Cypress Energy Inc. Announces 1997 First Half Results.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. 15, 1997-- Cypress Cypress, city, United States Cypress (sī`prəs), city (1990 pop. 42,655), Orange co., S Calif. near Long Beach; inc. 1956. Forest Lawn–Cypress, a branch of the famous cemetery in Glendale, Calif. (Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). CYZ.A.) Cypress Energy Inc. ("Cypress") is pleased to announce its unaudited financial and operating results for the six months ended June June: see month. 30, 1997. Comparative financial and operating results for this period are not available as Cypress commenced production on July July: see month. 1, 1996. -0-
Three Months Six Months
ended ended
June 30, 1997 June 30, 1997
--------------------------------------------------------------
($000s except per share figures)
Revenues $2,381 $4,992
Cash Flow from Operations $1,100 $2,213
per Common Share $ 0.12 $ 0.26
Net Income $ 164 $ 546
per Common Share $ 0.02 $ 0.06
Capital Expenditures $1,332 $10,469
Weighted Average Number of
Common Shares 8,777,361 8,672,553
Daily Production
Crude Oil and NGL's (barrels) 531 475
Natural Gas (thousand cubic feet) 7,887 7,737
Combined (barrels of
oil equivalent) 1,320 1,249
Prices
Crude Oil and NGL's
(dollars per barrel) $23.70 $26.06
Natural Gas (dollars
per thousand cubic feet) $1.72 $2.00
Combined (dollars per
barrel of oil equivalent) $19.83 $22.08
Average daily oil and gas production of 1,320 barrels of oil equivalent for the quarter represents a 12 percent increase over the previous quarter and a 57 percent increase over the fourth quarter of 1996. Cypress drilled 2 (1.2 net) wells during the second quarter, bringing the total number drilled in 1997 to 5 (3.15 net). A discovery was made in the Brant/Farrow 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]. , of which Cypress has a 60 percent working interest. The well was brought into production in mid July and is currently producing 3.5 million cubic feet equivalent per day. Additional 2D seismic data and trend acreage has been secured, and the first 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 will be drilled during the third quarter. Lower oil and gas prices during the second quarter were largely offset by the Company's increased production volumes. Revenue for the second quarter was $2.4 million, based on an average oil and natural gas liquids price of $23.70 per barrel and an average natural gas price of $1.72 per thousand cubic feet. This brings total revenue for the first half of the year to $5 million, with an average oil and natural gas liquids price of $26.06 per barrel and an average natural gas price of $2.00 per thousand cubic feet. 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 totaled $1.1 million ($0.12 per share) in the second quarter and $2.2 million ($0.26 per share) for the first six months. Second quarter earnings were $0.2 million, bringing year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings to $0.5 million ($0.06 per share). Cypress continued to focus on streamlining the cost structure of its asset base during the second quarter. On a 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. basis, operating costs operating costs npl → gastos mpl operacionales averaged $5.18 during the second quarter and $6.04 during the first six months of the year, compared with $8.50 at the beginning of the year. Operating costs are expected to be reduced even further over the remainder of the year. General and administrative expenses averaged $2.07 per barrel of oil equivalent during the second quarter and $2.38 for the entire first six months. Cypress will drill 12 locations in the third quarter and 10 locations in the fourth quarter, at an average working interest of 60 percent. Exploration and development activities will be concentrated in the Company's core areas of Brant/Farrow, Thorsby and Ferrybank. Select prospects will be pursued in the Peace River Arch area as well. Six of the 12 wells planned for the third quarter have already been drilled with a 100 percent success rate. This brings the number of consecutive successful wells to seven, four of which were exploratory and led to new pool discoveries. Cypress operated five of the seven wells and all four of the new pool discoveries. Cypress expects to exceed its target year-end production rate of 2,000 barrels a day by early in the fourth quarter. Cypress is a Calgary based, publicly traded 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. energy company involved in the exploration, development, acquisition and production of crude oil and natural gas in western Canada
Western Canada, commonly referred to as the West . The Company's shares are listed on the Toronto and Alberta Stock Exchanges under the symbol CYZ.A. CONTACT: Cypress Energy Inc. Donald F. Archibald, 403/262-8225 403/263-7433 (FAX) |
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