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

To: SofaSpud who wrote (10933)	5/28/1998 4:00:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Dundee Petroleum Q1 Results DUNDEE REPORTS 1998 FIRST QUARTER RESULTS CALGARY, May 28 /CNW/ - Dundee Petroleum Corp. is pleased to report financial and operating results for the three months ended March 31, 1998. During the first three months of 1998, production averaged 185 BOE per day, a 60% increase from the same period of 1997. Production consisted of 56% oil and 44% natural gas. Oil production was derived primarily from the Company's Arcola, Bellshill, Killam and Service properties. Natural gas production was attributable to the Company's shallow gas properties located in the border area of southwestern Saskatchewan and southeastern Alberta. Revenues (net of royalties) for the first three months of 1998 were $264,625, an increase of 20% from the same period of 1997. Cash flow from operations was $101,226 or $.01 per share, a decrease of $17,317 from the comparative 1997 period. Average sales price for the period was $18.87 per barrel of oil equivalent, with oil averaging $19.00 per barrel and natural gas averaging $1.85 per Mcf. The Company's average netback was $12.00 per BOE. In February, 1998, at Parkman South, Dundee participated for a 25% working interest in the drilling of a new pool oil discovery in the lower Tilston formation. With a potential pool size of 500,000 to 1,000,000 barrels, Dundee is now taking the lead role in the development of this property at a 100% working interest. The Company has secured the rights to 960 gross (net) acres offsetting the discovery well, and plans to shoot a 3D seismic survey over the property in June. Based on the results of the 3D seismic, follow-up development wells will be drilled in the summer of 1998. At Wauchope, a 3D seismic survey indicates a similar, highly prospective Tilston structure on the Company's lands. During the first quarter of 1998, Dundee was successful in tying up acreage on this play and is currently bringing in new partners to share the risk. In the Sinclair area of northwestern Alberta, Dundee recently entered into a farmin agreement for the drilling of natural gas development wells in the Doe Creek formation. Dundee will participate for a 25% working interest, with the first well scheduled for early June. First year gross production rates are estimated at 0.7 to 2.0 Mcf/day per well, with gross reserves of 1.0 to 1.5 Bcf per well. With the drilling of a number of wells planned for the coming months, Dundee's management is anticipating a significant increase in both production and cash flow in the near term. Due to the continued depression of oil prices, management is actively seeking to re-direct budget funds to natural gas drilling opportunities, as already witnessed with the signing of the Sinclair farmin project. In addition, in order to more rapidly obtain the critical mass necessary to compete in today's marketplace, management is evaluating merger opportunities which will enhance shareholder value. << SUMMARY OF OPERATIONS THREE MONTHS ENDED MARCH 31,1998 Production Oil & Gas Cash Flow Year (BOE/day) Revenue Cash Flow Per Share Net Earnings ---- ---------- -------- --------- --------- ------------ First Quarter 1997 117 $ 222,199 $118,543 $.014 $ 93,281 1998 185 $ 264,625 $101,226 $.010 $ 2,010 >> The Alberta Stock Exchange has neither approved nor disapproved of this release. -30- For further information: Michael J. Kryczka, President or Hugh M. Thompson, Vice-President, Finance, (403) 233-2969