EARNINGS / Windsor Energy Earnings
TSE, AMEX SYMBOL: WNS
MAY 13, 1998
CALGARY, ALBERTA--Negotiations with Stanton Capital are
continuing. The transaction as originally proposed is not going
to be completed due to continuing low product prices. While
Windsor Energy Corporation will continue to explore alternatives
with Stanton, the Company is also pursuing several other options
that are available. The company is also planning to strengthen
its management team in the areas of finance and investor
relations.
On another front the final engineering reports on the Company's
four major properties has been completed. Ryder Scott did reports
on the Rincon and Hermosa Beach properties and James E. Smith and
Associates did the reports on the Jennings Ranch and Bayou Choctaw
properties. The summary is provided below. All figures are US
Dollars.
/T/
Petroleum and Natural Gas Reserves as of December 31, 1997
(Based on escalating price and cost assumptions)
Crude Oil & NGL Natural Gas
(Mbbls) (bcf)
-------------------------------
Gross Net Gross Net
-----------------------------------
Proved Producing 3,258 2,659 2,994 2,276
Proved Undeveloped 27,715 21,873 19,991 15,834
------------------------------------
Total Proved 30,973 24,532 22,985 18,110
Probable Reserves 2,150 1,744 2,902 2,331
Possible Reserves 3,732 2,995 42,263 30,808
------------------------------------
Total Proved plus
Probable 36,855 29,271 68,150 51,249
Plus Possible
50 Percent Probable Risk
Reduction 1,075 872 1,451 1,166
75 Percent Possible Risk
Reduction 2,799 2,246 31,697 23,106
------------------------------------
Total Risked Reserves 32,981 26,153 35,002 26,977
-------------------------------------------------------------
-------------------------------------------------------------
Present Value of Estimated Future Net Cash Flows
As of December 31, 1997
(based on escalating price and cost assumptions)
Present Value of Future Net CF
Discounted at:
------------------------------------
0 Percent 10 Percent 15 Percent
------------------------------------
Proved Producing $ 33,824 22,286 18,964
Proved Undeveloped 260,153 124,763 90,220
-----------------------------------
Total Proved $ 293,977 147,049 109,184
Probable Reserves 33,049 11,288 7,665
Possible Reserves 76,820 28,983 19,895
----------------------------------
Total Reserves $ 403,846 187,320 136,744
50 Percent Probable
Risk Reduction 16,525 5,644 3,833
75 Percent Possible
Risk Reduction 57,620 21,737 14,921
----------------------------------
Total Reserve Risked $ 329,701 159,939 117,990
-----------------------------------------------------------
-----------------------------------------------------------
Petroleum and Natural Gas Reserves
As of December 31, 1997
(Based on constant price and cost assumption)
Crude Oil & NGL Natural Gas
(Mmbls) (bcf)
-------------------------------
Gross Net Gross Net
-------------------------------
Total Reserves 36,307 28,900 29,378 23,441
----------------------------------------------------------
----------------------------------------------------------
Present Value of Estimated Future Net Cash Flows
As of December 31, 1997
(Based on constant price and cost assumption)
Present Value of Future Net Cash Flow
Discounted At:
-------------------------------------
0 Percent 10 percent 15 Percent
-------------------------------------
Total Reserves $ 282,710 139,131 101,773
--------------------------------------------------------------
--------------------------------------------------------------
/T/
Windsor elected to use very conservative reserves with respect to
the Hermosa Beach Project, lowering reserve estimates below the
very conservative Hacker & Hacker Report. The 1988 Hacker &
Hacker Report ("Geological Report Redondo Beach - Hermosa Beach
Tidelands and Uplands"), estimates potential Hermosa Beach
Tidelands and Uplands gross reserves recovery for the Upper and
Lower Main and the Del Amo Zones at 62 million BOE on the basis of
analogs from relevant historical experience in the adjacent
Redondo Beach Tidelands recovery.
Windsor Energy Corporation is pleased that even with oil prices 40
percent below the levels of the previous reports, present values
of the Company's properties have increased substantially. From a
PV10 of $99,853,000 as of July 1, 1997, the new PV10 stands
$187,320,000 in an unrisked, escalated price scenario and
$159,939,000 in a fully risked, escalated case. Even the constant
value, SEC case, shows a 40 percent increase to $139,131,000.
To continue to have a strong, growing Company, Windsor has
budgeted $23.19 million for capital expenditures in 1998.
This release contains forward-looking information. Actual future
results may differ materially. The risks, uncertainties and other
factors that could influence actual results are described in
documents filed with regulatory authorities.
Windsor is a Calgary, Alberta and Dallas, Texas based
international exploration and production company traded on the
Toronto Stock Exchange (TSE:WNS) and the American Stock Exchange
(AMX:WNS). |
