Scimitar Announces 2001 Year End Results.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)--May 7, 2002 Scimitar Hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. Corporation (CDNX CDNX See Canadian Venture Exchange (CDNX). -SIY) is pleased to announce its audited financial and operating results for the year ended December December: see month. 31, 2001. Major accomplishments in 2001: -- A multi well drilling program is expected to commence in Egypt during 2002 after review and interpretation of the 3D seismic data. -- To fully develop the long term potential of the Issaran Project, Scimitar will explore various opportunities to generate the necessary capital. -- In Pakistan, analysis of existing well data combined with geological and geophysical studies will lead to an evaluation of prospects on the Safed Koh Block. Future Plans:
-- A multi well drilling program is expected to commence in Egypt during 2002
after review and interpretation of the 3D seismic data.
-- To fully develop the long term potential of the Issaran Project, Scimitar
will explore various opportunities to generate the necessary capital.
-- In Pakistan, analysis of existing well data combined with geological and
geophysical studies will lead to an evaluation of prospects on the Safed Koh
Block.
CORPORATE HIGHLIGHTS
Year Ended Quarter Ended
December 31 December 31
2001 2000 2001 2000
---------------------------------------
FINANCIAL:
($ thousands,
except per share amounts)
Gross Revenue $ 9,475 $ 12,226 $ 1,647 $ 2,936
Cash Flow $ 2,233 $ 4,468 $ (134) $ 155
Per Share $0.05 $0.11 $ (0.01) $ -
Net Income $ 450 $ 1,576 $(1,138) $ (269)
Per Share $0.01 $0.04 $ (0.03) $(0.01)
Capital Expenditures, net $ 5,529 $ 5,108 $ 1,462 $ 927
Cash $ 223 $ 819
Working Capital
(Deficit) $ (1,244) $ 884
Total Assets $ 12,913 $ 9,495
Shareholders' Equity $ 10,350 $ 8,514
Net Asset Value Per Share: $0.75 $1.15 (Based on 15% NPV)
Common Shares (000's)
Basic 44,165 39,965
Weighted Average 41,823 39,633
OPERATIONS:
Oil Production (bopd) 1,069 1,093 1,044 1,019
Average Selling
Price ($/bbl) $24.29 $30.57 $17.15 $31.31
Oil Reserves (mbbl)
Proven 2,179 3,152
Probable (50% Risked) 3,045 6,453
-------- --------
Total 5,224 9,605
======== ========
Net Present Value (15%) $ 34,263 $ 47,702
Oil Production & Revenue Oil production for 2001 averaged 1,069 bopd, off 2% from 1,093 bopd for 2000. During the fourth quarter of 2001 production was 1,044 bopd as compared to 1,019 bopd for the corresponding 2000 period. Revenue from oil sales for the 2001 fourth quarter was $1.6 million ($17.15/bbl) and $9.5 million ($24.29/bbl) for the year. For 2000, the corresponding revenues were $2.9 million ($31.31/bbl) and $12.2 million ($30.57/bbl). The lower prices in 2001 are attributable to lower world oil prices and a revised pricing schedule which came into effect coincident co·in·ci·dent adj. 1. Occupying the same area in space or happening at the same time: a series of coincident events. See Synonyms at contemporary. 2. with the declaration of commerciality and commencement of the 20 year Commercial Development Period on October October: see month. 18, 2001. 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 Cash flow was $2.2 million ($0.05/share) for 2001 as compared to $4.5 million ($0.11/share) for 2000. The reduced oil price during the fourth quarter 2001 lead to a cash flow deficiency of $134,000, down from cash flow of $155,000 for the 2000 fourth quarter. The GPC (1) A PC that uses the Linux-based gOS operating system. See gOS. (2) (GPC Group) Originally the Graphics Performance Characterization committee of the NCGA, the GPC Group is now part of Standard Performance Evaluation Corporation (SPEC) and oversees the following share of production fees was $1.9 million (20% of revenue) for 2001 as compared to $2.9 million (24% of revenue) in 2000, primarily due to an adjustment booked in 2000. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for 2001 increased to $2.9 million from $2.5 million in 2000 as a result of higher processing and treating costs along with steam pilot related costs. For the fourth quarter, operating expenses were $660,000 for 2001 and $632,000 for 2000.
NET BACK ANALYSIS: Year Ended Quarter Ended
December 31 December 31
2001 2000 2001 2000
---------------- ----------------
Average selling price $24.29 $30.59 $17.15 $31.31
Less: Production fees $ 4.75 $ 7.29 $ 3.41 $12.90
Operating expenses $ 7.38 $ 6.22 $ 6.88 $ 6.74
------ ------ ------ ------
Field Net Back $12.16 $17.08 $ 6.86 $11.67
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General and administrative expenses (G&A) were $2.5 million ($6.52/bbl) for 2001 and $793,000 ($8.26/bbl) for the fourth quarter. For 2000, the corresponding costs were $2.4 million ($6.09/bbl) and $989,000 ($10.54/bbl) for the fourth quarter. G&A costs were higher in 2001 as a result of unusual items related to the unsuccessful sale of a subsidiary, litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs and additional personnel. Net Income Net earnings for the year were $450,000 ($0.01/share) and $1.6 million (($0.04/share) in 2000. A net loss of $1.1 million was incurred during the fourth quarter 2001, primarily as a result of increased depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able charges. For the fourth quarter 2000, the net loss was $269,000. The provision for depletion and depreciation was $2.1 million ($5.36/bbl) for 2001 as compared to $1.6 million ($3.63/bbl) for 2000. During 2001, resource properties were sold generating a gain of $309,000 as compared to a $1.4 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of resource properties in 2000. Capital Expenditures Capital expenditures for 2001 were $5.5 million and $5.1 million in 2000. During the 2001 fourth quarter, $1.5 million was spent on a 3D seismic program and continuation of steam injection activity. Reserves Outtrim Szabo Associates Ltd. independently evaluated Scimitar's 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 effective December 31, 2001, as summarized below. The total reserves assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to the three wells drilled and completed in 2001 exceeded the 2001 production by 63%. Production declines exhibited during 2001, due to normal reservoir decline and the fact that flush To empty the contents of a memory buffer. See buffer. Flush Elizabeth Barrett Browning’s spaniel, subject of a biography. [Br. Lit.: Woolf Flush in Barnhart, 446] See : Dogs (data) flush production from the fracture fracture, breaking of a bone. A simple fracture is one in which there is no contact of the broken bone with the outer air, i.e., the overlying tissues are intact. In a comminuted fracture the bone is splintered. systems has now been replaced by matrix production, led to an 8 million barrel downward revision (primarily in the Probable reserves category) from previous reserve estimates. During the latter half of 2001, the corporation's focus was on completing the necessary work commitments to achieve the Commerciality Declaration. No reserves have been assigned as a result of the thermal pilot project.
RESERVE RECONCILIATION
------------------------
(mbbls) Proven Probable Total
Balance,
December 31, 2000 3,152 12,906 16,058
Additions 193 444 637
Production -390 -390
Revisions -776 -7,260 -8,036
------- ------- -------
Balance,
December 31, 2001 2,179 6,090 8,269
======== ======= =======
Liquidity and Capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. At December 31, 2001, Scimitar had a cash position of $223,000 and working capital deficiency of $1.2 million, as compared to cash of $819,000 and working capital of $884,000 at December 31, 2000. The Corporation had no debt at December 31, 2001.
CONSOLIDATED STATEMENTS OF NET EARNINGS (LOSS)
For the Year For the Quarter
Ended December 31 Ended December 31
2001 2000 2001 2000
(audited) (audited) (unaudited) (unaudited)
Revenues:
Sales of
crude oil $ 9,474,582 $ 12,226,077 $ 1,646,891 $ 2,936,188
Production
fees (1,853,115) (2,912,091) (327,483) (1,209,173)
----------- ------------ ----------- -----------
$ 7,621,467 $ 9,313,986 $ 1,319,408 $ 1,727,015
Expenses:
Operating 2,877,102 2,487,879 660,440 631,628
General and
administrative 2,543,441 2,435,431 792,876 988,787
Depletion and
depreciation 2,091,390 1,451,788 1,004,042 423,805
----------- ------------ ----------- -----------
7,511,933 6,375,098 2,457,358 2,044,220
----------- ------------ ----------- -----------
Net earnings from
operations 109,534 2,938,888 (1,137,950) (317,205)
Gain on property
disposition 308,805 - - -
Write-down of
petroleum and
natural gas
properties - (1,440,097) - -
Foreign exchange
gain 31,755 76,741 103 47,775
----------- ------------ ----------- -----------
NET EARNINGS
(LOSS) 450,094 1,575,532 (1,137,847) (269,430)
======================== =======================
PER SHARE $ 0.01 $ 0.04 $ (0.03) $ (0.01)
======================== =======================
CASH FLOW
(DEFICIENCY) 2,232,679 4,467,417 (133,805) 154,559
======================== =======================
PER SHARE $ 0.05 $ 0.11 $ (0.01) $ 0.00
======================== =======================
For further information please contact: Angus Angus (ăng`gəs), council area (1993 est. pop. 111,020), 842 sq mi (2,181 sq km), and former county, NE Scotland. Under the Local Government Act of 1973, the county of Angus became part of the Tayside region in 1975. A. Mackenzie Mackenzie, river, c.1,120 mi (1,800 km) long, issuing from Great Slave Lake, Northwest Territories, Canada, and flowing generally NW to the Arctic Ocean through a great delta. Between Great Slave Lake and Lake Athabasca it is known as the Slave River. , Chairman and Chief Executive Officer or Ms. M. Dalgado, Investor Relations Investor relations The process by which the corporation communicates with its investors. : Tel: 1-800-933-8855, Tel: (403) 543-0333. Fax: (403) 543-0344. http://www.scimitar.ab.ca 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) has neither approved nor disapproved the information contained herein. Suite 1040 Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of Place, 407 Second Street, South West Calgary, Alberta, CANADA, T2P T2P Type-Two Phaser (Star Trek) T2P Transition to Production (computer systems development) 2Y3 Telephone: +1 403 543-0333 Fax: +1 403 543-0344 E-mail: info@scimitar.ab.ca http://www.scimitar.ab.ca |
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