Aviva Petroleum Inc - Final Results
31 Marzo 2000 - 9:02AM
UK Regulatory
RNS Number:2565I
Aviva Petroleum Inc
31 March 2000
AVIVA REPORTS 1999 RESULTS
DALLAS, TEXAS, March 31, 2000 . . . Aviva Petroleum Inc. (OTCBB-"AVVPP.OB")
reports a net loss of $403,000 ($.01 per common share) for the year ended
December 31, 1999, compared with a net loss of $17,078,000 ($.50 per common
share) for 1998. Revenues in 1999 more than doubled to $6,797,000 (1998 -
$3,332,000), due mainly to the inclusion of the Garnet interest in Colombia
for 12 months in 1999 versus 2 months in 1998 and higher sales prices in
Colombia and the United States. Production expenses were held level at
$3,575,000 (1998 - $3,525,000) and general and administrative expense was
$1,245,000 (1998 - $1,074,000). Depletion, depreciation and amortization
charges declined substantially to $1,000,000 (1998 - $3,152,000). Major
write-downs of oil and gas property carrying values which occurred in 1998
($12,343,000) and 1997 ($19,953,000) were not necessary in 1999. Negative cash
flow from operations was ($481,000) compared to ($49,000) in 1998.
Pre-tax present value of estimated future net revenues from proved reserves
was approximately $28 million at year-end 1999 compared to approximately $5
million at the end of 1998. Year-end 1999 proved oil reserves in the U.S. and
Colombia were 2.4 million barrels, and U.S. gas reserves were 101 million
cubic feet (2.4 million barrels and 4 million cubic feet in 1998). The
preservation of oil and gas reserves at this level is the result of price
improvements in late 1999 compared with the previous year.
Ron Suttill, Chief Executive of Aviva, commenting on the results, said: "1999
was a better year for the oil industry and Aviva. In Colombia the 1999
year-end oil price was $24.05 per barrel, up from $7.50 at the end of 1998 and
in the U.S. the 1999 year-end price was $24.32 per barrel, up from $9.28 per
barrel at year-end 1998. This price 'snapshot' has set the year-end valuation
of our oil and gas reserves at a level greater than the $4 million net-cost
basis shown in our Balance Sheet, and we were not, in 1999, subjected to the
'ceiling-test' write-offs of prior years.
Even though world oil prices recovered during the latter part of 1999, the
Company remains highly leveraged with $14.5 million in current debt as of
December 31, 1999. We have been in more or less continuous discussions with
our lenders regarding a restructuring of debt for more than two years. During
that period, we have attempted to negotiate several transactions, and engaged
financial advisers to locate equity investors to participate in
recapitalization and debt restructuring transactions. Except for the Garnet
merger in October 1998, none of such proposals has come to fruition, primarily
because of the inability of equity participants, lenders and the Company to
agree on financial terms. We are currently in discussions with lenders and a
new group of investors concerning a restructuring which may involve the sale
of a substantial portion of our oil and gas assets and a significant reduction
of outstanding debt. We are optimistic that this can be achieved, thus
providing us with the liquidity necessary to continue operations. However,
there can be no assurance that this will be the case. Our auditors, KPMG LLP,
in their audit report for 1999, have again given us a 'going concern'
qualification."
The company is engaged in exploration for and development and production of
oil and gas in Colombia, offshore the United States, and in Papua New Guinea.
Aviva's common stock is also quoted on the London Stock Exchange (symbol
"AVP"), but is currently suspended from trading on that exchange.
Safe Harbor for Forward-Looking Statements: Except for historical information
contained herein, the statements in this press release are forward-looking
statements that are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
known and unknown risks and uncertainties which may cause the Company's actual
results in future periods to differ materially from forecasted results. These
risks and uncertainties include, among other things, general economic
conditions, volatility of oil and gas prices, the impact of possible
geopolitical occurrences world-wide, imprecision of reserve estimates, changes
in laws and regulations, unforeseen engineering and mechanical or
technological difficulties in drilling, working-over and operating wells, and
other risks described in the Company's filings with the Securities and
Exchange Commission, THE MOST RECENT OF WHICH IS FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 1999 WHICH WAS FILED ON MARCH 30, 2000.
Further Information: Ron Suttill, Aviva Petroleum Inc.
Dallas, Texas, 214 691 3464
AVIVA PETROLEUM INC. AND SUBSIDIARIES
Consolidated Statement of Operations
Years Ended December 31, 1999 and 1998
(in thousands, except per share data)
(unaudited)
1999 1998
Oil and gas sales $ 6,797 $ 3,332
Expense:
Production 3,575 3,525
Depreciation, depletion and amortization 1,000 3,152
Write-down of oil and gas properties - 12,343
General and administrative 1,245 1,074
Provision for (recovery of)losses on accounts
receivable (101) 420
Severance 62 -
Total expense 5,781 20,514
Other income (expense):
Interest and other income (expense), net 259 1,045
Interest expense (1,396) (748)
Total other income (expense) (1,137) 297
Loss before income taxes and
extraordinary item (121) (16,885)
Income (taxes) benefits (282) 4
Loss before extraordinary item (403) (16,881)
Extraordinary item - debt extinguishment - (197)
Net loss $ (403) $ (17,078)
Weighted average common shares outstanding 46,813 34,279
Basic and diluted net loss per common share $ (0.01) $ (0.50)
END
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