exchange and is available for public inspection.
The foregoing transaction is subject to acceptance for filing by the Vancouver Stock Exchange and execution of a Production Sharing Agreement ("PSA") with the Government of Mozambique, the signing of which is expected to occur in early 1998.
Leopardus Resources Limited is an international oil and gas exploration and development company. As part of its ongoing activities, the Company is participating with major industry partners in developing the infrastructure necessary to serve the natural gas markets in South Africa, Zimbabwe and Mozambique.
CityVIew Energy Corp., via MMC Exploration & Production (Philippines) Pte Ltd, has been advised by the operator Arco Philippines Inc, that Well No. Hippo-1 in Block GSEC 74 in the Southern Sulu Sea was spudded on 13 February 1998 at 0600 a.m.
The rig is the Atwood Falcon semi submersible positioned in 343 metres (1125ft) of water. The well is projected to penetrate three geologic objectives. The shallow secondary objective H Sand will be encountered with a vertical hole. Below the H Sand, the well will be drilled directionally to penetrate the primary objective G Sand and a deep secondary objective the Deep Sand.
MMC Exploration & Production (Philippines) Pte Ltd is owned 51% by MMC Exploration and Production BV and 49% by CityView Corporation Limited's wholly owned subsidiary Western Resources N.L.
Alturas Resources Ltd. of Calgary, Alberta, Canada announces the signing of an exclusive Production Sharing Contract by it's wholly owned subsidiary Alturas Resources (Bahamas) Ltd. for Petroleum Exploration in Block 8, in the Republic of Cuba, with CUPAPETROLEO, the Cuban National Petroleum Company. Block 8 comprises 1.4 million acres of onshore petroleum exploration lands south and southeast of La Habana. The signing of the Production Sharing Contract resulted in the release of the proceeds from escrow of the September 1997 private placement of $4 Million. FirstEnergy Capital Corp. of Calgary was the agent for the financing.
James A. Podruski, President and CEO and Gordon R. Morrison, Vice-President, Finance and CFO founded Alturas in May 1997. Alturas is a private Alberta, Canada, company with offices in Calgary and La Habana and currently holds interests exclusively in the Republic of Cuba.
COUNTRIES IN THE NEWS
Saudi Arabia
An updated Country Analysis Brief on Saudi Arabia is now available. To access this report, the World Wide Web address is: eia.doe.gov
Included in the report are estimates of 1997 energy and economic statistics, as well as an up-to-date analysis of Saudi Arabia's oil and gas industry.
SERVICE SECTOR NEWS
Enertec Resource Services Inc. (ERS/TSE) announced that it has obtained a worldwide license from Mobil Oil Corporation to offer a new vibratory seismic technology for land data acquisition and processing applications.
The field development was a joint effort with Enertec and Mobil's Dallas based technical staff. The technology is known as ''High Fidelity Vibratory Seismic'' (''HFVS'') and can provide data resolution enhancement and/or increased field productivity.
The opportunity for Enertec to be a partner in this technology resulted from an ongoing long-term strategic alliance with Mobil Oil Canada. ENERTEC has a production crew currently under contract to Mobil Oil Canada and will equip several other crews to offer HFVS to customers throughout its market.
Enertec operates throughout North America providing land seismic data acquisition and processing services and marine geophysical and navigation services.
American Eco Corp. (ECX/TSE) announced that its Port Arthur based subsidiary, Action Contract Services has added USD$26.5 million to its contract backlog for maintenance services. The contracts include ongoing storage tank maintenance at several Texas based plants of Huntsman Petrochemical Corporation, and general maintenance work for Olin Corp., in Beaumont, Texas. The Turner Group's other subsidiary, C.A. Turner currently performs the general maintenance work at four additional plant sites.
The Turner operation formed the basis for American Eco's move into industrial and maintenance services when American Eco acquired it in November of 1993. Turner provides field maintenance services, industrial construction and pipe fabrication to customers throughout the southwestern U.S.
Michael E. McGinnis, Chairman, President and CEO of American Eco, states, "The fact that the Turner Group through the combined actions of C.A. Turner and Action in providing services to Huntsman and Olin, exemplifies American Eco's commitment to the "single source" concept when servicing our clients."
American Eco is a leading North American provider of single-source construction, management, maintenance, specialty fabrication, engineering and environmental remediation services in the refining, petrochemical, utility, forest products and offshore manufacturing industries. |
