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

To: Kerm Yerman who wrote (11171)	6/11/1998 3:34:00 AM
From: Kerm Yerman	Respond to of 15196

EARNINGS / Talon Petroleums Ltd Year End Results TALON PETROLEUMS LTD MARCH 31, 1998 YEAR END RESULTS Date: 6/10/98 10:03:23 AM Stock Symbol: TAP Talon Petroleums Ltd., is pleased to present its financial results for the year ended March 31, 1998. Talon experienced significant growth in the last year on all fronts including production volumes, revenue, cash flow and reserves and undeveloped land. Talon began publicly trading on The Alberta Stock Exchange on June 24, 1997. Based on Sproule Associates Ltd engineering evaluation as of March 31, 1998 Talon's proved plus probable reserves have increased from 395 Mbbls for oil and NGL's and 476 Mmcf gas at year end March 31, 1997 to 875 Mbbls oil and NGL's and 2.294 Mmcf gas representing an increase of 122% for oil and NGL's and 382% for gas with an overall increase in reserves of 150% to 1.104 Mmboe versus 442 Mboe. Reserve value using 10% DCF proven and probable increased from $5.6MM to $11.39 MM being a 103% increase. With the addition of Talon's undeveloped land base as of March 31, 1998, net asset value amounts to $12.8 MM which equals $0.80 per basic share or $0.76 per share fully diluted. Gross Revenues from operations increased 272% from $523,427 to $1,951,312 and cash flow from operations increased 719% from $162,935 to $1,335,192 or $0.10/share cash flow versus $0.02/share at March 31, 1997. Talon's cash flow from operations for the period averaged $16.04/boe versus $8.63/boe in the prior year, while the gross price received decreased 15% from $27.17/boe to $23.44/boe for the year ended March 31, 1998. Field operating costs for the period averaged $3.70/boe versus $13.19/boe, and administrative costs amounted to $2.58/boe versus $5.91/boe in the prior year. With the significant increase in production volumes during the third and fourth quarters Talon expects operating and administrative costs on boe basis to remain constant or decrease throughout the next year. On average Talon produced 228 boe/day versus 125 boe/day in the prior year and exited on March 31, 1998, capable of producing approximately 500 boepd. Talon's bank line of credit has recently been increased to $3,000,000. Finding and on-stream costs have been calculated using all relevant expenditures from incorporation to March 31, 1998 and result in finding costs of $4.92/boe for proven plus half probable and $5.67/boe for proven reserves only. Talon's activities are concentrated in two core areas being Rainbow and Peace River Arch, Alberta. At March 31, 1998 Talon has increased it's undeveloped land base to 25,450 acres gross and 6800 acres net. Subsequent to year end Talon has been successful in acquiring an additional 1920 gross acres (528 net) at land sales and a 10 section farmin (Talon 33%) in the Pouce Coupe area. Talon plans on drilling two to three wells in the upcoming months to test and evaluate the 19.5 sections currently held in the Pouce Coupe area, where it's primary targets for multi-zone gas potential include the Halfway, Baldonnel, Paddy and Doig formations. Talon's interest in this Pouce Coupe area range from 27.5% - 50%. Talon's current oil production is all light oil and averages 40 degree API, and has in it's inventory additional oil prospects that will be exploited when oil pricing conditions rebound. Talon's capital expenditures and commitments for the upcoming year will be satisfied with a combination of cash flow and bank credit facilities and with it's strong financial position are well poised to pursue new exploration and development opportunities in our core areas and target new opportunities for acquisition and development. Currently Talon has 15,211,210 common shares outstanding.