Canadian Hunter earnings up 203%

Canadian Hunter Exploration Ltd., Calgary, had a 203% increase in earnings in 2000 to $207.7 million (Can.) and a 143% increase in cash flow to $593.1 million. The company attributed the earnings gains to exceptionally high commodity prices and increases in oil and gas production.


By an OGJ Online Correspondent

CALGARY, Feb. 5�Canadian Hunter Exploration Ltd., Calgary, had a 203% increase in earnings in 2000 to $207.7 million (Can.) and a 143% increase in cash flow to $593.1 million.

The company attributed the earnings gains to exceptionally high commodity prices and increases in oil and gas production.

Hunter's production increased 20% in 2000 to 81,104 boe/d. Natural gas, which was 88% of production, increased 20% to 430 MMcfd. Crude oil and gas liquids production increased 15% to 9,444 b/d in 2000.

The company said capital spending for exploration and development increased 48% in 2000 to a record of $357 million. In Canada, Hunter said, land acquisition spending more than tripled over 1999. It spent $75 million in 2000 and also drilled 39% more wells. Exploration projects accounted for 70% of total drilling expenditures.

Finding and development costs on Canadian operations increased to $8.82/boe as a result of rising industry costs and spending on land acquisition.

The company said it replaced 138% of production in 2000 with proven reserves in Canada at a cost of only 60% of cash flow.

Total proven reserves were increased by 23% in 2000 to 1.1 tcf of gas and 22.2 million bbl of oil and gas liquids. In addition, Hunter said, it has 132 bcf of risked probable gas reserves and 2.5 million bbl of oil and liquids.

Natural gas is 90% of the company�s proven reserves base.

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