Belden & Blake registers record production and reserve additions; production increases 62 percent.NORTH CANTON North Canton, city (1990 pop. 14,748), Stark co., NE Ohio, a suburb of Canton; settled c.1815, inc. as a city 1961. Vacuum cleaners and industrial die castings are among the city's manufactures. , Ohio--(BUSINESS WIRE)--Feb. 21, 1996--Belden & Blake Corporation (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 : BELD BELD Braintree Electric Light Department (Massachusetts) BELD Battlefield Environment Laser Designator ) produced 17.0 Bcf (billion cubic feet) of natural gas and 556,000 barrels of oil, or 20.3 Bcfe (Bcf equivalent), in 1995. This represents an increase of 62% over the 12.5 Bcfe the company produced in 1994. Since the company began operations in March 1992, daily production has grown at a compound annual rate of 42%. Reserve Additions Total 730% of 1995 Production At December 31, 1995, the company had proved gas reserves of 239.4 Bcf and 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 of 6.3 million barrels, or total reserves of 277 Bcfe. Year-end 1995 reserves were 88% greater than the 147.7 Bcfe 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. at December 31, 1994. The company purchased 124.5 Bcfe of reserves in 1995 at a cost of $79.5 million. The company also added 23.7 Bcfe at a cost of $20.4 million through its 1995 drilling program. In aggregate, the reserve additions of 148.2 Bcfe equaled 730% of the company's 1995 production. Since March 1992, the company's proved reserves have grown at a compound annual rate of 47%. "In March 1992, we set a goal of building our exploration capability to the point of being able to profitably replace our annual production through drilling. Despite the fact that we have almost tripled production since then, reserves added through drilling in 1995 totaled 117% of 1995 production. With a finding cost of $0.86 per Mcfe (thousand cubic feet equivalent) and an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of $1.62 per Mcfe, it's clear that we replaced that production profitably," said Henry S. Belden IV, Chairman and Chief Executive Officer. Capital Expenditures to Increase 32 Percent The company intends to maintain its active acquisition strategy in 1996. In addition, the company has budgeted $27 million to drill 194 wells in 1996 - a 32% increase over the $20.4 million the company spent to drill 155 wells in 1995. Consistent with its portfolio approach to drilling, wells drilled in 1996 will target a broad spectrum of producing formations. Belden & Blake holds leases on nearly one million net acres in the five states in which it operates. In addition to its capital expenditures for drilling, the company expects to incur approximately $6.4 million in exploration expenses in 1996 -- including $1.3 million in seismic and geophysical expenditures. The company believes that its operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. will be more than adequate to fund all of its 1996 exploration and drilling activity. Belden & Blake Corporation is actively engaged in producing oil and natural gas, acquiring producing oil and gas properties, exploratory and development drilling and gas gathering and marketing in the Appalachian and Michigan Basins The Michigan Basin is a geologic basin centered on the lower peninsula of the US state of Michigan. The feature is represented by a nearly circular pattern of geologic sedimentary strata in the area with a nearly uniform structural dip toward the center of the peninsula. . CONTACT: Belden & Blake Corp., North Canton Charles P. Faber, 216/497-5471 ext. 177 |
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