EARNINGS / Calahoo Petroleum Ltd 1997 Results
CALAHOO PETROLEUM LTD. ANNOUNCES RECORD 1997 YEAR END RESULTS
1998-04-01
CALGARY, ALBERTA
* Cash flow and net earnings for the year ended December 31, 1997 up 104%
and 47% respectively
* Production up 99% on average for the year
* Reserve replacement of 280% for 1997 (proven plus one half probable)
* Finding and development costs based on proven and one half probable
reserve additions of $7.35 per BOE for 1997
* Calahoo is currently a 70% natural gas producer
Calahoo Petroleum Ltd. is pleased to report its financial and operating
results for the year ended December 31, 1997. Gross oil and gas sales
improved 96% to $13.7 million for the year ended December 31, 1997 compared
to $7.0 million in 1996.
Cash flow from operations increased 104% to $6.9 million (20 cents per share)
for the year ended December 31, 1997 from $3.4 million (16 cents per share)
for the year ended December 31, 1996.
Net income increased by 47% to $1.0 million (3 cents per share) for the year
ended December 31, 1997 from $0.6 million (3 cents per share) for the year
ended December 31, 1996.
Natural gas production for the year increased 223% to average 10.2 mmcf/d
with oil and NGL production increasing 27% to average 702 bbl/d. Total
production increased 99% to average 1,722 boepd. Current production is
approximately 3,000 boepd split 70% to natural gas and 30% to oil and NGL's.
Average oil prices were $24.71 per barrel for the twelve months ended
December 31, 1997 compared to $27.93 per barrel in 1996. Gas prices increased
to $1.82 per mcf from $1.37 per mcf recorded in 1996.
During 1997, Calahoo drilled or participated in the drilling of 24 wells
(17.3 net) resulting in 11 oil wells (7.65 net), 5 gas wells (4.5 net) and 8
D&A's (5.15 net) for an overall net 72% success rate.
Capital expenditures for the year ended December 31, 1997 totaled $63.6
million compared to $5.8 million for 1996. This included $41.2 million on
acquisitions and $22.4 million on drilling, facilities, land and seismic.
Calahoo reports a capital budget of $35 million for 1998. The Company
anticipates operating the drilling of 60 wells (50 net), and to participate
in the drilling of 6 non-operated wells (2 net).
To date, in the first quarter of 1998, Calahoo has drilled 41 wells (30 net)
and reports a success rate of 90% on development drilling and a 60% success
rate on exploratory drilling. Incremental production from the first quarter
drilling program added approximately 1,000 boepd bringing production levels
to 4,000 boepd exiting the first quarter. The Company has forecast to
average 4,200 boepd for the year and anticipates a 1998 exit rate in excess
of 5,000 boepd.
Calahoo Petroleum Ltd. is an oil and gas company based in Calgary, Alberta.
The common shares of the Corporation are listed on the Toronto Stock Exchange
under the symbol "CLX". The Toronto Stock Exchange has neither approved nor
disapproved the information contained herein.
For further information please contact Michael O'Hara, President and CEO or
Pat Oliver, Chief Financial Officer, Suite 400, 407 - 2nd Street S.W.
Calgary, Alberta T2P 2Y3 (403) 237-8688.
For the Period Ending December 31 Twelve Months
1997 1996 % Change
($ THOUSANDS, EXCEPT PER SHARE DATA)
FINANCIAL HIGHLIGHTS ----------------------------
Petroleum and Gas Sales 13,706 7,001 96%
Cash Flow from Operations 6,938 3,396 104%
Per share ($) 0.20 0.16 25%
Net Income
959 652 47%
Per share ($) 0.03 0.03 0%
Total Assets 85,256 20,237 321%
Long Term Debt at December 31 18,903 4,071 364%
Shareholder's Equity 53,712 12,261 338%
Capital Expenditures 63,569 5,760 1004%
Average Weighted Shares
Outstanding at December 31 35,170 20,994 68%
(Thousands)
OPERATIONS
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Production and Prices (average)
Crude Oil and NGL Production 702 551 27%
(BBLS/D)
Average Combined Price ($/BBL) 24.71 27.93 -12%
Product Netbacks ($/BOE) 12.72 14.50 -12%
Natural Gas Production (MCF/D) 10,199 3,153 223%
Average Price ($/MCF) 1.82 1.37 33%
Average production BOEPD 1,722 866 99% |
