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Show The National Enterprise, November 17, 1976 Page ten New Products Subsidiary and New York Analysts Allied Pact Make Chemical Hear Kenai Forecast NEW N.Y. YORK. 1978 Sharply higher earnings are on the drawing board for Kenai Drilling Ltd. (OTC 2.375, 2 7f), according to the companys president Michael R. Green. At a meeting of securities analysts in New York last week the' executive said earn ings for the year ending Jan. 31, 1977 should be approximately S450.000 or 30 cents a share on revenues of $14 million. For the fiscal year in January, 1978, Friedman told analysts d the drilling industry outlook for the next year is excellent, with demand for drilling spurred by higher gas and oil prices, instability and a corresponding increase in domestic oil and gas exploration and development. From a low of 976 rigs in 1971, an estimated 1,668 rigs are now working, Friedman said, adding that the total available fleet is The approximately 2,200. total available fleet has not expanded as quickly as demand, Friedman commented, because new rigs are not cost competitive with older, depreciated ones already in the land-base- ad on-sho- re ending Green forecast earnings of $1.3 to $1.4 million, or 0 cents a share on revenues of $18-2- 0 million. Green said the projection was based on managements expectations that field. 70-8- drill rig utilization would con- tinue to increase and upon compensation rates continuing through the coming fiscal year. Joel Friedman, chairman of Kenai s executive committee, said current year earnings were affected by slack drilling activity in the Rocky Mountain and Alaska regions, producing marginal earnings in the second quarter. During that period, the company recorded a charge of non-recurri- ng more than $300,000 by moving two rigs from southern Alaska to Canada, offsetting earnings of its other operations and holding the company to a small profit for the period. A stronger performance in the current fourth quarter is expected to continue through calendar 1977, Friedman said, reflecting improved compensation rates, higher rig utilization and internal realignments in the company. In order for new rigs to become ' competitive, major upward adjustments in drill- SALT LAKE CITY A New Products Corporation (OTC .35, .45) subsidiary, United Energy Corporation, will drill test wells in the Cisco Dome area of Grand County, Utah, for the Union Texas Petroleum Division of Allied Chemical Corp., the companies announced last week. farmout a ChemiAllied agreement with cal division, United Energy said it will begin drilling two oil and gas exploratory wells in early 1977. Expectations are that the wells will reach the producing zone at approximately 3,150 feet. Each drill site will be e unit of located on a e the 4,480-acrproperty, the The Cisco company said. Dome field has been an energy producing area for Under 320-acr- ing compensation will be needed, benefiting our entire industry, he said. He predicted that this would happen as the active rig fleet approached the levels of the total available fleet, intensifying the need for new equipment additions. Chairman Warren Haber noted that Kenai has not actively considered new contract drilling acquisitions in the past year because of slack drilling demand and an emphasis on internal adjustents. Kenai operates 19 drilling rigs, about 1 percent of the active U.S. fleet, in four geographic areas. In the fiscal year ended Jan. 31, 1976, Kenai earned $862,000 or 60 cents per common and common equivalent share on revenues of $12 million. many years and there are a number of natural gas wells on adjacent leases. One of the properties abutting the Union Texas land unit on which is a 3,840-acr- e the New Products Corporations subsidiary holds the oil and gas rights. John B. Tenney, New Products president, recently announced the completion of financing for a the target of yet another lawsuit filed against it in a week. Shareholders Tuesday filed two suits in Denver federal court asking total damages of about $25 million. One complaint, filed by Phillip Freeman, who the company said claims to hold 5,800 shares of Oceanic Exploration common, alleges certain violations of federal securities laws and seeks of about $40,000, the damages said. company Another suit filed by David Hood also cites various violations by the company and certain of its officers and directors. . .of the federal securities laws and asks damages of $25 million. The company did not comment on the complaints, saying that its lawyers hadnt had time to study them yet. Oceanic, two weeks ago, became the defendant in a suit filed against it in a Delaware court by its former chairman Jack Grynberg, which seeks to invalidate a voting trust Grynberg established last 12-1- American Quasar Marks Completions in Pineview FORT WORTH American Quasar Petroleum Co. (OTC 25.75, 26.25) has completed two development wells in the Pineview Field in Summit County, Utah, bringing to five the total number of wells completed by the company in the field. HealthGarde TM WEST FIFTH SOUTH SALT LAKE CITY S4101 (101) 1 The computer has a greater potential in patient care than any other invention, including the stethoscope and the X-r-ay machine. Hanson American Medical News Mr. Ken HEALTHGARDE CORPORATION Medical Computers for the Modern Hospital Oceanic Named in Suit DENVER Oceanic Exploration Co. (OTC 3.50, 3.875) is drilling program on the property. The terms of the farmout agreement provide the Allied Chemical division with a 2 percent overriding royalty on all production, while all drilling costs are to be borne by United Energy. Tenney said the anticipated cost of drilling and completion of the wells would be moderate. ten-we- ll OUR NASDAQ SYMBOL IS HGRD winter before he left the company. With over 1600 stock quotations, news articles, earnings reports, corporate profiles, market columns and feature stories, the National Enterprise covers the OTC securities market from coast to coast. . 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