(PUT.) Pursuit Resources - 1997 first interim report and news release.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , ALBERTA--(BUSINESS WIRE)--May 1, 1997--Pursuit Resources (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). PUT.) In the first quarter of 1997 the tangible results of the acquisition of Aztec Aztec (ăz`tĕk'), Indian people dominating central Mexico at the time of the Spanish conquest. Their language belonged to the Nahuatlan subfamily of Uto-Aztecan languages. Resources Ltd. combined with the investments made in exploration and development activities provided significant production increases which generated record per share earnings and cash flow. -0-
HIGHLIGHTS
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Three Months Ended Percent
March 31,
1997 1996 Change
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Financial (thousands)
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Petroleum and Natural
Gas Revenue $7,174 $2,104 241
Funds Flow from
Operations 3,686 883 317
Per Share .16 .08 100
Net Earnings 923 160 477
Per Share .04 .01 300
Capital Expenditures 1,651 607 172
Weighted Average Shares
Outstanding (millions) 23.5 11.9 97
27:1 consolidation of Pursuit common shares has been reflected
retroactively in all share and per share figures.
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Operating
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Production
Oil - Bbl/d 1,728 624 177
Natural Gas - MMcf/d 16.8 6.7 151
BOE/d 3,407 1,294 163
Prices
Oil - $/Bbl/d $ 23.95 $20.35 18
Natural Gas - $/Mcf $ 2.28 $ 1.66 37
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Wells Drilled (net)
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Oil 5(2.2) 2(1.4)
Gas 3(0.9) --
Dry 4(2.0) 1(0.7)
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Total 12(5.1) 3(2.1)
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Success Rate - net 61 percent 67 percent
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MESSAGE TO SHAREHOLDERS OPERATIONS Oil and gas production increased significantly during the quarter as a result of the inclusion of the Aztec production acquired effective January January: see month. 1, 1997 and increases in production at the Company's Chigwell Chigwell, city (1991 pop. 51,575), Essex, SE England. It is a residential suburb of London. Portions of Epping and Hainault forests are in the outlying district. The Chigwell public school was founded in 1629. and Leo Leo, in astronomy Leo [Lat.,=the lion], northern constellation lying S of Ursa Major and on the ecliptic (apparent path of the sun through the heavens) between Cancer and Virgo; it is one of the constellations of the zodiac. , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. properties. Production increases are expected to continue throughout the remaining quarters of 1997 based on active drilling and development programs in the Inga British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography Halfway gas project, the Lloydminster Lloydminster (loid`mĭnstər), city (1991 pop. in Alberta, 10,042; in Saskatchewan, 7,241), on the Alta.-Sask. boundary, Canada. The city is chartered by both provinces. oil program, the Prairiedale, Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. gas development program and exploration activity in central Alberta Central Alberta (also named Alberta's Heartland) is a region located in the Canadian province of Alberta. Central Alberta is the most densely populated rural area in the province. Agriculture and energy make up an important part of the economy. and western Saskatchewan. EXPLORATION AND DEVELOPMENT Pursuit participated in the drilling of 12 wells during the first quarter of 1997 (5.1 net) resulting in five oil wells (2.2 net) and three natural gas wells (0.9 net). An active drilling program will continue during the second quarter. A drilling program of 40 wells has been slated for the Company for 1997 focusing largely in the Lloydminster and Prairiedale areas. The timing of drilling activity is subject to rig availability, however Pursuit is confident that our entire drilling program can be completed this year. The winter drilling and construction program associated with the northern gas areas of Hoole For the village near Preston, see Much Hoole. For the Guardians of Ga'Hoole character see Hoole (Ga'Hoole). and Desmarais was completed by the end of the first quarter. This program will double the rate of gas production from this area. A significant expansion of the Inga Halfway gas development project involved an agreement to jointly develop the Pursuit properties with those of an offsetting operator. The project now includes the tie in of 4 wells and the potential to drill an additional well to increase deliverability. Pursuit is the operator of the project and retains a 50 percent working interest. The first well has been completed for production and should be on stream by mid year. Significant conventional and 3D seismic activity in western Saskatchewan and central Alberta has identified several exploration opportunities which will be drilled later this year. FINANCIAL Oil and gas revenues increased by $5.1 million to $7.2 million during the first quarter of 1997 compared to the same period in 1996. Production was similarly higher at 3,407 barrels of oil equivalent per day compared to 1,294 barrels of oil equivalent per day for the comparable 1996 period. These increases were largely due to the acquisition of Aztec Resources Ltd. although significant additional volumes were also added through the company's exploration and development programs during the past twelve months. Production increases on the former Pursuit properties alone were approximately 35 percent from the first quarter of 1996 to the end of the first quarter of 1997. Production rates for crude oil and natural gas liquids of 1,728 Bbl/d were equally balanced with natural gas, 16.8 MMcf/d, on a barrel equivalent basis. Commodity prices were very strong in the first quarter of 1997 compared to the prior year with realized prices increasing 18 percent to $23.95 per barrel for oil and natural gas liquids and 37 percent to $2.28 per mcf for gas. Prices for both commodities weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. somewhat
towards the end of the first quarter.Funds flow from operations grew to $3.7 million ($0.16 per share) for the first three months of 1997 from $883,000 ($0.08 per share) for the 1996 quarter. This increase reflects the increased revenues described above, which were partly offset by higher operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. related to the increased size of the Company's operation. Net earnings increased 477 percent to $923,000 for the first quarter of 1997 commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with the cash flow increases. The Company's depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able rate has increased in 1997 as the reserves booked relative to the Aztec properties carry a higher cost per barrel of oil equivalent The barrel of oil equivalent (bboe, sometimes BOE) is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU [1]. 5. than Pursuit's historic finding and development costs. This rate is expected to decrease as further evaluation work adds reserves on the Aztec properties. Operating expenses of $5.89 per barrel of oil equivalent for the first three months of 1997 were higher than the 1996 average of $4.96 per equivalent barrel. These costs reflect a number of operating expenses in the first quarter which will not be experienced during the remainder of the year. Operating expenses are expected to decline and approximate $5.00 per barrel of oil equivalent for the full year of 1997. Administrative costs declined to $1.29 per barrel of oil equivalent during the first quarter of 1997 from $1.65 in the comparable 1996 quarter. OUTLOOK We believe that the very high oil prices experienced in the fourth quarter of 1996 and the first quarter of 1997 will be reduced to sustainable levels in the US $20 WTI WTI West Texas Intermediate WTI Western Transportation Institute (Montana State University) WTI World Tribunal on Iraq WTI With The Idea (used in chess to point to the idea behind a specific move) range. Based on a strong gas market entering the second quarter, we expect to see annual average gas prices in the $1.80 range at the plantgate. The recent Aztec acquisition, which substantially increased our undeveloped land inventory, has equally expanded our exploration activity. A measure of the inventory of projects is our plan to spend over $5 million on exploration activities in 1997. These activities add a new dimension of potential growth to the Company. Respectfully re·spect·ful adj. Showing or marked by proper respect. re·spect ful·ly adv. submitted on behalf of the Board of Directors,"D. Nolan Blades" President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. "Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. R. Martin" Chairman & CFO See Chief Financial Officer. -0-
CONSOLIDATED STATEMENTS OF EARNINGS
Three months ended March 31
(000's except per share amounts)
1997 1996
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(unaudited)
Revenue
Oil and gas $ 7,174 $ 2,104
Royalties, net (960) (342)
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6,214 1,762
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Expenses
Operating 1,807 555
Administrative 406 197
Interest 279 125
Depletion, depreciation
and amortization 2,023 600
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4,515 1,477
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Earnings before income taxes 1,699 285
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Income and other taxes
Capital taxes 36 13
Deferred taxes 740 112
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776 125
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Net earnings $ 923 $ 160
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Per Share $ .04 $ .01
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
Three months ended March 31
(000's except per share amounts)
1997 1996
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(unaudited)
Cash provided by (used in)
Operations
Net earnings $ 923 $ 160
Items not affecting cash
Depletion, depreciation
and amortization 2,023 600
Deferred income taxes 740 123
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Funds from operations 3,686 883
Change in non-cash working capital 961 (324)
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4,647 559
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Financing
Share capital 30,182 48
Long-term debt 11,104 ---
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41,286 48
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Cash available for investing activities 45,933 607
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Investments
Additions to property,
plant and equipment (1,651) (607)
Acquisition of Aztec Resources Ltd. (44,282) ---
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(45,933) (607)
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Change in cash position --- ---
Cash position, beginning of period --- ---
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Cash position, end of period $ --- $ ---
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Funds from operations per share $ .16 $ .08
CONSOLIDATED BALANCE SHEETS
(thousands) March 31 December 31
1997 1996
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(unaudited)
Assets
Accounts receivable $ 3,819 $ 2,730
Property, plant and equipment, net 74,175 30,100
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$ 77,994 $ 32,830
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Liabilities and Shareholders' Equity
Accounts payable $ 4,554 $ 2,504
Long-term debt 24,199 13,095
Provision for future site restoration 524 359
Deferred income taxes 2,025 1,285
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31,302 17,243
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Shareholders' Equity
Share capital 43,963 13,781
Retained earnings 2,729 1,806
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46,692 15,587
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$ 77,994 $ 32,830
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CORPORATE INFORMATION Board of Directors ------------------ D. Nolan Blades Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. J. DeSorcy Olivier de Vregille John L. Fenniak Gregory S. Fletcher Fletcher may refer to one of the following: Ideas and companies
David Anthony Kennedy (June 15, 1955 – April 25, 1984) was born in Washington, D.C. He was the fourth of eleven children of Robert F. Douglas R. Martin Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together -------- KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm) KPMG Kaiser Permanente Medical Group KPMG Keiner Prüft Mehr Genau (German) KPMG Kommen Prüfen Meckern Gehen , Calgary, Alberta Legal Counsel ------------- Burstall Ward, Calgary, Alberta Bankers ------- Royal Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. , Calgary, Alberta Reserve Evaluation Engineers ---------------------------- Fekete Associates Inc., Calgary, Alberta Officers and Key Personnel -------------------------- D. Nolan Blades President and Chief Executive Officer Douglas R. Martin Chairman and Chief Financial Officer John L. Fenniak Vice President, Marketing and Business Development Bill Ibbitson Vice President, Operations Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System Zinkan Vice President, Exploration Judy Judy is most commonly a female given name, as well as a shorten form of Judith. It may also refer to:
Kurt Miles Manager, Land and Contracts Cam Sebastian Treasurer CONTACT: Pursuit Resources Corp. D. Nolan Blades, 403/264-6256 403/263-3116 (FAX) or Pursuit Resources Corp. Douglas R. Martin, 403/264-6256 403/263-3116 (FAX) |
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