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 CALGARY, Alberta, Feb. 19 /PRNewswire/ -- Scurry-Rainbow Oil Ltd. (AMEX: SCR; Toronto: SCR) today announced earnings of $8.8 million ($0.66 per share) for the year ended Dec. 31, 1992, compared with $9.5 million ($0.71 per share) earned in 1991. The 1991 results reflect the receipt of a non-recurring revenue payment of $2.7 million ($1.5 million after tax). Increased natural gas sales and lower operating, downsizing and interest expenses did not offset higher depletion expenses. Cash flow from operations totalled $42.7 million ($3.17 per share), down from $43.9 million ($3.26 per share) last year, largely due to increased current taxes.
 Earnings during the fourth quarter of 1992 totalled $3.1 million, compared with $2.4 million last year. Cash flow from operations in the quarter was $12.3 million, a $2.4 million improvement over the same period in 1991. Increased revenue, resulting from substantially higher natural gas sales and prices, was partially offset by $0.6 million in downsizing costs, higher non-cash depletion expenses and increased cash taxes.
 Scurry-Rainbow received an average $20.21 per barrel of crude oil in 1992, virtually unchanged from 1991. Crude oil production averaged 7,051 barrels per day, down 2 percent from the previous year. Production optimization at Cecil/Royce in Alberta and the acquisition of an additional working interest at the West Eagle field in British Columbia largely offset production loss from natural declines and the disposition of non-strategic oil properties.
 Reported oil production during the fourth quarter of 1992 of 7,707 barrels per day, was affected by the closing of a major property swap and acquisition which increased the company's interest in the West Eagle Unit by 15 percent. The transaction, which had an effective date of July 1, 1992, added approximately 500 barrels per day to the company's production base. As the transaction closed in October 1992, reported production in the fourth quarter increased by about 1,000 barrels per day.
 Production of natural gas liquids averaged 1,150 barrels per day in 1992, a 5 percent increase from 1991, reflecting new production from Ring/Border and the acquisition of an interest in Swan Hills Unit No.1.
 The company's natural gas price during 1992 averaged $1.45 per thousand cubic feet compared with $1.40 received in 1991. Weak gas prices in the first half of 1992 were offset by strengthening prices in the last quarter when Scurry-Rainbow received an average $1.70 per thousand cubic feet.
 Natural gas sales set a record in 1992 averaging 56.8 million cubic feet per day, a 32 percent increase over 1991. The sharp rise resulted primarily from new gas production from the Ring/Border field in British Columbia and the Hamburg field in Alberta, and increased production from the South Wapiti field in Alberta.
 In 1992 capital expenditures of $38.0 million included $16.4 million spent to acquire additional interests in key strategic properties. The reduced exploration and development spending reflected the company's more selective investment strategy given the then prevailing economic conditions.
 Property dispositions and low activity levels largely accounted for a drop in Scurry-Rainbow's liquids and natural gas proved reserves during 1992. Crude oil and natural gas liquids reserves totalled 22.3 million barrels at year end 1992, a 13 percent decline from 1991. Additions of 2.6 million barrels (including 1.8 million barrels through property acquisitions) did not offset production of 3.0 million barrels and dispositions of 2.1 million barrels from property rationalization activities. Proved reserves of natural gas were 338 billion cubic feet at year end, a 6 percent decline from 1991, primarily due to record production.
 Asset rationalization activities during the year resulted in acquisition expenditures of $16.4 million for interests in key strategic fields, and sales of $10.3 million of non-strategic properties and assets. Through acquisitions and property swaps, Scurry-Rainbow increased its interests in such key strategic fields as Ring/Border and West Eagle in British Columbia and Wood River/Bashaw in Alberta. The company also acquired a small interest in Swan Hills Unit No.1, which is operated by Scurry-Rainbow's parent company.
 Scurry-Rainbow is 88.1 percent owned by Home Oil Co. Ltd.
 1992 Highlights Table
 Three months ended Year ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 (dollars in millions,
 except per share amounts)
 Revenue $22.8 $17.2 $74.6 $71.7
 Earnings $3.1 $2.4 $8.8 $9.5
 Capital expenditures $15.1 $4.1 $38.0 $41.1
 Cash flow from operations $12.3 $9.9 $42.7 $43.9
 Per common share
 Earnings $0.23 $0.18 $0.66 $0.71
 Cash flow from
 operations $0.91 $0.73 $3.17 $3.26
 Shareholders' Equity $17.72 $17.57 $17.72 $17.57
 Operating (before royalty)
 Daily production/sales
 Crude oil (barrels) 7,707 7,456 7,051 7,208
 Natural gas liquids
 (barrels) 1,416 874 1,150 1,095
 Natural Gas
 (millions of cubic feet) 64 40 57 43
 Drilling activity
 Working interest wells
 Gross 11 19 57 90
 Net 2 3 12 21
 Gross successful 5 9 37 57
 Net successful 1 1 8 11
 Gross royalty interest
 wells (non-convertible) 3 19 3 58
 -0- 2/19/93
 /CONTACT: H.R.W. (Rick) West, manager of corporate communications of Scurry-Rainbow Oil Ltd., 403-232-7293/

CO: Scurry-Rainbow Oil Ltd. IN: Alberta IN: OIL SU: ERN

JL -- LA040 -- 8620 02/19/93 19:44 EST
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Date:Feb 19, 1993

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