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NORTH CANADIAN ANNOUNCES 1992 SECOND QUARTER, FIRST HALF RESULTS

NORTH CANADIAN ANNOUNCES 1992 SECOND QUARTER, FIRST HALF RESULTS
 CALGARY, Aug. 13 /PRNewswire/ -- North Canadian Oils Limited announced improved financial results for the second quarter of 1992 reporting increases in total revenues, cash generated from operations, and net earnings.
 Total revenues, net of royalties, were $88.3 million for the three months ended June 30, 1992, versus $80.3 million for 1991, and $166.3 million for the six months ended June 30, 1992, versus $169.9 million for 1991. Operating revenues, net of royatlies, rose to $83.9 million from $74.8 million in the second quarter of 1992 and 1991 respectively, but declined to $157.5 million from $158.3 million in the first half of 1992 and 1991 respectively. Second quarter revenues were higher due primarily to an increase in the sale of third party natural gas. Investment and other income continued to be adversely affected by lower prime interest rates in Canada.
 Cash generated from operations was $24.8 million ($0.63 per common share) in the second quarter of 1992 compared to $19.2 million ($0.47 per common share) in 1991, and $47.8 million ($1.22 per common share) inthe first half of 1992 versus $46.8 million ($1.17 per common share) in 1991. Net earnings attributable to common shares, after the deduction of preferred share dividends, increased from $0.8 million ($0.02 per common share) to $2.4 million ($0.06 per common share) in the second quarter of 1991 and 1992 respectively, but declined during the first half from $5.4 million ($0.15 per common share) in 1991 to $2.6 million ($0.07 per common share) in 1992. The second quarter increase in earnings and cash generated from operations resulted primarily from improved marketing margins on third party natural gas sales.
 Natural gas production rose slightly during the second quarter of 1992 to average 236 mmcfd versus 234 mmcfd in 1991. Production for the first half averaged 243 mmcfd in 1992 and 244 mmcfd in 1991. Production of crude oil and natural gas liquids was 6,042 bpd in the second quarter of 1992 compared to 6,486 bpd for the same period of 1991. Production for the first half of 1992 was 6,108 bpd compared to 6,866 bpd in 1991. The volumes were lower overall due to normal declines in mature fields and pipeline shipping restrictions. The average price received for natural gas declined from $1.47 per mcf for the first half of 1991 to $1.27 per mcf for the comparable period of 1992 due to ongoing gas-to-gas competition and constrained pipeline access to U.S. markets. The average price realized for crude oil and natural gas liquids improved slightly from $17.57 per bbl in 1991 to $18.05 per bbl in 1992 due to a narrowing in the price differentials between light and medium gravity crude oil.
 Capital expenditures for the second quarter were $9.7 million in 1992 versus $23.9 million in 1991, and $18.7 million versus $55.8 million for the first half of 1992 and 1991 respectively. A number of exploration and development projects were postponed during the first half of 1992 due to poor weather conditions and the associated expenditures have been deferred to the 1992-93 winter drilling program. A total of 12 gross (9.3 net) exploration and development wells were drilled during the second quarter of 1992 for an overall success ratio of 69 percent.
 Details on NCO's $75 million acquisition of Shell Canada's interests in the Progress area of northern Alberta were also announced during the second quarter of 1992. The acquisition offers significant upside potential from an exploration, exploitation and marketing perspective, and provides a strategic fit with the Company's existing asset base. The effective date of the purchase will be July 1, 1992, with closing anticipated in early September.
 North Canadian is a senior exploration, production, marketing and power cogeneration company. Exploration activity is concentrated in the Western Sedimentary Basin of Canada while marketing and cogeneration activities have a North American focus. NCO's common shares are traded on the Toronto and Montreal stock exchanges in Canada and The American Stock Exchange in the United States.
 NORTH CANADIAN OILS LIMITED
 CONSOLIDATED RESULTS FOR THE FIRST HALF ENDED JUNE 30, 1992
 Three Months Six Months
 1992 1991 1992 1991
 OPERATING
 Daily production
 Natural gas (mmcfd) 236 234 243 244
 Crude Oil and NGLs (bpd) 6,042 6,486 6,108 6,866
 Third party natural gas
 sales (mmcfd) 312 269 283 247
 Wells drilled (net)
 Natural gas 2.5 10.4 8.0 43.3
 Crude oil 3.9 5.3 7.8 7.7
 Dry and abandoned 2.9 4.6 2.9 17.0
 TOTAL 9.3 20.3 18.7 68.0
 Success ratio (percent) 69 77 84 75
 FINANCIAL
 ($ millions except per share
 amounts)
 Total revenues 93.6 87.1 177.3 184.4
 Total revenues, net of
 royalties 88.3 80.3 166.3 169.9
 Cash generated from
 operations 24.8 19.2 47.8 46.8
 Per common share, after
 preferred share
 dividends 0.63 0.47 1.22 1.17
 Net earnings 4.1 2.8 6.0 9.5
 Attributable to common shares 2.4 0.8 2.6 5.4
 Per common share 0.06 0.02 0.07 0.15
 Capital expenditures
 Crude oil and natural gas
 properties
 Finding and onstream 7.9 21.4 15.4 51.8
 Acquisitions 0.6 0.5 0.8 1.1
 Divestitures (0.1) - (1.2) -
 Crude oil and natural
 gas (net) 8.4 21.9 15.0 52.9
 Other 1.3 2.0 3.7 2.9
 Total capital expenditures 9.7 23.9 18.7 55.8
 Total assets 1,096.3 1,101.0+
 Weighted average number of
 common shares outstanding
 (millions) 36.5 36.4
 + As at December 31, 1991
 -0- 08/13/92
 /CONTACT: G. Barry Padley, Senior Vice-President and Chief Financial Officer, North Canadian Oils Limited, 403-261-4320/
 (NCO.) CO: North Canadian Oils Limited ST: Alberta IN: OIL SU: ERN


RM -- SF018 -- 9741 08/13/92 15:01 EDT
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Date:Aug 13, 1992
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