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

To: Arnie who wrote (10746)	5/16/1998 12:17:00 AM
From: Kerm Yerman	Read Replies (1) \| Respond to of 15196

EARNINGS / Triumph Energy Corp. First Quarter Results TRIUMPH REPORTS FIRST QUARTER RESULTS CALGARY, May 15 /CNW/ - TRIUMPH ENERGY CORPORATION is pleased to report its financial and operating results for the first quarter of 1998. The Company successfully recorded gains in production and revenue, while cash flow from operations and earnings were negatively affected as a result of the drastic decline in oil prices and higher operating costs due to facility upgrades at both Chinchaga River and Manyberries. The following table summarizes Triumph's financial and operating results for the three months ended March 31, 1998: << Three Months ended March 31 ($000's except per share amounts) 1998 1997 Change ----------------------------------------------------------------------- Financial Results ----------------- Revenue $ 4,615 $ 3,908 18% Cash flow from operations $ 2,099 $ 2,613 -20% Per share $ 0.09 $ 0.11 -18% Net earnings $ 81 $ 723 -89% Per share $ 0.00 $ 0.03 - Operating Results ----------------- Production Oil (bbls/d) 2,484 1,477 68% Natural gas (mmcf/d) 4.69 3.71 26% Combined (BOE/d) 2,953 1,848 60% Prices Oil ($/bbl) $ 17.71 $ 26.94 -34% Natural gas ($/mcf) $ 1.90 $ 1.77 7% Combined ($/BOE) $ 17.91 $ 25.06 -29% Operating Netbacks Oil ($/bbl) $ 9.76 $ 19.56 -50% Natural gas ($/mcf) $ 1.21 $ 0.74 64% Combined ($/BOE) $ 10.12 $ 17.09 -41% ---------------------------------------------------------------------- >> 1998 First Quarter Review ------------------------- Triumph's first quarter activity in 1998 resulted in capital expenditures of $10.0 million, up 20% from $8.3 million spent in the first three months of 1997. The Company drilled a total of 33 (9.8 net) wells resulting in 5 (4.0 net) oil wells, 25 (4.3 net) natural gas wells. 2 (1.0 net) service wells and 1 (0.5 net) dry hole. At the end of the first quarter, Triumph held an average 43% working interest in 190,100 acres of undeveloped land. At March 31, 1998, long-term debt was at $48.4 million and average borrowing costs for the quarter were 5.2%. Activity Update --------------- The first quarter of 1998 proved to be difficult for most of our industry, as a result of the dramatic down-turn in oil prices from previous quarters. While our gas price increased slightly, Triumph's liquids-weighted production base suffered a 34% decrease in prices over a year ago. Notwithstanding this significant decrease in pricing, the Company managed to record field netbacks in excess of $10.00 per BOE. Exploration Success ------------------- Two significant exploration successes in West Central Alberta during the first quarter, in conjunction with a successful exploitation program at Chinchaga River, will add significant new liquids-rich natural gas production during the second and third quarters of 1998. New pool discoveries at Cow Lake and Sunchild will be onstream in June, potentially adding up to 1,000 BOE/d (net) of liquids-rich natural gas to Triumph. Chinchaga River came onstream in late April and added 500 BOE/d of natural gas and associated liquids to the Company's production base. Significant follow-up opportunity exists at all three properties and third quarter drilling will continue at both Sunchild and Cow Lake while additional drilling will take place at Chinchaga River next winter. In addition, two new Mississippian discoveries directly offsetting Triumph's 55% working interest lands at Zeta Lake will be drilled immediately following breakup exposing the Company to additional liquids-rich natural gas production late in the third quarter. A number of new exploration plays will be tested in the second half at Peco, Cow Lake, Lanaway and Pine Creek. All of these prospects target liquids-rich natural gas and provide significant upside to Triumph. The Company's recent successes will increase Triumph's exposure to natural gas while continuing to increase our liquids production. Our continued commitment to high quality product streams will ensure continued profitability during these difficult oil price markets and provide significant upside with the return to more normal liquids pricing anticipated late in 1998. With significant exploration success during the first quarter and a number of high impact plays yet to be drilled in 1998, the Company anticipates another year of solid growth. Triumph is a growth-oriented oil and gas exploration and production company with activity focused primarily in western Canada. The Company's Common shares trade on the Toronto Stock Exchange under the symbol ''TPH''.