EARNINGS / Moiibus Q1 Results
MOIIBUS RESOURCE CORPORATION - 1998 FIRST QUARTER RESULTS
CALGARY, May 26 /CNW/ - The financial results for the three months ended
March 31, 1998, represents the first quarter of operations after completing
the sale of the Acheson property in late 1997. The sale not only accomplished
management's objective to reduce debt but provided the Company with $1.7
million of cash and an undrawn bank line of $650,000 for a capital program
entering 1998. The continued low world oil price provides an excellent
environment for Moiibus to reinvest funds in both acquisitions and drilling
opportunities.
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Selected Highlights
Three Months Ended Three Months Ended
March 31, 1998 March 31, 1997
Financial
Petroleum & natural gas sales $127,646 $1,173,489
Cash flow from operations (45,805) 366,028
Basic per share (0.01) 0.05
Fully diluted per share - 0.04
Net loss (102,117) (278,562)
Basic per share (0.01) (0.04)
Fully diluted per share (0.01) (0.03)
Capital expenditures 664,426 1,446,187
Debt $ - $5,932,423
Common shares outstanding
Basic 8,796,606 7,591,257
Fully diluted 9,415,106 8,291,757
Production
Oil and liquids (Bbls/d) 54 323
Gas (Mcf/d) 301 1,950
Total (Boe/d) 84 518
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Operations
In March 1998, Moiibus completed an acquisition of producing properties
effective February 1, 1998. The main property is located in the Camao area of
Alberta, immediately north of the city of Edmonton, and provides an additional
50 Boe/d of production (70% solution gas). The Camao property consists of
four producing Basal Quartz oil wells, an oil battery, gathering system and
water disposal well which Moiibus has a 35% working interest. Moiibus
participated in the drilling of a Basal Quartz oil well at Camao which
commenced production in late April at a rate of 25 Bbls/d net to Moiibus.
Potential exists for an additional well on the property, however seismic would
be required prior to drilling.
Production averaged 84 Boe/d in the first quarter of 1998 and 518 Boe/d
(52 Bbls/d excluding Acheson production) in the comparable period in 1997.
Production in the first quarter of 1998 was primarily derived from two areas
being Nevis (41 Bbls/d) and Camao (33 Boe/d). Approximately 35 Boe/d of gas
production at Camao was shut-in at the end of April for a plant turnaround and
unresolved pooling issues on two high solution gas oil wells. The pooling
issues should be resolved during the next month. It is anticipated that
additional gas production from the new oil well will offset curtailments
associated with the pooling issues. Company production will be 125 Boe/d
later in May, when the pooling issues are resolved.
Late in 1997, the Company purchased a 33.33% working interest in a
section of freehold land in Saskatchewan with potential for Tilston oil
production. Moiibus and the operator are currently shooting 3-D seismic over
the play prior to drilling the first horizontal well this summer. The
prospect has the potential for additional horizontal well development. A
typical Tilston horizontal well would be expected to initially produce 150 -
200 Bbls/d of light oil.
In December 1997, the Company shot a 2-D seismic program and has a
working interest in a gas prospect in southeast Alberta. The Company will
participate in the drilling of at least one well (50% working interest) in
June with potential gross reserve additions of 2 - 5 Bcf of gas.
Financial
Petroleum and natural gas sales for the three months ended March 31,
1998, of $127,646 represented $84,703 of oil and liquids sales and $42,943 of
gas sales compared to $802,153 of oil and liquids sales and $371,336 of gas
sales in the same period in 1997. The Acheson property derives 90% of the
petroleum and natural gas sales in 1997, which was sold in November, 1997. Oil
and liquids volumes for the three months ended March 31, 1998, averaged 54
Bbls/d and gas sales averaged 301 Mcf/d compared to 323 Bbls/d (48 Bbls/d
excluding Acheson) of oil and liquids and 1,950 Mcf/d (Nil excluding Acheson)
in 1997. Oil and liquids prices averaged $17.27/Bbl (1997 - $27.63/Bbl) and
gas prices averaged $1.59/Mcf (1997 - $2.12/Mcf) for a combined price of
$16.77/Boe (1997 - $25.19/Boe) in the first quarter of 1998.
Royalties were $10,106 ($1.33/Boe) in the first quarter of 1998 compared
to $327,474 ($7.03/Boe) in 1997. The majority of royalty incurred in 1997 was
not eligible for an Alberta Royalty Tax Credit, whereas substantially all the
royalty paid in 1998 was eligible. Operating costs were $46,993 in the three
months ended March 31, 1998, averaging $6.18/Boe compared to $263,332
($5.65/Boe) for the comparable period in 1997. Operating costs at Nevis
averaged $4.15/Bbl and at Camao averaged $6.11/Boe due to the cost of
processing the solution gas. The Company experienced a netback of $9.27/Boe
during the first quarter of 1998 compared to $12.52/Boe in 1997.
Depletion and depreciation of $56,312 included a provision for site
restoration and abandonment costs of $2,750 and averaged $7.03/Boe for the
three months ended March 31, 1998 compared to $644,590 ($15,800 site
restoration) or $13.50/Boe in 1997.
The Company issued 1,195,349 common shares at a price of $0.43 per share
to purchase the producing property at Camao and other lands in the first
quarter of 1998.
This release is neither approved or disapproved by the Alberta Stock
Exchange.
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For further information: Lloyd W. Herrick, P.Eng., President, CEO, (403)
262-6183, Fax: (403) 233-2040
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