NAPS Napster Group Plc

RNS No 7344b
AVIVA PETROLEUM INC
14th August 1997

AVIVA ANNOUNCES FIRST HALF 1997 RESULTS
AND DETAILS OF RESTRUCTURING PLAN

14th August, 1997

Aviva Petroleum Inc. ("AVP") reported a net loss of US$14,036,000 (45 cents per
common share) for the six months ended June 30, 1997, compared to a net loss of
US$455,000 (1 cent per common share) for the corresponding 1996 period. Non-cash
write-downs of oil and gas properties of US$13,399,000 (43 cents per share) were
the major factor contributing to the loss. The write-downs resulted from a
combination of substantially lower oil prices between January and June 1997, and
a reduction in Colombian proved reserves of approximately 500,000 barrels at
June 30, 1997 resulting from observation of producing characteristics and
removal of a "Proved Undeveloped" location in the Miraflor field.


The following Condensed Consolidated Statement of Operations (unaudited) will be
filed shortly with the U.S. Securities and Exchange Commission as part of the
Company's first half report on Form 10-Q, which is being mailed to all
shareholders together with a copy of this announcement.

The Company has engaged Merrick Capital Corporation ("Merrick") as its financial
advisor in identifying and accomplishing certain strategic corporate objectives
(the "Restructuring Plan"). These include the acquisition of US$5 million of
U.S. oil and gas properties for 10 million shares of Aviva capital stock,
procurement of US$12 to US$15 million in mezzanine financing to fund
exploitation of Aviva's Breton Sound and other prospects, and negotiation of an
approximate US$25 million oil and gas reserve based credit facility. Mr. Jeffrey
S. Rawson, President of Merrick, who has an interest in the above- referenced
oil and gas properties will, upon approval of the Restructuring Plan,
beneficially own 50% of the shares issued in exchange for such properties, and
have voting power over the remaining 50% of the shares so issued.

If agreements can be negotiated with respect to the Restructuring Plan, they
will be subject to approval of the Company's shareholders. If the Restructuring
Plan is consummated, the number of directors of the Company will remain fixed at
its current level of five and include Mr. Rawson, who will also become Chairman
and Chief Executive Officer of the Company, two other directors to be nominated
and approved by him, and two directors to be determined by the current Board of
Directors.

While the Company is actively pursuing the Restructuring Plan, ING Capital has
agreed to reschedule the Company's debt amortization to require payments of
US$25,000 per month during the four- month period ending November 30, 1997,
US$575,000 per month during the ten-month period ending September 30, 1998 and
US$1,965,000 on October 31, 1998, and to waive compliance with the Company's
minimum consolidated tangible net worth requirement of US$22 million. At such
time as the Company no longer continues to pursue the Restructuring Plan,
monthly loan payments of US$575,000 will be reinstated, as will be any prior
breaches of the minimum consolidated tangible net worth covenant.

Ron Suttill, Aviva's CEO, said that additional seismic has been obtained and
interpretation continued in our highly prospective Breton Sound area. In
addition the 3D seismic program recently completed in Colombia indicates that
further exploration should be initiated. The Restructuring Plan will provide the
financial capacity to pursue an aggressive program in both of these areas.

Mr. Suttill said "Mr. Rawson, whom I expect to succeed me as CEO later this
year, has a strong track record and excellent reputation in the oil and gas
industry. I believe that his current understanding and future stewardship of
Aviva's existing assets, combined with the introduction of new properties,
acquisition prospects, development programs, and the procurement of appropriate
new funding would have a very positive impact on shareholder values."

Aviva is engaged in the exploration for and the development and production of
oil and gas in Colombia and offshore in the United States. In addition to its
London Stock Exchange listing, the Company's Depositary Shares are traded on the
American Stock Exchange under the ticker symbol "AVV".

Except for historical information contained herein, the statements in this press
release are forward-looking statements that 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, unforseen
engineering and mechancial or technological difficulties in drilling or
working-over wells, and other risks described in the Company's Annual Report on
Form 10-K and other filings with the US Securities and Exchange Commission.


Further Information:

Ron Suttill
Aviva Petroleum Inc.
Dallas, Texas
001 214 691 3464

Andrew Edwards
Henderson Crosthwaite Corporate 
Finance Limited
0171 772 7081

George Collie
George Collie and Company
0171 603 7765



                 AVIVA PETROLEUM INC. AND SUBSIDIARIES
                Condensed Consolidated Statement of Operations
               (in thousands US$, except per share data)
                              (unaudited)


                                     Three Months Ended      Six Months Ended
                                          June 30,                June 30,
                                       1997     1996           1997     1996

Oil and gas sales                     $         $            $        $
                                      2,339     3,876        5,553    7,409

Expense:
   Production                         1,096     1,284        2,198    2,514
   Depreciation, depletion and
     amortization                     1,490     1,796        3,285    3,579
   Write-down of oil and gas
     properties                      11,413         -       13,399       -
   General and
administrative                          402       487          752    1,016
   Severance                              -         -            -      172

      Total expense                  14,401     3,567       19,634    7,281

Other income(expense):
   Interest and other income
     (expense), net                      67        66           91      139
   Interest expense                    (162)     (201)        (328)    (406)
   Debt refinancing expense               -         -            -     (100)

      Total other income
(expense)                               (95)     (135)        (237)    (367)

Earnings (loss) before income
  taxes                             (12,157)      174      (14,318)    (239)


Income taxes (benefits)                (547)      177         (282)     216

      Net loss                      $(11,61)   $   (3)    $(14,036)  $ (455)  

Weighted average common
shares outstanding                   31,483    31,483       31,483   31,483

Net loss per common share          $   (.37)   $ (.00)    $   (.45) $ (.01)


END

Grafico Azioni Napster (LSE:NAPS)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Napster (LSE:NAPS)
Storico
Da Lug 2023 a Lug 2024