Anderson Exploration Ltd. 1998 annual report

In 1998, Anderson Exploration's undeveloped land inventory in the western provinces decreased 7% to 3,183,000 net acres largely due to lease expiries and drilling activity. The undeveloped land base is located 63% in Alberta, 19% in British Columbia, 17% in Saskatchewan, and 1% in Manitoba. During 1998, Anderson Exploration participated in drilling 446 wells for oil and gas vs. 669 for 1997. The average working interest in the wells was 63% vs. 64% in 1997. In 1998, the company spent $109 million on the construction of field gathering systems and production facilities vs. $123 million in 1997. In 1998, the company's gas sales increased to 555 million cubic feet per day from 549 million cubic feet per day in 1997. Crude oil sales averaged 29,808 barrels per day in 1998, an increase of 9% over the 1997 production. In 1998, the company replaced 148% of production with proven reserve additions, net of revisions, by spending 163% of cash flow from operations on capital spending. After a volatile year in 1 997, natural gas prices stabilized somewhat in 1998. A modest price increase was experienced in 1997. The company's average plant gate natural gas price increased modestly in 1998 to $1.94 per thousand cubic feet, marking the 3rd consecutive price increase. The company owns an average interest of 10.4% in two straddle plants at Empress, Alberta. The company operates and is a 50% owner of Federated Pipe Lines Ltd. The company is committed to protecting the health and safety of all employees and the public, as well as preserving the quality of the environment