Best Pacific Announces Record First Half Results Plus Finding and Development Costs of $3.79 per BOE.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)--Aug. 27, 1997--Best Pacific Resources Ltd. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :BPG BPG Blocks Per Game (basketball statistic) BPG Bisphosphoglycerate BPG Bi-National Planning Group (NORADHQ) BPG Belgian Polymer Group BPG Binational Planning Group .) ("Best Pacific" or the "Company") is pleased to present financial results for the first half of 1997 and proud to announce that finding and development costs for this period were $3.79 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. (boe). The Company's strong production growth continued to make significant contributions to Best Pacific's financial performance. Revenues from sales of crude oil and natural gas totaled $4,798,593, up 208 percent from the same period in 1996. 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 rose 366 percent, to $1,845,603, while net earnings jumped 355 percent to $540,341. Average daily production for the first six months of 1997 increased 211 percent to 1,380 boepd (53 percent oil, 47 percent natural gas) compared to 444 boepd (69 percent oil, 31 percent natural gas) for the first six months of 1996. Best Pacific experienced financial gains over the first quarter of 1997 as well, despite softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. commodity prices. Revenues in the second quarter of 1997 were $2,575,322 versus $2,223,271 in the first quarter, while cash flow for the year increased by $1,027,684 from $817,919 in the initial three months of the year. The Company also conducted a reserves update effective July July: see month. 1, 1997, which determined that proven reserves had increased during the first two quarters of 1997 by 48 percent to reach 4,969,000 boe. Proven plus one-half of probable reserves increased by 45 percent to 6,111,000 boe over this period resulting in Best Pacific's impressive finding and development costs of only $3.79 per boe. Financial results for the first six months of 1996 and 1997, and corresponding percentage changes are presented below. -0-
Percent
Six Months Ended June 30 1997 1996 Change
------------------------ ---- ---- -------
FINANCIAL
(OOO'S except per share)
Production Revenue $4,799 $1,556 208
Net Earnings $ 540 $ 119 355
Per Share $ 0.04 $ 0.01 300
Cash Flow From Operations $1,846 $ 396 366
Per Share $ 0.12 $ 0.04 200
PRODUCTION
Natural Gas (thousand cubic
feet per day) 6,490 1,380 370
Crude Oil (barrels per day) 731 306 138
Combined (boe per day) 1,380 444 211
Best Pacific's aggressive acquisition program and drilling success led to production increases in the second quarter of 1997. The Company's average daily production level was 1,557 boepd as compared to 1,150 boepd for the first quarter of 1997. The take-over of Spirit Corporation and major property acquisitions 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. were completed in the second quarter and contributed to rising production levels. In the core area of Gadsby, Best Pacific initiated a five well shallow gas program for the third quarter. At Okotoks, the operated Turner Valley/Elkton gas well (38.5 percent) has been completed and 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. to surface facilities and is expected to be on production by October at a net gas rate of 1.25 mmcfpd and 15 bpd of liquids. Follow-up follow-up, n the process of monitoring the progress of a patient after a period of active treatment. follow-up subsequent. follow-up plan locations have been identified by a recent Company-operated seismic survey. The first development well is being licensed and is expected to spud in September. At Ingoldsby, the Company participated in a successful dual leg horizontal well that is producing at an initial rate of 45 net bopd. In total, Best Pacific will be participating in 15 wells scheduled for drilling in the third quarter, including 4 horizontal wells. -0- Note to Editors: Neither the Alberta Stock Exchange nor any other regulatory body have reviewed this news release and they neither approve nor disapprove dis·ap·prove v. dis·ap·proved, dis·ap·prov·ing, dis·ap·proves v.tr. 1. To have an unfavorable opinion of; condemn. 2. To refuse to approve; reject. v.intr. of the contents of this news release. CONTACT: Best Pacific Resources Ltd. Stephen C.M. Ko, 403/263-8389 403/233-7463 (FAX) http://www.bestpacific.com bpr@bestpacific.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion