EARNINGS / Neutrino Q1 Results
NEUTRINO ANNOUNCES FIRST QUARTER RESULTS
CALGARY, May 29 /CNW/ - Neutrino Resources Inc. today announced its
financial results for the first quarter ended March 31, 1998. Oil and gas
revenues, before royalties increased 6% to $4,812,058 compared to $4,550,820
in the corresponding period of 1997. Cash flow was $1,702,272 ($.06/share) a
decrease of 18% from $2,083,059 ($0.10/share) reported in the first quarter of
1997. Earnings showed a net loss of ($18,701) or ($0.00/share) down from
$934,970 ($0.05/share) at March 31, 1997.
Below is a summary of these results, in comparison to the First Quarter
of 1997:
<<
1998 1997
----------------
Daily Production:
Oil & NGLs (bbls) 1,951 1,660 +18%
Natural Gas (Mcf) 11,340 7,967 +42%
Barrels Oil Equivalent 3,085 2,456 +26%
Results ($ millions):
Oil & Gas Revenue 4.8 4.6 +6%
Cash Flow 1.7 2.1 -18%
Earnings (0.0) 0.9
Field Prices:
Oil & NGLs ($/bbl) 15.71 20.87 -25%
Natural Gas ($/Mcf) 2.01 2.00 +1%
Barrels Oil Equivalent 17.33 20.59 -16%
Per Share Results:
Cash Flow $0.06 $0.10 -40%
Earnings (0.00) $0.05
>>
Jeff Arsenych, President and CEO of Neutrino Resources, said ''A
precipitous drop in oil prices began in late 1997 and continues into 1998.
Fortunately, natural gas prices began to strengthen in the spring of 1998,
although they too have begun to experience some weakness now that the
traditionally low summer period is upon us. During the first quarter, we have
added oil and gas reserves with several exciting plays for Neutrino.''
Arsenych reported a gas discovery at Enchant, Alberta (Neutrino 100%)
brought on stream in May at a rate of 2.2 million cubic feet per day. Another
gas discovery was found at Kaybob South, Alberta in which Neutrino holds a 20%
working interest. New light oil reserves were added through well
recompletions and reactivations at the Neutrino-operated Inverness Unit at
Swan Hills, Alberta (Neutrino 95%).
He reported that although Neutrino's second test well at Lessard, Alberta
encountered a water zone, the first discovery well drilled maintained steady
light oil production through the winter season and was producing over 200
barrels/day when it was shut in on March 25, 1998 (Neutrino 65% before
payout). Production from this well will resume next Winter when surface access
again becomes available. Next winter, a three-dimensional seismic program and
a 1-2 well drilling program will be pursued at Lessard to delineate the
existing oil filed and to evaluate a new oil horizon.
During the first quarter, Neutrino has acquired extensive
three-dimensional siesmic over its Gift and Dawson Creek prospects in Northern
Alberta. These plays will be drilled next winter. During the summer and fall
of 1998, Neutrino plans to drill additional exploratory wells to follow up on
leads at East Mantario, Saskatchewan and several prospects in Central and
Southern Alberta. Additional development investments are planned for the
Inverness Unit. Neutrino has sufficient financial resources to conduct its
minimum capital program in 1998 without additional financing.
A joint news release was issued on May 13, 1998 by Neutrino and Southern
Mineral Corporation of Houston, Texas, declaring a mutually acceptable
agreement was reached for Southern to acquire 100% of the common shares of
Neutrino for cash consideration of $1.80/share. Arsenych said ''We believe
this price is fair in today's market place and the combination of Southern and
Neutrino will result in a stronger oil and gas company with a portfolio of
opportunities evenly balanced between Canada and the Untied States. The
closing date is scheduled on or before June 30th, 1998 with documentation
being mailed to shareholders very soon.''
Following the transaction, Neutrino would cease to be listed on The
Toronto Stock Exchange, (Symbol NTO). Southern Corporation trades on the
NASDAQ National Market under the symbol ''SMIN''
-30-
For further information: Jeff Arsenych, President/CEO, or David
Beckwermert, Executive Vice-President, (403) 215-3500, Fax: (403) 215-3501,
E-mail: info@neutrino.net
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