Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Herb Duncan who wrote (10690)	5/13/1998 10:52:00 PM
From: Herb Duncan	Respond to of 15196

SERVICE SECTOR / Ryan Energy Technologies Announces First Quarter 1998 Financial Results TSE, ASE SYMBOL: RYN MAY 13, 1998 CALGARY, ALBERTA--Ryan Energy Technologies Inc. (Ryan) announces consolidated revenue rose 77 percent to $12.8 million for the three months ended March 31, 1998 compared to $7.2 million for the three months ended March 31, 1997. Consolidated net earnings were $1.5 million ($0.08 per share) for the first quarter of 1998 compared to $1.1 million ($0.06 per share) for the corresponding period of the prior year. Consolidated cash flow from operations, before changes in non-cash working capital balances, increased to $2.7 million ($0.13 per share) compared to $1.6 million ($0.09 per share) for the first three months of the prior calendar year. While the Company experienced substantial growth compared to the first quarter of 1997, its utilization levels in western Canada were affected by the industry's decline in heavy oil activity. In addition, intermittent warm weather in the first quarter caused scheduling challenges, again affecting utilization levels. The Company is seeing a resurgence, however, in drilling for natural gas in light of relatively strong natural gas prices. In particular, the industry is actively pursuing larger, typically deeper, reservoirs characterized by the foothills regions of northwestern Alberta and northeastern British Columbia. These wells are technically challenging and are usually directionally drilled. The Company has a number of large clients active in this area, which is expected to provide a strong revenue base during the remainder of this year. As expected, the slow down in Canadian drilling activity related to Spring break-up has been more pronounced compared to prior years. In spite of this slowdown and a projected reduction in industry activity from 1997 levels, the Company is encouraged by its growing schedule of upcoming work. In the United States, the Company continued to establish its Measurement While Drilling/Logging While Drilling (MWD/LWD) revenue base, although at a pace slower than originally forecasted. More recent activity levels indicate that our marketing efforts are being rewarded, specifically with the establishment of a Houston-based sales and engineering office. The Company is also broadening its operational areas into the northern United States where natural gas drilling is strong. We expect to see solid revenue growth in the United States for the remainder of the year. The Company increased its concurrent job capacity to 28 in the three months ended March 31, 1998 compared with 27 at December 31, 1997, and 16 at March 31, 1997. In addition, the Company had four MWD/LWD systems available at March 31, 1998 for field deployment in North America or internationally. In the first quarter of 1998, the Company continued to make significant technical and operational achievements in the evolution of its proprietary technologies. The Company successfully completed its first underbalanced well using its proprietary Electromagnetic (EM) Communication technology. In addition, the Company's Geological Steering Instrumentation (GSI) equipment was well received by its clients, resulting in a continued increase in the utilization of this technology. The Company continued development of its product lines related to the launching of its Electronic Data Recording (EDR) service in the second quarter of 1998. Ryan Energy Technologies Inc. is an industry leader in the development and provision of horizontal and directional drilling technology and services including Measurement While Drilling (MWD), Logging While Drilling (LWD), and Down-hole Drilling Motors. This equipment is used to steer and evaluate horizontal and directional well-bores for major, intermediate, and junior oil and gas companies in Western Canada and the United States.

To: Herb Duncan who wrote (10690)	5/13/1998 10:55:00 PM
From: Herb Duncan	Respond to of 15196

EARNINGS TOP 20 LISTED / Anderson Exploration Ltd. Announces Its Financial and Operating Results for the First Half of Fiscal 1998 Ending March 31, 1998 TSE SYMBOL: AXL MAY 13, 1998 CALGARY, ALBERTA--Today in Calgary, Anderson Exploration Ltd. announced its financial and operating results for the first half of its fiscal year which ended on March 31, 1998. The Company continued to meet its production targets in the second quarter of fiscal 1998, recording an eight percent increase in barrel of oil equivalent production over the same period last year. Cash flow from operations for the first half of the year was $155.9 million or $1.27 per share and earnings were $8.7 million or $0.07 per share. During the first half of fiscal 1998, oil and NGL sales increased 15 percent to 38,497 barrels per day. Natural gas sales for the first half of the year averaged 557 million cubic feet per day compared to 542 million cubic feet per day last year. Liquids prices for the first half of fiscal 1998 were down 30 percent from last year while natural gas prices were down seven percent. Lower prices more than offset increases in production, resulting in a decrease in revenues. This decrease, combined with higher costs, resulted in a decrease in cash flow from operations and earnings from the same period in the previous year. Operating expenses increased over last year due to increased heavy oil production, the continuation of some significant workover programs and higher overall costs in the industry. The Company expects to see a reduction in operating expenses in the last half of the year. Net capital expenditures for the first half of the year were $374.2 million representing 74 percent of the 1998 fiscal budget. These expenditures include the Swan Hills acquisition in the first quarter of the year for $98 million and $32 million in construction costs for Federated Pipe Lines' expansion, now scheduled for start up on July 1, 1998. In the first half of the year, the Company drilled 312 gross wells (213 net) compared to 398 gross wells (240 net) for the same period last year. The average well depth increased by about 1,150 feet, as activity shifted to deeper parts of the basin. A busy winter drilling program was completed in northeastern British Columbia and northern Alberta. In British Columbia, extensive gas gathering systems were built to fill available capacity at existing plants. Notwithstanding the lower commodity prices experienced in the first half of the year and expectations for prices in the second half of the year, the Company expects to spend its original budget of $505 million. However, as a result of low crude oil prices and high heavy/light oil differentials, the Company has postponed certain capital expenditures related to heavy oil projects and has now shut in approximately 1,300 barrels per day of heavy oil production. Serious forest fires in north central Alberta have resulted in the temporary shut in of substantial light oil production at Swan Hills, Virginia Hills and Mitsue. The exact effect that the fires will have on the Company's projected annual sales is still unknown. While the Company expects cash flow from operations and earnings for the year to be less than last year, production growth will continue. Higher natural gas prices are expected for fiscal 1999 once increases in export pipeline capacity are brought on stream in November 1998, putting the Company back on track for improved financial results next year. Anderson Exploration Ltd. is one of the senior Canadian producers most leveraged to natural gas with 67 percent of its sales volumes derived from natural gas and natural gas liquids. Considering this, the Company is well positioned to take advantage of future natural gas price increases. /T/ Three months ended Six months ended March 31 March 31 1998 1997 1998 1997 -------------- ----------------- FINANCIAL (millions of dollars, except per share amounts) Total Revenue Before Deducting Royalties $163.5 $199.6 $358.7 $406.6 -------------- --------------- Cash Flow From Operations Oil & Gas $ 61.9 $100.2 $150.4 $216.9 Pipeline $ 3.2 $ 2.3 $ 5.5 $ 4.9 -------------- --------------- Total $ 65.1 $102.5 $155.9 $221.8 -------------- --------------- Per Share $ 0.53 $ 0.84 $ 1.27 $ 1.82 -------------- --------------- Earnings Oil & Gas $(4.9) $ 21.6 $ 4.8 $ 57.0 Pipeline $ 2.3 $ 1.6 $ 3.9 $ 3.4 -------------- --------------- Total $(2.6) $ 23.2 $ 8.7 $ 60.4 -------------- --------------- Per Share $(0.02) $ 0.19 $ 0.07 $ 0.50 -------------- --------------- Net Capital Expenditures 159.6 174.8 $374.2 $247.1 Long Term Debt $704.7 $483.9 Long Term Debt/Cash Flow (Annualized) 2.3 1.1 Working Capital (Deficiency) $(71.6) $(61.1) Shareholders' Equity $998.7 $951.6 Shares Outstanding (millions) At End of Period 122.7 121.9 Weighted Average During Period 122.5 121.8 122.4 121.6 Three months ended Six months ended March 31 March 31 1998 1997 1998 1997 ------------------ ---------------- OPERATIONS PRODUCTION/SALES Natural Gas (Mmcf/d) 554 543 557 542 --------------- ---------------- Oil (Bbls/d) 31,062 27,834 30,879 27,143 NGL (Bbls/d) 8,731 5,752 7,618 6,232 ---------------- ---------------- Total Liquids (Bbls/d) 39,793 33,586 38,497 33,375 ---------------- ---------------- PRODUCT PRICES Natural Gas ($/Mcf) $ 1.87 $ 2.23 $ 1.99 $ 2.15 ---------------- ---------------- Oil ($/Bbl) $17.04 $26.44 $19.79 $27.88 NGL ($/Bbl) $16.78 $26.19 $18.98 $27.99 ---------------- ---------------- Total Liquids ($/Bbl) $16.98 $26.40 $19.63 $27.90 ---------------- ---------------- CANADIAN OPERATING NETBACKS ($/BOE (x)) Oil & Gas Revenue $18.00 $23.91 $19.83 $23.96 Royalties $(3.40) $(4.79) $(3.85) $(4.38) Operating Expenses $(5.29) $(4.53) $(5.22) $(4.18) G&A Expenses $(0.91) $(0.84) $(0.85) $(0.81) -------------- ---------------- Netback $ 8.40 $13.75 $ 9.91 $14.59 -------------- ---------------- (x) Gas converted to Oil @ 10 Mcf/Bbl GROSS NUMBER OF WELLS DRILLED IN CANADA Oil Wells 26 54 90 175 Gas Wells 119 113 165 153 Dry Holes 35 44 57 70 -------------- --------------- 180 211 312 398 Service Wells 6 3 6 30 -------------- --------------- Total 186 214 318 428 -------------- --------------- /T/ Anderson Exploration Ltd. is a Calgary based oil and gas company operating exclusively in western Canada. Its common shares trade under the symbol "AXL" on The Toronto Stock Exchange.