Danoil Announces 1997 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)--March 27, 1998--Danoil Energy Ltd.(Alberta Stock Exchange Alberta Stock Exchange See Canadian Venture Exchange (CDNX). :DAN.A.) DANOIL ENERGY LTD. (Danoil) is pleased to present its financial and operating results for the period ended December December: see month. 31, 1997. Highlights of 1997 - Increased common share equity by 160 per cent to $20.5 million. - Increased proved gas reserves by 155 per cent to 24.4 billion cubic feet. - Increased proved oil reserves Oil reserves refer to portions of oil in place that are claimed to be recoverable under economic constraints. Oil in the ground is not a "reserve" unless it is claimed to be economically recoverable, since as the oil is extracted, the cost of recovery increases incrementally by 3 per cent to 8.9 million barrels after the sale of 2.5 million barrels of oil at Dodsland. - Acquired Cabos
Cabos is a free Gnutella file sharing program. It is based on LimeWire's source code, and has a similar feel in terms of interface. It lacks the chat and library features found in LimeWire. Resources Inc., a company that had as its largest assets, cash and shares of Vintage
Vintage, in wine-making, is the process of picking grapes and creating the finished product. A vintage wine is one made from grapes that were all, or primarily, grown in a single specified year. Resource Corp. which, when combined with Danoil, increased production to 1,850 boepd. - Acquired 89 per cent of the outstanding shares of Vintage Resource Corp. thereby increasing Danoil consolidated production to 10 million cubic feet per day and 1,700 barrels of oil per day (2,700 boepd). - Drilled 92 gross (77 net) wells, further increasing production to over 4,000 boepd by year end. - Sold 570 barrels of oil per day at Dodsland for $14.3 million, while retaining: (i) The rights to continue to develop the property (60 wells were drilled in the summer of 1997), (ii) Ownership and operatorship of all facilities including the receipt of processing and administrative fees which total $300,000 per annum Per annum Yearly. . - Increased natural gas volumes by 550 per cent to average 5.8 million cubic feet per day - Increased production volumes 25 per cent to an average of 2,688 boepd. - Exited 1997 at over 4,000 boepd. During the year the Company changed its year end to December 31. Consequently, the results for 1997 are for a 16 month period, and consolidate the results of Cabos Resources Inc. for seven months and Vintage Resource Corp. for five months. Danoil's discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. increased 136 per cent to $7.1 million ($0.42 per basic) from $3.0 million ($0.21 per share) a year earlier. Gross revenues increased 62 per cent to $25.4 million from $15.7 million. Net earnings for the period were $3.5 million or $0.21 per share basic compared to $2.9 million or $0.20 per share in 1996. The improvement in cash flow and earnings were a result of the sixteen month period and the inclusion of Vintage for five months. During the period, the Company received an average field price of $20.45 per barrel of oil and liquids and $2.01 per Mcf of natural gas as compared to 1996 prices of $20.79 per barrel and $1.57 per Mcf. Crude oil and NGL NGL - A dialect of IGL. volumes averaged 2,109 bpd and natural gas volumes averaged 5,800 Mcf/d during 1997 compared to 2,059 bpd and 900 Mcf/d during 1996. On a boe basis, the Company's production increased 25 per cent over the corresponding 1996 reporting period. -0-
16 Months ended 12 Months ended
December 31, 1997 August 31, 1996
$000s $ Per BOE $000s $ Per BOE
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PRODUCING ACTIVITIES:
Oil and liquids 20,998 20.45 15,667 20.79
Oil hedge (1,578) (1.21) (686) (0.87)
Natural gas 5,672 20.10 508 15.70
Other 317 0.24 182 0.23
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Oil and Gas
Revenue 25,409 19.41 15,671 19.94
Royalties,
net of ARTC 3,115 2.38 1,690 2.15
Operating costs 11,372 8.69 7,895 10.04
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Operating Income 10,922 8.34 6,086 7.75
CORPORATE ACTIVITIES:
General and
administrative 2,344 1.79 1,809 2.30
Interest, net 215 0.16 - -
Capital taxes 48 0.04 30 0.04
------ ------ ----- ------
Funds from
Operations 8,315 6.35 4,247 5.40
Capitalized
expenses 1,171 0.89 1,196 1.52
Dividends 50 0.04 50 0.06
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Discretionary
Cash Flow 7,094 5.42 3,001 3.82
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Earnings and cash flow per share amounts have been computed using the weighted average number of shares outstanding during 1997 of 16,965,795 shares (1996-14,131,372 shares). The fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. number of common shares (assumes the exercise of all stock options and the conversion of the outstanding preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. into common shares), totals 24,125,236 for 1997 and 16,027,308 for 1996. Prior to December 31, 1997, all of the Class B multiple voting Noun 1. multiple voting - the act of voting in more than one place by the same person at the same election (illegal in U.S.) balloting, vote, voting, ballot - a choice that is made by counting the number of people in favor of each alternative; "there were only 17 shares of the Corporation were converted into Class A shares of the Corporation, and the Corporation will take steps at its upcoming annual general and special meeting to remove the Class B shares from the authorized shares Authorized shares Number of shares authorized for issuance by a firm's corporate charter. of the Corporation. As at December 31, 1997, the Company had total bank debt and working capital deficiency A shortage or insufficiency. The amount by which federal Income Tax due exceeds the amount reported by the taxpayer on his or her return; also, the amount owed by a taxpayer who has not filed a return. of $19,385,000 versus total liabilities of $7,879,000 at its year end of August 31 the year before. DANOIL ENERGY LTD. is a Calgary based oil and gas exploration and development company whose shares trade on the Alberta Stock Exchange under the trading symbol Trading symbol See: Ticker symbol "DAN.A". -0- NOTE TO EDITORS: The Alberta Stock Exchange has neither approved nor disapproved the information contained herein. CONTACT: Danoil Energy Ltd. Jack C. Lee, 403/261-9010 403/262-6977 (FAX) danoil@danoil.com http://www/danoil.com |
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