EARNINGS / Benz Energy, Ltd. Announces Production and Revenue
Increases for 1998 First Quarter
BENZ ENERGY, LTD.
VSE SYMBOL: BZG
JUNE 30, 1998
Benz Announces Production and Revenue Increases for 1998
First Quarter
HOUSTON, TEXAS--Benz Energy, Ltd. today announced unaudited
results for the first quarter 1998. For the three-month period
ended March 31, 1998, the Company reports a net loss of
Cdn$3,369,497 or ($0.11) per share as compared to a net loss of
Cdn$2,772,388 or ($0.13) per share in the first quarter of 1997.
Oil and gas sales increased to $1,176,116 in the first quarter
1998 from $246,811 in first quarter 1997. This increase of oil and
gas sales of 376 percent resulted from an increase of 979 percent
in gas production, offset in part by a 28 percent decrease in
average gas price and a 35 percent decrease in average oil price.
Prentis Tomlinson, Chairman and CEO, commented, "The Company's
strategy of growth guided by a 3-D seismic supported drilling
program in well-established producing trends in the Gulf Coast is
beginning to show significant results. I expect to report
additional increases in production rates and net production income
over current levels throughout the balance of 1998 as we continue
to develop our inventory of over 29 fully leased properties."
Benz is an exploration and development oil and gas company based
in Houston, Texas, focused on the onshore U.S. Gulf of Mexico
region.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this release.
/T/
Consolidated Statement of Operations
Three Months Ended
March 31,
------------------------
1998 1997
------- -------
Operating Revenue
Oil and gas sales $ 1,176,116 $ 246,811
---------- ---------
Operating costs and expenses
Lease operating expenses 184,784 37,097
DD&A 690,281 85,179
---------- ---------
Total operating costs and expenses 875,065 122,276
---------- ---------
301,051 124,535
---------- ---------
Other Income (expenses)
General and administrative expenses 2,545,089 777,099
Amortization of capital assets 78,646 28,707
Exploration expense and dry hole
costs 1,327,245 1,297,842
Impairment in petroleum interests - 421,047
Foreign exchange (638,091) 442,746
Interest income 682,349 21,319
Provision on short-term investments 40,296 70,113
Gain on sale of short-term investments (26,117) (155,315)
Gain on sale of petroleum interests (297,365) -
Interest and other income (41,504) (6,635)
--------- ----------
Total other income and expenses 3,670,548 2,896,923
--------- ----------
Income (loss) before income taxes (3,369,497) (2,772,388)
Deficit - beginning of the period (15,983,013) (892,994)
Deficit end of period $(19,352,510) $(3,665,382)
------------ ------------
Net income per common and common
equivalent $ (0.11) $ (0.13)
============ ===========
Operating Statistics
Gas Production, MMCF 322,552 29,879
Oil Production, BBL 7,445 4,162
Equivalent (6:1) MMCFE 367,222 54,851
Average Gas Price US$ $ 2.27 $ 3.18
Average Oil Price US$ $ 12.13 $ 18.67
Equivalent (per MCFE) US$ $ 2.24 $ 3.15
Lease Operating Expense / MCFE $ 0.50 $ 0.67
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