Gulf Canada reports first quarter earnings 27 times 1Q 2000

Gulf Canada Resources Ltd., Calgary, reports first quarter earnings of $140 million (Can.), a 27-fold increase over first quarter 2000 and almost equal to total 2000 earnings of $148 million. Earnings per share of 24¢ were up 140%, compared with the best quarter of 2000.


By an OGJ Online Correspondent

CALGARY, May 9 -- Gulf Canada Resources Ltd., Calgary, reports first quarter earnings of $140 million (Can.), a 27-fold increase over first quarter 2000 and almost equal to total 2000 earnings of $148 million.

Earnings per share of 24¢ were up 140%, compared with the best quarter of 2000.

Cash generation of $517 million in the first quarter was up more than 170% over the first quarter 2000 and equaled almost half of total cash generation in 2000.

Pres. and CEO Dick Auchinleck said Gulf's financial results continue to outperform the improvement in commodity prices.

"These are excellent results and demonstrate that our new organization hasn't missed a beat while integrating the Crestar (Energy) teams and assets. In an exceptionally busy and successful drilling program in western Canada we have tied in by the end of March over 13,000 boe/d of new production," Auchinleck said.

"Our cash financing charges have fallen by 29%/boe from the first quarter 2000. Cash G&A costs are down by 17% during this period to 49¢ per boe. This is less than half our 1998 first quarter costs of $1.12/boe. These breakthroughs in our performance far outpace the improvements in commodity prices."

Gulf had crude oil and liquids production of 140,200 b/d and 770 MMcfd of gas in the first quarter compared to 89,200 b/d and 525 MMcfd in first quarter 2000.

The company drilled 205 gross wells and operated 141 wells in western Canada in the winter drilling season with an 83% success rate.

It also reported an oil discovery off Indonesia where the Bukit Tua well in the Ketapang production sharing contract area flowed at a combined rate of 7,250 b/d from two tests (OGJ Online, Mar. 27, 2001). Gulf has a 50% interest.

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