Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : DALTON RESOURCES DAL:ASE -- Ignore unavailable to you. Want to Upgrade?

To: Scotchman who wrote (469)	4/9/1999 12:29:00 AM
From: Garry R.	Read Replies (1) \| Respond to of 486

NEWS RELEASE ============ DALTON RESOURCES LTD. Calgary April 8, 1999. Doug Robertson, President of Dalton Resources Ltd. (DAL.ASE) announces year end results for the period ending December 31, 1998. During 1998, Dalton's sales volume averaged 97 BOEPD, consisting of 557 MCFD and 41 BOPD. Various field improvements occurred during the year at Cheddarville and Mulligan where solution gas was tied-in and Meekwap where additional drilling occurred. These improvements maintained our production levels which offset natural decline rates. Dalton's primary gas producing properties are located at Jenner, Nevis, Cheddarville, T'sea, and primary oil producing properties are the Meekwap D2-A Unit, Cheddarville, Nevis, and Mulligan. The Company does not produce any medium-heavy or heavy oil. Gross revenue from operations during 1998 was $650,312 which is a 12% reduction from the annualized 1997 year end. This is due primarily to lower oil pricing. Operating costs were $203,924 up 3% on sales of 35,040 BOE. Capital expenditures totalled $1,168,200 in 1998 of which 95% was used at Strachan for land acquisition, drilling and completion operations. Dalton disposed of two minor properties in 1998 for $192,800 which netted 3 BOPD to Dalton. General and administrative costs were $252,494 up slightly from $242,722 in 1997. The incorporation of an independent engineering evaluation (October 1, 1998) into the audited financial statements show that Dalton's management has conservatively stated its petroleum and natural gas assets. Unlike many oil and gas companies, Dalton has met its yearly ceilings test requirements and will not be writing down its petroleum and natural gas assets. During the first half of 1999, Dalton's primary focus is to have the Strachan project placed on stream. The discovery well at 2-22-38-9W5M is expected to be tied-in to the Gulf Midstream Strachan gas plant during the second quarter of this year. Tie-in delays have been incurred due to our protracted negotiations with the plant operator, and financial difficulties of our joint venture partners. Upon commencement of production from the Swan Hills formation, Dalton's net sales volume from the 2-22 well should average 450 MCFD. A twin well licenced as 4-22-38-9W5M, is expected to be drilled following road bans and will target the shallower Mannville gas formations which were discovered in the 2-22 well. The 4-22 well will be produced into the same pipeline as the 2-22 well and is expected to have a net sales volume to Dalton of 250 MCFD plus natural gas liquids. Due primarily to the current conditions of the oil and gas business the joint venture partners of Strachan have decided to farm-out their interest in the deep rights to another industry player. Several parties have shown an interest in drilling the next deep well and we would expect a seismic / drilling option deal to be completed by the end of the second quarter. Dalton is debt free and has in excess of $250,000 cash available to finalize the tie-in and drilling at Strachan. By mid year Dalton's production levels are expected to be 150 - 170 BOEPD (75% gas) with the commencement of production at Strachan. Management will continue to evaluate various opportunities to enhance share holder value as they arise this year. For further information, please contact Doug Robertson, President, at (403) 264-0622. THE ALBERTA STOCK EXCHANGE NEITHER APPROVES NOR DISAPPROVES OF THE INFORMATION CONTAINED HEREIN.