1999 Annual report: Building a global super-independent

Alberta Energy Company (AEC) is one of the largest independent oil and natural gas companies. It is first in natural gas sales in Canada, and sixth largest in North America. AEC is also a major gas storage developer and a pipeliner of conventional, synthetic and heavy oil in North America. The company also has substantial business interests in Ecuador, Argentina, in Russia, and Australia. This report highlights the company's major operational achievements in 1999 and presents audited consolidated financial statements, with detailed management discussion and analysis of the company's financial status. During 1999 the company had natural gas sales of 904 million cubic feet/day; liquid sales of 95,838 barrels/day; drilled 789 gross wells (94 per cent successful); expanded gas storage capacity to 109 billion cubic feet; and announced a 20,000 barrels/day steam-assisted gravity drainage (SAGD) commercial project. The Alberta Energy Company also acquired Pacalta, a Canadian company which has achieved dramatic growth in Ecuador over a three year period, with current production of 42,000 barrels/day; commenced exploration in the Norman Wells area of Alberta; it also experienced a 30 per cent overall increase in reserves. Net earnings were $179.7 million (up from $24.4 million in 1998); net capital investment, including acquisitions, stood at $2,042.8 million (up from $1,671.5 million in 1998)