Canadian 88 Builds on First Quarter Momentum, First Half Cash Flow Up 426%.Business Editors 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. 23, 2001 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. 88 (AMEX AMEX See: American Stock Exchange :EEE EEE eastern equine encephalomyelitis. EEE eastern equine encephalomyelitis. )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :EEE.)
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Three Months Six Months
ended ended
June 30, June 30,
2001 2000 2001 2000
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FINANCIAL ($mm)
Oil and gas revenue 41.2 25.1 107.1 52.9
Cash flow from operations 20.7 5.5 55.9 10.6
Earnings (loss) for
the period 7.2 (2.4) 19.4 (6.7)
PER SHARE ($)
Cash flow from operations 0.16 0.05 0.42 0.09
Earnings (loss) for
the period 0.05 (0.02) 0.14 (0.06)
Average number of shares
outstanding (millions) 133.6 120.9
PRODUCTION
Natural gas (mmcf/d) 60.4 84.3 66.2 89.5
Crude oil and liquids
(mb/d) 2.0 2.3 2.0 2.4
Oil equivalent @ 6:1
(mboe/d) 12.1 16.4 13.0 17.3
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Canadian 88 Energy Corp.'s turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. continued to build momentum in the second quarter, with net earnings of $7.2 million and cash flow of $20.7 million, compared to a $2.4 million loss and cash flow of $5.5 million for the same period in 2000. First half 2001 cash flow of $55.9 million was up 426 percent from the same period in 2000, while earnings of $19.4 million increased dramatically from the $6.7 million loss posted for the first six months of 2000. Second quarter 2001 production averaged 60.4 mmcf/d of sales gas and 1,999 b/d b/d abbr. barrels per day of crude oil and natural gas liquids to total 12,065 boe/d (natural gas converted at 6:1), compared to 84.3 mmcf/d of sales gas and 2,344 b/d of crude oil and natural gas or 16,394 boe/d during the second quarter 2000. Excluding the production volume from the properties divested to Hunt, the second quarter production volume of 11,300 boe/d is approximately the same as the first quarter 2001 production volume. In essence, the corporate production decline has been offset by production increases from the Olds property. "These results reflect our successful new plan," said Canadian 88 President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Joe Pritchett Pritch·ett , Sir V(ictor) S(awdon) 1900-1997. British writer of novels, literary criticism, and most notably, short stories. . "As we noted when we released our fourth quarter 2000 results, the increased flexibility provided by our efforts last year will continue to reshape the Company as we go forward in 2001." OPERATIONS REVIEW Canadian 88's 2001 drilling program had an 83 percent success rate and added significant value to the Company in the first half of the year. A total of 35 of 42 wells were cased for production. The majority of these wells were drilled at Olds and Medallion, adding 1,800 boe/d incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. production to our base production. In addition, 500 boe/d production capability has been tested and awaits tie-in tie-in n. One thing that is related to or connected with another. Noun 1. tie-in - a fastener that serves to join or connect; "the walls are held together with metal links placed in the wet mortar during construction" . The success of the drilling program at Olds has backed out over 500 boe/d from the old wells. Work is in progress to modify the existing gathering system to regain this volume. Olds Olds area production averaged 34.4 mmcf/d of gas and 1,064 b/d of oil and NGLs. The Company's Olds Gas Plant (100% W.I.) achieved record throughput The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. during the quarter, reflecting the impact of Canadian 88's active drilling program in the area. Since September September: see month. of 2000, gas production from this area has increased 32% primarily due to the following activities: -- The company put two new Wabamun wells in the Crossfield Unit (100% W.I.), on production during the quarter. The 1-2 well was rig released May 16, 2001 and put on production on July July: see month. 17, 2001 at a production rate of 6.5 mmcf/d of raw gas (net 4.4 mmcf/d sales gas and 130 b/d NGLs). The second well, 11-22, was a 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 to a successful fourth quarter 2000 well that has produced at maximum rates of 10.6 mmcf/d raw gas (net 7.8 mmcf/d sales gas and 200 b/d of NGLs). The 11-22 well was put on production on July 25, 2001 at a production rate of 10.4 mmcf/d of raw gas (net 7.1 mmcf/d sales gas and 200 b/d of NGLs). -- Canadian 88 continued its successful Viking Viking Either of two unmanned U.S. spacecraft launched by NASA in 1975. After nearly yearlong journeys, Vikings 1 and 2 entered orbits around Mars and released landers that touched down on the planet and relayed measurements of properties of its atmosphere and soil, as well drilling program for sweet gas in the Olds area during the second quarter, completing and testing two wells at a gross combined production rate of 3.0 mmcf/d of raw gas (2.4 mmcf/d sales gas) and are awaiting tie-ins. A third well awaits completion and a fourth was unsuccessful. -- The company drilled one Belly belly /bel·ly/ (bel´e) 1. abdomen. 2. venter (1). bel·ly n. 1. See abdomen. 2. The stomach. 3. The womb; the uterus. River well that will be tested during the third quarter. In addition, Canadian 88 installed two new compressors at the Olds Unit in the second quarter of 2001. A new two-stage compressor compressor, machine that decreases the volume of air or other gas by the application of pressure. Compressor types range from the simple hand pump and the piston-equipped compressor used to inflate tires to machines that use a rotating, bladed element to achieve came on line in May, adding an incremental 3.5 mmcf/d of raw gas from the wells in the area. A new screw screw, simple machine consisting essentially of a solid cylinder, usually of metal, around which an inclined plane winds spirally, either clockwise or counterclockwise. compressor was brought on in June June: see month. to optimize optimize - optimisation the existing field compression and has added an incremental 2 mmcf/d of raw gas. Lone Pine Creek Pine Creek may refer to:
The company completed one horizontal gas well at Lone Pine (75% W.I. before pay-out and 50% W.I. after). The well was placed on production at the end of the second quarter at an initial rate of 2.2 mmcf/d and 82 b/d of NGLs. Three Hills Three Hills volumes averaged 6.9 mmcf/d of sales gas and 312 b/d of oil and NGLs for combined second quarter production of 1,462 boe/d. This core property has significant multi-zone sweet gas potential and a program is in progress to optimize production from currently producing zones and to perforate per·fo·rate v. 1. To make a hole or holes in, as from injury, disease, or medical procedure. 2. To pass into or through (a body structure or tissue). adj. Having been perforated. shut-in shut-in n. A person confined indoors by illness or disability. adj. 1. Confined to a home or hospital, as by illness. 2. Disposed to avoid social contact; excessively withdrawn or introverted. wells to evaluate bypassed pay zones. The first successfully tested bypassed pay, a Viking zone, flowed at 1.1 mmscf/d of raw gas and will be put on production immediately. One infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. development well will be drilled in the third quarter and will also evaluate uphole zones. With successes, additional follow-up development drilling will continue this year. Medallion The company continued its aggressive Belly River drilling program during the second quarter, drilling six wells (five at 75% W.I. and one at 37.5% W.I.) and participating in a seventh well (18.7% W.I.) in the Medallion/Gladys area of southern Alberta Southern Alberta is a region located in the Canadian province of Alberta. As of the year 2004, the region's population was approximately 272,017[1][2]. . The wells were completed and tested at gross total production of 4.2 mmcf/d (2.5 mmcf/d sales gas). Canadian 88 installed pipelines & production facilities and the wells are producing to the Gladys Gladys is a feminine name from the Welsh name Gwladus, which bears the meaning of royalty (princess) or the gladiolus flower. It has been sometimes used as a Welsh form of Claudia. plant. The company continues to assemble significant acreage in the area and plans to remain active throughout 2001-2002. In addition to the Belly River program, Canadian 88 is interpreting its existing seismic data and expects to initiate a study of the Bazal Quartz quartz, one of the commonest of all rock-forming minerals and one of the most important constituents of the earth's crust. Chemically, it is silicon dioxide, SiO2. and Mississippian Mis·sis·sip·pi·an adj. 1. Of or relating to the state or residents of Mississippi or the Mississippi River. 2. Of or belonging to the geologic time, system of rocks, or sedimentary deposits of the fifth period of the Paleozoic zones in the third quarter. This program could result in one Basal basal /ba·sal/ (ba´s'l) pertaining to or situated near a base; in physiology, pertaining to the lowest possible level. ba·sal adj. 1. Quartz test well in late 2001 and up to five additional exploration tests of these zones in 2002. High River Canadian 88 is in the process of setting casing on the second well on the Lower Mannville Basal Quartz prospect at High River and has also identified two Wabamun and one Mississippian gas locations that will be drilled by 2002. The company successfully acquired a large 25 section acreage position during a second quarter land sale northwest of current activity and is currently evaluating this acreage with additional 2D and 3D seismic. Drilling activity in this area is expected to commence in the first half of 2002. Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. The company successfully drilled five multi-zone heavy oil wells (100% W.I.) and one gas well (100% W.I.) in the second quarter. These wells were completed and put on production at a combined gross production rate of 250 b/d (250 boe/d net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight volumes). Canadian 88 plans to drill at least four follow-up wells in 2001 and is currently working to acquire additional land in the area. Blackstone Blackstone, river, c.50 mi (80 km) long, rising near Worcester, Mass., and flowing SE to Narragansett Bay at Providence, R.I. The river's clean water was a major factor in the early development of the area's textile industry. As reported earlier, Canadian 88 is drilling a stepout development well in the Blackstone Devonian 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 gas pool. The Blackstone pool, located 175 kilometers northwest of Calgary, was discovered in 1984 and has produced 404 bcf of sales gas to date and has an estimated 355 bcf of sales gas remaining. Two wells in the pool are each producing at a rate of 50 mmscf/d and a third infill well reached TD in June. Canadian 88 will earn a 37.5 percent net working interest by drilling this well that is expected to initially produce at a similar rate to the wells on production. Partners are RMX RMX Remix (music) RMX RockMan X (video game) RMX RetailersMarketXchange RMX Reverse Mail eXchange RMX Remote Mail Exchange RMX Realtime Multitasking Executive RMX Reverse Mx RMX Real Music Jukebox (12.5% W.I.) and Husky Energy Husky Energy, Inc. TSX: HSE is a large integrated energy company based in Calgary, Alberta, Canada in Western Canadian Place. It is listed under the symbol "HSE" on the Toronto Stock Exchange. (50% W.I.). This 4700 m well spud mid January January: see month. 2001 and is expected to reach TD in September 2001 and could be tied in to processing facilities within six months. Drilling has taken longer than expected as two months were required to successfully control an unexpected high pressure gas zone before normal drilling resumed in mid-June n. 1. the middle part of June. Noun 1. mid-June - the middle part of June period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . Recent deep competitor wells in this immediate area have also taken 200 or more days to reach TD in this difficult drilling area. Canadian 88 holds adjacent acreage (75% W.I.) and will drill a second well immediately provided the current well is successful. East Coast Offshore Canadian 88 and operator, Kerr-McGee The Kerr-McGee Corporation was an energy company involved in the exploration and production of oil and gas resources. The company, founded in 1929, had about 1.4 billion U.S. dollars in assets as of March 31, 2006. Corporation, have established an operating office in Halifax Halifax, city, Canada Halifax, city (1991 pop. 114,455), provincial capital, S central N.S., Canada, on the Atlantic Ocean. It is the largest city in the Maritime Provinces and is one of Canada's principal ice-free Atlantic ports. , N.S. and are finalizing drilling plans for offshore Nova Scotia Nova Scotia (nō`və skō`shə) [Lat.,=new Scotland], province (2001 pop. 908,007), 21,425 sq mi (55,491 sq km), E Canada. Geography . Final drillsite selection, based upon the interpretation of a new 3,470 square kilometers (1,340 square mile) 3D seismic survey will be complete by the fourth quarter of 2001. This first exploration well, operated by Kerr-McGee, is being planned for the second quarter of 2002. This well will be located on one of four exploration licenses totaling 1.5 million acres, in which Canadian 88 holds 50% W.I.. The licenses are approximately 200 kilometers(130 miles) south of Halifax in water depths ranging 650 to 8,900 feet on an evolving deepwater Deepwater or Deep Water may refer to:
This play extends over a length of 500 miles along the Scotian Slope where approximately 10 million acres have been leased to industry in the last two years with a total work expenditure bid of over 535 million dollars. The first industry exploration well is expected to spud in late 2001 with multiple wells drilling in 2002 and beyond. MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial The Company reported cash flow of $55.9 million for the six months ended June 30, 2001 up 426 percent from the $10.6 million reported for the same period in 2000. Cash flow for the second quarter of 2001 of $20.7 million was 279 percent higher than the $5.5 million reported in the second quarter of 2000. Net earnings of $7.2 million and $19.4 million for the three and six month periods respectively, were vast improvements from the losses posted during the same periods in 2000. Oil and gas revenues more than doubled to $107.1 million from $52.9 million during the first six months of 2001 compared to 2000. Natural gas revenue during the first half of 2001 was $92.7 million, up 154 percent from $36.5 million in 2000 due to the company realizing an average natural gas price of $7.74 per mcf during 2001 as compared to the hedge-restricted $2.24 per mcf received in 2000. Average natural gas production of 60.4 mmcf/d and 66.2 mmcf/d for the three and six month periods ending June 30, 2001 are down 28 percent and 26 percent respectively from the same periods in 2000. This reflects the sale of non-core assets in 2000 and Waterton Waterton may refer to:
The Waterton property was sold effective January 1, 2001 but associated production, revenues, royalties, operating costs operating costs npl → gastos mpl operacionales and depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able have been included in the company's records until the actual closing date of April 27, 2001. During the first four months of 2001 production from Waterton averaged 15.2 mmcf/d of natural gas and 46 b/d of NGLs. Waterton contributed $10.7 million of 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. before G&A, interest and taxes to the first half results including $2.1 million to the results for the three months ended June 30, 2001. However, had the asset sale closed January 1, 2001, approximately $5.7 million in interest would have been saved during the same six-month period including approximately $1.4 million during the second quarter. The Company's natural gas production, excluding Waterton, was 55.9 mmcf/d and 56.1 mmcf/d for the three and six month periods ending June 30, 2001, respectively. NGL NGL - A dialect of IGL. revenues increased in 2001 compared to a year earlier as prices, which were up an average of 20 percent, more than offset production declines. Royalty expense was $26.7 million during the first half of 2001, compared to $13.3 million during the same period in 2000, reflecting higher average provincial reference prices upon which natural gas royalties are based. Operating costs of $13.4 million for the year to date are similar to the $13.3 million posted in 2000. Depletion and amortization expenses totaled $25.5 million, for the first six months of 2001, up from $19.8 million a year earlier due to the downward revision in reserve estimates at January 1, 2001. G&A expenses of $3.5 million for the first six months of 2001 are similar to 2000. Second quarter 2001 G&A expenses are approximately 38 percent higher than in the same period in 2000 due largely to increased legal costs. Second quarter interest costs of $3.7 million are down from $6.0 million in the first quarter of 2001 and from the $4.6 million reported for the second quarter of 2000, reflecting the significant reduction of Canadian 88's long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. upon closing the Waterton and Caroline Car·o·line adj. Relating to the life and times of Charles I or Charles II of England. [Medieval Latin Carol sale transaction. Capital expenditures exceeded funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. by $5.1 million during the first half of 2001 and was funded by advances under the Company's senior credit facility. Given the large number of drillable, economic projects available to the Company, it is anticipated that expenditures for 2001 may exceed funds from operations by up to $15 million. The Company's borrowing base significantly exceeds any anticipated net capital requirement for the balance of 2001 and successful re-negotiation of the senior credit facility will ensure adequate capital resources. OUTLOOK On June 11, 2001 Canadian 88's Board of Directors announced that the sale process which the Corporation had undertaken in 2000 had been terminated. In making the announcement, the Board noted that the essential steps to reduce financial risk and to focus the company's efforts on its best high quality natural gas assets and prospects had been accomplished. With this uncertainty behind us, Canadian 88 employees once again could focus entirely on adding value for all shareholders. Canadian 88 still expects to complete capital expenditures of approximately $100 million in 2001, exploiting existing fields and exploring for, acquiring and developing exciting new core properties. The exploration team is continuing to develop drilling opportunities within our established areas, including Strachan Strachan is a surname, and may refer to:
 k`), town (1991 pop. 13,970), central Alta., Canada, S of Edmonton. It is the center of the Leduc oil field (discovered 1947), which is now mostly depleted. wells at Willisden Green as soon
as surface land issues are addressed. New exploration initiatives are
under way to expand existing core areas at Blackstone, and High River/
Medallion and to establish new core areas at Edson, Little Horse and
south Saskatchewan South Saskatchewan: see Saskatchewan, river. . Planning is under way for exploration drilling on
several of these plays in 2001 to set up multiple new exploitation
opportunities for 2002 and 2003.
We expect to grow our production to exit 2001 at approximately 13,800 boe/d, up from 11,200 boe/d at the beginning of the second quarter, after completion of the Waterton divestment divestment to strip one's investment from an entity. . This projection excludes any additions from exploration or acquisitions. On behalf of the Board of Directors, Joseph L. Pritchett III August 23, 2001 Headquartered in Calgary, Alberta, Canada, Canadian 88 Energy Corp. (EEE) is an independent public oil and gas Company with shares listed on the Toronto and American Stock Exchanges This is a list of American stock exchanges. Stock exchanges in Latin America (where Spanish and Portuguese prevail) use the term Bolsa de Valores, meaning 'bag' or 'purse' of 'values'. . The information contained herein has neither been approved nor disapproved by the respective exchanges. Forward-Looking Information This release contains statements that constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1993 and Section 21 of the Securities Exchange Act of 1934 and are subject to the safe harbour provisions of those sections and the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties including those described in our filings with Canadian and U.S. securities commissions, and that the actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. We have based these forward-looking statements on information currently available and disclaim dis·claim v. dis·claimed, dis·claim·ing, dis·claims v.tr. 1. To deny or renounce any claim to or connection with; disown. 2. To deny the validity of; repudiate. 3. any intention or obligation to update or revise any forward-looking statement.
Consolidated Balance Sheets
June 30 December 31
(In thousands of dollars) 2001 2000
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ASSETS (unaudited)
Current assets
Accounts receivable $ 20,477 $ 23,845
Prepaid expenses and deposits 4,416 8,690
Assets held for resale - 170,175
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24,893 202,710
Other assets 6,703 6,871
Oil and gas assets 442,848 404,583
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$ 474,444 $ 614,164
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable and
accrued liabilities $ 28,543 $ 34,547
Current portion of
long-term debt 36,147 170,155
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64,690 204,702
Long-term debt - 29,000
Future income taxes 76,372 68,080
Provision for future
site restoration 3,038 2,588
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144,100 304,370
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SHAREHOLDERS' EQUITY
Share capital 309,147 307,951
Retained earnings 21,197 1,843
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330,344 309,794
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$ 474,444 $ 614,164
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Weighted average shares
outstanding 133,646,312 127,118,130
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Consolidated Statements of Earnings
(Loss) and Retained Earnings
Unaudited Three months Six months
ended June 30 ended June 30
(In thousands of dollars,
except per share amounts) 2001 2000 2001 2000
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Revenue
Oil and gas $ 41,190 $ 25,118 $107,095 $ 52,850
Royalties, net of
Alberta Royalty Tax
Credit (9,319) (6,523) (26,685) (13,275)
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31,871 18,595 80,410 39,575
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Expenses
Operating 6,252 6,321 13,408 13,346
Depletion, depreciation
and amortization 13,187 9,435 25,519 19,751
Interest on long-term debt 3,727 4,594 9,756 9,630
General and administrative 2,273 1,644 3,485 3,334
Restructuring costs - (85) - 4,104
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25,439 21,909 52,168 50,165
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Operating earnings (loss)
before income taxes 6,432 (3,314) 28,242 (10,590)
Income Taxes
Current 253 462 588 808
Future (reduction) (1,025) (1,370) 8,300 (4,660)
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(772) (908) 8,888 (3,852)
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Net earnings (loss) 7,204 (2,406) 19,354 (6,738)
Retained earnings,
beginning of period 13,993 11,191 1,843 19,323
Change in accounting
policy - - - (3,800)
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Retained earnings, end
of period $ 21,197 $ 8,785 $ 21,197 $ 8,785
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Earnings (loss) per
share $ 0.05 $ (0.02) $ 0.14 $ (0.06)
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Diluted earnings (loss)
per share $ 0.05 $ (0.02) $ 0.14 $ (0.06)
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Consolidated Statements of Cash Flows
Unaudited Three months Six months
ended June 30 ended June 30
(In thousands of dollars,
except per share amounts) 2001 2000 2001 2000
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Cash provided by (used in)
OPERATIONS
Net earnings (loss) $ 7,204 $ (2,406) $ 19,354 $ (6,738)
Actual site restoration
costs incurred - (185) - (185)
Items not involving cash
Depletion, depreciation
and amortization 13,187 9,435 25,519 19,751
Future income taxes
(reduction) (1,025) (1,370) 8,300 (4,660)
Restructuring costs - - - 2,473
Amortization of loan
placement fees 1,377 - 2,753 -
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Funds from operations 20,743 5,474 55,926 10,641
Changes in non-cash
working capital (3,502) (7,693) (2,478) (6,333)
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17,241 (2,219) 53,448 4,308
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FINANCING
Issue of common shares 894 2,858 1,189 50,485
Decrease in long-
term debt (163,853) - (163,008) (44,000)
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(162,959) 2,858 (161,819) 6,485
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INVESTMENTS
Exploration and
development
expenditures (32,427) (8,839) (61,042) (20,222)
Sale of capital
assets 167,882 21,791 167,882 21,791
Reduction in other
assets 168 - 168 343
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135,623 12,952 107,008 1,912
Changes in non-cash
working capital (1,752) (1,384) 1,363 (498)
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133,871 11,568 108,371 1,414
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Change in cash and
short-term deposits (11,847) 12,207 - 12,207
Cash and short-term
deposits, beginning of
period 11,847 - - -
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Cash and short-term
deposits, end of
period $ - $ 12,207 $ - $ 12,207
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Funds from operations
per share $ 0.16 $ 0.05 $ 0.42 $ 0.09
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Diluted funds from
operations per
share $ 0.15 $ 0.04 $ 0.41 $ 0.08
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Highlights
Three months Six months
ended June 30 ended June 30
2001 2000 % 2001 2000 %
Change Change
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FINANCIAL
(000's except
per share
data)
Production
revenues $ 41,190 $ 25,118 64 $107,095 $ 52,850 103
Cash flow
from
operations $ 20,743 $ 5,474 279 $ 55,926 $ 10,641 426
Net earnings
(loss) $ 7,204 $ (2,406) 399 $ 19,354 $ (6,738) 387
PER SHARE
Cash flow
from
operations $ 0.16 $ 0.05 220 $ 0.42 $ 0.09 367
Net earnings
(loss) $ 0.05 $ (0.02) 350 $ 0.14 $ (0.06) 333
Average common
shares
(000's) 133,646 120,860 11
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OPERATIONAL
PRODUCTION VOLUMES
Crude oil
(bbls/d) 292 457 -36 326 495 -34
Natural gas
liquids
(bbls/d) 1,707 1,887 -10 1,712 1,923 -11
Oil & NGLs
(bbls/d) 1,999 2,344 -15 2,038 2,418 -16
Natural gas
(mmcf/d) 60.4 84.3 -28 66.2 89.5 -26
SALES PRICES
Crude oil
($/bbl) $ 26.00 $ 35.07 -26 $ 24.35 $ 34.40 -29
Natural gas
liquids
($/bbl) $ 39.41 $ 35.36 11 $ 42.44 $ 35.43 20
Oil & NGLs
($/bbl) $ 37.45 $ 35.30 6 $ 39.55 $ 35.22 12
Natural gas
($/mcf) $ 6.26 $ 2.23 181 $ 7.74 $ 2.24 246
CAPITAL EXPENDITURES (000's)
Exploration
and
development$ 26,200 $ 3,818 586 $ 47,263 $ 12,234 286
Plants,
facilities
and
pipelines $ 4,501 $ 3,986 13 $ 9,430 $ 5,432 74
Land and
lease $ 1,726 $ 1,035 67 $ 4,349 $ 2,556 70
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$ 32,427 $ 8,839 267 $ 61,042 $ 20,222 202
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