Canadian Occidental Petroleum Ltd. Reports Record Cash Flow; Acquisition of Exploration Acreage in Canada, Indonesia, and Colombia, and Exploitation Project in the Gulf Coast.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)--Oct. 18, 1996--Canadian Occidental Petroleum Occidental Petroleum Corporation ("Oxy") NYSE: OXY is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Ltd. reports record cash flow of $189 million ($1.39 per common share) for the quarter ended September September: see month. 30, 1996, a 29% increase compared to the third quarter of 1995. Net income increased 21% to $46 million ($0.34 per common share) for the quarter compared to $38 million ($0.29 per common share) during the comparable period of 1995. For the first nine months, cash flow totalled a record $552 million ($4.07 per common share) and record net income of $143 million ($1.06 per common share) compared to $464 million ($3.45 per common share) and $109 million ($0.82 per common share) respectively during the first nine months of 1995. Crude oil production averaged 139,100 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. , compared to 134,000 barrels per day in the third quarter of 1995. Natural gas production averaged 242 million cubic feet per day, compared to 194 million cubic feet per day for the comparable period of 1995. The North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Division made considerable strategic progress during the third quarter by successfully exploiting core assets and making key acquisitions of exploration acreage and producing properties in its core areas. In 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 , two successful exploration wells and nine successful development wells were drilled on our west central Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. joint venture lands. 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. Oxy has a 50% interest in the joint venture which is exploring and developing over one million acres of heavy oil lands. An exploration well at Superb encountered an estimated 65 feet of net pay. Five to eight wells are planned before year end to develop this pool. At Plover plover (plŭv`ər), common name for some members of the large family Charadriidae, shore birds, small to medium in size, found in ice-free lands all over the world. East, where two second quarter exploration wells encountered significant reserves over a large aerial aerial: see antenna, in electronics. extent, a three-dimensional seismic program established 28 development drilling locations to be drilled by year end. In addition, Canadian Oxy also significantly enhanced its natural gas exposure, acquiring 156,000 undeveloped acres at the Province of Saskatchewan's October sale of crown petroleum and natural gas rights. This acquisition represents a significant milestone in an exploration effort that has been underway for over 12 months and provides the foundation for an active shallow natural gas exploration program to commence in the upcoming winter season. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , CXY Energy is increasing its asset base in the shallow offshore of the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . CXY has signed a letter of intent to acquire a 100% interest in four blocks in the Vermilion vermilion, vivid red pigment of durable quality. It is a chemical compound of mercury and sulfur and is known as red sulfide of mercury; it was formerly obtained by grinding pure cinnabar but is now commonly prepared synthetically. area for US $50 million. The properties are located in 200 feet of water approximately 80 miles offshore Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and 65 miles southwest of
CXY's Eugene Island Eugene Island is a submerged mountain 70-85 miles off the Louisiana coast in the Gulf of Mexico. The nearby oil field Eugene Island 330 is best known for its unusual depletion profile. According to the article "Sustainable Oil?" by Chris Bennett WorldNetDaily. properties. The blocks contain two fields
which are currently producing approximately 29 million cubic feet of
natural gas and 325 barrels of liquids per day from 14 active wells
through four platforms. The blocks have substantial upside potential Upside potentialThe amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar and an aggressive exploitation program will commence in 1997. The International Division is also building its opportunity portfolio, setting the stage for future growth. In Indonesia, Canadian Oxy has entered into a new production sharing contract governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. oil and gas operations on the Seram Block. The Block covers an area of approximately 14,800 square, kilometres (3.7 million acres) off the north coast of the Island of Seram in Eastern Indonesia. Although the Seram Basin is relatively unexplored, there have been a number of recent oil discoveries on nearby blocks. Canadian Oxy plans an exploratory seismic program commencing in early 1997, followed by a field geologic ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. assessment. Canadian Oxy has a 100% working interest in the Block and will be the operator. This Block, along with Canadian Oxy's interests in the Kai kai Noun NZ informal food [Maori] kai noun N.Z. (informal) food, grub (slang) provisions, fare, board, commons, eats (slang , Merangin and West Natuna Blocks, establishes Indonesia as a new core exploration area for Canadian Oxy. In Colombia, Canadian Oxy has acquired a 50% interest in a joint venture with the national oil company, Ecopetrol, to explore the Troyano Block in the Putunayo Basin. The Block is on trend with the Orito field, located 12 miles to the south. Ecopetrol will operate the venture. In Yemen, the Sunah-10 appraisal well was drilled encountering 38 feet of net oil pay in the Qishn zone and a further 37 feet of net pay in the Shuqra zone. Approximately 90 square kilometres Square kilometre (U.S. spelling: square kilometer), symbol km², is a decimal multiple of the SI unit of surface area, the square metre, one of the SI derived units. 1 km² is equal to:
Elsewhere, in the United Kingdom, commissioning of the Schooner schooner (sk `nər), sailing vessel, rigged fore-and-aft, with from two to seven masts. gas field facilities commenced during the quarter with first production
from this field transported through the Caister Murdoch pipeline on
September 11. In Nigeria, the Ejulebe East exploration well was
drilled, however, no commercial hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b nz),n. were found. The rig has been moved to the nearby Uteumi structure where an exploration well commenced drilling in early October. Improving demand for the Chemical Division's products combined with the completion of expansion projects at the Taft, Louisiana Taft is a town located in St. Charles Parish, Louisiana, on the West Bank of the Mississippi River, which, according to the 2000 census, has a total population of 0. History This town is the location of a phosphate mining facility owned by IMC-Agrico. , Brtiderheim, Alberta and Brandon, Manitoba Brandon is a city in southwestern Manitoba, Canada. The surrounding area is often referred to as "Westman". The city started as a major junction on the Canadian Pacific Railway, and the Assiniboine River and was then incorporated in 1882. sodium chlorate sodium chlorate n. A colorless crystalline compound, NaClO3, used as a bleaching and oxidizing agent and in explosives. sodium chlorate Noun plants resulted in strong operating and financial results for the quarter. Sodium chlorate sales volumes were 18% higher than one year ago leading to a 33% increase in cash flow to $28 million and a 47% increase in operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. to $22 million. David A. Hentschel, President and Chief Executive Officer commented: "We had an excellent quarter and look forward to record financial results for the year. But even more encouraging is the steady stream of excellent new projects brought forward by the Divisions. These projects will position as for future growth." The Board of Directors has declared the regular quarterly dividend of $0.075 per common share, payable January 1, 1997 to shareholders of record on December 11, 1996. -0-
Canadian Oxy
Press Release Tables
SEPTEMBER 30, 1996
FINANCIAL HIGHLIGHTS
(Amounts in millions of Canadian dollars except per share data)
Three Months Nine Months
1996 1995 1996 1995
Net Sales $ 343 $ 285 $ 980 $ 869
Net Income 46 38 143 109
Per Common Share 0.34 0.29 1.06 0.82
Funds Flow from Operation 189 146 552 464
Per Common Share (a) 1.39 1.09 4.07 3.45
Capital Expenditures and
Acquisitions 120 84 419 273
Net Debt 517 63 517 634
(a) 1995 per share amounts have been restated to reflect the two for
one stock split which was effective May 28, 1996.
BUSINESS SEGMENTS INFORMATION
(Amounts in millions of Canadian dollars)
Three Months Nine Months
1996 1995 1996 1995
Operating Profit
Oil and Gas
North America
Canada $ 12 $ 14 $ 29 $ 27
United States 6 5 47 26
Alternate Fuels 12 8 24 20
30 27 100 73
International
Republic of Yemen 71 51 184 154
North Sea (11) - (9) 4
Ecuador 2 1 6 4
Other (15) (11) (28) (25)
47 41 153 137
Total Oil and Gas 77 68 253 210
Chemicals 22 15 51 41
99 83 304 251
Corporate Expenses and
Interest (19) (22) (60) (63)
Income Taxes (34) (23) 101) (79)
Net Income $ 46 $ 38 $143 $109
BUSINESS SEGMENTS INFORMATION
(Amounts In millions of Canadian dollars)
Three Months Nine Months
1996 1995 1996 1995
Funds Flow from Operations
Oil and Gas
North America
Canada $26 $16 $72 $53
United States 39 18 121 67
Alternate Fuels 15 10 33 27
80 44 226 147
International
Republic of Yemen 115 112 340 339
North Sea 12 4 35
Ecuador 3 4 8 8
Other (3) (2) (6) (8)
127 118 377 374
Total Oil and Gas 207 162 603 521
Chemicals 28 21 69 56
235 183 672 577
Corporate Expenses and
Interest (14) (18) (47) (57)
Income Taxes (32) (19) (73) (56)
$189 $146 $552 $464
PRODUCTION HIGHLIGHTS
Three Months Nine Months
1996 1995 1996 1995
Natural Gas (million cubic feet per day)
North America
Canada 130.4 128.7 128.4 133.8
United States 78.5 47.9 73.0 48.7
International
North Sea 33.0 17.7 35.8 36.0
241.9 194.3 237.2 218.5
Crude Oil, Condensate and Natural Gas Liquids
(thousand barrels per day)
North America
Canada 14.9 12.7 13.5 12.5
United States 13.6 10.6 13.6 11.0
Alternate Fuels 15.6 15.6 14.4 14.4
International
Republic of Yemen 91.6 90.6 93.2 89.0
South America 3.2 4.3 3.8 4.5
Nor% Sea 0.2 0.2 0.2 0.2
Total 139.1 134.0 138.7 131.6
AVERAGE COMMODITY PRICES
(Amounts in Canadian dollars except WTI)
Three Months Nine Months
1996 1995 1996 1995
Natural Gas (per thousand cubic feet)
International
North Sea $ 5.09 $ 4.23 $ 4.49 $4.46
North America
Canada 1.33 1.08 1.43 1.14
United States 3.38 2.42 3.92 2.50
Corporate Average 2.53 1.72 2.67 1.99
Crude Oil (per barrel)
International
Republic of Yemen $27.97 $21.52 $26.28 $23.02
South America 17.25 14.32 15.98 14.28
North America
Canada 26.74 20.58 24.26 21.34
United States 29.51 22.70 28.35 24.11
Corporate Average 27.73 21.28 26.00 22.63
Synthetic Crude Oil
(per barrel) $30.22 $22.93 $28.28 $24.10
WTI Average (U.S. dollars) $22.36 $17.76 $21.18 $18.49
-0- CONTACT: Canadian Occidental Petroleum Ltd. Kevin Finn, 403/234-1932 |
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