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Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (9820)	3/30/1998 11:33:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Canada Southern Petroleum Announces 1997 Results CANADA SOUTHERN PETE POSTS A LOSS IN '97 CALGARY, March 30 /CNW/ - Canada Southern Petroleum Ltd. (Nasdaq: CSPLF; Toronto; Boston; Pacific: CSW) said it had a net loss of $1.8 million -- 12 cents a share, basic and diluted -- on gross revenues of $2.5 million for the year ended Dec. 31, 1997. The 1997 results are comparable to the 1996 loss o $1.5 million, or 11 cents a share, on revenues of $2.2 million, the company said. M. Anthony Ashton, president, said the principal cause of the 1997 loss was the company's lawsuit against Amoco Canada and several other partners in the Kotaneelee gas field, in which Canada Southern has a 30% carried interest. That lawsuit, now at trial, incurred expenses of about $1.8 million in 1997, Ashton said. He also said that, as a consequence of recently uncovered evidence, the company has asked the court to add a new claim: that the defendants failed to develop the field in a timely manner. Oil and gas sales in 1997 were up 46% and 33%, respectively, due to the company's ongoing exploration and development program, Ashton said. Comparative, consolidated results for 1997 and the two prior years are shown in the following condensed statement of operations: CANADA SOUTHERN PETROLEUM LTD. Consolidated Statements of Operations (Expressed in Canadian dollars) (unaudited) December 31, 1997 1996 1995 Revenues: Oil sales $1,120,789 $768,576 $555,894 Gas sales 523,433 395,068 366,700 Proceeds under carried interest agreements 475,697 590,935 734,066 Interest and other income 395,059 473,814 136,452 Total revenues 2,514,978 2,228,393 1,793,112 Costs and expenses: Costs of operations 1,444,472 1,156,144 1,020,078 General and administrative 930,664 923,055 1,054,976 Legal expenses 1,897,506 1,610,477 879,821 Total costs 4,272,642 3,689,676 2,954,875 Net loss $(1,757,664) $(1,461,283) $(1,161,763) Average number of shares outstanding 14,084,294 13,362,410 12,621,560 Net loss per share (Basic & Diluted) $(0.12) $(0.11) $(0.09)

To: Kerm Yerman who wrote (9820)	3/30/1998 11:40:00 PM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Cavell Energy Reports 1997 Results CAVELL ENERGY CORPORATION ANNOUNCES 1997 RESULTS CALGARY, March 30 /CNW/ - Cavell Energy Corporation (KVL:TSE) anticipates that 1998 will be an interesting year. We believe that oil prices will continue to be under downward pressure during 1998. This will create opportunity for Cavell as we are convinced that 1998 commodity prices will induce many companies to sell high quality core properties in order to maintain capital budgets in the absence of equity capital. One of our prime 1998 strategies is to be a value buyer and significantly add to Cavell's drilling and play inventory. Cavell has dealt with and overcome a difficult year. The impact of the Red River play on Cavell's financials is a telling story: Cash flow decreased to $10.0 million from $12.0 million in 1996, operating costs increased to $4.61/boe from $3.63/boe, depletion and amortization increased (as a result of the write-down) to $20.40/boe from $5.66 in 1996. In November 1997, Cavell sold its Red River producing properties for $7.3 million and took a write-down of $13.1 million. Adding value is the goal - in everything we do, the objective is to maximize shareholder value. As we begin 1998, Cavell will take every necessary step to return to our previous history of strong operating and financial results. We will do this by being an earnings-driven company with a competent and experienced senior management that focuses on core strengths. We believe that 1998 will provide many opportunities to companies which have access to capital. The economic climate over the past few years has made it difficult for companies to effectively acquire assets, Cavell believes that this condition has already started to change and is preparing to take advantage of value added opportunities as they arise. Cavell is taking a disciplined approach which centers on the continued development of our current properties and an expanded exploration and acquisition program in the Williston Basin and is seeking a new area of operation in Alberta. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. Highlights Three months Three months Year Year Financial Ended Dec. Ended Dec. Ended Dec. Ended Dec. 31/97 31/96 31/97 31/96 (unaudited) (unaudited) (audited) (audited) ------------------------------------------------------------------------- (thousands of Canadian dollars, except per share data) Gross revenue 3,957 6,566 22,507 21,606 Funds generated from operations 888 4,479 10,023 12,002 Per share - Basic 0.03 0.21 0.39 0.69 - Fully diluted 0.03 0.20 0.36 0.61 Net income (loss) (203) 1,522 (6,115) 4,620 Per share - Basic (0.01) 0.07 (0.24) 0.27 - Fully diluted(x) (0.01) 0.06 (0.24) 0.24 Capital expenditures 4,021 7,053 31,190 17,123 Proceeds on sale of property and equipment 7,292 - 7,292 - Weighted average common shares outstanding 25,616,122 22,709,199 25,544,872 17,371,495 Operations ------------------------------------------------------------------------- Average production (boe/d) 1,868 2,443 2,518 2,275 Total production (boe) 171,849 224,836 918,954 832,491 Year Ended Year Ended Dec. 31/97 Dec. 31/96 (audited) (audited) Netbacks ($/boe) ------------------------------------------------------------------------- Average sales price $ 24.49 $ 25.95 Crown royalties 2.64 1.72 Other royalties 3.83 3.14 Operating expenses 4.61 3.63 ------------------------------------------------- Netback - field level 13.41 17.46 General and administrative 1.47 1.21 Interest (net) 0.10 0.81 Capital and income taxes 0.94 1.02 ------------------------------------------------- Cash available for reinvestment $ 10.90 $ 14.42 ------------------------------------------------- ------------------------------------------------- (x) fully diluted loss per share is anti-dilutive Reserves (mboe) January 1, 1998 January 1, 1997 ------------------------------------------------------------------------- Proven 6,229 7,719 Probable (unrisked) 1,970 3,001 CAVELL ENERGY CORPORATION Consolidated Balance Sheets (thousands of Canadian dollars) (audited) ------------------------------------------------------------------------- December 31, 1997 1996 ------------------------------------------------------------------------- Assets Current Assets Cash and short term investments $ 1,237 $ 9,914 Accounts receivable 3,591 4,466 Prepaid expenses 740 168 ------------------------------------------------------------------------- 5,568 14,548 Property, plant and equipment 41,154 35,688 ------------------------------------------------------------------------- $ 46,722 $ 50,236 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued liabilities $ 4,636 $ 7,669 Future site restoration provision 885 575 Long-term debt 7,800 - Deferred income taxes 372 2,981 Shareholders' equity Share capital 31,620 31,487 Retained earnings 1,409 7,524 ------------------------------------------------------------------------- 33,029 39,011 ------------------------------------------------------------------------- $ 46,722 $ 50,236 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAVELL ENERGY CORPORATION Consolidated Statements of Income (Loss) and Retained Earnings For the years ended December 31 (thousands of Canadian dollars) (audited) ------------------------------------------------------------------------- December 31, 1997 1996 ------------------------------------------------------------------------- Revenue Oil and gas sales $ 22,507 $ 21,606 Less royalties 5,952 4,049 ------------------------------------------------------------------------- 16,555 17,557 Interest 135 118 ------------------------------------------------------------------------- 16,690 17,675 ------------------------------------------------------------------------- Expenses Production 4,232 3,020 General and administrative 1,353 1,008 Interest 223 796 Depletion and amortization 18,747 4,708 ------------------------------------------------------------------------- 24,555 9,532 ------------------------------------------------------------------------- Income (loss) before taxes (7,865) 8,143 Income and other taxes Capital 859 849 Deferred (recovery) (2,609) 2,674 ------------------------------------------------------------------------- (1,750) 3,523 ------------------------------------------------------------------------- Net income (loss) for the year (6,115) 4,620 ------------------------------------------------------------------------- Retained earnings, beginning of year 7,524 2,904 ------------------------------------------------------------------------- Retained earnings, end of year $ 1,409 $ 7,524 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings (loss) per common share Basic $ (0.24) $ 0.27 ----------------------------- ----------------------------- Fully diluted $ (0.24) $ 0.24 ----------------------------- ----------------------------- Weighted average number of common shares outstanding during the year 25,544,872 17,371,495 ----------------------------- ----------------------------- CAVELL ENERGY CORPORATION Consolidated Statements of Changes in Financial Position For the years ended December 31 (thousands of Canadian dollars) (audited) ------------------------------------------------------------------------- December 31, 1997 1996 ------------------------------------------------------------------------- Operating activities Income (loss) $(6,115) $ 4,620 Add non-cash items Depletion and amortization 18,747 4,708 Deferred income taxes (recovery) (2,609) 2,674 ------------------------------------------------------------------------- Funds from operations 10,023 12,002 Changes in non-cash working capital 292 (444) ------------------------------------------------------------------------- 10,315 11,558 ------------------------------------------------------------------------- Financing activities Issue of long-term debt 7,800 16,176 Decrease in long-term debt - (22,319) Share capital 133 22,589 Deferred financing cost - (49) ------------------------------------------------------------------------- 7,933 16,397 ------------------------------------------------------------------------- Investing activities Property and equipment (31,190) (17,123) Proceeds on sale of property and equipment 7,292 - Changes in non-cash working capital (3,027) (1,604) ------------------------------------------------------------------------- (26,925) (18,727) ------------------------------------------------------------------------- Increase (decrease) in cash for the year (8,677) 9,228 Cash position at beginning of year 9,914 686 ------------------------------------------------------------------------- Cash position at end of year $ 1,237 $ 9,914 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash is defined as cash and short term investments Funds from operations per common share Basic $ 0.39 $ 0.69 ----------------------------- ----------------------------- Fully diluted $ 0.36 $ 0.61 ----------------------------- -----------------------------