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NORTH CANADIAN ANNOUNCES FIRST QUARTER RESULTS

 CALGARY, Alberta, May 14 /PRNewswire/ -- North Canadian Oils Ltd. (NCO) announced its results for the first quarter of 1993, reporting gains in revenues, production of crude oil and natural gas liquids, and net proven reserves. Net earnings, however, declined to a loss of $15.8 million, and cash flow was reduced to $10.6 million primarily attributable to the following one-time items:
 -- a $9.5 million provision booked for potential losses from marketing operations;
 -- a further provision of $3 million taken against the carrying cost of the company's investment portfolio;
 -- an additional provision of $1 million taken against the carrying cost of the Federal Paper Board cogeneration project in California;
 -- legal and financial expenses of $1.6 million incurred to evaluate the proposed business combination with Norcen Energy Resources Ltd.; and
 -- a change to NCO's full cost accounting policy relating to unevaluated land which had a negative impact of $1.1 million.
 The aggregate impact of these items on net earnings was $11.1 million ($0.30 per common share) and $11.1 million ($0.30 per common share) on cash flow.
 The provision of $9.5 million for potential marketing losses was booked in accordance with accounting guidelines and relates to price exposure which is anticipated through to Oct. 31, 1993. NCO, like many other Canadian marketers, has had to purchase higher priced spot gas in order to serve fixed price contracts. The company is pursuing various alternatives to mitigate this potential loss and since year- end 1992, the fixed price market served by higher priced spot gas has been reduced from 55 mmcfd to about 25 mmcfd. The provision was based on an average gas purchase price of approximately $2.30 per mcf to serve the fixed price contracts until Oct. 31, 1993. At the date of this report, the average price for spot gas was approximately $2.00 per mcf.
 Effective March 31, 1993, NCO changed its full cost accounting policy, on a retroactive basis, to include unevaluated land costs with the full cost pool subject to depletion. The company's 1992 comparative figures have been restated to conform with the accounting policy change. The change was implemented in order to make NCO's accounting policy consistent with that of its major shareholder.
 Total revenues, net of royalties, rose to $94.4 million for the three months ended March 31, 1993, vs. $78 million for the same period of 1992 mainly because of higher sales and higher average prices for both natural gas and crude oil. Operating expenses were $77.8 million for the first quarter of 1993 as compared to $47.8 million for the same period of 1992 primarily because of the higher cost of sales for marketing activities which were $54.1 million vs. $34.5 million and the marketing loss provision of $9.5 million.
 Cash generated from operations for the three months ended March 31, was $10.6 million in 1993 and $23 million in 1992. Net earnings attributable to common shares, after the deduction of preferred share dividends, declined to a loss of $17.4 million ($0.48 per common share) in 1993 as compared to a loss of $0.7 million ($0.02 per common share) in 1992.
 Natural gas production averaged 246 mmcfd for the first quarter of 1993 as compared to 250 mmcfd for the same period of 1992 because of the divestment of non-core properties. Production of crude oil and natural gas liquids rose to 6,879 bpd from 6,174 bpd as the result of successful development drilling during the fourth quarter of 1992 and first quarter of 1993. The company anticipates natural gas production to average approximately 240 mmcfd in 1993 while production of crude oil and natural gas liquids is expected to average approximately 7,200 bpd.
 The average price received for natural gas during the first three months of 1993 was $1.37 per mcf as compared to $1.28 per mcf for the same period of 1992. The average price received for crude oil and natural gas liquids was $18.92 per bbl vs. $16.61 per bbl.
 Capital expenditures for property and equipment, after divestments and acquisitions, were $16.7 million for the three months ended March 31, 1993, as compared to $9.1 million for the same period of 1992. The company drilled 24 (17 net) exploration and development wells in the first quarter of 1993 vs. 15 (9 net) wells in the first three months of 1992.
 This resulted in 10 (7.8 net) natural gas wells and 10 (7.5 net) crude oil wells for an overall success ratio of 93 percent. The company added 33 billion cubic feet equivalent of proven reserves during the first quarter of 1993 at significantly lower finding and onstream costs than in 1992.
 North Canadian Oils Ltd. is a senior exploration, production, marketing and power cogeneration company. Exploration and production activities are concentrated in the Western Sedimentary Basin of Canada, while marketing and cogeneration activities have a North American focus. NCO's common shares are traded on the Toronto and Montreal stock exchanges in Canada and the American Stock Exchange in the United States.
 NORTH CANADIAN OILS LTD.
 Consolidated Results for the Quarter Ended March 31, 1993
 Percent
 1993 1992(a) Change
 Operating
 Daily Production
 Natural gas (mmcfd) 246 250 (2)
 Crude oil and NGLs (bpd) 6,879 6,174 11
 Total natural gas sales (mmcfd) 583 541 8
 Wells drilled (net)
 Natural gas 7.8 5.5 42
 Crude oil 7.5 3.9 92
 Dry and abandoned 1.2 --- ---
 Total 16.5 9.4 76
 Success ratio (percent) 93 100 (7)
 Financial
 ($ millions except per share amounts)
 Total revenues, net of royalties 94.4 78.0 21
 Cash generated from operations 10.6 23.0 (54)
 Per common share, after
 preferred share dividends 0.25 0.59 (58)
 Net earnings (loss) (15.8) 1.0 ---
 Attributable to common shares (17.4) (0.7) ---
 Per common share (0.48) (0.02) ---
 Capital expenditures on property
 and equipment
 Crude oil and natural gas properties
 Finding and onstream 17.7 7.5 136
 Acquisitions 0.3 0.2 50
 Divestitures (3.3) (1.1) 200
 Crude oil and natural gas (net) 14.7 6.6 123
 Other 2.0 2.5 (20)
 Total capital expenditures
 on property and equipment 16.7 9.1 84
 Total assets 1,064.1 1,121.7(b) (5)
 Weighted average number of
 common shares outstanding 36.6 36.5 ---
 (a) Restated
 (b) As at Dec. 31, 1992
 -0- 5/14/93
 /CONTACT: G. Barry Padley, senior VP and CFO of North Canadian Oil, 403-261-4320/
 (NCO.)


CO: North Canadian Oils Ltd. ST: Alberta IN: OIL SU: ERN

MS-LS -- LA033 -- 8876 05/14/93 18:35 EDT
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