Anderson quarterly profits quadruple

Anderson Exploration Ltd. said profits increased more than fourfold in its second quarter ended Mar. 31 to $200 million (Can.) or $1.49/share.

May 10, 2001

By an OGJ Online Correspondent

CALGARY, May 10 -- Anderson Exploration Ltd. said profits increased more than fourfold in its second quarter ended Mar. 31 to $200 million (Can.) or $1.49/share.

The company, an active explorer in western Canada and the Arctic, said cash flow rose to $473 million, or $3.53/share, compared to $156 million, or $1.23/share, in the same period last year.

Pres. J.C. Anderson said the results are the eighth consecutive record quarter for cash flow and earnings.

Anderson completed a $960 million takeover of Numac Energy Inc. in the second quarter.

The company reported average natural gas sales of 744 MMcfd in the second quarter, up 32% from the same period in 2000. Crude oil and liquids production rose 67% to 62,650 b/d, following the acquisition of Ulster Petroleums Ltd. in 2000 and the recent takeover of Numac.

Anderson is selling a block of oil and gas properties in western Canada with production of about 6,500 b/d of oil and 6.6 MMcfd of gas now that the takeovers are complete.

Anderson said he expects natural gas prices to strengthen during the summer.