Date: Wed, 19 Nov 1997 23:55:22 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 24950 Last-modified: Wed, 22 Oct 1997 15:35:19 GMT
FORELAND CORPORATION ANNOUNCES PROGRESS AT ENHANCED RECOVERY PROJECT
LAKEWOOD, COLORADO--October 21, 1997--Foreland Corporation (NASDAQ: FORL) today announced that wellbore evaluation phase at the Company's enhanced recovery test project at Eagle Springs field, Nye County, Nevada has been completed. The Company reentered the well which will be converted to an injector and evaluated the casing for soundness and assessed the cement integrity. The mechanical integrity of the wellbore was judged excellent and the tests were witnessed and approved by the appropriate governmental authorities. Additional surface and downhole equipment is currently being delivered to the site.
"With this phase now completed, we can move forward with a pilot injectivity test by the end of the month" stated Ken Ransom, Foreland's Vice President of Exploration. "The pilot program will assess various reservoir and injection parameters and allow us to begin design work on the compressors after approximately two months of testing."
A recovery forecast based on the Eagle Springs field oil and reservoir properties indicates 8.8 million net barrels of additional oil may be expected from the enhanced oil recovery program. As of December 31, 1996, Eagle Springs field had approximately 3.1 million barrels of proven reserves based on the Company's independent year-end reserve report.
Except for the historical information contained herein, the matters discussed in this news release are "forward-looking statements" within the meaning of federal securities laws. Actual results or events may differ substantially from these forward-looking statements due to numerous risks and uncertainties including actual results from drilling and implementation of the proposed enhanced oil recovery program, availability of financing for expansion, cash flow from operations and other risks discussed in the Company's filings with the Securities and Exchange Commission.
Foreland Corporation is an aggressive oil exploration and production company focussed on high potential exploration in Nevada. The Company is a proven leader in applying 3D seismic technology to both exploration and development drilling in Nevada.
FORELAND CORPORATION ANNOUNCES GAINS IN SECOND QUARTER OPERATING RESULTS AND FINANCIAL CONDITION
LAKEWOOD, COLORADO--September 3, 1997--Foreland Corporation (NASDAQ: FORL) today announced significantly improved operating results and financial condition through the second fiscal quarter ended June 30, 1997.
Revenues for the six months ending June 30, 1997, increased over 90% to $1,326,959 as compared to the same period last year of $692,566. Revenues for the 2nd Quarter compared to 2nd Quarter 1996, increased 66% to $626,711. Foreland’s net loss, before preferred stock dividends, of $311,000 for the second quarter was 60% lower than the $508,885 reported in the second quarter in the previous year. The second quarter 1997 net loss applicable to the Company common shareholders was $0.06 per share as compared to $0.33 per share during the quarter ended June 30, 1996.
"We are very pleased with our second quarter results" stated Tom Steele, President of Foreland. "The Company is continuing a four year trend of significant growth in revenues as a result of increasing oil production from our Nevada fields."
In other news, Foreland also announced that preparations for the enhanced oil recovery (EOR) program at Eagle Springs field are now accelerating. The Company has received favorable results from test runs on the Eagle Springs crude which indicates that the EOR program should perform as expected. A recovery forecast based on the Eagle Springs field oil and reservoir properties indicates 8.8 million net barrels of additional oil can be expected from the EOR program.
"Foreland’s EOR program at Eagle Springs field is a low risk method to add significant reserves, increase production, and enhance cash flow at very low cost", stated Ken Ransom, Foreland’s Vice President of Exploration. "With an anticipated equipment and facilities cost of $3 million, we can add reserves at a cost of $0.35 to $0.40 per barrel, less than 10% of the industry average."
Foreland is awaiting a temporary permit from Nevada to begin an injection test. Equipment will be sized and ordered based on the results of the pilot program.
FINANCIAL HIGHLIGHTS
Consolidated Statements of Operations (Unaudited)
1997 |
1996 |
1997 |
1996 |
|
Revenue |
$626,711 |
$376,858 |
$1,326,959 |
$692,566 |
Operating loss |
$(308,765) |
$(486,880) |
$(532,981) |
$(1,251,389) |
Net loss |
$(311,992) |
$(508,885) |
$(528,689) |
$(1,318,458) |
Net loss per common share |
$(0.06) |
$(0.33) |
$(0.11) |
$(0.50) |
Weighted average number of shares outstanding |
7,342,500 |
4,891,800 |
7,296,100 |
4,890,300 |
Consolidated Balance Sheets
June 30, 1997 |
Dec. 31, 1996 |
|
Current Assets |
$1,367,752 |
$3,198,703 |
Property and equipment, net |
8,165,506 |
7,411,412 |
Other assets |
154,161 |
150,342 |
Total assets |
$9,687,419 |
$10,760,457 |
Current liabilities |
$537,608 |
$857,845 |
Long-term debt |
765,575 |
1,018,247 |
Stockholders’ equity |
8,384,236 |
8,884,365 |
Total liabilities and stockholders’ equity |
$9,687,419 |
$10,760,457 |
LAKEWOOD, COLORADO-June 19, 1997--Foreland Corporation (NASDAQ: FORL) announced today that it has completed the acquisition of leases covering 3,200 acres in and near the Company's Eagle Springs field. The ten-year federal leases are located in and adjacent to the northern and western portions of the field.
"The acquisition of these leases will now allow Foreland to proceed with its development program at Eagle Springs field," said Tom Steele, President of Foreland. "We have previously avoided developing Eagle Springs field in the area of these lands until we could secure these leases. Using Foreland's exclusive 3D seismic survey, we have pinpointed additional drilling targets on these recent leases."
With the acquisition of these leases, Foreland can now proceed with an enhanced recovery program at the field. "A pilot injection program should begin later this summer," continued Mr. Steele. "We should see the initial response within a few months after injection begins. Based on preliminary analyses, we expect that we could ultimately see a three-fold to four-fold increase in the rate of production from the field, potentially adding up to ten million barrels of reserves." Foreland owns 100% of the working interest in the Eagle Springs field.
In other news, Foreland also announced that a successful workover at the Ghost Ranch #47-35 well has shut off water flow from deeper, nonproductive horizons. The well is currently producing approximately 150 barrels of oil per day and 40 barrels of water per day. This is the third producing well drilled by the Company at the Ghost Ranch field, which was discovered by Foreland in 1996 utilizing 3D seismic. Foreland has a 60% working interest at Ghost Ranch and is the operator. Plains Petroleum Operating Co., a wholly owned subsidiary of Barrett Resources (NYSE: BRR) has the remaining 40% working interest. Both the Ghost Ranch and Eagle Springs fields are located in Nye County Nevada.
Foreland Corporation is an exploration and production company which is focussed on Nevada oil production. Over the last several years, the Company has had continued double-digit annual growth in revenues, production, and reserves.
LAKEWOOD, COLORADO--May 12, 1997--Foreland Corporation (NASDAQ: FORL) announced today that the Ghost Ranch #47-35 well has tested at a rate of 182 barrels of oil and 242 barrels of water per day during a 24 hour flow test. This well is the third producing well drilled by the Company at the Ghost Ranch field, which was discovered by Foreland in 1996. "Once again, Foreland has validated the use of 3D seismic in Nevada to successfully locate both exploration and development wells." stated Tom Steele, president of Foreland. "This well extends the field north of our original discovery well." The Company is currently attempting to increase the oil production and decreasing the water production from this well.
"Because of our unmatched success in using 3D seismic in Nevada, Foreland is beginning an aggressive, multi-year 3D seismic exploration program on our Nevada properties," continued Mr. Steele. "Our next 3D seismic survey is located over our Pine Creek well in Pine Valley, Nevada followed by another survey over our North Willow Creek and Hay Ranch properties."
Foreland has a 60% working interest at Ghost Ranch and is the operator. Plains Petroleum Operating Co., a wholly owned subsidiary of Barrett Resources (NYSE: BRR) has the remaining 40% working interest. The Ghost Ranch field is located in Nye County Nevada.
LAKEWOOD, COLORADO--May 2, 1997--Foreland Corporation (NASDAQ: FORL) announced today that Mr. Fred A. Merian has joined the staff as Manager-Corporate Development of Foreland. Mr. Merian has eighteen years of executive, engineering, finance, project development and acquisition experience throughout the Rocky Mountain Region and Permian Basin with Amoco, Tenneco, Union Pacific Resources and Vessels Oil & Gas Company. Mr. Merian received his Bachelor of Science degree in Geological Engineering from the University of Missouri-Rolla (1978).
"We believe Mr. Merian's broad experience will enable Foreland to accelerate the Company's Nevada exploration program by obtaining funding at the most advantageous terms available to the Company, thereby maximizing shareholder value" stated Tom Steele, President of Foreland. "Because of Foreland's recent exploration and development success at our Eagle Springs and Ghost Ranch field, numerous options now exist to advance our high potential exploration projects. Mr. Merian will aid our evaluation and implementation of the most favorable opportunities."
In other news, Foreland also announced that testing is continuing on the Ghost Ranch #47-35 well. The well is the most recent development well at the Ghost Ranch field, which the Company discovered in 1996. The Company will determine an initial production rate once the flow line is completed next week.
LAKEWOOD, COLORADO--April 2, 1997--Foreland Corporation (NASDAQ: FORL) today announced results of operations for the year ended December 31, 1996, and significantly improved financial condition.
Revenue for 1996 climbed to $2 million, almost double the revenue of the previous year. The significant increase in revenue was a combination of an increase of 34.4% in oil production and an increase of 36.7% in the average sales price of oil. Oil production grew as a result of an increase in overall production from the Eagle Springs field, the purchase of a 40% minority interest in the Eagle Springs field effective August 1, 1996, and the commencement late in the year of production from the newly discovered Ghost Ranch field. Production costs per barrel of oil produced declined 17.1% from the previous year as a result of the spread of fixed production costs over an increased number of barrels produced and the Company’s continued efforts at improving field efficiencies.
Net loss applicable to common stock increased to $5.7 million for 1996, or $0.99 per share, as compared to $2.3 million, or $0.48 per share, the preceding year. The Company reported that $3.8 million of the operating loss was the result of one time charges attributed to $2.2 million for imputed dividends from the issuance of preferred stock, $1.2 million attributed to shareholder/investor services and $429,000 of impairment costs associated with adoption of a new accounting policy.
Foreland’s financial condition as of December 31, 1996, was significantly improved over that of a year earlier, with working capital of $2.3 million, as compared to a deficit of $2.5 million at December 31, 1995. As a result of stock sales during the year, stockholders’ equity grew to $8.9 million at December 31, 1996, as compared to $3.0 million a year earlier.
The Company’s independent reserve report dated December 31, 1996 assessed the Company’s net proved reserves at 3.7 million barrels of oil, up 85% from the 1995 report. Future net cash flow discounted at 10% per year (SEC PV-10) increased from $6.2 million to $22.9 million and the non-discounted net cash flow increased from $12 million to $42.8 million.
Foreland produces oil from the Eagle Springs and Ghost Ranch fields in Railroad Valley, Nevada, and continues an active oil exploration program in north-central Nevada.
LAKEWOOD, COLORADO--March 27, 1997--Foreland Corporation (NASDAQ: FORL) announced today that production casing has been set to total depth of 4696’ at the Ghost Ranch #47-35 well. Completion activities will begin after the drilling rig is moved off location in approximately two weeks.
The Ghost Ranch #47-35 is a northerly offset to the Ghost Ranch #48-35 and the Ghost Ranch #38-35 wells. Foreland’s discovery of the Ghost Ranch field is the first exploration success using 3D seismic in Nevada. The Ghost Ranch field is located in Nye County Nevada.
Foreland has a 60% working interest at Ghost Ranch and is the operator. Plains Petroleum Operating Co., a wholly owned subsidiary of Barrett Resources (NYSE: BRR) has the remaining 40% working interest.
LAKEWOOD, COLORADO--March 18, 1997--Foreland Corporation (NASDAQ: FORL) announced today that its oil reserves had increased to 3.7 million barrels as of December 31, 1996, as compared to 2.0 million barrels a year earlier. The value of Foreland’s oil reserves increased to $22.9 million as of December 31, 1996, as compared to $6.2 million at the end of 1995. The reserve evaluation was prepared by Malkewicz Hueni Associates independent petroleum engineers of Golden, Colorado, based on its analysis of estimated future net cash flows, discounted to present value at 10% per annum, using constant oil prices and costs in accordance with the requirements of the Securities and Exchange Commission. The estimated non-discounted future net cash flows increased from $12 million year end 1995 to $42 million as of December 31, 1996.
The substantial increase in oil reserves reflects the addition of proved developed producing and proved undeveloped reserves attributable to the Ghost Ranch Field discovered through the Company’s 1996 drilling program as well as Foreland’s purchase in the fourth quarter of a 40% working interest in the Eagle Springs field held by a third party. The increase in discounted present value of Foreland’s oil reserves is also the result of a favorable oil price of $18.12 per barrel as of December 31, 1996, as compared to $12.92 a year earlier
"This growth reflects the results of the company’s strategy of acquisitions, exploration and development" stated Tom Steele, President of Foreland. "We are particularly pleased that our success in using 3D seismic in selecting Ghost Ranch drilling locations is being translated into significant reserves. The increased production will allow us to aggressively expand our exploration and development program through production revenues."
There are numerous uncertainties inherent in estimating quantities of proved reserves and projecting future rates of production and timing of development expenditures. Estimated future net revenues are particularly subject to fluctuations in oil prices, which have fluctuated significantly during the preceding years. As noted above, the reserve values announced by Foreland are based on the December 31, 1996, price of $18.12 then being received. As of March 10, 1997, Foreland was receiving approximately $12.87 for oil then delivered by it.
The following table highlights Foreland’s reserve information.
Foreland has been engaged in oil exploration in Nevada since 1985 and produces oil principally from the Eagle Springs and Ghost Ranch fields that it operates in Railroad Valley, Nevada. Foreland discovered the Ghost Ranch field in 1996 through the use of a focused 3D seismic program.
LAKEWOOD, COLORADO--March 11, 1997--Foreland Corporation (NASDAQ: FORL) announced today that drilling has commenced on the Ghost Ranch #47-35 well. The well is located in Railroad Valley, Nye County, Nevada. The Ghost Ranch #47-35 is a northerly offset to the August, 1996 Ghost Ranch #48-35 discovery well. A second well, the Ghost Ranch #38-35, was placed on production in February, 1997. The Ghost Ranch field is the first 3D seismic defined discovery in Nevada. Foreland has 60% of the working interest in this well and is the operator. Plains Petroleum Operating Co., a wholly owned subsidiary of Barrett Resources (NYSE: BRR) has the remaining 40% working interest.
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