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PRAIRIE OIL ROYALTIES COMPANY LTD. ANNOUNCES RESULTS

 PRAIRIE OIL ROYALTIES COMPANY LTD. ANNOUNCES RESULTS
 CALGARY, Alberta, Feb. 25 /PRNewswire/ -- Prairie Oil Royalties


Company, Ltd. (AMEX: POY; Toronto: POY) today announced its operating and financial results for 1991. While production and reserves for both oil and gas continued to rise to new highs, financial performance fell short of the record levels achieved in 1990.
 Net earnings in 1991 were $2.2 million, or $0.28 per share, compared to $6.1 million or $0.77 per share in the previous year. Cash generated from operations amounted to $17.4 million, or $2.22 per share, down from $20.5 million, or $2.62 per share. Declines in both oil and gas prices, together with sharply higher production costs resulting from the production gains, were major factors contributing to the declines in both earnings and cash flow. Increased depletion expense associated with the production improvements was another factor contributing to the drop in earnings, although this was partly offset by a decline in deferred income taxes which fell in concert with the reduced level of taxable income.
 The average price received by Prairie Oil for its crude oil and gas liquids production in 1991 was $18.47 per barrel, down 21 percent from a year earlier. Prairie Oil's natural gas price averaged $1.24 per thousand cubic feet, down 15 percent.
 Oil and gas liquids production climbed to a record 4,215 barrels per day, up 31 percent from 1990, mainly as the result of exploration and development successes at Enchant and Golden, both in Alberta. Natural gas production also was higher, averaging 11.9 million cubic feet per day, compared to 11.6 million cubic feet per day in the previous year.
 At 1991 year-end, oil and gas liquids reserves, before deducting royalties, amounted to 13.1 million barrels, up 17 percent from a year earlier. Natural gas reserves, at 79 billion cubic feet, were up 6 percent.
 Capital expenditures, in 1991, amounting to $25.1 million, included $1.9 million for the acquisition of oil and gas producing properties in Alberta. In 1990, capital expenditures of $22.9 million included $3.4 million for property acquisitions.
 Commenting on the company's expectations for 1992, Wayne M. Newhouse, president of Prairie Oil, said, "With the full year effect of 1991 development successes, as well as new production coming on-stream from ongoing development programs, oil and gas liquids production should climb to a new high of approximately 5,000 barrels per day in 1992."
 PRAIRIE OIL ROYALTIES CO. LTD.
 Highlights
 Fourth Quarter Full Year
 1991 1990 1991 1990
 Financial
 (millions of Canadian dollars, except per share amounts)
 Sales and other revenues $6.6 $9.1 $27.5 $27.2
 Net earnings $0.2 $2.3 $2.2 $6.1
 - per share $0.03 $0.28 $0.28 $0.77
 Cash generated from operations $3.8 $7.0 $17.4 $20.5
 - per share $0.49 $0.90 $2.22 $2.62
 Capital expenditures,
 including acquisitions $6.2 $7.5 $25.1 $22.9
 Operating
 Production of oil and gas
 liquids (barrels per day) 4,168 3,543 4,215 3,223
 Production of natural gas
 (millions of cubic feet
 per day) 13.5 13.8 11.9 11.6
 Average prices received
 - oil and gas liquids
 (per barrel) $17.51 $29.76 $18.47 $23.24
 - natural gas
 (per thousand cubic feet) $1.12 $1.48 $1.24 $1.46
 -0- 2/25/92
 /CONTACT: Ron Burrows, manager-investor relations of Prairie Oil Royalties, 403-231-0107/
 (POY) CO: Prairie Oil Royalties Co. Ltd. ST: Alberta IN: OIL SU: ERN


AL-JL -- LA045 -- 2592 02/25/92 19:27 EST
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Date:Feb 25, 1992
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