EARNINGS / Calahoo Petroleum 1st Quarter Report
CALAHOO PETROLEUM LTD. ANNOUNCES FIRST QUARTER 1998 RESULTS
Date: 6/2/98 10:33:54 AM
Stock Symbol: CLX
* Drilled 43 gross wells - largest quarterly drilling program in Company
history
* 7 new pool discoveries in core areas
* Cash flow of $2.2 million up 80%
* Current production at 3,000 boepd, 800 boepd behind pipe, forecast to
exit at 5,000 boepd
Calahoo Petroleum Ltd. is pleased to report its financial and operating
results for the three months ended March 31, 1998.
The Company successfully completed a large scale development drilling program
at Haro/Boyer resulting in 26 development gas wells and 4 new gas pool
discoveries. In N.E. B.C. at Stoddart and Beavertail, Calahoo made two
triassic light oil discoveries.
Cash flow from operations increased 80% to $2.2 million (3 cents per share)
compared to $1.2 million (5 cents per share) in 1997.
Gross revenues increased 107% to $4.9 million for the three months ended
March 31, 1998, compared to $2.3 million for the same period in 1997.
The Company posted earnings of $36K compared to $244K recorded in 1997.
Natural gas production increased 358% to average 19,079 mcf/d while oil and
NGL's increased 90% to average 1,069 bbls/d. Total production of 2,977 BOEPD
represents a 204% increase over 1997.
Gas prices decreased from $2.21/mcf in 1997 to $1.70/mcf in 1998. Oil and NGL
prices of $18.72/bbl were considerably lower than 1997 first quarter prices
of $29.04/bbl. Combined pricing was down over $8.50/boe compared to 1997.
For the three months ended March 31, 1998, Calahoo has drilled or
participated in the drilling of 43 wells (37.5 net) resulting in 4 oil wells
(2.9 net), 32 gas wells (29 net) and 7 D & A's (5.6 net) for an overall net
success rate of 84%.
Capital expenditures totaled $19 million compared to $3 million in the same
period in 1997. The first quarter drilling program was approximately $13
million of the total with the remaining $6 million spent on facilities, land
and seismic.
Activity planned for Q2/Q3 includes follow-up development drilling off the
prolific Stoddart and Beavertail discoveries, a horizontal gas well in west
Ft. St. John and a horizontal well (gas and oil) at Nevis in east central
Alberta.
At the AGM held on May 20, 1998, the shareholder's approved a 3 for 1
consolidation of the Company's shares. The new consolidated shares will begin
trading in mid-June. Management and the board of directors believe that the
consolidation will help to further improve Calahoo's long term capitalization
and share performance.
Calahoo Petroleum Ltd. is an oil and gas company based in Calgary, Alberta.
The common shares of the Corporation are listed on The Toronto Stock Exchange
under the symbol "CLX". The Toronto Stock Exchange has neither approved nor
disapproved the information contained herein.
For further information, please contact Michael O'Hara, President, or Pat
Oliver, Chief Financial Officer, Suite 400, 407 - 2nd Street S.W. Calgary,
Alberta T2P 2Y3 Tel: (403) 237-8688 Fax: (403) 237-6939 Web:
calahoo.com
Three Months Ended March 31, 1998
1998 1997 % CHANGE
($ THOUSANDS, EXCEPT PER SHARE DATA)
FINANCIAL HIGHLIGHTS
Gross Revenue 4,861 2,345 107
Cash Flow From Operations 2,195 1,222 80
Per Share ($) 0.03 0.05 (40)
Net Income After Tax 36 244 (85)
Per Share ($) -- 0.01 (95)
Total Assets 103,592 22,237 366
Long Term Debt 29,772 5,870 407
Shareholders' Equity 53,735 12,296 337
Capital Expenditures 18,959 2,758 587
Common Shares Outstanding
At Mar. 31
Basic (Thousands) 71,254 27,346 161
Fully Diluted (Thousands) 81,435 34,972 133
Average Weighted Shares Outstanding
At Mar. 31 (Thousands) 71,234 27,263 161
OPERATIONS
Production and Prices (average)
Crude Oil and NGL Production (BBLS/D) 1,069 564 90
Average Combined Price ($/BBL) 18.72 29.04 (36)
Natural Gas Production (MCF/D) 19,079 4,164 358
Average Price ($MCF/D) 1.70 2.21 (23)
Average Production BOEPD 2,977 980 204
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