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NORTH CANADIAN ANNOUNCES 1991 RESULTS

 NORTH CANADIAN ANNOUNCES 1991 RESULTS
 CALGARY, Alberta, Feb. 20 /PRNewswire/ -- North Canadian Oils Ltd.


(AMEX: NCD, Toronto, Montreal: NCO) announced its 1991 year end results reporting gains in revenues and production. Total revenues, net of royalties, increased 13 percent from $290 million in 1990 to $329 million in 1991 while oil and gas revenues, net of royalties, increased 20 percent from $255 million to $306 million as a result of the higher production volumes. The average price received for natural gas in 1991 remained stable at $1.41 per thousand cubic feet compared to the 1990 price of $1.44 per mcf. The average price received for crude oil and natural gas liquids in 1991 was $17.94 per barrel, down from the 1990 price of $22.47 per bbl because of the high price differential that existed for much of the year between light and medium gravity crudes. Investment and other income, including revenue from NCO's royalty interest in the Polaris Mine, declined from $35 million in 1990 to $23 million in 1991 due mainly to the impact of lower interest rates on a reduced investment portfolio balance.
 Cash generated from operations decreased from $94 million in 1990 to $89 million in 1991, while net earnings declined from $33 million to $17 million respectively. Net earnings attributable to common shares decreased from $23 million in 1990 to $9 million in 1991 after the deduction of $9 million and $8 million for preferred share dividends respectively. Net earnings per common share were $0.25 in 1991, down from the 1990 amount of $0.64 per common share. Cash flow and earnings declined in 1991 due to the combined effect of lower crude oil prices, higher operating costs and higher depreciation, depletion and amortization expenses.
 Natural gas production increased 16 percent in 1991 to reach an all- time high of 234 million cubic feet per day due mainly to a full year of production from five new facilities constructed late in 1990, and the addition of Coseka production beginning in January 1991. Crude oil and NGLs production increased 31 percent to average 6,549 barrels per day in 1991 reflecting new production that was brought on stream during the year and the addition of Coseka production.
 Proven natural gas reserves were revised downward by 191 billion cubic feet in the fourth quarter of 1991 as a result of the current poor economic conditions and lower than expected production performance. This downward revision was less than the 200 bcf forecast and announced by the company in November 1991. Proven reserves of natural gas were 997 bcf at year end 1991 while proven reserves of crude oil and NGLs were 14.3 million barrels. Net undeveloped land holdings were 1,312,000 acres at December 31, 1991.
 Capital expenditures for 1991 totalled $84 million compared to $77 million in 1990 due primarily to an increase in exploratory drilling. The company drilled 211 gross (114 net) exploration and development wells in 1991 for an overall success ratio of 80 percent.
 North Canadian Oils Ltd. is a senior oil and gas exploration, production, marketing and power cogeneration company. NCO's common shares trade on the Toronto and Montreal stock exchanges in Canada and The American Stock Exchange in the United States.
 NORTH CANADIAN OILS LTD.
 Consolidated Results at Dec. 31, 1991
 Year End Percent
 1991 1990(a) Change
 Operating:
 Daily Production
 Natural gas (mmcfd) 234 202 16
 Crude oil and NGLs (bpd) 6,549 5,001 31
 Reserves - Proven
 Natural gas (bcf) 997 1,222 (18)
 Crude Oil and NGLs (mmbbls) 14.3 16.2 (12)
 Land Holdings (000's net acres)
 Developed 1,089 1,140 (4)
 Undeveloped 1,312 1,321 (1)
 Wells Drilled, Net
 Natural gas 83.5 84.4 (1)
 Crude oil 8.2 7.5 9
 Dry and abandoned 22.5 13.5 67
 Total 114.2 105.4 8
 Success Ratio 80 percent 87 percent
 Financial:
 (Dollars in millions except
 per share amounts)
 Total revenues, net of royalties 328.8 290.2 13
 Cash generated from operations 89.3 93.7 (5)
 per common share, after
 preferred share dividends 2.23 2.32 (4)
 Net earnings attributable to
 common shares 9.1 23.4 (61)
 per share 0.25 0.64 (61)
 Capital Expenditures
 Crude oil and natural gas properties
 Finding and Onstream 72.2 68.8 5
 Acquisitions 2.6 8.0 (68)
 Divestitures (0.8) (0.9) (11)
 Crude oil and natural gas (net) 74.0 75.9 (3)
 Cogeneration (0.2) (6.3) (97)
 Marketing and other 9.8 7.6 29
 Total 83.6 77.2 8
 Coseka, Bankeno, Trigen
 acquisitions --- 172.0 ---
 Total Capital Expenditures 83.6 249.2 (66)
 Total assets 1,101.0 1,125.8 (2)
 Weighted average number of
 common shares outstanding 36.5 36.4 ---
 (a) Restated for comparison and accounting change.
 -0- 02/20/92
 /CONTACT: G. Barry Padley, senior VP, CFO, of North Canadian Oils, 403-261-4320/
 (NCD) CO: North Canadian Oils Ltd. ST: Alberta IN: OIL SU: ERN


EH -- LA030 -- 1112 02/20/92 16:36 EST
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Date:Feb 20, 1992
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