EARNIINGS / Dundee Petroleum 1997 Results
DUNDEE REPORTS 1997 FINANCIAL AND OPERATING RESULTS
CALGARY, April 17 /CNW/ - Dundee Petroleum Corp. is pleased to report
audited financial and operating results for the year ended December 31, 1997.
Dundee's production for 1997 averaged 180 BOE per day, a 309% increase
from 44 BOE per day in 1996. Production for the year consisted of 2/3 oil and
1/3 natural gas. Current production is approximately 230 BOE per day. Oil
production was derived primarily from the Company's Arcola, Bellshill, Killam
and Service properties. Natural gas production was attributable to the
Company's shallow gas properties located in the border area of southwestern
Saskatchewan and southeastern Alberta.
Revenues for the 1997 fiscal year were $1,513,530, as compared to
$444,876 in 1996, an increase of 240%. Cash flow from operations rose 939% to
$664,347 or $.068 per share compared with $63,929 or $.012 per share in 1996.
Net income was $102,888 or $.011 per share, up $86,780 from the comparative
1996 period. Average sales price for the 1997 fiscal year was $23.14 per BOE,
with oil averaging $25.51 per barrel and natural gas averaging $1.82 per mcf.
The Company's average netback for 1997 was $13.95 per BOE.
During 1997, Dundee increased its reserve base by 65%, resulting in total
proved and probable reserves of 824,000 BOE. The Company replaced yearly
production 6.0 times. Net capital expenditures for 1997 were $3,418,951 which
resulted in a two year cumulative finding cost of $5.12 per BOE. Dundee's
current reserve life index is 10.03 years on a BOE basis.
During 1997, Dundee completed four acquisitions, adding net reserves of
607,500 BOE for a total cost of $2,682,500. The Company was able to execute
its strategy of diversification into natural gas, as well as acquire
additional properties in its core area of southeast Saskatchewan. In a highly
competitive marketplace, acquisition costs were kept below $5 per BOE.
Dundee increased its net land holdings in 1997 by 266% to 10,350 net
acres. A total of $150,724 was spent specifically on land acquisitions, which
included the acquisition of a third parties' interest in the Company's core
area of southeast Saskatchewan. Under this transaction, Dundee acquired 5,935
(2,077 net) acres in the Parkman South, Wauchope, Service and Redvers areas
for $87,500. The Company also added to its inventory in this area by leasing
1240 gross (434 net) acres of strategic freehold mineral rights.
In 1998, $1,500,000 has been budgeted for drilling and completions, with
the majority of this amount earmarked for the Company's Glen Ewen, Bennett
Lake, Parkman South and Wauchope properties in southeast Saskatchewan. In
addition, another $350,000 has been budgeted for land, seismic and facilities.
Management is currently expediting swap negotiations of a minor interest in
one of its shallow gas properties for a larger, operated interest in a shallow
gas property.
At December 31, 1997 Dundee had 12,222,334 common shares issued and
outstanding, and a total market capitalization of $4,338,928.
SUMMARY OF OPERATIONS
YEAR ENDED DECEMBER 31,1997
Net
Production Oil & Gas Cash Cash Flow Net Earnings
Year (BOE/day) Revenue Flow Per Share Earnings Per Share
---- ---------- --------- ---- --------- -------- ---------
Fiscal YTD
1996 44 $ 444,876 $ 63,929 $.012 $ 16,108 $.003
1997 180 $1,513,530 $664,347 $.068 $102,888 $.011
The Alberta Stock Exchange has neither approved nor disapproved of this
release. |
