August 13, 1996
MORRISON MIDDLEFIELD RESOURCES LIMITED ("MMRL") has enjoyed continued growth in production through the second quarter of 1996 and achieved record levels of cash flow and net earnings. Cash flow from operations reached $8.1 million during the second quarter which is up 72% over the level achieved a year earlier. For the first half, cash flow increased 63% to $14.3 million.
Net earnings of $2.9 million in the second quarter rose by 140% over the same period a year earlier. First half 1996 net earnings were $5.2 million compared to $2.2 million last year. The financial and operating results for the three and six month periods ending June 30, 1996 are summarized as follows:
| THREE MONTHS ENDED | NINE MONTHS ENDED | ||||
| June 30/96 | June 30/95 | June 30/96 | June 30/95 | ||
| Income Statement ($ 000's) | |||||
| Oil and gas revenues (gross) | 13,059 | 8,545 | 23,597 | 17,052 | |
| Funds from operations | 8,123 | 4,742 | 14,302 | 8,841 | |
| Earnings before taxes | 3,118 | 1,259 | 5,562 | 2,436 | |
| Net earnings | 2,881 | 1,201 | 5,202 | 2,211 | |
| Per Common Share ($) | |||||
| Funds from operations | |||||
| Basic | 0.99 | 1.12 | 1.75 | 2.08 | |
| Fully diluted | 0.89 | 0.65 | 1.58 | 1.24 | |
| Net earnings | |||||
| Basic | 0.36 | 0.28 | 0.64 | 0.52 | |
| Fully diluted | 0.33 | 0.28 | 0.61 | 0.52 | |
| Dividends | 0.08 | - | 0.16 | - | |
| Capital Expenditures ($ 000's) | 10,153 | (584) | 19,203 | 55,546 | |
| AS AT JUNE 30 | |||||
| 1996 | 1995 | ||||
| Balance Sheet ($ 000's) | |||||
| Working capital | 29,822 | 1,951 | |||
| Total assets | 131,451 | 102,020 | |||
| Long-term debt | 32,323 | 30,402 | |||
| Shareholders' equity | 87,353 | 40,639 | |||
| Drilling
Activity (Gross number of working interest wells drilled) |
|||||
| Oil wells | 7.0 | 1.0 | 13.0 | 5.0 | |
| Gas wells | - | - | 1.0 | - | |
| Salt water disposal wells | - | - | - | - | |
| Dry and abandoned wells | 1.0 | 1.0 | 2.0 | 1.0 | |
| Total wells | 8.0 | 2.0 | 16.0 | 6.0 | |
| Average working interest | 67% | 60% | 61% | 37% | |
| Production | |||||
| Canada: | Oil & NGLs (bbl/d) | 1,555 | 1,401 | 1,584 | 1,421 |
| Gas (mcf/d) | 8,086 | 410 | 7,678 | 495 | |
| UK: | Oil & NGLs (bbl/d) | 3,428 | 2,780 | 3,240 | 2,691 |
| Gas (mcf/d) | 893 | 240 | 862 | 213 | |
| Total: | Oil & NGLs (bbl/d) | 4,983 | 4,181 | 4,824 | 4,112 |
| Gas (mcf/d) | 8,979 | 650 | 8,540 | 708 | |
| Average Prices | |||||
| Canada: | Oil & NGLs ($/bbl) | 24.96 | 21.42 | 21.59 | 21.18 |
| Gas ($/mcf) | 1.63 | 0.97 | 1.76 | 0.96 | |
| UK: | Oil & NGLs ($/bbl) | 26.51 | 22.49 | 25.30 | 23.10 |
| Gas ($/mcf) | 2.21 | 1.30 | 2.39 | 1.92 | |
| Total: | Oil & NGLs ($/bbl) | 25.72 | 22.13 | 24.08 | 22.43 |
| Gas ($/mcf) | 1.69 | 1.18 | 1.82 | 1.55 | |
MMRL has declared a quarterly dividend of $0.08 per share on the outstanding common shares in the capital of the corporation payable on September 30, 1996 to the shareholders of record at the close of business on September 23, 1996.
The common shares of the company are listed on the Toronto Stock Exchange under the symbol MM.
For further information contact:
Mr. Raymond R. Pether
Chief Operating Officer
(416) 362-0714