Beau Canada Exploration Ltd. 1996 Results.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)--Feb. 26, 1997--Beau Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME:BAU BAU Business As Usual BAU Bangladesh Agricultural University BAU Beirut Arab University (Lebanon) BAU Behavioral Analysis Unit (FBI NCAVC) BAU Al-Balqa' Applied University (Jordan) .) HIGHLIGHTS - Cash flow up 35 percent, to $43 million in 1996. - Cash flow per share up 19 percent to $0.50/share - Fourth quarter 1996 cash flow of $0.16/share, on target for $0.70 per share in 1997. - Net income of $10 million, up 54 percent over 1995. - Production of oil up 32 percent, gas up 12 percent over 1995. - 11 million proven barrels of oil equivalent added in 1996. - Proven Reserves added at $5.54 in 1996. - Reserve replacement of 200 percent in 1996. - Drilling success rate of 89 percent in 1996 (82 percent in 1995). -0-
Corporate Highlights
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Year Ended Three Months Ended
December 31 December 31
Percent Percent
1996 1995 Change 1996 1995 Change
--------------------- -------------------
Financial ($000's):
Revenue 95,933 74,266 29 29,599 20,465 45
Cash Flow 42,604 31,606 35 13,841 8,047 72
per share 0.50 0.42 19 0.16 0.11 45
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Net Income (Loss) 10,023 6,515 54 3,473 1,875 85
per share 0.12 0.09 33 0.04 0.02 100
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Production:
Oil & Liquids
(bbls/d) 8,304 6,311 32 9,716 6,848 42
Gas (mmcf/d) 60.9 54.5 12 67.4 58.0 16
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Barrels of oil
equivalent/d 14,398 11,760 22 16,456 12,650 30
Average Prices:
Oil & Liquids
per barrel $20.14 $19.21 5 $20.83 $19.19 9
Gas per mcf 1.56 1.51 3 1.77 1.57 13
------ ------ -- ------ ------ --
Shares Outstanding
(average)
(millions) 84.9 75.8 12 86.0 76.6 12
Drilling Results:
Year Ended Three Months Ended
December 31 December 31
1996 1995 1996 1995
---- ---- ---- ----
Gross Net Gross Net Gross Net Gross Net
----------------------- ------------------------
Oil Wells 52 42.7 26 21.1 7 6.5 4 3.9
Gas Wells 19 12.7 9 5.9 5 3.8 3 1.9
Dry and
Abandoned 8 6.7 9 6.0 1 1.0 1 0.5
-- ---- -- ---- -- --- -- ---
79 62.1 44 33.0 13 11.3 8 6.3
Success Rate
(percent) 90 89 80 82 92 91 88 92
FINANCIAL For the year ended December December: see month. 31, 1996 Beau Canada's cash flow increased 35 percent to $42.6 million ($0.50/share) from $31.6 million ($0.42/share) a year earlier. Gross revenue increased 29 percent to $95.9 million from $74.3 million a year earlier. Net income for the year was $10.0 million ($0.12/share), up 54 percent compared to $6.5 million ($0.09/share) in the previous year. PRODUCTION Oil and natural gas liquids production averaged 8,304 bbls/d in 1996, an increase of 32 percent over 1995. Oil production increases were attributable to successful drilling in the Medicine Hat area of south-east Alberta and the Low Lake, Winter and Westhazel areas of west-central Saskatchewan. Gas production increased 12 percent to 60.9 mmcf/d. The increase in gas production was largely a result of the drilling and tying in of gas wells drilled in the Helmet/Peggo property in north-east 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 . The total daily production for 1996 averaged 14,398 barrels of oil equivalent, up 22 percent from 1995. ACTIVITY AND RESERVES Beau Canada drilled 79 gross (62.1 net) wells in 1996 with an 89 percent success rate. During 1996 the Company undertook major drilling programs in the Medicine Hat area of south-east Alberta, the Low Lake, Winter and Westhazel areas of west-central Saskatchewan and the Helmet/Peggo areas of north-east British Columbia. In addition to the drilling activity, Beau Canada constructed oil treating facilities in its Medicine Hat property in the fourth quarter of 1996. It is anticipated that these facilities will reduce operating costs operating costs npl → gastos mpl operacionales from over $5.00 per barrel to under $3.00 on approximately 4,000 bbls/day being produced in Medicine Hat. Gas handling facilities and pipelines were constructed in the Company's Helmet/Peggo property to bring onstream reserves added in 1996. Beau Canada disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of some $24 million in non-core assets in 1996 while also doing a strategic acquisition of properties in the core areas of Gilby, Twining twine v. twined, twin·ing, twines v.tr. 1. To twist together (threads, for example); intertwine. 2. To form by twisting, intertwining, or interlacing. 3. and Bantry at year-end. The Company replaced its production by approximately 200 percent. The Company's proven reserves increased by 15 percent to 42.6 million barrels of oil equivalent from 37.0 million barrels in 1995. Of this total, oil and natural gas liquids reserves increased by 32 percent to 21.5 million barrels from 16.3 million barrels in 1995. Gas reserves increased by 3 percent to 212 bcf in 1996. The moderate growth in the Company's gas reserves is a result of the disposition of non-core gas reserves in 1996. The cost of reserve additions for the Company in 1996 was $5.54/boe for proven reserves, which is slightly better than the five year average of $5.68/boe. OUTLOOK Beau Canada expects 1997 to be a very good year. Continuation of growth through drilling along with relatively strong commodity prices are expected to result in significant increases in both production volumes and cash flow in 1997. Beau Canada forecasts average production of 10,200 bbl/d of oil and natural gas liquids and 78 mmcf/d of gas in 1997. This is an overall increase of 25 percent above 1996 production. Increases in oil production are planned from the drilling of low risk, development wells in Beau Canada's core areas of Medicine Hat, Gilby, Low Lake, Westhazel and Winter. Significant gas production increases are planned from the drilling of wells in the Helmet/Peggo and the Gilby areas. Beau Canada is currently producing approximately 10,000 bbls/day of oil and natural gas liquids and 67 mmcf/d of gas. An increase in gas production to approximately 85 mmcf/d is expected in May 1997 when the Helmet/Peggo wells that are currently drilling are tied-in tied-in a conformation defect in an animal in which a limb is perceptibly thinner at one point, e.g. tied-in below the knee, or below the hock. . With anticipated prices of U.S. $20.50 per barrel of oil W.T.I. and Cdn. $1.65 per mcf of gas at the wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. , cash flow is forecasted to increase to $60 million from $42 million in 1996. Cash flow per share is also expected to increase by 40 percent to $0.70 per share from $0.50 per share in 1996. Fourth quarter 1996 cash flow of $0.16 per share is on target for the $0.70 per share expected in 1997. Along with the low to medium risk projects, Beau Canada will drill a number of high risk-high reward exploration prospects. This drilling is planned in the Fox Glove glove, hand covering with a separate sheath for each finger. The earliest gloves, relics of the cave dwellers, closely resembled bags. Reaching to the elbow, they were most probably worn solely for protection and warmth. property in north-east B.C. and the Gilby, Medicine Hat and Cranberry cranberry, low creeping evergreen bog plant of the genus Oxycoccus of the family Ericaceae (heath family). Cranberries are considered by some botanists to belong to the blueberry genus Vaccinium. properties in Alberta. If successful, production from any one of these prospects could substantially change production volumes and cash flow estimates for 1997 and beyond. Beau Canada Exploration Ltd. is a 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. oil and gas exploration and development company based in Calgary. Beau Canada's common shares are listed on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. and the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg under the symbol "BAU". -0- The Toronto Stock Exchange and The Montreal Stock Exchange Montreal Stock Exchange See Bourse de Montreal, Inc. (Canadian Derivatives Exchange) have neither approved nor disapproved information contained herein. CONTACT: Beau Canada Exploration Ltd. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs F. Bugg, 403/750-3400 Michael J. Lang Lang language LANG Louisiana Army National Guard Lang Langobardian (linguistics) LANG Los Angeles Newspaper Guild , 403/750-3400 Robert N. Waldner, 403/750-3400 403/233-2565 (FAX) |
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