EARNINGS / Naftex Energy Corporation Announces Third Quarter Results
VANCOUVER, Dec. 10 /CNW/
Naftex Energy Corporation
Trading Symbol: NFTX
NAFTEX ENERGY CORPORATION (the ''Company'') announces the results of its
third quarter activities. During the quarter the company posted a loss of
$170,000, which is net of a foreign exchange gain of $172,000 due to the
effects of the weak Canadian dollar on the company's US dollar cash balance.
The current quarter's result compares to a loss of $398,000 realized in the
same period of 1997 during the company's initial start-up. During the nine
months ended in September the company realized a loss of $673,000 ($0.01 per
share) compared to a loss of $657,000 ($0.02 per share) for the six and half
month period ended in 1997.
West Esh El Mallaha (''WEEM'') Concession, Egypt
Field Production
Oil Production from the Rabeh Field during this quarter was 24,947
barrels. This compares with 31,629 barrels in the previous quarter. Once the
planned workover of the Rabeh No. 1 well has been completed it is expected
that the productivity of Rabeh No. 1 will be back to a level nearing its
initial production rates when first placed on-stream. Target production from
the field upon completion of the current drilling program is 6,000 barrels per
day.
Exploration and Appraisal
The 426 km 2D and 204 km2 3D seismic acquisition programs were completed
during this quarter. Processing of this new data and reprocessing of the
existing 3D seismic data acquired in 1994 is currently underway and is
anticipated to be available for interpretation later in the 4th quarter.
The current drilling program commenced on 10 September 1998 with the
spudding of Rabeh No. 2.
The Rabeh No. 2 well (located approximately 500 meters SSE of Rabeh No.
1) reached its final total depth at 6,426 feet in Pre-Cambrian Basement. The
well penetrated the top of the two main productive zones (Miocene Nukhul and
Pre-Miocene Matulla/Nubia) tested in the Rabeh No. 1 well. There were
excellent oil and gas shows encountered in the main reservoir sections whilst
drilling and coring.
At the end of this quarter a limited test and clean-up of these zones was
underway after which the well was tied-in to the existing production
facilities and immediately put on production for longer term evaluation whilst
generating revenues for the joint venture. During production tests on a one
half inch choke the well produced 28.4 API sweet crude at 1,634 barrels per
day from the Matulla/Nubia zone.The well is still cleaning up and consequently
a fully stabilized flow rate has not yet been achieved. The Nukhul zone is
still to be tested and is calculated to have over 50 feet of oil-bearing sands
some 120 feet structurally higher than in the Rabeh No. 1 well.
Since the end of this quarter the rig has moved to the Abu Marwa North
No. 1 location, which is located approximately 2.5 km SE of Rabeh No. 2.
The well was spudded on 13 October 1998 and it reached its final total
depth of 6,450 feet in Basement rocks with some shows that were not confirmed
later by electric logs to justify testing. The decision was taken to plug and
abandon the well. Consequently, the rig has mobilized to the Rabeh No. 1 well
site for a workover job to remedy the water influx problems which reduced oil
production. The rig was on location at Rabeh No. 1 on November 3, 1998 to
start the workover job. Further appraisal well locations in the Rabeh
structure may be drilled in addition to the previously agreed drilling
program.
<<
Summary Financial Information
Canadian dollars, except per share figures
September 30, 1998 December 31, 1997
Cash $ 4,894,088 $ 155,860
Current Assets 6,017,193 3,628,858
Total Assets 17,085,760 20,066,121
Current Liabilities 1,060,751 3,386,347
Total liabilities and
shareholders' equity 17,085,760 20,066,121
Three months ended Nine months ended
September 30 September 30
1998 1997 1998 1997
Net loss for period $ 170,122 $ 397,595 $ 673,014 $ 657,359
Net loss per share Nil 0.01 0.01 0.02
Weighted average shares
outstanding 54,047,190 53,979,148 54,047,190 42,033,698
Deferred exploration and development
costs (1,917,590) (3,093,404) (3,789,963) (5,507,654)
Net cash flow (2,029,493) (3,440,053) 4,738,228 668,574 |
