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NORCEN ENERGY RESOURCES LTD. REPORTS SECOND QUARTER RESULTS

 NORCEN ENERGY RESOURCES LTD. REPORTS SECOND QUARTER RESULTS
 CALGARY, Alberta, Aug. 4 /PRNewswire/ -- Norcen Energy Resources Ltd. (AMEX: NCN; Toronto, Montreal: NCN) today announced sharply higher cash flow and earnings for the second quarter of 1992, compared with the same period of 1991.
 Cash generated from operations for the quarter amounted to $70.8 million, up 31 percent from $54.2 million in the comparable period a year earlier. Net earnings applicable to ordinary shares for the quarter were $1.9 million, compared to a loss of $5.6 million. On a per share basis, cash flow for the quarter was $1.12 per ordinary share, up from $0.85 per share and net earnings were 3 cents per share compared to a loss of 9 cents per share.
 The major factor contributing to the improved financial results was increased revenue generation from the Oil and Gas Division, resulting primarily from higher crude oil prices and production rates. A $6.5 million gain on the sale of an oil pipeline gathering system in southeast Saskatchewan was another contributing factor. Net earnings would have been higher except for the $5.9 million write off of costs associated with an unsuccessful drilling program in Egypt earlier in the year.
 For the first half of 1992, cash generated from operations amounted to $147.7 million, or $2.34 per ordinary share, compared to $155.8 million, or $2.48 per share in the first six months of 1991. Net earnings for the half were $21.4 million, or 28 cents per ordinary share, compared to $35.1 million, or 46 cents per share a year earlier.
 Capital expenditures including acquisitions totalled $164.2 million for the six months, up from $149.4 million in the same period of 1991.
 Production of crude oil and gas liquids in the second quarter averaged 56,400 barrels per day, up 8 percent from 52,200 per day in the comaparable period a year ago. The improvement reflected production gains in the United States and Australia with some offset from a production decline in Canada. The drop in Canadian volumes was due to the shut-in of uneconomic heavy oil production during the latter part of 1991 and lower synthetic crude oil royalty volumes as a result of the fire at Suncor Inc.'s plant near Fort McMurray in Alberta early in the quarter.
 Natural gas production for the second quarter averaged 270.2 million cubic feet per day, up 12 percent from 241.7 million cubic feet per day a year earlier. The improvement reflected gains in both Canada and the United States, as well as the inclusion of 10.4 million cubic feet of gas per day from recently acquired properties in Argentina.
 The average price realized by Norcen for its crude oil and natural gas production in the quarter was $19.68 per barrel, up 15 percent from $17.10 per barrel in the same period of 1991. Norcen's average gas price was $1.45 per thousand cubic feet, down from $1.53 per thousand cubic feet in the previous year.
 During the second quarter of 1992, Norcen participated in 17 gross (13.3 net) working interest wells which resulted in 8 gross (5.3 net) oil wells and one gross (1.0 net) gas well in Canada, and one gross (1.0 net) oil well and one gross (0.5 net) gas well in the United States.
 NORCEN ENERGY RESOURCES LTD.
 Highlights
 (millions of dollars, except per share amounts)
 3 Months Ended 6 Months Ended
 June 30 June 30
 1992 1991 1992 1991
 Financial
 Sales and other revenues $222.0 $206.4 $480.2 $510.1
 Operating Income
 Oil and gas $33.9 $23.6 $56.1 $59.4
 Propane marketing (5.7) (3.5) 15.6 23.6
 Mineral resources 5.7 5.6 13.2 15.5
 Investment and other revenues 3.0 4.1 6.0 8.5
 Total $36.9 $29.8 $90.9 $107.0
 Net earnings $3.3 ($1.9) $21.4 $35.1
 Earnings applicable to ordinary
 shares $1.9 ($5.6) $17.3 $27.4
 - Per ordinary share
 Basic $0.03 ($0.09) $0.28 $0.46
 Fully diluted $0.03 ($0.09) $0.28 $0.42
 Cash generated from
 operations $70.8 $54.2 $147.7 $155.8
 - Per ordinary share
 Basic $1.12 $0.85 $2.34 $2.48
 Fully diluted $0.83 $0.63 $1.70 $1.80
 Operating
 Production of oil and gas liquids
 (thousands of barrels per
 day) 56.4 52.2 56.3 54.4
 Production of natural gas
 (millions of cubic feet per
 day) 270.2 241.7 277.6 256.3
 Average Prices Received
 Oil and gas liquids
 (per barrel) $19.68 $17.10 $18.28 $18.39
 Natural gas (per thousand
 cubic feet) $1.45 $1.53 $1.45 $1.65
 Sales of propane (millions
 of litres) 284.5 270.6 755.1 796.4
 -0- 8/4/92
 /CONTACT: Ron Burrows of Norcen Energy Resources, 403-231-0107/
 (NCN) CO: Norcen Energy Resources Ltd. ST: Alberta IN: OIL SU: ERN


AL -- LA036 -- 6832 08/04/92 17:08 EDT
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Date:Aug 4, 1992
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