Antrim earns $12,254 in Q1 2004
2004-05-14 18:58 ET - News Release
Mr. Stephen Greer reports
ANTRIM ENERGY INC. ANNOUNCES 2004 FIRST QUARTER FINANCIAL AND OPERATIONAL RESULTS
Antrim Energy has released its financial and operational results for the three-month period ended March 31, 2004.
Highlights for the quarter include:
secured semi-submersible drilling rig and drill date for Antrim's first well offshore Australia;
16-per-cent increase in oil production;
27-per-cent increase in cash flow from operations; and
maintenance of strong working capital position.
In the first quarter of 2004, Antrim made substantial progress toward drilling its first offshore well in Australia. This well is the most challenging project in the company's history and underscores its commitment to seek to reward shareholders with high-impact discoveries.
In January, 2004, the company awarded the drilling management contract for the South Galapagos No. 1 well in Australia to the Peak Group, a major Australian- and U.K.-based worldwide supplier of offshore drilling and engineering services. In April, 2004, Antrim entered into a drilling contract with Sedco Forex International Inc. (Transocean) to use Transocean's semi-submersible drilling unit SEDCO 703. This drilling rig, currently operating on the NorthWest shelf, is expected to be available to Antrim as early as September, 2004.
In addition to the drilling operation in Australia, Antrim continues to develop its properties in the United Kingdom, Tanzania and Argentina. The development of these drilling prospects is underpinned by Antrim's strong working capital position and successful development of the Puesto Guardian oil field in Argentina.
Oil production from the Puesto Guardian field in the first quarter of 2004 was 444 barrels of oil per day, compared with 429 barrels of oil per day in the fourth quarter of 2003 and an average of 382 barrels of oil per day in 2003. As weather conditions in Argentina improve, a six-well workover program on previously shut-in wells will commence and is expected to continue for several months. An additional oil battery is also being constructed in order to handle the expected increase in production from the workover program.
Antrim generated cash flow from operations in the three-month period ended March 31, 2004, of $439,074 (one cent per share) compared with $346,310 (two cents per share) in the comparable period in 2003. Net income in the first three months of 2004 was income of $12,254 (nil per share) compared with a net loss of $1,126,759 (six cents per share) in 2003. Net income increased primarily due to a writedown in the first quarter of 2003 of Antrim's Tunisian assets following the deepening and subsequent abandonment of the Chott Fejaj No. 3 well in February, 2003.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
CONSOLIDATED STATEMENT
OF INCOME (LOSS) AND (DEFICIT)
Three months ended March 31
2004 2003
Revenue
Oil and gas
sales 1,598,665 1,478,238
Royalties (197,652) (167,255)
---------- ----------
1,401,013 1,310,983
Interest and
other income 68,727 74,811
---------- ----------
1,469,740 1,385,794
---------- ----------
Expenses
Operating 241,716 189,143
General and
administrative 635,448 318,053
Depletion and
depreciation 347,000 217,260
Accretion of
asset
retirement
obligations 8,500 7,417
Foreign exchange
loss (gain) (44,465) 8,489
Write-off of
impaired assets - 1,890,242
---------- ----------
1,188,199 2,630,604
---------- ----------
Income (loss)
for the year
before income
taxes 281,541 (1,244,810)
Income taxes
(recovery)
Current 269,287 548,664
Future - (666,715)
---------- ----------
269,287 (118,051)
---------- ----------
Net income
(loss) for
the period 12,254 (1,126,759)
(Deficit) --
beginning of
period as
previously
reported (10,656,042) (7,787,854)
Retroactive
adjustment for
change in
accounting policy (102,870) 15,590
---------- ----------
(Deficit) --
end of period (10,746,658) (8,899,023)
---------- ----------
Net income
(loss) per
common share
-- basic 0.00 (0.06)
Net income
(loss) per
common share
-- diluted 0.00 (0.06)
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