SCURRY-RAINBOW OIL LIMITED - NINE MONTHS RESULTS
SCURRY-RAINBOW OIL LIMITED - NINE MONTHS RESULTS CALGARY, Alberta, Nov. 1 /PRNewswire/ -- Scurry-Rainbow Oil
Limited announced today that earnings for the nine-month period ended Sept. 30, 1991, were $7.2 million ($0.53 per share), compared with $14.8 million ($1.10 per share) earned in the corresponding period last year. The decline resulted from lower oil production and prices, reduced natural gas prices and increased expenses. A downsizing program effected to reduce ongoing head office staff costs was implemented during the quarter and resulted in a non-recurring expense of $1.8 million. Cash from operations totalled $34.0 million ($2.53 per share), an $8.1 million decline from the nine-month period one year ago, principally as a result of lower product prices and the corporate downsizing costs.
Crude oil production during the first nine months averaged 7,124 barrels per day compared with 7,760 barrels per day in the same period one year ago. The reduction is attributable to lower allowable production in several fields, the natural decline in the company's mature fields and the sale of minor interest properties. Production is expected to improve during the fourth quarter of 1991 reflecting the recent implementation of conservation schemes at Cecil/Royce and West Stoddart. Natural gas sales for the nine-month period averaged 44 million cubic feet per day, up 2 million cubic feet per day from the corresponding period in 1990. Daily average natural gas liquids production increased to 1,169 barrels compared with 1,080 barrels per day for the same period during 1990. During the first nine months ended Sept. 30, 1991, capital expenditures were $37.0 million, approximately 85 percent of the planned expenditures for the year. Reduced expenditures from the nine-month period one year ago reflect continued depressed industry economics and Scurry-Rainbow's reduced cash flow. On Nov. 1, 1991, a semi-annual dividend of $0.25 per common share was declared payable Jan. 1, 1992 to shareholders of record on Dec. 6, 1991. Scurry-Rainbow Oil Lmited is 88.1 percent owned by Home Oil Company Limited. Financial Highlights (unaudited; $ in millions, except per share amounts) Nine months ended Sept. 30 1991 1990 Revenue $54.5 $60.5 Earnings 7.2 14.8 Cash from operations 34.0 42.1 Capital expenditures 37.0 54.7 Per share Earnings 0.53 1.10 Cash from operations 2.53 3.13 Dividends 0.25 0.25 Operating Highlights Average daily production/sales (before royalties) Crude oil (barrels) 7,124 7,760 Natural gas liquids (barrels) 1,169 1,080 Natural gas (thousands of cubic feet) 44,009 41,525 Average prices Crude oil (per barrel) $20.43 $22.29 Natural gas liquids (per barrel) $13.09 $13.26 Natural gas (per thousand cubic feet) $ 1.40 $ 1.72 Drilling activity Working interest wells Gross 71 137 Net 18.35 37.32 Gross successful 48 107 Net successful 9.97 26.95 Gross royalty interest wells 39 27 -0- 11/1/91 /CONTACT: H.R.W. (Rick) West of Scurry-Rainbow Oil Ltd., 403-232-7293/ CO: Scurry-Rainbow Oil Limited ST: Alberta IN: OIL SU: ERN AL -- LA026 -- 0475 11/01/91 19:24 EST
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|Date:||Nov 1, 1991|
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