EARNINGS / Results for Year Ended December 31, 1997, and First
Quarter Ended March 31, 1998
ASE SYMBOL: BVL
MAY 20, 1998
CALGARY, ALBERTA--Beaver Lake Resources Corporation (Alberta Stock
Exchange, Symbol "BVL") announced today the results of its
operations for the year ended December 31, 1997, and the first
quarter ended March 31, 1998.
/T/
Year ended December 31
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Percent
Financial Data 1997 1996 Change
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Revenue (net of royalties) $ 3,573,912 $ 4,275.429 (16)
Net income 293,669 1,290,518 (77)
Net income per share 0.02 0.07 (71)
Cash Flow 1,133,351 1,733,164 (35)
Cash flow per share 0.06 0.09 (33)
Capital expenditures 4,391,208 1,626,820 1,700
Balance sheet hightlights
Working capital
(deficiency) (2,156,003) 263,778 (9,174)
Capital assets, net 9,332,080 5,751,987 62
Bank debt (long term) 2,460,000 2,200,000 12
Current portion of bank
debt 920,000 - -
Shareholders' equity 4,181,816 3,876,647 8
Weighted average shares o/s 19,464,891 19,420,885 0
Production Data
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Yearly Average
Oil production (bbls/day) 273 367 (26)
Gas production (mcf/day) 2,010 1,537 31
BOE per day (gas at 10:1) 474 521 (9)
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3 months Ended March 31
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Percent
Financial Data 1998 1997 Change
--------------------------------------------------------------
Revenue (net of royalties) $ 644,302 $ 1,050,807 (39)
Net income (loss) (37,100) 463,811 (108)
Net income (loss)per share (0.00) 0.02 (100)
Cash Flow 122,670 572,163 (79)
Cash flow per share 0.01 0.03 (67)
Capital expenditures 9,072 997,762 (99)
Balance sheet hightlights
Working capital
(deficiency) (2,170,595) 211,883 (11,244)
Capital assets, net 9,192,203 6,651,257 38
Bank debt (long term) 2,220,000 2,625,000 (15)
Current portion of bank
debt 960,000 - -
Shareholders' equity 4,144,716 4,351,958 (5)
Weighted average shares o/s 19,466,666 19,447,562 0
Production Data
--------------------------------------------------------------
First Quarter Average
Oil production (bbls/day) 224 308 (27)
Gas production (mcf/day) 1,892 1,860 (2)
BOE per day (gas at 10:1) 413 494 (16)
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/T/
Beaver Lake experienced a 36 percent drop in the price of oil
($28.45/bbl to $18.33/bbl) when comparing the first quarter of
1998 to that of 1997. This has had a significant impact on cash
flow and net income.
Beaver Lake has revisited the horizontal well drilled in Eaglesham
in 1997. Based on an engineering review, we believe that the
horizontal section of the well is currently plugged due to a
downhole mechanical failure. A work-over is planned to unplug the
well and bring it back on production. Should the attempt be
successful, the well could produce up to the 400 BOPD that was
initially recorded during the production flow test.
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