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

To: Herb Duncan who wrote (10941)	5/28/1998 4:34:00 AM
From: Herb Duncan	Respond to of 15196

EARNINGS TOP 20 LISTED / Carmanah Reports First Quarter Results TSE SYMBOL: CKM MAY 27, 1998 CALGARY, ALBERTA--Weak oil prices and the late arrival of the Pride Pennsylvania jackup rig at the Camar oil field offshore Indonesia caused lower first quarter results for Carmanah. The rig, which was originally to be at Camar in January, 1998 to initiate drilling, completion and tie-back operations, did not leave Singapore until the end of March, after undergoing more extensive modifications than originally anticipated by its owner. As a consequence, no new wells were placed onstream at Camar. Simultaneously, the price of oil declined from $26.87 last year to $20.58 this year. While overall results were relatively unchanged from the fourth quarter of 1997, lower revenue, production, cash flow and earnings were recorded compared to the first quarter, 1997. During the reporting period, Carmanah finalized a $50 million credit facility for its development programs with CIBC; completed preparations for Camar and Natuna drilling and saw the handover of the Onado Field in Venezuela occur with field operations initiated. Production was limited to 928 net barrels per day at Camar, as normal declines occurred without the impact of scheduled new wells being onstream. Last year production averaged 1,585 barrels per day. Presently, CN-3, which was recently completed, is being placed onstream and the rig is scheduled to commence tie-back operations at Camar-6 in the next several days, following the successful installation of a monopod at this well's surface location. Immediately thereafter a third development well, MPA-1, which offsets Camar-6, will be drilled and should be onstream by mid-July. As a result, financial and operating results should show considerable improvement as the year progresses, with most of the Company's forecast cash flow generated in the second half of 1998. Reworks and new drilling in Venezuela should be underway in June, while the Company's 15,000 BOPD project at Langsa in Indonesia is progressing. Carmanah remains in a strong financial condition with adequate cash, working capital, available credit and projects in hand to significantly expand its production base by year-end if program timetables remain unaltered and forecast well results are achieved. /T/ Summary Financial Results -------------------------------------------------------------- Period ended March 31 ----------------------- 1998 1997 ---- ---- Revenue, $000 1,720 3,832 Cash flow, $000 (718) 1,438 Per common share, $ (0.02) 0.06 Earnings, $000 (1,785) 641 Per common share, $ (0.05) 0.03 Capital spending, $000 7,872 7,354 Weighted average shares outstanding, MM 35.6 25.0 /T/