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

To: Kerm Yerman who wrote (10748)	5/19/1998 11:02:00 AM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

EARNINGS / OILTEC'S FIRST QUARTER PRODUCTION UP 74% CALGARY, May 19 /CNW/ - Oiltec Resources Ltd. reports an extraordinarily strong opening quarter of 1998. Relative to the same quarter of 1997, combined oil and natural gas production grew by 74% and cash flow by 34%, despite a 30% reduction in the price of oil. This strong growth is a result of the Company's successful Red River exploratory drilling program, coupled with a 30% reduction in operating costs and a 53% reduction in general and administrative expenses per BOE. Oiltec drilled an additional four (2.2 net) Red River wells in the first quarter. Production from these wells has had very little impact on first quarter results since they were only produced for 15% of the period. Second quarter results, however, will benefit from a 90% on-stream factor for the four wells. Moving into the second quarter, Oiltec participated in a horizontal Mississippian development well (35% WI) that commenced production on May 14, 1998. The Company's eighth Red River well (34% WI) has been tested with excellent results. The well will be cased and should be on production by the end of May. Although Oiltec anticipates higher oil pricing as the year progresses, we recognize the near-future upside in natural gas pricing and are currently evaluating several natural gas prospects in Alberta. << Financial and Operating Highlights ------------------------------------------------------------------------- Three Months ended % March 31 (unaudited) Change 1998 1997 ------------------------------------------------------------------------- Average Crude Oil - BOPD 1,571 959 + 64 Average Price - $/bbl $ 17.85 $ 25.59 - 30 Average Gas Sales - MCFPD 3,394 1,373 + 147 Average Price - $/mcf $ 1.68 $ 2.06 - 18 Gross Revenue $ 3,245,029 $ 2,666,651 + 22 Cash Flow from Operations $ 1,569,288 $ 1,169,834 + 34 Per Share (Basic) $ 0.07 $ 0.08 - 12 Net Earnings $ 74,120 $ 486,871 - 85 Per Share (Basic) $ 0.00 $ 0.03 - Operating Costs - $/BOE $ 4.52 $ 6.43 - 30 Netback - $/BOE $ 11.92 $ 15.59 - 23 Weighted Average Number of Shares Outstanding (Basic) 21,047,702 15,425,415 + 36 -30- For further information: Mark Mawdsley, President & C.O.O., Tel: (403) 266-2988, E-mail: mmawds@oiltec.spots.ab.ca