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

To: Herb Duncan who wrote (10942)	5/28/1998 3:58:00 PM
From: SofaSpud	Respond to of 15196

EARNINGS / Big Horn Resources Q1 Results BIG HORN REPORTS 1998 FIRST QUARTER RESULTS CALGARY, May 28 /CNW/ - Big Horn Resources Ltd. (the ''Company'') announces its results for the quarter ended March 31, 1998. Big Horn's production increased 74%, averaging 585 boe/d in the first quarter of 1998 compared to 336 boe/d for the same period in 1997. Production revenue was up 11 % to $730,025 (seven cents per share) for the three months ended March 31, 1998 compared to $656,040 (seven cents per share) for the three months ended March 31, 1997. Cash flow for the three months ended March 31, 1998 was $165,247 (two cents per share) compared to $244,422 (three cents per share) for the three months ended March 31, 1997. Earnings for the three months ended March 31, 1998 were $21,247 compared to $119,422 for the same period in 1997. The decrease in both earnings and cash flow is directly related to the weak crude oil prices in effect during the first quarter of 1998. Average crude oil and liquids prices declined by 46% for the first quarter of 1998 compared to 1997. During the first quarter of 1998, the Company received an average field price of $11.55 per barrel of oil and liquids and $1.95 per mcf of natural gas compared to 1997 prices of $21.51 per barrel and $2.26 per mcf. Net capital expenditures were $1.3 million in the quarter compared to $258,675 for the same period in 1997. The Company's current production is approximately 60% oil and 40% natural gas. In 1997, Big Horn began developing natural gas properties in its new core area in northwest Alberta, with higher working interests ranging from 25% to 50%. The first gas production from this area came on stream during the first quarter of 1998. The Company plans to continue developing this high impact area in 1998 increasing its exposure to natural gas. Big Horn is currently tying in an additional well in the area and completing another. Additional drilling is planned in the area with four wells scheduled once road bans are lifted. During the first three months of 1998, Big Horn participated in the drilling of four wells, resulting in two successful horizontal oil wells with an average working interest of 5% and a successful gas well with a 50% working interest. The Company also completed a $3.6 million private placement during the quarter. The funds raised have been allocated to the Company's natural gas drilling program in its new core area in northwest Alberta and for the evaluation of potential acquisitions. The Company is well positioned to continue its growth and currently carries no debt. Big Horn Resources is an oil and gas company, which trades on the Senior Board of the Vancouver Stock Exchange under the symbol ''BGH''. The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. On Behalf of the Board of Directors, Reg Greenslade, P.Eng. President and Chief Executive Officer -30- For further information: Mr. Reg J. Greenslade, President and Chief Executive Officer or Mr. Luc Chartrand, Chief Financial Officer, (403) 263-0262, Fax: (403) 294-1197