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GULF CANADA RESOURCES LTD. ANNOUNCES NINE-MONTH RESULTS FOR 1991

GULF CANADA RESOURCES LTD. ANNOUNCES NINE-MONTH RESULTS FOR 1991
 CALGARY, Alberta, Nov. 12 /PRNewswire/ -- The following was announced today by Gulf Canada Resources Ltd. (AMEX, Toronto, Montreal, Vancouver: GOU):
 Highlights Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1991 1990 1991 1990
 Financial (millions of dollars)
 Revenues $212 $249 $730 $625
 Earnings (loss) from
 continuing operations 6 17 57 (34)
 Cash generated from
 continuing operations 79 90 254 248
 Sales (gross)
 Total liquids (bbls/d) 90,900 90,100 87,400 90,700
 Natural gas (mmcf/d) 264.3 329.5 317.0 327.0
 A gain on the sale of the company's working interest in the Caroline gas field, higher liquids prices and lower frontier contract drilling expenses all contributed to improved earnings for Gulf Canada Resources Ltd. in the first nine months of 1991. Earnings from continuing operations were $57 million compared with a loss of $34 million for the first nine months of 1990. Lower liquids volumes and increased production expenses had a negative impact on 1991 earnings, while 1990 results included a write-off of previously incurred frontier exploration expenses.
 Third quarter earnings from continuing operations were $6 million in 1991, compared with $17 million a year ago. The lower contract drilling expenses and a reduction in net finance charges had positive impacts this year, but were offset by lower liquids prices.
 Cash generated from continuing operations was $254 million for the first nine months of 1991, compared with $248 million for the period in 1990. Third quarter cash generated was $79 million compared with $90 million a year ago.
 Gross sales of crude oil, natural gas liquids and synthetic crude oil averaged 87,400 barrels per day for the first nine months of 1991, compared with 90,700 barrels per day for the same period of 1990. The main reason for the decline was the absence in 1991 of heavy oil production from properties sold at mid-1990. Increased sales of synthetic crude oil and natural gas liquids had positive impacts on both the nine-month and third quarter results. Third quarter 1991 sales averaged 90,900 barrels per day compared with 90,100 barrels per day in the same period of 1990.
 Nine-month natural gas sales averaged 317 million cubic feet per day, compared with the nine-month 1990 sales of 327 million cubic feet per day. Third quarter sales averaged 264 million cubic feet per day, 20 percent less than a year ago reflecting lower demand in California, and a temporary delay in start-up of new supply projects.
 During the first nine months of 1991, Gulf received $432 million from asset dispositions, including its interests in Caroline and Interprovincial Pipe Line Limited. The company has used these proceeds to reduce its net financing position by $389 million.
 Net financing change
 (millions of dollars)
 Sept. 30, Dec. 31, Increase
 1991 1990 (decrease)
 Preference shares 577 1,004 (427)
 Debt 1,906 943 963
 Total 2,483 1,947 536
 Less cash 925 --- 925
 Net financing 1,558 1,947 (389)
 Gulf has entered into additional asset sales and purchase agreements for transactions expected to close by year-end. These dispositions will bring total receipts to approximately $600 million.
 Gulf continues to selectively drill for low-cost oil in Western Canada: in the third quarter the company successfully completed three more wells at Sylvan Lake and continues to drill to add to production there. Internationally, the company has a natural gas discovery at Dayung in South Sumatra, Indonesia, that will be extensively tested during the fourth quarter. Completion of a farmout agreement will see drilling start before year-end on high-potential gas and condensate prospects on Block A in North Sumatra. The first of two wells in Egypt is also scheduled to start drilling in the fourth quarter.
 Consolidated Statements of Earnings (Loss)
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1991 1990 1991 1990
 (millions of dollars)
 Revenues
 Net oil and gas $190 $208 $582 $572
 Net gain (loss) on asset
 disposals 11 15 105 (10)
 Other 11 26 43 63
 Total 212 249 730 625
 Expenses
 Operating
 -- production 77 75 235 216
 -- contract drilling 12 28 45 77
 Exploration 13 22 55 148
 General and administrative 23 21 73 52
 Depreciation, depletion
 and amortization 50 45 157 158
 Finance charges, net 15 24 28 29
 Income tax expense
 (recovery)(a) 16 17 80 (21)
 Total 206 232 673 659
 Earnings (loss) from
 continuing operations 6 17 57 (34)
 Discontinued operations (1) 0 (5) 0
 Earnings (loss) for
 the period $5 $17 $52 ($34)
 Per ordinary share (b)
 Earnings (loss) from
 continuing operations ($0.04) ($0.05) $0.01 ($0.72)
 Earnings (loss) ($0.05) ($0.05) ($0.03) ($0.72)
 Condensed Consolidated Statements of Cash Flows
 (Unaudited)
 Operating Activities
 Cash generated from
 continuing operations $79 $90 $254 $248
 Net change in working
 capital (12) (124) 84 (135)
 Other, net (19) (7) (60) (19)
 Total 48 (41) 278 94
 Investing Activities (35) (22) 191 (704)
 Dividends (43) (44) (120) (128)
 Financing Activities (20) 91 576 734
 Increase (decrease)
 in cash (50) (16) 925 (4)
 Cash at beginning
 of period 975 22 0 10
 Cash at end of period (a) $925 $6 $925 $6
 (a) Comprises cash and short-term investments
 Consolidated Statements Of Financial Position
 Sept. 30, 1991 Dec. 31, 1990
 (Unaudited)
 (millions of dollars)
 Assets
 Current
 Cash and short-term investments $925 $0
 Accounts receivable 108 197
 Materials and supplies 37 4
 Other 54 82
 Sub-total 1,124 320
 Investments and other assets 395 709
 Property, plant and equipment 2,678 2,738
 Total $4,197 $3,767
 Liabilities And Shareholders' Equity
 Current
 Short-term loans $389 $20
 Accounts payable 104 153
 Current portion of deferred revenue 102 99
 Other 86 135
 Sub-total 681 407
 Long-term debt 1,506 902
 Other long-term liabilities 75 123
 Deferred income taxes 273 211
 Sub-total 2,535 1,643
 Shareholders' equity
 Share capital
 Senior preference shares 577 1,004
 Ordinary shares 1,492 1,468
 Deficit (377) (326)
 Foreign currency translation
 adjustment (30) (22)
 Sub-Total 1,662 2,124
 Total $ 4,197 $ 3,767
 Notes To Consolidated Financial Statements
 (a) Income tax expense (recovery) includes deferred income taxes of $12 million and $10 million for the three-month periods ended Sept. 30, 1991, and Sept. 30, 1990, respectively, and $66 million and ($36) million for the nine-month periods ended September 30, 1991, and Sept. 30, 1990, respectively.
 (b) Earnings per ordinary share are calculated after deduction of cumulative preference share dividends of $12 million and $26 million for the three-month periods ended Sept. 30, 1991, and Sept. 30, 1990, respectively, and $56 million and $79 million for the nine-month periods ended Sept. 30, 1991, and Sept. 30, 1990, respectively.
 (c) Certain amounts and volumes for the three- and nine-month periods ended Sept. 30, 1990, have been reclassified to conform with the presentation adopted for 1991.
 Supplementary Information
 (Unaudited)
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1991 1990 1991 1990
 gross/net
 Volumes Sold
 Crude oil and natural gas liquids
 (thousands of barrels per day)
 Crude oil
 - Canada
 -conventional 41.8/ 34.0 43.6/ 36.4 42.0/ 34.6 47.5/ 40.2
 -synthetic 17.0/ 17.0 14.8/ 14.8 14.4/ 14.4 13.2/ 13.2
 - Indonesia 15.4/ 9.7 17.4/ 10.1 16.1/ 9.1 16.8/ 10.0
 Natural gas
 liquids 16.7/ 15.6 14.3/ 12.1 14.9/ 12.8 13.2/ 10.6
 90.9/ 76.3 90.1/ 73.4 87.4/ 70.9 90.7/ 74.0
 Natural gas
 (millions of cubic feet per day)
 264.3/238.7 329.5/271.1 317.0/273.9 327.0/270.2
 Sulphur
 (thousands of tons)
 62 / 55 78 / 73 257 /248 249 /239
 Gross Average Prices
 Crude oil ($ per barrel)
 -Canada
 -conventional $ 25.67 $ 26.35 $ 26.11 $ 22.26
 -synthetic 23.19 28.67 23.11 24.03
 -Indonesia 22.03 25.54 22.47 22.57
 Natural gas liquids
 ($ per barrel) 14.98 17.89 16.20 17.90
 Average liquids price
 ($ per barrel) 22.63 25.24 23.25 21.94
 Natural gas
 ($ per thousand
 cubic feet) 1.36 1.37 1.44 1.55
 Sulphur
 ($ per ton) 39.49 59.18 60.91 56.75
 Average Exchange Rates
 (Cdn$1) US$0.87 US$0.87 US$0.87 US$0.86
 -0- 11/12/91
 /CONTACT: Craig Langpap, 403-233-4341 or Jim Rennie, 403-233-3099, both of Gulf Canada Resources Ltd./
 (GOU.) CO: Gulf Canada Resources Ltd. ST: Alberta IN: OIL SU: ERN EH -- LA027 -- 3703 11/12/91 19:21 EST
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