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ENCOR INC. REPORTS FINANCIAL AND OPERATING RESULTS FOR THREE MONTHS ENDED MARCH 31, 1992

 ENCOR INC. REPORTS FINANCIAL AND OPERATING RESULTS
 FOR THREE MONTHS ENDED MARCH 31, 1992
 CALGARY, Alberta, May 5 /PRNewswire/ -- Encor Inc. (Toronto, Montreal: ECR) today announced its financial and operating results for the three months ended March 31, 1992. Funds generated from operations were $10.5 million or 7 cents per common share (5 cents per share on a fully diluted basis), a reduction of $10.1 million or 6 cents per common share (3 cents per share on a fully diluted basis) from the corresponding period in 1991. The net loss applicable to common shareholders for the quarter amounted to $27.6 million or 18 cents per share compared to a net loss of $20.9 million or 14 cents per share for the first quarter of 1991.
 Revenues, net of royalties, for the first quarter of 1992 were $61.6 million, a reduction of $12.3 million or 17 percent from the same period last year. Declines in product prices and hedging revenue of $13.9 million and $4.2 million respectively were partially offset by additional revenues of $3.6 million arising from increased volumes and reduction in royalties of $2.2 million.
 Expenses increased by 3.0 million from $72.9 million for the first quarter of 1991 to $75.9 million for the first quarter of 1992. The provision for depletion, depreciation and amortization was $6.3 million higher due primarily to an increase in the depletion and depreciation rate, following a downward revision to the company's provded natural gas reserves in the fourth quarter of 1991, and an additional provision for future removal and site restoration costs of $1.7 million. General and administrative expenses were also $1.0 million higher due mainly to increased office and equipment leasing costs. These increases were partially offset by lower exploration expenses of $1.6 million as a result of reduced activity and lower dry hole and abandonment costs of $2.8 million. Amortization of undeveloped rights was also lower by $1.8 million in 1992 reflecting a decline in oil and gas leases subject to expiry.
 Financial charges declined by 23 percent to $11.4 million during the first three months of 1992 compared to $14.9 million for the first three months of 1991 as a result of lower average interest rates.
 Capital expenditures and exploration expenses were $9.4 million for the quarter, down 61 percent from the same period in 1991. In western Canada, spending totalled $7.2 million, down $11.1 million from 1991 levels. Internationally, capital expenditures and exploration expenses declined from $5.6 million in 1991 to $2.2 million during the quarter ended March 31, 1992.
 On April 30, 1992, Encor announced that its bank lenders delivered a borrowing base shortfall notice. Encor has until June 30, 1992 to eliminate this deficiency. If the deficiency has not been eliminated by then, Encor can deliver a borrowing base shortfall cure notice which will extend the time available to eliminate the deficiency until Dec. 31, 1992, after which an event of default would occur.
 After delivery of the borrowing base shortfall cure notice, Encor would be required to dedicate all of its net cash flow to the repayment of loans outstanding under the facility. Net cash flow is generally determined as net revenues less operating and general and administrative expenses and certain capital expenditures. The dedication of cash flow to repayment of the bank loans will not affect the company's day to day operating activities. However, payment of interest on debt, other than loans under the facility, after June 30, 1992 will be subject to the approval of the lenders.
 Encor is working hard to resolve its financial issues by reducing costs and pursuing the sale of certain international assets while building additional value wherever possible. In addition, the company is considering broader and more permanent solutions to its financial problems. It is pursuing the sale of the company to, or merger with, a financially strong entity which would be capable of exploiting existing opportunities. Encor is also developing an alternative for restructuring its capital structure with a view to reducing the level of financing costs and possibly raising additional capital. The company has engaged financial advisors to assist it in pursuing both alternatives.
 Complete details of Encor's current financial situation are available in the company's first quarter interim report which will be mailed later this week.
 The company's shares trade on The Toronto Stock Exchange and the Montreal Exchange under the symbol "ECR."
 ENCOR INC.
 Highlights
 Quarter Ended
 March 31,
 1992 1991
 Financial (millions of dollars, except
 per share amounts)
 Revenues, net of royalties 61.6 73.9
 Funds generated from operations 10.5 20.6
 Per common share
 basic $0.07 $0.13
 fully diluted $0.05 $0.08
 Net loss 23.9 17.4
 Provision for redemption premium on
 convertible preferred shares 3.7 3.5
 Net loss applicable to common shareholders 27.6 20.9
 Per common share $0.18 $0.14
 Capital expenditures and exploration
 expenses 9.4 23.9
 Operations
 Average Daily Production
 Oil and natural gas liquids (Bbls) 13,586 34,963
 Natural gas (MMcf) 215 183
 Average Prices
 Oil and natural gas liquids ($/Bbl) 17.32 19.67
 Natural gas ($/Mcf) 1.14 1.48
 -0- 5/5/92
 /CONTACT: E. Susan Evans, VP, law and corporate affairs of Encor, 403-231-6066/
 (ECR.) CO: Encor Inc. ST: Alberta IN: OIL SU: ERN


AL -- LA037 -- 6637 05/05/92 14:17 EDT
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