EARNINGS / Ocelot Energy reports 1997 Results
CALGARY, March 11 /CNW/ - Ocelot Energy Inc. is pleased to report its
financial and operating results for the year ended December 31, 1997.
In 1997 Ocelot continued to focus on the development of high margin
properties in Canada and the establishment of an international production
base. In early 1997, the financial position of the Company was improved with
the sale of low margin natural gas properties in British Columbia and
Saskatchewan for proceeds of $88 million.
Revenue from petroleum and natural gas sales and pipeline construction
activities was $119 million in 1997 compared with $154 million in 1996, a
decline of 23 per cent. Net income in the year climbed to $7.9 million or
$0.28 per share compared with $0.5 million or $0.02 per share in 1996. Funds
generated from operations were $34.1 million or $1.22 per share compared to
$36.2 million or $1.29 per share in 1996. The Company's financial position
improved significantly in the year with bank debt including working capital
declining by 35 per cent to $69.1 million compared with $105.8 million at year
end in 1996.
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Three Months Ended Year ended
December 31, December 31,
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1997 1996 1997 1996 Change
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FINANCIAL HIGHLIGHTS
(thousands except per share)
Revenue $15,002 $35,069 $118,983 $153,867 (23)%
Funds generated from
operations $ 7,305 $11,629 $ 34,100 $ 36,151 (6)%
- per share $ 0.27 $ 0.42 $ 1.22 $ 1.29 (5)%
Net earnings $ 3,291 $ 901 $ 7,908 $ 532 1,386%
- per share $ 0.12 $ 0.03 $ 0.28 $ 0.02 1,300%
Capital expenditures $37,069 $15,964 $ 87,059 $ 54,018 61%
Long-term debt including
working capital $ 69,077 $105,804 (35)%
Weighted average number
of shares outstanding 28,054 28,066 -
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Petroleum and Natural Gas Operations
Production of crude oil and natural gas liquids average 4,271 barrels per
day, consistent with the prior year. Total liquids production at year end
increased to 4,900 barrels per day from 3,800 barrels per day at the beginning
of 1997.
Natural gas production averaged 14.8 million cubic feet per day compared
with 88.1 million cubic feet per day in 1996. This decrease in production was
entirely due to the disposition of natural gas properties in British Columbia
and Saskatchewan.
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Three Months Ended Year ended
December 31, December 31,
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1997 1996 1997 1996 Change
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OPERATIONS
Production
Natural gas (mmcf/d) 14.6 76.7 14.8 88.1 (83)%
Crude oil (bbls/d) 3,831 3,427 3,540 3,540
Natural gas liquids
(bbls/d) 707 721 731 740 (1)%
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Total liquids (bbls/d) 4,538 4,148 4,271 4,280
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Pricing
Natural gas ($/mcf) 2.02 1.37 1.99 0.98 103%
Crude oil ($/bbl) 23.36 23.35 24.33 22.53 8%
Natural gas liquids
($/bbl) 21.65 27.40 21.42 20.83 3%
Netbacks
Natural gas ($/mcf) 1.04 0.96 0.96 0.61 57%
Crude oil ($/bbl) 15.16 10.79 15.52 12.38 25%
Natural gas liquids
($/bbl) 16.93 23.84 16.45 17.69 (7)%
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Capital expenditures of $87.1 million were directed towards development
activities in Canada and establishing a production base and related facilities
in Gabon. Since acquiring the permit areas in December 1996 in Gabon, the
Company has shot a 25 square kilometre 3-D seismic program, drilled 3 wells
and recompleted a fourth, constructed production facilities including a 6.5
kilometre pipeline to loading facilities and initiated the reprocessing of
1,500 kilometres of 2-D seismic. Start up of crude oil operations is
anticipated in March 1998 with stabilized production rates to average
approximately 1,800 barrels per day.
Proven reserve additions in the year were 9.6 million barrels of oil
equivalent with proven plus probable reserve additions of 14.1 million barrels
of oil equivalent. On a proven basis this represents 357 per cent of the
Company's annual production. Finding and development costs in 1997 based on
proven reserve additions was $8.71 per barrel of oil equivalent and $4.97 per
barrel of oil equivalent on a proven plus probable basis.
The current weakness in crude oil prices and the Company's intention to
maintain a low debt to cash flow multiple will result in a reduction in the
Company's capital expenditure program in 1998. Capital expenditures have been
reduced from a forecast of $75.0 million to $40.0 million. Priority in capital
spending will be given to identifying development opportunities which can be
brought on stream quickly as commodity prices improve.
O.J. Pipelines
The Company's large diameter pipeline construction unit completed two
contracts in the year which generated revenue of $75.0 million. In the first
quarter of 1998, O.J. Pipelines will be completing a $14 million contract in
northwestern Ontario.
In December 1997, O.J. Pipelines was awarded a contract in excess of $200
million for construction in Alberta and Saskatchewan for the Alliance Pipeline
project. Subject to the conclusion of regulatory hearings and approval of the
Alliance Pipeline project, construction is now scheduled to commence in early
1999. In the interim period O.J. Pipelines will be actively pursuing
additional contract work.
<<
OCELOT ENERGY INC.
CONDENSED CONSOLIDATED BALANCE SHEET
As at December 31 (thousands of dollars) 1997 1996
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ASSETS
CURRENT ASSETS 18,882 29,035
PROPERTY AND EQUIPMENT, net 239,054 266,086
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257,936 295,121
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LIABILITIES
CURRENT LIABILITIES 44,721 30,391
LONG-TERM DEBT 43,238 104,448
DEFERRED CHARGES 43,553 40,251
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131,512 175,090
SHAREHOLDERS' EQUITY
CAPITAL STOCK 71,901 72,145
RETAINED EARNINGS 54,523 47,886
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126,424 120,031
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257,936 295,121
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OCELOT ENERGY INC.
CONSOLIDATED STATEMENT OF EARNINGS
Year ended December 31 (thousands of dollars) 1997 1996
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REVENUE
Operating 118,983 153,867
EXPENSES
Operating and administrative 84,033 109,053
Depletion and depreciation 21,928 32,366
Financial charges 109 8,519
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106,070 149,938
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EARNINGS BEFORE TAXES 12,913 3,929
Provision for taxes
Large Corporations and capital taxes 389 1,106
Deferred income taxes 4,616 2,291
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5,005 3,397
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NET EARNINGS 7,908 532
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Ocelot Energy Inc. is a publicly traded international energy company
engaged in the exploration, production and marketing of oil and natural gas.
Ocelot Energy's Class B subordinate voting shares and Class A common shares
are listed for trading on the Toronto, Montreal and Alberta stock exchanges
under the symbols OCE.B and OCE.A, respectively. For further information on
Ocelot, please visit our website at www.ocelot.ca. |
