EARNINGS / Purcell Energy Announces 1997 Results
PURCELL ENERGY ANNOUNCES SHARPLY HIGHER CASH FLOW IN 1997 ANNUAL
FINANCIAL RESULTS
CALGARY, March 30 /CNW/ - Purcell Energy Ltd. announces that increased
production during 1997 resulted in higher levels of revenue and cash flow
compared to 1996. Revenues increased 119% to $5,670,633 from $2,589,881 in
1996. Cash flow for the year increased by 120% to $2,695,805 ($0.192 per
share) compared to $1,225,694 ($0.138 per share) in the previous year. Product
prices received during 1997 were $1.88 (1996 - $1.90) per mcf for gas and
$21.74 (1996 - $23.74) per bbl for oil and liquids.
Net income for the year ended December 31, 1997 decreased 78% to $221,147
($0.015 per share) from $1,010,797 ($0.112 per share) in 1996. In 1996, net
income included a gain of $782,377 on the sale of marketable securities. G &
A expenses were $543,379 (1996 - $540,743) and $1.73 (1996 - $4.38) per BOE.
Operating costs were $6.12 (1996 - $6.86) per BOE.
Production increased 157% to 860 (1996 - 334) BOE/d in 1997. Gas volumes
averaged 4.04 (1996 - 1.96) mmcf/d and oil and liquids volumes averaged 456
(1996 - 138) bbls/d. In the fourth quarter of 1997 Purcell's production
averaged 1050 BOE/d. At year end, Purcell had production capability
approaching 1500 BOE/d (45% gas), a level expected to be reached in April,
1998.
Capital expenditures in 1997 catapulted to $17,552,281, net of
dispositions, compared to $1,748,433 in 1996. The Corporation drilled 34 gross
(19.9 net) wells, compared to 4 gross (1.83 net) wells in 1996, which resulted
in 14 gross (6 net) gas wells, 12 gross (9 net) oil wells, and 8 gross (4.9
net) abandoned wells for a 76% drilling success rate. Purcell's proved
reserves additions in 1997 totalled 2,494,200 BOE's which replaced nine times
production in the year. On a proved and probable reserves basis, additions
totalled 4,406,000 BOE's which replaced production in the year by 14 times.
Purcell's all in finding and development cost in 1997 was $7.48 per BOE for
proved reserves, $5.39 per BOE for proved plus one-half probable reserves and
$4.22 per BOE for proved plus probable reserves. Acquisitions accounted for
1,922,700 BOE's of proved and probable reserves which were added for a cost
per BOE of $3.44. If probable reserves are reduced by 50% the cost per BOE was
$3.96. The Corporation's finding and development cost in 1997, excluding
acquisitions, for proved and probable reserves additions was $4.87 per BOE.
If probable reserves are reduced by 50% the cost per BOE was $6.90.
At December 31, 1997 the Corporation's proved and probable reserves were
approximately 7.2 million BOE's, comprised of 3,500 mbbls of oil and liquids
and 37 bcf of gas. Purcell's undeveloped landholdings at year end totalled
228,361 gross (56,893 net) acres available for future exploration activities,
compared to 134,855 gross (31,724 net) acres in the previous year. Long-term
debt at December 31, 1997 totalled $743,587. Based on an independent
engineering evaluation dated November 1, 1997 and adjusted to December 31,
1997, Purcell's net asset value per share (fully diluted) using proved plus
one-half probable reserves and adjusted for undeveloped lands, working
capital, long-term debt, future site restoration, and other assets was $1.32
(1996 - $1.40). |
