Canadian 88 Energy Corp. Announces 1996 Record First Six Month Results and Exploration Hits Leading to Home Run!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, 1996--Canadian 88 Energy Corp. of Calgary, Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. , is pleased to report the following record breaking results for the six month period ending June June: see month. 30, 1996, and the following outlook for the remainder of 1996. Highlights of the First Six Months of 1996 - 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 recorded record levels of production, revenue, earnings and cash flow. - Record exploration success highlighted the quarter and the drilling of major discoveries in the Alberta foothills in the Olds/Crossfield, Carstairs This article is about a place in Scotland. For the Canadian community of the same name, see Carstairs, Alberta. The name Carstairs (Gaelic: Caisteal Tarrais and Waterton Waterton may refer to:
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 discovery have been placed onstream OnStream Holdings of the Netherlands was spun off from Philips in 1998 and went bankrupt for a second time in 2003. [1] As a result of its first bankruptcy in 2001, the company was split into two parts, OnStream Data and OnStream MST. during August at a combined production rate of 25 million cubic feet per day of sales gas and 1200 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. of liquids. Both wells have established significant reserve additions in the area and are capable of higher production rates and are awaiting a further expansion of our 100 percent owned Olds Gas Plant and Processing System. At the time of the writing of this report, the third well at Waterton, a $5 million deep foothills test (Canadian 88 Operated - 80 percent W.I.), is under tight hole status, logging has just been completed and casing is being run to the base of the Mississipian formation. Significant reserves have been established and the well is expected to be onstream within the next 90 to 120 days. Further wells are planned on Canadian 88's large exploration block in the area as soon as regulatory approval is obtained. - Delineation drilling related to our Olds Gas Unit No. 1 resulted in new production and reserves being 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 Canadian 88's 100 percent owned Olds Gas Plant and Gathering System. The plant and gathering system underwent significant expansion and debottlenecking during the second quarter with over $5 million being spent on expanding the system, which resulted in some 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. volumes during the period. The operation was concluded at the end of July and resulted in record raw inlet inlet /in·let/ (-let) a means or route of entrance. pelvic inlet the upper limit of the pelvic cavity. thoracic inlet the elliptical opening at the summit of the thorax. gas volumes being achieved at the Olds Gas Plant in August. - As a result of the above-mentioned drilling discoveries and given further drilling planned for the area, Canadian 88 is in the process of expanding its 100 percent owned Olds Gas Plant from a current inlet capacity of 70 mmcf/d to 140 mmcf/d. Canadian 88 holds over 120 100 percent working interest sections in the immediate area, the principle property having been purchased from Amerada Hess Hess , Walter Rudolf 1881-1973. Swiss physiologist. He shared a 1949 Nobel Prize for his research on the brain's control of the body. Canada approximately 1 year ago. A regional study comparing similar holdings in the immediate area shows that the potential exists for 500 Bcf to 750 Bcf of gas on Canadian 88's lands at Olds and we are confident that our delineation drilling has established the potential for such reserves. - As a result of our success and achievements, which are a credit to our staff and the tremendous shareholder support we have received, Canadian 88 Energy Corp.'s current production is at a record level of 75 mmcf per day and 3000 barrels per day of liquids. Projected 1996 exit rates of 80 mmcf per day of natural gas and 3000 barrels per day of liquids are expected to be exceeded in September. Canadian 88 is therefore preparing to revise its preliminary 1997 operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. with an increased production forecast expected to exceed 140 mmcf/d of natural gas and 5,000 barrels per day of liquids by year end 1997. Financial - As indicated above, record levels of production, cash flow and earnings were achieved in the first half of 1996. - Cash flow increased 123 percent to a record $9.5 million ($0.15/share) from $4.3 million ($0.09/share) in 1995. Earnings of $1.1 million ($0.02/share) were up substantially from $Nil ($0.00/share) in 1995. Revenues for the six months increased 92 percent to a record level of $22.8 million in 1996 from $11.9 million in 1995. - Average natural gas production increased 62 percent to a record level of 50.9 mmcf/d from 31.5 mmcf/d in 1995. Production of oil and ngls increased 46 percent to a record level of 1,815 barrels per day from 1,239 barrels per day in 1995. Canadian 88's average price for natural gas in the first half averaged $1.49 per mcf, up 16% from $1.28 per mcf in 1995. Liquids prices increased 10 percent to $20.98 per barrel from 1995's level of $19.09 per barrel. - Capital expenditures during the first six months of 1996 increased to a record level of $31.8 million, an increase of 116 percent from $14.7 million, net of acquisitions of $19.7 million in 1995. Capital expenditures were as follows: $18.5 million for exploration and development activities (1995 - $7.9 million); $9.4 million for facilities and pipelines (1995 - $3.7 million); and $3.9 million directed towards aggressive land acquisitions (1995 - $3.1 million). - Exploration and development expenditures were oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. towards quality over quantity as we continue to further push into the reserve based opportunities presented within our extensive foothills core areas of West 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. . Canadian 88 drilled 9 wells in our core areas during the first six months of 1996 with a success ratio of 89 percent. Total meterage Me´ter`age n. 1. The act of measuring, or the cost of measuring. meterage a fee charged for measurement. See also: Dues and Payment drilled was 24,207 metres at an average depth of 2,690 metres. During the first six months of 1996 only 111 development wells and 88 exploratory wells out of a total of 5,718 wells drilled in Western Canada
Western Canada, commonly referred to as the West were drilled to depths between 2,288 and 3,049 metres. - In addition, negotiations were completed during the period with Chemical Bank of Canada Bank of Canada Canada's central bank, established under the Bank of Canada Act (1934). It was founded during the Great Depression to regulate credit and currency. The Bank acts as the Canadian government's fiscal agent and has the sole right to issue paper money. to increase Canadian 88's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facilities to $80 million from $55 million, reflecting Canadian 88's expanding high quality long-life base of proven oil and gas reserves. This credit facility, combined with a $51.75 million equity issue completed on May 2, 1996 and rapidly expanding cash flow provides Canadian 88 with one of the strongest balance sheets in the industry in terms of our peer group. Outlook - As a result of Canadian 88's drilling success, our large inventory of quality exploration and development plays located on 380,000 gross (340,000 net) undeveloped acres in Western Canada (average working interest 90 percent) positions the Company to expand production, revenue, cash flow and reserve base to record levels during the upcoming months. - Major breakthroughs in the application of horizontal drilling a drilling machine having a horizontal drill spindle. See also: Horizontal technology applied by Canadian 88 on its deep gas play in the Olds/Crossfield area have led us to upgrade the reserve and production potential of our 120 100 percent working interest contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. sections of land in the area. This is the largest 100 percent owned contiguous block of undeveloped land in West Central Alberta. Reserve estimates as previously mentioned range from 500 Bcf to 750 Bcf of natural gas. Horizontal drilling technologies developed and applied by Canadian 88's operations staff during the first six months of 1996 resulted in Canadian 88 drilling and successfully completing one of the deepest and longest horizontal gas wells ever drilled in the Alberta Foothills. Typically, vertical wells in the area produce at rates from 1 mmcf/d to 2.5 mmcf/d. However, our 100 percent working interest 3,628 metre metre In poetry, the rhythmic pattern of a poetic line. Various principles have been devised to organize poetic lines into rhythmic units. Quantitative verse, the metre of Classical Greek and Latin poetry, measures the length of time required to pronounce syllables, experimental horizontal well recently drilled in the Olds/Crossfield area to a total vertical depth of 2,688 metres, with a horizontal leg of 940 metres, is capable of producing in excess of 12.5 mmcf/d and represents an industry breakthrough of major significance. Accordingly, given our success in the area, the Olds Gas Plant and Processing System will be expanded during upcoming months at a cost of $15 to $20 million to 140 mmcf/d from 70 mmcf/d of inlet capacity to accommodate our future exciting gas developments in the area. A $5 million three township township: see town. 3-D seismic program will be shot by Canadian 88 over our contiguous block this fall to assist our exploration group in delineating further Mississippian drilling opportunities in the area like our recent Carstairs discovery which is estimated to contain 50 Bcf of natural gas and 1.2 mmbbls of liquids. - Further high impact foothills exploration wells targeting 50 - 100 Bcf per well will be spudded over the next few weeks on our Cheddarville Leduc deep gas play (100 percent Canadian 88) based on a $5 million 3-D seismic program that has just been completed and a deep 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 Test will be spudded in the first week of September (Canadian 88 Operated - 50 percent W.I.) with a further well to spud later in the year on this play which has a potential for up to 1 Tcf of natural gas reserves. - However, undoubtedly our most exciting prospect will be the continued development of our tremendous Waterton play which appears to have met our expectation of possibly up to 300 Bcf of natural gas reserves. 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 well to our discovery will be spudded as soon as regulatory approvals can be obtained. Preliminary indications are that up to 5 further wells may be drilled on the prospect with productive potential of 10 to 30 mmcf/d per well. -0- Canadian 88 Energy Corp. Second Quarter 1996 Financial and Operating Statistics
Three Months Ended Six Months Ended
Percent Percent
June 30 Change June 30 Change
-----------------------------------------
1996 1995 1996 1995
---- ---- ---- ----
Financial:
(000's except per share amount)
Production Revenues $10,709 $ 6,044 77 $22,810 $11,852 92 Cash Flow from Operations $ 3,775 $ 2,247 68 $ 9,487 $ 4,252 123 Net Earnings $ 284 $ 397 -28 $ 1,138 $ 21 5319 Per Common Share: Cash Flow from Operations $ 0.06 $ 0.04 45 $ 0.15 $ 0.09 67 Net Earnings $ 0.01 $ 0.01 0 $ 0.02 $ 0.00 - Average Common Shares (000's) 64,890 46,617 39 64,890 46,617 39 Operations: Production Volumes: Oil & NGL's (bbls/d) 1684 1279 32 1815 1239 46 Natural gas (mmcf/d) 51.6 31.5 64 50.9 31.5 62 Sulphur (lt/d) 229 - - 216 - - Sales Prices: Crude Oil ($/bbl) $26.98 $23.24 16 $24.85 $23.70 5 Natural Gas Liquids ($/bbl) $19.58 $16.60 18 $19.84 $16.40 21 Oil & NGL's ($/bbl) $21.22 $18.81 13 $20.98 $19.09 10 Natural Gas ($/mcf) $ 1.39 $ 1.28 9 $ 1.49 $ 1.28 16 Sulphur ($/lt) $ 7.05 - - $ 9.77 - - Capital Expenditures (000's):
Property Acquisition $ - $19,731 - $ - $19,731 -
Exploration &
Development 8,942 2,569 248 18,495 7,867 135
Plants & Facilities 5,884 2,214 165 9,399 3,745 151
Land & Lease 1,832 1,738 5 3,863 3,110 24
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$16,658 $26,253 $31,757 $34,453
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Undeveloped Land Acreage position at June 30, 1996:
Percent
Gross Net Average
Acres Acres WI
----- ----- -------
Western Canada 380,000 340,000 90
Northwest
Territories 215,000 215,000 100
------- -------- --------
595,000 555,000 93
Canadian 88 Energy Corp. is an independent exploration and production company with shares listed for trading on the Toronto and Alberta Stock Exchanges Alberta Stock Exchange See Canadian Venture Exchange (CDNX). under the symbol EEE EEE eastern equine encephalomyelitis. EEE eastern equine encephalomyelitis. . The information contained herein has neither been approved nor disapproved by the Toronto and Alberta Stock Exchanges. CONTACT: Canadian 88 Energy Corp. Greg Noval, 403/974-8800 403/974-8811 (FAX) Bill Dyment, 403/974-8800 403/974-8811 (FAX) |
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