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PRAIRIE OIL REPORTS 81 PERCENT INCREASE IN EARNINGS

 CALGARY, Alberta, Feb. 25 /PRNewswire/ -- Prairie Oil Royalties Company Ltd. (AMEX: POY, Toronto: POY) today announced an 81 percent increase in earnings and a 22 percent increase in cash flow for 1992.
 Cash generated from operations amounted to $21.1 million, up from $17.4 million in 1991. Net earnings increased to $3.9 million from $2.2 million. The strong financial performance resulted primarily from sharply higher crude oil revenues with some offset from higher income taxes.
 Oil and gas liquids production in 1992 climbed to a record level, averaging 4,988 barrels per day, up 18 percent from the previous year. Natural gas production, averaging 12.7 million cubic feet per day, was up 7 percent. The production gains reflected drilling successes, principally at Enchant for crude oil, and producing property acquisitions at Enchant and Cherhill for both oil and gas.
 Capital expenditures on exploration and development in 1992 amounted to $16.1 million compared to $23.2 million in the preceding year. These expenditures added 4.7 million barrels of oil and gas liquids and 2.9 billion cubic feet of gas to Prairie Oil's proved reserves at an average cost of $3.26 per equivalent barrel (using a conversion factor of 12 mcf equals 1 barrel). Additional capital outlays of $5.1 million on property acquisitions, added a further 0.8 million barrels of oil and gas liquids and 5.0 billion cubic feet of gas to reserves at an average cost of $4.19 per equivalent barrel.
 At year end 1992, Prairie Oil's proved oil and gas liquids reserves were estimated at 16.1 million barrels, up 30 percent from a year earlier. Natural gas reserves at 76.8 billion cubic feet were up from 73.5 billion cubic feet.
 Commenting on the significant improvements in both operating and financial results, George V. Kenda, Prairie Oil's president, said, "The company's success results from sharply focused operating strategies. The major portion of capital spending is being directed towards crude oil development projects, with extensive use of 3-D seismic to enhance the opportunity for success." He went on to say, "We are also fortunate in that the momentum built up in 1992 has carried forward into 1993. Drilling successes so far this year, together with anticipated results from ongoing development projects should add a further 1,700 barrels of oil and gas liquids to Prairie Oil's production base during the first quarter of 1993."
 PRAIRIE OIL ROYALTIES COMPANY LTD.
 Highlights
 (Millions of Canadian dollars, except per share amounts)
 Fourth Quarter Full Year
 1992 1991 1992 1991
 Financial:
 Sales and other revenues $8.8 $6.6 $32.7 $27.1
 Net earnings $1.3 $0.2 $3.9 $2.2
 - Per share $0.17 $0.03 $0.50 $0.28
 Cash generated from
 operations $6.1 $3.8 $21.1 $17.4
 - Per share $0.78 $0.49 $2.69 $2.22
 Capital expenditures,
 including acquisitions $7.6 $6.2 $21.2 $25.1
 Operating:
 Production of oil and gas
 liquids (barrels per day) 5,013 4,168 4,988 4,215
 Production of Natural Gas
 (millions of cubic feet
 per day) 14.5 13.5 12.7 11.9
 Average prices received
 - Oil and gas liquids
 (per barrel) $19.65 $17.51 $18.76 $18.47
 - Natural gas
 (per thousand cubic feet) $1.57 $1.12 $1.27 $1.24
 -0- 2/25/93
 /CONTACT: Ron Burrows, manager, investor relations of Prairie Oil Royalties, 403-231-0107/
 (POY)


CO: Prairie Oil Royalties Company Ltd. ST: Alberta IN: OIL SU:

JB -- LA029 -- 0585 02/25/93 17:07 EST
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Date:Feb 25, 1993
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