Conwest income reflects lower zinc prices

For the first nine months of the year, Conwest Exploration (TSE) reported net earnings of $9.7 million (62 cents per share) compared with earnings of $12.2 million (93 cents per share) during the same period last year. In the third quarter, earnings dropped to $1.7 million from $4.2 million in the third quarter of 1989.

Conwest, which merged with Barons Oil and Mineral Resources International in June, has been enjoying higher prices for its oil and gas, but this gain has been more than offset by lower zinc prices. Oil prices jumped by 30% over the quarter, while zinc prices dropped by about 15%.

Cash flow for the first nine months was $27.6 million ($1.81 per share) compared with $37.8 million ($2.15 per share) in the first nine months of 1989.

Conwest recently spent $25 million to purchase three oil and gas interests. The acquisition will add 5.6 million barrels of oil equivalent to Conwest’s proven and probable reserves.

Conwest Exploration (TSE)*

9 months ended Sept. 30 1990 1989 Revenue $86,716 $86,506 Net earnings 9,659 12,195

per share 0.62 0.93