1999 Annual Report

Numac is one of Canada's top 25 oil and gas producing companies, exploring, developing and producing crude oil, natural gas and natural gas liquids in Western Canada. During 1999, Numac increased its average daily production from 25,000 BOE/day in the first quarter to 29,000 BOE/day in the fourth quarter, while reducing unit operating, general and administrative and interest costs by more than one dollar per barrel to $6.70 per BOE, a reduction of 14 per cent compared to 1998. Cash flow totalled $137.7 million, or $1.44 per share, a substantial 76 per cent improvement over the previous year. The company had net earnings of $40.4 million, which represents a 20 per cent return on equity. Long-term debt was reduced to $154.4 million at year end, with no further off-balance sheet debt. Following completion of a major non-core property divestiture program, the number of working interest wells was reduced by two thirds to 1,300 wells from 3,900 wells. In 2000, the company intends to evaluate substantial undeveloped land blocks acquired during 1999 by drilling, believing that its bread and butter development and exploitation program in core areas can provide consistent and profitable growth and reach its key objective of 12 per cent after-tax rate of return on capital projects. Approximately $145 million is earmarked for exploration and development , split equally among Numac's three core areas in Alberta. The annual report provides a detailed review of operations, management's discussion and analysis of results, consolidated financial statements and relevant supplementary information. A summary review of operations and finances covering the five year period from 1995 to 1999 is also included