November 11, 1996
MORRISON MIDDLEFIELD RESOURCES LIMITED ("MMRL") enjoyed continued growth in production through the third quarter of 1996 and achieved record levels of cash flow and net earnings. Cash flow from operations was $8.7 million for the third quarter which was up 101% over the level achieved a year earlier. For the first nine months ended September 30, 1996, cash flow increased 75% over the same period in 1995 to $23.0 million.
Net earnings of $3.5 million in the third quarter rose by 144% over the same period a year earlier. Net earnings for the first nine months of 1996 were $8.7 million compared to $3.7 million last year. The comparative financial and operating results for the three and nine month periods ending September 30, 1996 and 1995 are summarized as follows:
| THREE MONTHS ENDED | NINE MONTHS ENDED | ||||
| Sept. 30/96 | Sept. 30/95 | Sept. 30/96 | Sept. 30/95 | ||
| Income Statement ($ 000's) | |||||
| Oil and gas revenues (gross) | 13,539 | 7,581 | 36,217 | 23,864 | |
| Funds from operations | 8,683 | 4,318 | 22,985 | 13,159 | |
| Earnings before taxes | 3,837 | 1,272 | 9,400 | 3,709 | |
| Net earnings | 3,522 | 1,443 | 8,725 | 3,655 | |
| Per Common Share ($) | |||||
| Funds from operations | |||||
| Basic | 1.06 | 1.01 | 2.81 | 3.09 | |
| Fully diluted | 0.95 | 0.61 | 2.53 | 1.85 | |
| Net earnings | |||||
| Basic | 0.43 | 0.34 | 1.07 | 0.86 | |
| Fully diluted | 0.40 | 0.34 | 1.01 | 0.86 | |
| Dividends | 0.08 | - | 0.08 | - | |
| Capital Expenditures ($ 000's) | 7,094 | 4,127 | 26,297 | 59,673 | |
| AS AT SEPT. 30 | |||||
| 1996 | 1995 | ||||
| Balance Sheet ($ 000's) | |||||
| Working capital | 6,470 | 3,885 | |||
| Total assets | 107,032 | 105,094 | |||
| Long-term debt | 8,174 | 32,197 | |||
| Shareholders' equity | 90,268 | 41,992 | |||
| Drilling
Activity (Gross number of working interest wells drilled) |
|||||
| Oil wells | 5.0 | 9.0 | 19.0 | 14.0 | |
| Gas wells | - | - | 1.0 | - | |
| Salt water disposal wells | - | 1.0 | - | 1.0 | |
| Dry and abandoned wells | - | 1.0 | 2.0 | 2.0 | |
| Total wells | 5.0 | 11.0 | 22.0 | 17.0 | |
| Average working interest | 100% | 31% | 72% | 33% | |
| Production | |||||
| Canada: | Oil & NGLs (bbl/d) | 1,523 | 1,321 | 1,564 | 1,388 |
| Gas (mcf/d) | 7,922 | 468 | 7,760 | 486 | |
| UK: | Oil & NGLs (bbl/d) | 3,858 | 2,873 | 3,447 | 2,751 |
| Gas (mcf/d) | 827 | 338 | 850 | 729 | |
| Total: | Oil & NGLs (bbl/d) | 5,381 | 4,194 | 5,011 | 4,139 |
| Gas (mcf/d) | 8,749 | 806 | 8,610 | 1,215 | |
| Average Prices | |||||
| Canada: | Oil & NGLs ($/bbl) | 24.45 | 19.15 | 22.52 | 20.53 |
| Gas ($/mcf) | 1.45 | 0.99 | 1.65 | 0.97 | |
| UK: | Oil & NGLs ($/bbl) | 27.16 | 21.13 | 26.00 | 22.58 |
| Gas ($/mcf) | 2.18 | 1.73 | 2.33 | 1.86 | |
| Total: | Oil & NGLs ($/bbl) | 26.37 | 20.50 | 24.91 | 21.88 |
| Gas ($/mcf) | 1.52 | 1.42 | 1.72 | 1.51 | |
MMRL has declared a quarterly dividend of $0.08 per share on the outstanding common shares in the capital of the corporation payable on December 31, 1996 to the shareholders of record at the close of business on December 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