Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Herb Duncan who wrote (11052)	6/2/1998 4:57:00 PM
From: SofaSpud	Read Replies (1) \| Respond to of 15196

EARNINGS / Gentry Resources Q1 Results GENTRY REPORTS THREE MONTHS FINANCIAL RESULTS CALGARY, June 2 /CNW/ - Gentry Resources Ltd. announces its financial results for the first three months of 1998. Production volumes jumped to 552 bbls/d and 750 mcf/d, increases of 36% and 29% respectively from the three months ended March 31, 1997. In spite of the increased production levels, gross revenues declined 15% to $900,568 (1997 - $1,062,890) and cash flow decreased 31% to $183,980 from $268,101 in 1997. These decreases are a direct result of lower product prices realized in the quarter. This year's three-month average crude oil and NGL prices fell 39% to $15.88 per barrel (1997 - $26.03) and while gas prices fell by 24% to $1.66 per mcf compared to $2.19 in the corresponding three-month period. A summary of the three months ended March 31, 1998 with comparative highlights is listed below: << THREE MONTH PERIOD Financial 1998 1997 Change --------- ---- ---- ------ Production Revenue 900,568 1,062,890 (15%) Cash Flow from Operations 183,980 268,101 (31%) Per Share 0.012 0.019 (37%) Net Income (loss) (121,902) 94,044 (230%) Per Share (0.008) 0.007 (214%) Operating 1998 1997 Change --------- ---- ---- ------ Production Crude Oil and NGLs (bbls/d) 552 406 36% Natural Gas (mcf/d) 750 580 29% Oil Equivalent (boe/d) 627 464 35% Selling Price Crude Oil ($/bbl) 15.88 26.03 (39%) Natural Gas ($/mcf) 1.66 2.19 (24%) >> During the first quarter, the Company increased its bank line of credit from $3.5 million to $4.5 million and completed a private placement of 1,700,000 special warrants. The warrants, which were priced at $1.00 each, are exchangeable into 1,700,000 shares of Gentry. The ability of Gentry to complete these transactions in the midst of the current pricing environment is a testimony to the long life of Gentry's properties and the strength of its prospect inventory. In March, the Company commenced a six-hole drill program in the Steelman area of southeast Saskatchewan. All wells were successful and are currently being tied-in. Additional drilling programs were undertaken on the Company's Dollard, Midale and Weyburn properties. A six-hole drill program on the Company's Baldwinton lands in Saskatchewan has been postponed until oil prices improve from their current levels. Throughout the course of 1998, the Company will participate in a number of infill drilling programs in southern Saskatchewan. Dollard, Weyburn, Steelman, and Midale are the more active areas with Benson just starting out with an initial one well infill program. The Company is also undertaking a drilling program consisting of three horizontal wells in Virden, Manitoba. The Company maintains a 10.6% interest in the unit. With a significant number of exploration and development opportunities to pursue locally and internationally, we are confident our activities will provide continued growth for Gentry as we progress through the year. Ketan Panchmatia, Chief Financial Officer -30- For further information: Hugh Ross, President & CEO, (403) 264-6161; Bob Vukovich, Corporate Relations, (888) 876-7197; Website: www.gentryresources.com, E-mail: gentry@gentryresources.com