Fox Announces Record Results for the Second Quarter and Six Months Ended June 30, 2000.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. 16, 2000 Fox Energy Corporation (CDNX CDNX See Canadian Venture Exchange (CDNX). :FEC See forward error correction. FEC - Forward Error Correction .) is pleased to announce its financial and operating results for the second quarter and six months ended June June: see month. 30, 2000. The Company continued to show record growth in all key components of its business for the period April 1 to June 30, 2000 compared to any prior reporting period. For the six months ended June 30, 2000, gross oil and gas revenue increased by 168% to $2,685,196 compared to $1,000,903 in the prior period of 1999. 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 and net earnings jumped 304% and 1,084% respectively over the first half of 1999. Higher production volumes of oil and natural gas and buoyant Buoyant The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength. Notes: These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment. commodity prices accounted for the significant increase in financial and operating results during the quarter, and for the first six months of the year compared to the applicable prior periods.
Comparative Highlights for the six months ended June 30,
(Unaudited)
2000 1999 % Change
---------------------------------
Financial
Gross Oil and Gas Revenue $2,685,196 $ 1,000,903 168
Cash Flow from Operations $1,331,829 $ 329,353 304
Per Share - Basic $0.06 $0.02 219
Net Earnings (Loss) $477,529 $ (48,547) 1,084
Per Share - Basic $0.02 $- 688
Capital Expenditures $3,255,599 $ 350,592 892
Total Assets $15,060,066 $12,339,250 22
Weighted Average Shares
Outstanding 24,062,253 20,245,857 19
Net Operating Results
Daily Production
Oil & NGL's (Bbls/d) 221 109 103
Natural Gas (Mcf/d) 1,948 1,736 12
Barrels of Oil Equivalent
(BOE/d)* 546 398 37
Average Selling Prices
Oil (per Bbl) $36.76 $18.94 94
Natural Gas (per Mcf) $3.28 $1.99 65
Barrels of Oil Equivalent
(per BOE)* $26.60 $13.87 92
Operating Netback (per BOE)* $17.33 $8.39 107
G & A Expense (per BOE)* $1.77 $1.98 (11)
Operating Expense (per BOE)* $5.40 $3.99 35
Wells Drilled (Gross) 7 - 100
*Note: Barrel of Oil Equivalent 6 Mcf of gas = 1 Bbl of oil
Comparative Highlights for the three months ended June 30,
(Unaudited)
2000 1999 % Change
---------------------------------
Financial
Gross Oil and Gas Revenue $1,549,008 $ 532,125 191
Cash Flow from Operations $780,168 $ 178,816 336
Per Share - Basic $0.04 $0.01 401
Net Earnings (Loss) $230,318 $ (18,484) 1,346
Per Share - Basic $0.02 $(0.00) 1,192
Capital Expenditures $1,487,216 $ 120,695 1,132
Total Assets $15,060,066 $ 9,686,989 55
Weighted Average Shares
Outstanding 24,187,110 21,188,879 14
Net Operating Results
Daily Production
Oil & NGL's (Bbls/d) 253 103 146
Natural Gas (Mcf/d) 1,978 1,729 14
Barrels of Oil Equivalent
(BOE/d)* 583 391 49
Average Selling Prices
Oil (per Bbl) $37.25 $21.37 74
Natural Gas (per Mcf) $3.59 $2.1 70
Barrels of Oil Equivalent
(per BOE)* $28.37 $14.97 90
Operating Netback (per BOE)* $18.46 $9.59 92
G & A Expense (per BOE)* $1.62 $2.56 (37)
Operating Expense (per BOE)* $6.01 $5.52 9
Wells Drilled (Gross) 2 - 100
*Note: Barrel of Oil Equivalent 6 Mcf of gas = 1 Bbl of oil
Fox entered into two major transactions involving the purchase and sale of assets during the second quarter. One transaction involved the purchase of interests in two producing oil properties comprising daily production of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 80 Bbls/d. One of the properties in which Fox has acquired a 100% interest has up to 6 development drilling locations. The second transaction relates to the sale of a non-operated interest in a producing property for a substantial gain over its cost base. The proceeds were utilized to reduce bank debt by 48% from $4.2 million at March 31, 2000 to $2.2 million as Fox enters the third quarter. The residual Residual See:Residual value bank debt could be retired with cash flow in eight months based on managements' cash flow projections A Cash Flow Projection is an attempt to forecast the cash flows that will be generated by an asset, often a company, over a specified time frame. Methodology Projections can be made with varying levels of detail, but any cash flow projection for a business entails for 2000. Fox participated in the drilling of two oil wells during the second quarter at a working interest of 20%. Acquisition and drilling activities in the first quarter contributed to higher daily average production during the April to June period of 583 BOE/d compared to 509 BOE/d in the prior quarter. The Company has adopted the use of a conversion ratio from natural gas to oil of six thousand cubic feet (Mcf) per one barrel (Bbl) of oil equivalent, rather than a 10 Mcf to 1 Bbl. This change is fully compliant
Fox completed the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 500,000 common shares through a normal course issuer bid approved by The Canadian Venture Exchange The Canadian Venture Exchange (CDNX) is now a defunct stock exchange having been acquired by the TSX Group in 2001 and renamed the TSX Venture Exchange. History of the Canadian Venture Exchange (CDNX) . The Exchange has conditionally con·di·tion·al adj. 1. Imposing, depending on, or containing a condition. See Synonyms at dependent. 2. Grammar Stating, containing, or implying a condition. 3. approved a repurchase program for 500,000 shares commencing on August 1, 2000. The Company completed a fully subscribed Fully Subscribed A situation in which an underwriting firm has successfully sold to investors all of its available issues of a public offering of securities. When the issue is fully subscribed, the underwriter's risk of being undersubscribed (being unable to sell its allotment of private placement of 600,000 common shares with flow through features for proceeds of $150,000 in May. Fox has plans to drill up to 14 wells during the balance of the year and to pursue additional acquisitions to accelerate growth. The continued stability in higher commodity prices provides a positive outlook for the Company. "The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release." |
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