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Show Page two The National Enterprise, January 12, 1977 Kenais Forecast Falls Short NEW YORK, N.Y. Kenai Drilling Limited (OTC 2.75, 3.125) land based oil and gas contract drilling firm, reported lower earnings for both the third quarter and nine months ended Oct. 31, 1976. The company also announced that it has received authorization to acquire the balance of the outstanding stock of Atcor, Inc., and that it has decided to effect an extension of the expiration date of 466,850 Kenai warrants outstanding. President Michael Green said Kenai incurred a net loss of $74,010 or 5 cents per share for the recent fiscal third quarter, on revenues of $3,761,515. In the compar- able year-earli- er period, Kenai reported a profit of $253,759 or 17 cents per share, on revenues of For the first $3,439,118. nine months of the current fiscal year, Kenais net income amounted to $108,907 or 8 cents per share, compared with net income of $675,495 or 47 cents per share in the comparable nine months a year ago. Revenues for the recent nine months were $9,966,228 versus $8,533,929 one year ago. Kenai chairman Warren Haber noted that, as prev- iously announced, third quarter results were adversely affected by moving expenses incurred transferring two drilling rigs from southern Alaska to the Edmonton, Alberta, Canada area. "These expenses amounted to $355,000 during the quarter, offsetting the profits earned by our other operHe ations, Haber said. both of the added that shifted rigs are now under contract. In total, 17 of our 19 drilling rigs companywide are currently operating or are under contract. Because commencement of work under contracts for the two shifted rigs took longer than wre had anticipated, the income stream from these two rigs was delayed. Accordingly, we are now looking for earnings for the fiscal year ending Jan. 31, 1977 to be in the area of 20 cents per share, although our expectations for a strong rebound in fiscal 1978 remain unaffected, Haber said. Earlier this year, Kenai forecast fiscal 1977 earnings of 30 cents per share, and fiscal 1978 earnings of between 70 cents and 80 cents per share. In another area, executive committee chairman Joel Friedman reported that Kenai determined to take the steps necessary to extend until Jun 30, 1978 the expiration date of 466,850 Kenai warrants outstanding. The warrants were originally due to expire on March 15, 1977. Each warrant entitles the holder to purchase one share of Kenai stock at $6 per share. No other provision of the warrants is to be af Coquina Marks Wyoming Completion fected. also announced that the shareFriedman holders of Atcor, Inc., a nuclear waste disposal and decontamination firm, approximately 74 percent of whose shares Kenai acquired in September 1976, have approved the plan of merger providing for the merger of the companys wholly owned subsidiary, Kenai Nuclear Services, Inc., into Atcor, Inc., with the holders of the minority interests to receive cash for their Atcor shares. With the Atcor acquisition, we hope to build our capabilities in the energy service sector both fast-growi- MIDLAND, Texas The company 8,276 feet. said the well also swrabbed Coquina Oil Corp. ( OTC 20.625, 21.625) announced last week that through its Coquina 76 exploration program it made a dual oil discovery at its Hamm No. 2 wildcat well in Campbell County, Wyo. oil at rates of 173 to 264 barrels a day on tests in the Muddy formation at about 6,700 feet. Coquina said a second well, the Hamm No. 3 was drilled to 6,750 feet to produce from the Muddy formation. The company said the well recovered oil on a drill stem test and is in the completion process. The company said the well pumped 120 barrels of oil a day on a 24-ho- test ur from perforations in the Min-nelu- sa sand formation at , THE NATIONAL ng through acquisition and internal expansion, Friedman is published weekly by the National Enterprise PublishContinental lank lldg., P.0, los 1 1 771, Pioneer Stotion, ing Company, Salt lokeGty, Utah 14147. (101)533-055- 6 The Notional interpret bit, 500 Second Class Postage Paid GeoSurveys Will R. Proceed With Exploration Venture COLORADO SPRINGS, Geo Surveys Inc. (OTC 1.75, 2.50) announced last week that it has entered into a joint venture with Energy Fuels Ltd of Denver for the exploration and development of uranium on its 15,000 acres which are the subject of mining claims held jointly by GeoSurveys and Polaris Resources (OTC .38, .43) in the Topaz Mountain area of west central Utah. The tw'o acquired the mining rights to these claims in June Colo. 1975 with GeoSurveys acting as managing partner. Pursuant to the joint venture, Energy Fuels will totally finance the initial exploration and evaluation of the property which it estimated will require an aggregate sum of about $2 million, to be expanded over a two year period. Energy Fuels has the right of cancellation at any time. GeoSurveys said that should Energy Fuels continue under the 50 Cents Per Copy Subscriptions S24.00 per year said. m Salt Lake City, Utah George Greg arson Publisher Alone E. Bentley Editor Ryan B. Poulton Business Manager Mary McMillan Gabor Doan Alsup Staff Reporters Peter Harrison Operations Manager venture and should exploration warrant further joint development, GeoSurveys and Polaris, at their election, may maintain a 50 percent interest in the venture by paying their pro rata share of all amounts required for further exploration, de- velopment and production. If GeoSurveys and Polaris elect not to pay such share, Energy Fuels will have a 75 percent interest in the venture and will be responsible for all such expenses. Preliminary exploration will begin this month, GeoSurveys said, adding that it will manage the project during the first year. Energy Fuels will manage the project thereafter. The Utah mining claims include the Yellow Chief Mine, which produced about 290,000 pounds of uranium oxide before being phased out under the Atomic Energy Stretch Out Commission 1961. program in Were Helping Keep Americas Automobiles on the Road Gasoline is expensive and in short supply. So it s important to conserve every possible drop of this precious fuel. Thats where we come in! i We insulate petroleum storage and transport facilities to help prevent heat loss caused by high temperatures. Insulation of pipe lines and storage tanks makes them safer too! Bronco Plans Tests on Newly Acquired New Mexico Prospects CASPER, Wyo. Bronco Oil & Gas Company (OTC .26, .30) has purchased approximately 50,000 acres in San Miguel and Santa Fe Counties, of Northeast New Mexico and plans three tests of approximately 3800 feet to evaluate oil and gas possibilities in rocks of Pennsylvanian Age. According to Richard W. Chuman, president, geological studies indicate at least three separate anomalies on the prospect, which is located in the northwest portion of the Permian Basin in an area of numerous oil seeps from Pennsylvanian rocks. Broncos plans call for drilling opera tions to commence during 1977, Chuman said. In other developments, the oil man 0 said Bronco will spud its No. Federal in Washakie County, Wyo. during the first part of January, 1977. Thewell is scheduled to the Phosphoria Formation at 10,500 feet. Along with this well. Bronco will complete its previously announced drilling program which includes wells at Pilot Butte Field in Fremont County, Wyo.; one well at Byron Creek Prospect west Field; the Twenty-on- e of Grass Creek Field in the Big Horn Basin; and a Minnclusa Test in the Grasshopper Butte Field of Crook County, Wyo. Were also involved in insulation projects to help protect petroleum products from extreme temperatures on the other end of the scale. We have insulated instruments for the newly developing oil program in the North Sea where temperatures reach 50 degrees -- F. 11-1- There are many ways to conserve gasoline. Driving at slower and speeds keeping your automobile tuned up are a couple of them. This is how you can help. Insulation of petroleum facilities is another way. And thats the business werere in. SALT LAKE HOUSTON |