Anderson Exploration Ltd. Announces its Financial and Operating Results For its 1998 Fiscal Year Ending September 30, 1998.CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 23, 1998-- Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AXL.) Today in Calgary, Anderson Exploration Ltd. announced its financial and operating results for the fiscal year ended September 30, 1998. On a barrel equivalent basis, product sales increased by five percent in 1998, however, commodity prices were considerably lower than last year. The Company's realized oil and NGL NGL - A dialect of IGL. prices declined 29 percent while natural gas prices increased two percent resulting in a 12 percent decline in Anderson Exploration's barrel equivalent commodity price in 1998. Although the Company's earnings remained positive in 1998, earnings and cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses decreased compared to 1997. Cash flow from operations totalled $306.0 million ($2.49 per share) and earnings were $24.6 million ($0.20 per share) versus $383.0 million ($3.14 per share) and $87.9 million ($0.72 per share) in 1997, respectively. Cash flow from operations was $82.4 million ($0.67 per share) in the fourth quarter of 1998, down only about three percent on weaker commodity prices from the $84.7 million ($0.69 per share) experienced in the comparable quarter in 1997. Compared to the third quarter of 1998, however, fourth quarter cash flow from operations and earnings were up 22 and 80 percent respectively, as gas sales volumes were up and oil prices improved about 11 percent quarter over quarter. During 1998, oil and natural gas liquids sales increased 12 percent to 37,184 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. from 33,141 barrels per day last year. Major contributors to the increase were the acquisition of an additional interest in Swan swan, common name for a large aquatic bird of both hemispheres, related to ducks and geese. It has a long, gracefully curved neck and an extremely long, convoluted trachea which makes possible its far-carrying calls. Hills, successful workover programs in Swan Hills and northeast 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 and successful drilling programs in Saskatchewan. These increases were partially offset by the sale in late 1997 of the Company's Argentina operations which were producing about 1,570 barrels of oil per day, the shut in of some heavy oil production due to low prices and the shut in of production as a result of forest fires This is a list of notorious forest fires: North America Year Size Name Area Notes 1825 3,000,000 acres (12,000 km²) Miramichi Fire New Brunswick Killed 160 people. in northern Alberta Norhern Alberta is a region located in the Canadian province of Alberta. Its primary industry is oil and gas, with large heavy oil reserves being exploited at the Athabasca Oil Sands and Wabasca Area in the east of the region. in the third quarter of the year. Liquids prices averaged $18.15 per barrel, a decrease of 29 percent from $25.43 per barrel last year. Natural gas sales for the year averaged 555 million cubic feet per day compared to 549 million cubic feet per day last year. New gas production came on stream in several areas, most notably in northeast British Columbia and the Peace River Arch in Alberta. The increases were offset by declines in mature fields and delays in bringing new areas on stream. Natural gas prices increased to $1.94 per thousand cubic feet from $1.91 per thousand cubic feet last year. In the fourth quarter of 1998, natural gas sales averaged 558 million cubic feet per day compared to 548 million cubic feet per day in the fourth quarter of last year. Fourth quarter sales were also up over the prior two quarters in fiscal 1998, despite a Nova interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. that resulted in approximately six million cubic feet per day of lost sales in the quarter. 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. continued to decline in the fourth quarter of the year, averaging $4.06 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. compared to $5.59 in the fourth quarter of 1997 and to $4.97 in the first three quarters of 1998. Workover activity decreased through the year. The selective shut in of some heavy oil production also contributed to the reduction in unit operating costs operating costs npl → gastos mpl operacionales . Net capital expenditures for the year were $528 million compared to $469 million before the Argentina disposition last year. The 1998 expenditures include the Swan Hills Unit No. 1 acquisition in the first quarter of the year for $98 million and construction costs of $45 million associated with the Federated Connected and treated as one. See federated database and federated directories. Pipe Lines Ltd. northern expansion project. The Company replaced 148 percent of its production with proven reserves at a finding and devne year finding and development cost of $9.62 after revisions. The three year weighted average finding and development cost was $8.13 per barrel of oil equivalent based oof low prices. The Company's capital budget for fiscal 1999 is $345 million. Exploration expenditures make up over 40 percent of the total budget and approximately99 substantially in excess of that experienced Industry wide field activity is dramatically reduced from the relative boom times of a year ago primarily because of reduced cash flow levels and the lack of equity and ------------------ -------------- FINANCIAL (millions of dollars, except per share amounts) Total Revenue Before Deducting Royalties $ 160.9 $ 183.4 $ 683.7 $ 750.0 -------------- $ 82.4 $ 84.7 $ 306.0 $ 383.0 ------------------ ---------------- Per Share $ 0.67 $ 0.69 $ 2.49 $ 3.14 ------------------ --------------- 58.2 $ 124.4 $ 527.7 $ 468.7 Long Term DEquity $1,022.7 $ 986.1 NS PRODUCTION/SALES Natural Gas (Mmcf/d) 558 548 555 549 ----------------- ---------------- Oil (Bbls/d) 28,441 28,528 29,808 27,472 NGL (Bbls/d) 7,320 5,197 7,376 5,669 ----------------- ---------------- Total Liquids (Bbls/d) 35,761 33,725 37,184 33,141 ----------------- ---------------- PRODUCT PRICES Natural Gas ($/Mcf) $ 1.85 $ 1.71 $ 1.94 $ 1.91 ------------------- ----------------- Oil ($/Bbl) $ 18.11 $ 23.28 $ 18.53 $ 25.46 NGL ($/Bbl) $ 13.22 $ 22.28 $ 16.61 $ 25.33 ------------------- ----------------- Total Liquids ($/Bbl) $ 17.11 $ 23.13 $ 18.15 $ 25.43 ------------------- ----------------- CANADIAN Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. OPERATING NETBACKS ($/BOE(x)) Oil & Gas Revenue $ 17.98 $ 19.43 $ 18.91 $ 21.49 Royalties $ (2.17) $ (3.10) $ (3.18)$ (3.72) Operating Expenses $ (4.06) $ (5.5 (0.93)$ (0.84) ------o Oil @ 10 Mcf/Bbl
RILLED IN CANADA
Gas Wells ------------------
454 705
uired at Crown Sales 205 408
Year End Inventory 3,183 148.0
130.9
2,713
Oil & NGL (Million Bbls) 9.62 $ 7.75
Proven plus one half probable $ 9.12 $ 6.71
Three year weighted average after revisions
Proven $ 8.13
Proven plus one half probable $ 7.66
Anderson Exploration Ltd. is a Calgary based oil and gas company operating exclusively in western Canada
Western Canada, commonly referred to as the West . Its common shares trade under the symbol "AXL" on the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . |
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