Wednesday March 17, 9:12 am Eastern Time
Company Press Release
Causeway Announces Operating and Financial Results for the Period Ending December 31, 1998
CALGARY, ALBERTA--Causeway Energy Corporation (Causeway) (VSE-CUW) reports improved operating and financial results for the five month period ending December 31, 1998. These results include those of recently acquired Catalina Energy Corporation for 4 mo nths effective September 1, 1998.
5 month Year annualized
period to ending Percent
December July Change
FINANCIAL 31, 1998 31, 1998
Petroleum and natural
gas sales 1,981,511 2,640,293 80.1
Cash flow from operations 807,793 1,140,726 70.0
Per share 0.048 0.093 23.8
Earnings 127,051 467,556 (34.7)
Per share 0.01 0.04 (75.0)
OPERATING
Percent
Average production Change
Oil - bbl/d 145 6 2316.0
Gas - mcf/d 5,320 3,373 57.7
Boepd 677 343 97.4
Average sales price
Oil - $/bbl 15.90 -
Gas - $/mcf 2.11 2.14 (1.4)
Exit rate production
Oil - bbl/d 178 24 641.6
Gas - mcf/d 5,275 4,649 13.5
Boepd 705 489 44.2
The corporation has changed its financial year end to December 31 effective December 31, 1998 to comply with industry convention and allow for direct comparison with our peers.
Production volumes for the five month period averaged 677 boepd, an increase of 97 percent from 343 boepd during the year ending July 31, 1998. The increase is attributable to the acquisition of Catalina Energy Corporation and the success of the Turin 9 -32 well drilled in August 1998. Causeway expects production to continue to increase as a result of acquisitions and additional drilling at Turin during the second quarter.
As a result of increased production petroleum and natural gas revenues increased for the five month period ending December 31, 1998 to $1,981,511 as compared with $2,640,293 for the full year ended July 31, 1998. On an annualized basis this represents a n increase of 80 percent. This increase is despite a 3 percent decrease in overall commodity prices from $21.09 per boe to $20.41 per boe.
Cash flow from operations rose 70 percent on an annualized basis. Cash flow for the five month period ended December 31, 1998 was $807,793 against $1,140,726 for the year ending July 31, 1998. On a cash flow per share basis the annualized increase was 24 percent to $0.048 for the five months ended December 31, 1998 against $0.093 for the year ending July 31, 1998.
Causeway Energy Corporation is an oil and gas development, production and exploration company based in Calgary, Alberta, Canada. Causeway's principal focus is on oil and gas exploitation. The company is currently utilizing its exploit strategy on two c ore areas namely Turin, located in southern Alberta, and Battle Creek, located in Northern Montana.
Contact:
Causeway Energy Corporation
Donald Foulkes
Chairman and CEO
(403) 262-8833
or
Causeway Energy Corporation
Jim Reid
CFO
(403) 262-8833
Many More Pleasant Surprises,
Bob Reich |
