EARNINGS / Pendaries Petroleum Ltd. Releases Annual Results For 1997
TSE SYMBOL: PDQ
OTC Bulletin Board SYMBOL: PENDF
MARCH 11, 1998
TORONTO, ONTARIO--Pendaries Petroleum Ltd. (TSE-PDQ) today
released its annual results for the year ending December 31, 1997.
At the end of 1997, the Company held approximately US$15.1 million
(all figures in U.S. dollars unless otherwise noted) in cash to
finance its continuing exploration program in the Bohai Bay of
China and the South China Sea as opposed to US$17.9 million at
year-end 1996 reporting period.
The current level of funds on hand are expected to provide for all
the Company's requirements until the end of the third quarter of
1998. The Company reported revenues of US$1,518,864 for 1997,
primarily from oil and gas production in Alberta, Canada, and
interest income, as compared to US$361,347 for year-end 1996.
For the year, the Company reported a net loss of approximately US
$884,341 or 10 cents a share as compared to a net loss of
US$404,406 or 8 cents a share for year-end 1996.
The following table sets forth selected historical information
concerning the Company presented in accordance with Canadian GAAP,
presented in U.S. dollars, and is qualified by reference to the
consolidated financial statements and notes thereto.
/T/
Years Ending
-------------
1997 1996
----------- ----------
Revenue
Oil and Gas income $606,922 $76,622
Consulting fees - 220,000
Interest income 911,942 64,724
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1,518,864 361,346
Cost and Expenses
Oil and Gas operating
expenses 240,807 11,100
General and Administrative expenses 2,174,867 1,048,800
Depreciation, depletion and
amortization 321,304 53,971
Exchange loss 47,868 70,702
----------- ----------
2,784,846 1,184,573
Income (loss) before taxes (1,265,982) (823,227)
Income tax benefit (provision) 381,641 418,821
----------- ----------
Net income (loss) $(884,341) $(404,406)
----------- ----------
----------- ----------
Net income (loss) per share:
Basic $ (0.10) $ (0.08)
Fully diluted $ (0.10) $ (0.08)
Balance Sheet Data (at end of period)
Cash and cash equivalents $15,133,285 $17,973.455
Property and equipment $16,134,591 $ 8,610,968
Total assets $31,499,576 $26,684,138
Stockholders' Equity $31,223,625 $25,895,183
/T/
The only revenues from oil and gas properties to date have been
from the Alberta Properties bought in October 1996. Oil and gas
revenues from the Alberta Properties have increased from $76,622
in 1996 to $606,922 in 1997 as a result of reporting a full year
of production, contrasted with only two reporting months in 1996.
Revenues from consulting fees decreased from $220,000 in 1996 to
$0 in 1997 as such fees are earned primarily under a consulting
agreement with Kerr-McGee. Kerr-McGee's obligation to pay monthly
fees has expired and bonuses are paid only when certain results
are achieved in the Bohai Bay Blocks. Revenues from this
agreement are not anticipated to be significant in future periods.
Investment of the net proceeds raised in the initial public
offering in 1996 and early 1997 resulted in the increase in
interest income from $64,724 in 1996 to $911,942 in 1997. The
Company will continue to invest cash reserves in money market
investments in order to have funds available to meet capital
requirements anticipated for further exploratory and appraisal
programs to be conducted in 1998.
As a result of its exploration activities, the Company has more
than doubled its proved reserves. The Company anticipates
commencement of production from its Bohai Bay discovery in 1999.
The summary of proved and risk-adjusted probable reserves at
December 31, 1997 and 1996 is shown below.
/T/
Nets to Pendaries Interest
Net Oil and Oil Equivalents (Barrels)
December 31
-----------
1997 1996
------ ------
Proved Developed Reserves 196,000 213,000
Proved Undeveloped Reserves 4,397,000 1,850,000
Probable Additional Risked Reserves
11,661,000 10,511,000
----------- -----------
TOTALS 16,254,000 12,574,000
/T/
The Company has identified numerous potential prospects on its
Bohai Bay and Pearl River Mouth concessions and has prepared
reserve estimates on 26 of these prospects."We anticipate
enlarging our base of proven and probable reserves as we evaluate
the inventory of quality prospects," said Robert E. Rigney,
Pendaries Chairman and Chief Executive Officer. "Further, we will
aggressively explore ways to increase our reserves through
acquisition of new concessions and increasing holdings in our
current core areas."
Pendaries Petroleum Ltd. is a dynamic, growth-oriented Canadian
company created to finance the oil and gas exploration and
acquisition programs of Sino-American Energy Corporation. As of
December 31, 1997, Pendaries owned approximately 69 percent of the
common stock of Sino-American. Sino-American's remaining common
stock must be converted into Pendaries common shares by the year
2005. |
