EARNINGS / NAL OIL & GAS TRUST ANNOUNCES FIRST QUARTER RESULTS
CALGARY, May 19 /CNW/ - NAL Oil & Gas Trust (''NAL'') is pleased to
announce its first quarter results for the three month period ended March 31,
1998.
Daily production for NAL increased for the sixth consecutive quarter. The
average daily production volume for first quarter 1998 increased 19% compared
to first quarter 1997 from 4,657 barrels of oil equivalent per day to 5,551,
and increased 9% over the previous quarter's volume of 5,090. Oil production
increased 24% compared to first quarter 1997 from 2,822 barrels per day to
3,491, and 11% over the previous quarter's volume of 3,147. The increase in
oil production compared to first quarter 1997 is mainly due to three
additional horizontal wells at Alida that came on production in third quarter
1997, and production from the Joffre D-3 Unit which was acquired in late 1997.
First quarter operations do not include production volumes from the recently
announced Joffre D-3 development drilling. Natural gas production increased
13% compared to first quarter 1997 from 15,889 mcf per day to 18,021, and
increased 4% over the previous quarter's volume of 17,329.
The average oil price for the first quarter of 1998 was $20.43 per
barrel, which was 30% lower than the $29.17 per barrel for first quarter 1997,
and 25% lower than the $27.28 per barrel for the previous quarter.
The average natural gas price for the first quarter of 1998 was $2.13 per
mcf which was 20% lower than the average natural gas price of $2.66 for first
quarter 1997, and 19% lower than the average natural gas price of $2.63 per
mcf for the previous quarter.
Distributable income for the first quarter of 1998 was $0.28 per unit or
36% lower than the $0.44 per unit for first quarter 1997.
Currently, the original target for 1998 distributions of $1.20 per unit
or, $0.10 per unit per month, remains achievable.
The Manager is confident that increased production volumes, from
additional development drilling planned for Alida and Joffre during the
remainder of 1998, will positively impact distributable income.
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NAL OIL & GAS TRUST
Statements of Royalty Income Calculation and Distributable Income
(thousands of dollars, except per unit amounts) (unaudited)
Quarter Ended Quarter Ended
March 31, 1998 March 31, 1997
NAL ENERGY INC.
Revenue
Oil, natural gas and liquids sales $ 10,537 $ 11,830
Other 141 168
Proceeds on disposal of tangibles - 314
Freehold and other royalties (280) (336)
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10,398 11,976
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Expenditures
Deductible operating costs 2,498 2,303
General and administrative 254 383
Management fees 155 220
Capital expenditures - 672
Debt service costs 530 264
Contributions to reclamation reserve 88 88
Taxes 23 17
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3,548 3,947
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Royalty Income $ 6,850 $ 8,029
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NAL OIL & GAS TRUST
Revenue
Royalty at 99% of Royalty Income $ 6,782 $ 7,949
Crown charges (2,346) (2,322)
Alberta Royalty Credits receivable 212 363
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4,648 5,990
Expenditures
General and administrative 99 85
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Distributable income including
Alberta Royalty Credits, received 4,549 5,905
Alberta Royalty Credits receivable (212) (363)
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Distributable Income
Distributable income 4,337 5,542
Distributions paid (4,864) (5,130)
Distributions paid with respect
to prior year 368 -
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Balance to be distributed $ (159) $ 412
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Per Unit
Distributable income including
Alberta Royalty Credits
receivable $ 0.281 $ 0.437
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Distributions paid $ 0.300 $ 0.380
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Weighted average units outstanding 16,211,800 13,500,000
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NAL OIL & GAS TRUST
Combined Balance Sheet
(thousands of dollars) (unaudited)
March 31, 1998 March 31, 1997
Assets
Current assets
Cash and short-term investments $ 47 $ 1,802
Accounts receivable 4,952 4,914
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4,999 6,716
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Deferred charges 457 223
Reclamation reserve 716 358
Property, plant and equipment, net 165,052 143,610
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$ 171,224 $ 150,907
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Liabilities and Unitholders's Equity
Current liabilities
Accounts payable $ 2,324 $ 2,038
Distributions payable to
Unitholders 1,621 5,130
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3,945 7,168
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Long term debt 42,200 27,500
Future site restoration 1,856 1,014
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44,056 28,514
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Share capital - -
Unitholders' equity 123,223 115,225
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123,223 115,225
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$ 171,224 $ 150,907
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Units outstanding 16,211,800 13,500,000
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NAL OIL & GAS TRUST
Combined Statements of Income and Unitholder's Equity
(thousands of dollars, except per unit amounts) (unaudited)
Quarter Ended Quarter Ended
March 31, 1998 March 31, 1997
Revenue
Oil, natural gas and liquids sales $ 10,537 $ 11,830
Other 141 168
Alberta Royalty Credit 214 367
Crown royalties (2,369) (2,345)
Freehold and other royalties (280) (336)
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$ 8,243 $ 9,684
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Expenses
Operating 2,456 2,327
General and administrative 353 468
Management fees 155 221
Interest on long term debt 530 264
Depletion, depreciation and
amortization 5,395 5,137
Capital taxes 23 17
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8,912 8,434
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Net income (669) 1,250
Unitholders' equity,
beginning of period 129,079 119,135
Dividends paid (323) (30)
Distributions paid (4,864) (5,130)
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Unitholders' equity, end of period 123,223 115,225
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Net income per trust unit $ (0.031) $ 0.093
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Weighted average units outstanding 16,211,800 13,500,000
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NAL OIL & GAS TRUST
Combined Statement of Changes in Financial Position
(thousands of dollars) (unaudited)
Quarter Ended Quarter Ended
March 31, 1998 March 31, 1997
Operating Activities
Net income $ (669) $ 1,250
Items not involving cash:
Depletion, depreciation and
amortization 5,395 5,137
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Cash flow from operations 4,726 6,387
Decrease (Increase) in non-cash
working capital 1,230 (669)
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5,956 5,718
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Financing Activities
Issue of trust units - (30)
Distributions to Unitholders (4,864) (4,590)
Advances from long term debt 4,300 2,500
Decrease (Increase) in non-cash
working capital 200 (20)
Dividends paid (323) -
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(687) (2,140)
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Investing Activities
Purchase of property, plant
and equipment (4,744) (2,972)
Reclamation reserve (94) (95)
(Increase) in non-cash working capital (510) (381)
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(5,348) (3,448)
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Increase (Decrease) in cash and
short-term investments (79) 130
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Cash and short-term investments,
beginning of period 126 1,672
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Cash and short-term investments,
end of period $ 47 $ 1,802
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NAL OIL & GAS TRUST
VOLUME AND PRICE ANALYSIS
QUARTER ENDED QUARTER ENDED
MARCH 31, 1998 March 31, 1997
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DAILY PRODUCTION
Oil (bbl) 3,491 2,822
Natural gas (mcf) 18,021 15,889
Natural gas liquids (bbl) 258 246
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Total - BOE(x) 5,551 4,657
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PRICES
Oil ($/bbl) 20.43 29.17
Natural gas ($/mcf) 2.13 2.66
Natural gas liquids ($/bbl) 15.04 27.55
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(x) Gas converted to barrels of oil equivalent based on 10 mcf = 1 bb
The Trust owns a royalty consisting of 99% of the net cash flow generated
by certain oil and natural gas properties owned by NAL Energy Inc. The Trust
and NAL Energy Inc. are managed by NAL Resources Management Limited.
-30-
For further information: Donald Driscoll, President and Chief Executive
Officer, or Ben Bury, Vice President, Marketing and Business Development, NAL
Resources Management Limited, (403) 294-3610, Fax: (403) 294-3601, Toll Free:
(888) 223-8792 |
