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GULF CANADA RESOURCES LTD. FIRST QUARTER REFLECTS CONTINUED IMPROVEMENT IN CRUDE OIL PRODUCTION

 GULF CANADA RESOURCES LTD. FIRST QUARTER REFLECTS
 CONTINUED IMPROVEMENT IN CRUDE OIL PRODUCTION
 CALGARY, Alberta, April 30 /PRNewswire/ -- The momentum that started in the last quarter of 1991, when Gulf Canada Resources Ltd. (AMEX: GOU; Toronto, Montreal, Vancouver: GOU) had its first quarterly increase in conventional Canadian crude oil production in over three years, continued into the first quarter of 1992. Ongoing improvements at existing fields boosted conventional crude oil production in Western Canada to 46,300 barrels per day, compared with 43,800 barrels per day in the fourth quarter and 42,900 barrels per day in the first quarter of 1991.
 The Western Canadian conventional crude oil production increases, together with increased production of synthetic crude oil from Syncrude, plus an average 1,700 barrels per day of crude oil from Gulf's interest in the KomiArcticOil joint venture in Russia, helped bring total crude oil production for the quarter to 78,800 barrels per day compared with 74,600 barrels per day a year ago.
 Total sales of liquids, which include crude oil and natural gas liquids (NGLs), were also up, to 87,300 barrels per day compared with 86,800 barrels per day in the first quarter of 1991. The increase occurred despite lower NGLs volumes, which were down primarily as a result of problems at partner-operated facilities. Natural gas sales, which were 322 million cubic feet per day compared with 393 million cubic feet per day in 1991, were down due to the sale of a number of producing properties in the latter half of 1991 and soft markets.
 In spite of depressed oil prices and the lowest natural gas prices in almost two decades, which resulted in reduced production revenues, Gulf had a loss of only $4 million compared with a break-even position in the first quarter of 1991. The increase in liquids volumes and a $40 million reduction in expenses had a positive impact on results. The lower oil and gas revenues also affected cash generated from continuing operations which was $66 million compared with $98 million a year ago.
 International operating highlights for the quarter included the company's first recorded production from Russia and a potentially important discovery in Indonesia. Gulf's share of KomiArcticOil production was up to approximately 2,000 barrels per day by the end of the quarter and, with an aggressive program of well workovers planned for 1992, is expected to reach 5,000 barrels per day by year-end.
 GULF CANADA RESOURCES LTD.
 Consolidated Statements of Earnings (Loss)
 (millions of dollars except per share amounts)
 (Unaudited)
 Three Months Ended March 31,
 1992 1991
 Revenues
 Net oil and gas $163 $208
 Other 16 16
 Total 179 224
 Expenses
 Operating - production 76 75
 - contract drilling 14 17
 Exploration 12 27
 General and administrative 16 29
 Depreciation, depletion and amortization 46 53
 Loss on asset disposals, net 2 6
 Finance charges, net 5 4
 Income tax (Note 1) 11 11
 Total 182 222
 Earnings (loss) from continuing operations (3) 2
 Discontinued operations (1) (2)
 Earnings (loss) for the period ($4) $0
 Per ordinary share (Note 2)
 Loss from continuing operations ($0.10) ($0.13)
 Loss $(0.10) ($0.15)
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Operating Activities
 Cash generated from continuing operations $66 $98
 Deferred production revenue (19) (8)
 Other, net (14) 80
 Total 33 170
 Investing activities (61) (78)
 Dividends (14) (39)
 Financing activities (13) (44)
 Increase (decrease) in cash (55) 9
 Cash at beginning of period 858 0
 Cash at end of period (a) $803 $9
 (a) Comprises cash and short-term investments
 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
 March 31, 1992 Dec. 31, 1991
 (Unaudited)
 (Millions of dollars)
 Assets
 Current $1,017 $1,070
 Investments, other assets
 and deferred charges 413 372
 Property, plant and equipment 2,498 2,484
 Total $3,928 $3,926
 Liabilities and shareholders' equity
 Current $628 $646
 Long-term debt 1,513 1,478
 Other long-term liabilities 58 68
 Deferred income taxes 216 210
 Total 2,415 2,402
 Shareholders' equity
 Share capital
 Senior preference shares 577 577
 Ordinary shares 1,504 1,492
 Deficit (552) (520)
 Foreign currency translation adjustment (16) (25)
 Sub-total 1,513 1,524
 Total $3,928 $3,926
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (1) Income tax expense includes deferred income taxes of $6 million and $4 million for the three months ended March 31, 1992 and 1991, respectively.
 2) Loss per ordinary share are calculated after deduction of cumulative preference share dividends of $12 million and $23 million for the three months ended March 31, 1992 and 1991, respectively.
 3) Certain amounts and volumes for the three months ended March 31, 1991, have been reclassified to conform with the presentation adopted for 1992.
 SUPPLEMENTARY INFORMATION
 (Unaudited)
 Three Months Ended March 31,
 1992 1991
 (gross/net)
 Volumes produced
 Crude oil and natural gas liquids
 (thousands of barrels per day)
 Crude oil
 - Canada - conventional 46.3/ 38.0 42.9/ 35.0
 - synthetic 15.8/ 15.8 14.3/ 14.3
 - Indonesia 15.0/ 10.3 17.4/ 10.0
 - Russia 1.7/ 1.6 -/ -
 78.8/ 65.7 74.6/ 59.3
 Natural gas liquids 15.7/ 13.1 19.9/ 16.8
 94.5/ 78.8 94.5/ 76.1
 Natural gas
 (millions of cubic feet per day) 339.2/ 282.2 393.2/ 333.2
 Sulphur
 (thousands of tons) 57 / 54 69 / 65
 Volumes Produced and Sold(b)
 Total liquids
 (thousands of barrels per day) 87.3/ 71.6 86.8/ 68.3
 Natural gas
 (millions of cubic feet per day) 321.8/ 264.8 392.9/ 333.0
 Sulphur
 (thousands of tons) 57 / 54 69 / 65
 (b) Excludes reinjection and includes inventory change.
 Gross Average Prices
 Crude oil ($ per barrel)
 - Canada - conventional 20.07 26.83
 - synthetic 20.43 23.69
 - Indonesia 20.91 24.91
 - Russia 18.20 ---
 Natural gas liquids ($ per barrel) 15.41 19.47
 Average liquids price ($ per barrel) 19.67 24.82
 Natural gas ($ per thousand cubic feet) 1.33 1.53
 Sulphur ($ per ton) 17.87 74.48
 Average exchange rate
 (Cdn$1) US$0.85 US$0.87
 -0- 4/30/92
 /CONTACT: Craig Langpap 403-233-4341 or; John Sparks, 403-233-4049, both of Gulf Canada Resources
 (GOU) CO: Gulf Canada Resources Ltd. ST: Alberta IN: OIL SU: ERN


EH -- LA039 -- 5085 04/30/92 15:44 EDT
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