CORP. SPEC 20 LISTED / Tethys Q1 results
TETHYS ANNOUNCES 110% INCREASE IN CASH FLOW
CALGARY, June 1 /CNW/ - Tethys Energy Inc. announced today its unaudited
financial and operating results for the three month period ended March 31,
1998. A summary of performance highlights for the period is provided on the
accompanying table.
Cash flow from operations increased 110% from $1,055,345 ($0.07 per
share) in 1997 to $2,219,180 ($0.11 per share) in 1998 as a result of a
significant increase in daily production volumes. Oil and gas production more
than doubled from an average of 1,210 barrels of oil equivalent (BOE) per day
in the first quarter of 1997 to an average of 2,702 BOE per day in the first
quarter of 1998. Oil and natural gas liquids production increased 252% from
619 barrels of oil per day (Bbl/d) in the first quarter of 1997 to 2,179 Bbl/d
in the first quarter of 1998. This increase is attributable to the Mercury
acquisition in 1997 and successful drilling in Southeast Saskatchewan and
Girouxville. Natural gas production declined slightly from 5,908 thousand
cubic feet per day (Mcf/d) in the first three months of 1997 to 5,231 Mcf/d in
1998.
In spite of the recent decline in oil prices, Tethys' oil and natural gas
liquid prices improved 4% from an average of $17.09 per barrel in the first
quarter of 1997 to an average of $17.77 per barrel in the first quarter of
1998. This increase is due to the increasing volumes of light oil production
in Tethys' product mix in 1998 compared to production of predominantly
natural gas liquids in 1997. Natural gas prices declined 16% from an average
of $1.92 per Mcf in the first quarter of 1997 to $1.62 per Mcf in the first
quarter of 1998.
Capital expenditures for the three-month period were $6,738,309 compared
to $4,677,431 for the corresponding period in 1997.
In the first quarter, Tethys drilled 6 wells (5.5 net), resulting in 4
(3.5 net) oil wells and 2 (2.0 net) dry and abandoned wells.
During March, Tethys issued 4 million special warrants at $2.80 per
special warrant for gross proceeds of $11.2 million. The proceeds from the
Special Warrants are being used to expand Tethys' 1998 capital budget from $12
million to $24 million. The Special Warrants are exchangeable into common
shares at no additional cost to the warrant holder.
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SUMMARY OF OPERATIONS AND FINANCIAL RESULTS
Three months ended
March 31,
1998 1997 % change
---------- ---------- --------
FINANCIAL
Revenues 3,838,296 1,607,409 139%
Net Income (217,804) 291,571 -175%
Net Income per share (0.01) 0.02 -150%
Cash flow from operations 2,219,180 1,055,345 110%
Cash flow per share 0.11 0.07 57%
Weighted average number of
shares outstanding 21,034,757 14,543,157 45%
Capital additions 6,738,309 4,677,431 44%
AVERAGE PRICES
Oil & natural gas liquids ($/Bbl) 17.77 17.09 4%
Gas ($/Mcf) 1.62 1.92 -16%
DAILY PRODUCTION, BEFORE ROYALTIES
Oil and natural gas liquids (Bbls) 2,179 619 252%
Natural gas (Mcf) 5,231 5,908 -11%
------- ------- -----
Barrel of oil equivalent (BOE) 2,702 1,210 123%
March 31, December 31,
1998 1997 % change
------------- ------------- -------
BALANCE SHEET
Current assets 4,339,248 5,313,390 -18%
Current liabilities 5,551,832 8,380,610 -34%
Working capital (1,212,584) (3,067,220) 60%
Property, plant and equipment 47,556,626 43,044,159 10%
Long term debt 10,702,123 14,944,358 -28%
Future site restoration liability 384,511 319,389 20%
Deferred income taxes 1,063,464 1,177,908 -10%
Shareholders' equity 34,193,944 23,535,284 45%
Common shares outstanding 21,034,757 21,034,757 0%
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For further information: Randell Pardy, President and Chief Executive
Officer, (403) 294-3553; David Eastham, Vice-President and Chief Financial
Officer, (403) 294-3556
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