Morrison Middlefield Resources Limited ("MMRL") has revised upwards its forecast for 1996 cash flow and net income per share to $6.00 basic ($3.30 fully diluted) and $2.00 basic ($1.30 fully diluted) respectively. These forecasts assume a WTI oil price of US $18.00 per barrel and a natural gas price of $1.22 per mcf. They also make assumptions about levels of production, interest rates, exchange rates and other factors, and incorporate the following plans and activities for 1996.
MMRL completed the purchase of a private oil & gas company in Alberta in December, 1995. The company, which produces primarily gas, expects to complete two new gas wells and recomplete a third well in 1996. MMRL plans to participate in ten development wells in 1996 on its existing Southern Alberta oil properties.
MMRL's UK subsidiary plans to drill eighteen 100% owned wells in 1996 in its East Midlands operating area. Twelve will be development wells and the other six, exploration wells. The company has applied for over 500,000 net acres in the recent round of onshore licensing and a decision on the awarding of licences is expected by the end of February, 1996.
MMRL UK has entered into a letter of intent to conduct preliminary exploration work on a 58,000 acre licence in the Weald Basin in the south of England. By paying 75% of the cost of the first well MMRL will earn 50% of the entire licence and will be the operator of the project. The property is located on an east-west trending anticline where a number of significant oil and gas pools have been found.
The common shares and common share purchase warrants of the company are listed on The Toronto Stock Exchange under the symbols MM and MM.WT respectively.
For further information contact:
| Mr. Raymond R. Pether Chief Operating Officer (416) 362-0714 |
Mr. Walt DeBoni Vice Chairman (403) 750-3070 |
January 15, 1996