Arakis Reports First Half 1997 Results.CALGARY, Alberta--(BUSINESS WIRE)--Sept. 3, 1997--Arakis Energy Corpor(NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on AKSEF ) Arakis Energy Corporation (NASDAQ:AKSEF) today reported a net loss of $8.6 million, or $0.10 per share, for the six months ended June 30, 1997, compared with a net loss of $7.1 million, or $0.19 per share, in the first six months of 1996. (All amounts are in U.S. dollars). A major factor contributing to the higher net loss was a provision for impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. in value of property, plant and equipment totaling $5.5 million (1996 - nil). This provision includes the write-off of all accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. capital costs associated with the Company's unsuccessful exploration in the Sultanate of Oman and a provision for impairment in value of the Company's operating assets Operating Assets Another term for working capital. in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. (Kentucky). Funds applied to operations in the first half of 1997 totaled $2.8 million, compared with $6.6 million in the first half of 1996. In both 1997 and 1996, funds applied to operations included $1.6 million for dry hole and abandonment costs. The Company's working capital at June 30, 1997 was $51.1 million versus $55.4 million at December 31, 1996. Capital expenditures in the first half of 1997 totaled $1.2 million, compared with $28.7 million in the same period of 1996. Since November 29, 1996, Arakis' Consortium partners have borne substantially all of the Sudan project expenses (excluding bonuses and rentals payable) and will continue to do so until they have matched, on a pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. basis, financial credits awarded to Arakis. Thereafter, Arakis will be responsible for its 25 percent share of ongoing expenditures. In the six months ended June 30, 1997, the Sudan Consortium in which Arakis has a 25 percent interest, acquired 130 square kilometers of 3-D seismic data, approximately 1,500 kilometers of 2-D seismic and drilled 11 wells. The Consortium's 1997 exploration and development program includes the drilling of up to 20 wells. Exploration drilling during the first half of 1997 resulted in a 101.8 million barrel increase in gross proved oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally on the Sudan Concession. Most of the gain reflected drilling successes in the Unity Exploration Area, principally from delineation of the El Toor and Toma South structures and a major discovery at El Nar. In a 1997 interim review, Sproule Associates Limited, an independent engineering firm, evaluated gross proved oil reserves on the Concession at 262.1 million barrels, up from 160.3 million barrels at year-end 1996. Total gross proved plus probable additional reserves were evaluated at 417.9 million barrels, up from 321.5 at the previous year's end. Sproule confirmed that the 262.1 million barrels of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. are sufficient to meet the Project's initial production target of 150,000 barrels of oil per day. Consortium plans for construction of a 250,000 barrel per day export pipeline from the Concession to Port Sudan Port Sudan (s  dăn`), city (1993 pop. 308,195), NE Sudan, on the Red Sea. The country's major seaport, it handles the bulk of Sudan's foreign trade. on the Red Sea coast,
continued to move ahead, on schedule, during the second quarter. Early
in June, the pre-qualifying of bidders for the engineering, procurement
and construction  The introduction to this article is vague. To comply with Wikipedia's guidelines, it should be improved. contracts was completed and bid packages were delivered
to a short list of selected world-scale engineering firms. Bidding is
scheduled to close early in the fourth quarter with contracts awarded
prior to year end. The bidding process for the supply of pipe for the
1,500 kilometer kilometerone thousand (103) meters; 3280.83 feet; five-eighths of a mile; abbreviated km. pipeline is nearing completion with final negotiations currently underway between the Consortium and selected suppliers. -0-
Selected First Half 1997 Data
(in thousands of U.S. dollars, except per share items)
Six months ended June 30
1997 1996
------------------------
Total revenues $ 2,189 $ 519
Net loss $ 8,612 $ 7,106
- per share $ 0.10 $ 0.19
Working capital $ 51,074 $ 55,371
Long-term debt, including
current portion $ 337 $ 369
Shareholders' equity $ 179,771 $ 185,071
Weighted average common
shares outstanding
(in thousands) 88,076 36,968
CONTACT: Arakis Energy Corporation Kristine Dow, 403/213-6714 403/263-8069 (FAX) or Arakis Energy Corporation Ron Burrows Burrows is a provincial electoral division in the Canadian province of Manitoba. It was created by redistribution in 1957, and formally came into existence in the provincial election of 1958. The riding is located in the northern part of Winnipeg. , 403/213-6715 403/263-8069 (FAX) |
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