Encal Energy Releases 2000 Results


      SYMBOL:    ENL, ECA 
    LISTED:    TSE, NYSE 


  CALGARY, Feb. 21 /PRNewswire/ - Encal Energy Ltd. reports record 
increases in financial and operating results, along with major increases in 
its oil and gas reserves for the year ended December 31, 2000. Net earnings 
for the year exceeded $100 million, while cash flow from operations exceeded 
$290 million for the year.  


      2000 Highlights 
    --------------- 
    Financial 
    - Revenue increased 115% to $545.7 million compared to $253.4 million in 
      1999. 
    - Funds from operations increased 135% to $292.5 million ($2.68 per basic 
      share) from $124.3 million in 1999 ($1.16 per basic share). 
    - Net earnings for the year ended December 31, 2000 were $100.2 million 
      ($0.92 per basic share) compared to $25.4 million ($0.24 per basic 
      share) in 1999. 
    - Net capital expenditures totalled $359.0 million in 2000 compared to 
      $197.1 million in 1999. Cash flow from operations, long-term debt and 
      proceeds from the sale of non-core assets financed the capital program. 
    - Long term debt was $388.8 million at year end. 
      Production 
    - Production on a boe equivalent basis averaged 45,777 boe per day in 
      2000 compared to 39,430 boe per day in 1999 and averaged 48,408 boe per 
      day in the fourth quarter. 
    - Crude oil and natural gas liquids production averaged 17,934 bbls per 
      day compared to 13,862 bbls per day in 1999 and during the fourth 
      quarter of 2000 averaged 19,754 bbls per day. 
    - Natural gas production averaged 167 mmcf per day in 2000, compared to 
      153 mmcf per day in 1999 and 172 mmcf per day in the fourth quarter of 
      2000. 
      Reserves 
    - Proven reserves increased 15% to 154.2 million BOE's in 2000 from 134.1 
      million BOE's in 1999. 
    - Reserve additions replaced production by a multiple of 2.2 times, on a 
      proven basis. 
    - Proven finding and development costs inclusive of all additions and 
      revisions were $9.73 per BOE 
    - 2000 activity resulted in net proven reserve additions of 21.8 million 
      barrels of crude oil and NGL's and 90.5 billion cubic feet of natural 
      gas, or 36.9 million barrel of oil equivalents (6:1). 
    - Undeveloped land in western Canada increased 14 percent to 938,000 net 
      acres from 822,000 net acres in 1999. 
      Calpine Business Combination 
    - Further to the Company's February 8, 2001 announcement of the proposed 
      business combination with Calpine Corporation (NYSE: CPN), the Company 
      expects to mail its Information Proxy Circular to shareholders by 
      mid-March. 


  For the purposes of calculating production and unit costs, natural gas is 
converted to a barrel equivalent using 6 thousand cubic feet equal to one 
barrel unless otherwise stated.  


        << 
                              Financial Results 
                                            Three Months Ended    Year Ended 
                                              December 31       December 31 
    ------------------------------------------------------------------------- 
    ($ thousands except per share amounts)   2000     1999     2000     1999 
    ------------------------------------------------------------------------- 
    Financial 
    Petroleum and Natural Gas Sales       201,520   84,812  545,684  253,373 
      Average Product Prices 
      Natural Gas ($/mcf)                    7.84     2.75     4.72     2.38 
      Crude Oil ($/bbl)                     42.48    32.90    40.15    25.25 
      Natural Gas Liquids ($/bbl)           43.11    26.64    36.64    19.88 
      Average Royalty Rates (%)               24.8%    18.4%    23.4%    17.6% 
    Operating Costs ($/BOE)                  3.64     3.51     3.53     3.33 
    General and Administrative ($/BOE)       0.67     0.63     0.75     0.72 
    Depletion and Depreciation ($/BOE)       7.40     5.97     6.12     5.42 
      Cash Flow from Operations             116,421   42,982  292,536  124,325 
      Per Common Share   Basic               1.06     0.40     2.68     1.16 
                         Fully Diluted       1.00     0.38     2.53     1.10 
      Net Earnings                           44,716   12,396  100,163   25,377 
      Per Common Share   Basic               0.41     0.13     0.92     0.24 
                         Fully Diluted       0.39     0.12     0.88     0.23 
      Net Capital Expenditures               67,458   38,194  359,040  197,093 
      Long-Term Debt                                          388,794  301,379 
    Net Debt (including Working Capital 
     Surplus/Deficiency)                                    368,728  305,223 
      ------------------------------------------------------------------------- 
      Share Information (thousands) 
    Shares Outstanding at December 31 
      Basic                               109,571  108,280  109,571  108,280 
      Fully Diluted                       117,051  115,331  117,051  115,331 
      Weighted Average Shares 
     Outstanding for the Period 
      Basic                               109,445  108,271  108,985  107,577 
      Fully Diluted                       116,942  115,278  116,302  113,971 
    ------------------------------------------------------------------------- 
                                  Operating Results 
                                            Three Months Ended    Year Ended 
                                              December 31       December 31 
    ------------------------------------------------------------------------- 
                                             2000     1999     2000     1999 
    ------------------------------------------------------------------------- 
    Production 
      Natural Gas (mmcf per day)            171.9    161.9    167.1    153.4 
      Crude Oil (bbls per day)             14,615   10,813   13,088    9,927 
      Natural Gas Liquids (bbls per day)    5,139    4,543    4,846    3,935 
        Total (BOE per day) 6:1              48,408   42,346   45,777   39,430 
      ------------------------------------------------------------------------- 
    Reserves (as at December 31, 2000) 
    Crude Oil and Natural Gas Liquids 
     (mbbls) 
      Proven                                                 54,492   39,242 
      Proven plus Probable                                   73,977   53,334 
      Natural Gas (bcf) 
      Proven                                                    598      569 
      Proven plus Probable                                      824      783 
      Barrel of Oil Equivalent (mboe) 
      Proven - 6:1                                          154,159  134,075 
      Proven plus Probable 6:1                              211,310  183,834 
      ------------------------------------------------------------------------- 
      ------------------------------------------------------------------------- 
                                                Proven          Proven Plus 
                                                                 Probable 
    ------------------------------------------------------------------------- 
    ($ millions - before income taxes)       2000     1999     2000     1999 
    ------------------------------------------------------------------------- 
    Present Value of Future Cash Flow 
      Discounted at 10%                       1,586      809    1,974    1,011 
    Discounted at 12%                       1,485      752    1,831      929 
    Discounted at 15%                       1,359      681    1,659      830 


  The corporate reserves are prepared by Gilbert Laustsen Jung Associates 
Ltd. as of January 1, 2001  


    ------------------------------------------------------------------------- 
      ------------------------------------------------------------------------- 
                                                 2000              1999 
    ------------------------------------------------------------------------- 
    Drilling Activity                       Gross      Net    Gross      Net 
                                            -----      ---    -----      --- 
    Natural Gas Wells                          85     56.0       74     53.6 
    Crude Oil Wells                            46     24.4       31     15.4 
    Dry Holes                                  46     36.0       36     29.1 
                                            --------------------------------- 
    Total Wells                               177    116.4      141     98.1 
                                            --------------------------------- 
    Success Rate (%)                           74       69       74       70 
    ------------------------------------------------------------------------- 
                            Finding and Development Costs 
                                                              2000        1999 
    ------------------------------------------------------------------------- 
    Net Capital Expenditures ($ thousands) 
      Land and Lease                                        25,723      19,257 
    Seismic                                               20,012       7,270 
    Drilling and Completions                             149,321      98,321 
    Property Acquisitions                                146,923      50,414 
    Property Dispositions                                (25,730)    (28,325) 
    Facilities                                            37,709      39,327 
    Eastern Canada                                            -        7,125 
    Office Capital                                         2,521       2,397 
    Capitalized General and Administrative                 2,561       1,307 
                                                        --------------------- 
    Total Finding and Development Expenditures           359,040     197,093 
                                                        --------------------- 
                                                        --------------------- 
                                          Cumulative 
                                        1998-2000     2000     1999     1998 
    ------------------------------------------------------------------------- 
      Reserve Additions and Finding Costs 
      Net Capital Expenditures 
     ($ thousands)                        719,639  359,040  197,093  163,506 
      Proven 
      Net Crude Oil & NGL Reserve 
       Additions (mbbls)                   42,148   21,814    9,804   10,530 
      Net Natural Gas Reserve 
       Additions (bcf)                     358.00    90.49   143.39   124.12 
                                        ------------------------------------- 
      Net Reserve Additions (mBOE) - 6:1  101,814   36,895   33,702   31,217 
          Finding and Development Costs 
       ($/BOE) - 6:1                         7.07     9.73     5.85     5.24 
        Proven Plus Probable 
    -------------------- 
      Net Crude Oil & NGL Reserve 
       Additions (mbbls)                   49,219  27,217    10,557   11,445 
      Net Natural Gas Reserve 
       Additions (bcf)                     388.74  102.20    157.48   129.06 
                                        ------------------------------------- 
      Net Reserve Additions (mBOE) - 6:1  114,009  44,250    36,804   32,955 
          Finding and Development Costs 
       ($/BOE) - 6:1                         6.31    8.11      5.36     4.96 
    ------------------------------------------------------------------------- 
                             Consolidated Balance Sheets 
                                As at December 31 
                                                                2000        1999 
    ------------------------------------------------------------------------- 
                                                             ($ thousands) 
    Assets 
      Current 
    Cash                                                  11,064         - 
    Accounts Receivable                                  117,666      58,337 
    Inventory                                             11,355       7,784 
    ------------------------------------------------------------------------- 
                                                         140,085      66,121 
      Petroleum Property and Equipment                     966,771     706,375 
      Deferred Foreign Exchange Losses                       3,335       2,048 
    ------------------------------------------------------------------------- 
                                                       1,110,191     774,544 
    ------------------------------------------------------------------------- 
    ------------------------------------------------------------------------- 
      Liabilities and Shareholders' Equity 
      Current 
    Accounts Payable                                     120,019      69,965 
    ------------------------------------------------------------------------- 
    Bank Debt                                            238,724     229,214 
    Senior Notes Payable                                 150,070      72,165 
    Site Restoration and Reclamation                      15,204      11,959 
    Future Income Taxes                                  170,896      81,818 
    ------------------------------------------------------------------------- 
                                                         574,894     395,156 
    ------------------------------------------------------------------------- 
      Shareholders' Equity 
    Share Capital                                        262,282     256,590 
    Retained Earnings                                    152,996      52,833 
    ------------------------------------------------------------------------- 
                                                         415,278     309,423 
    ------------------------------------------------------------------------- 
                                                       1,110,191     774,544 
    ------------------------------------------------------------------------- 
    ------------------------------------------------------------------------- 
              Consolidated Statements of Earnings and Retained Earnings 
                                         Three Months Ended     Year Ended 
                                           December 31        December 31 
    ------------------------------------------------------------------------ 
                                          2000      1999      2000      1999 
    ------------------------------------------------------------------------ 
                                   ($ thousands except per share amounts) 
    Revenues 
    Petroleum and Natural Gas Sales    201,520    84,812   545,684   253,373 
    Royalties                           50,003    15,627   127,428    44,505 
    Hedging Charges                      7,899     4,422    25,642     7,161 
    ------------------------------------------------------------------------ 
                                       143,618    64,763   392,614   201,707 
    ------------------------------------------------------------------------ 
      Expenses 
    Production                          16,214    13,683    59,156    47,908 
    General and Administrative           2,978     2,452    12,534    10,395 
    Financing Charges                    7,557     5,167    26,713    17,959 
    Depletion and Depreciation          32,960    23,260   102,582    78,000 
    ------------------------------------------------------------------------ 
                                        59,709    44,562   200,985   154,262 
    ------------------------------------------------------------------------ 
      Earnings Before Taxes               83,909    20,201   191,629    47,445 
    ------------------------------------------------------------------------ 
    Taxes 
    Future Income Taxes                 38,488     7,208    89,078    20,300 
    Large Corporation Tax                  705       597     2,388     1,768 
    ------------------------------------------------------------------------ 
                                        39,193     7,805    91,466    22,068 
    ------------------------------------------------------------------------ 
      Net Earnings for the Period         44,716    12,396   100,163    25,377 
      Retained Earnings, 
     Beginning of the Period           108,280    40,437    52,833    27,456 
    ------------------------------------------------------------------------ 
    Retained Earnings, 
     End of the Period                 152,996    52,833   152,996    52,833 
    ------------------------------------------------------------------------ 
    ------------------------------------------------------------------------ 
      Earnings Per Share 
    Basic                                 0.41      0.13      0.92      0.24 
    Fully Diluted                         0.39      0.12      0.88      0.23 
    ------------------------------------------------------------------------ 
                        Consolidated Statements of Cash Flows 
                                         Three Months Ended    Year Ended 
                                           December 31       December 31 
    ------------------------------------------------------------------------ 
                                          2000      1999     2000     1999 
    ------------------------------------------------------------------------ 
                                      ($ thousands except per share amounts) 
      Cash Flows from Operating Activities 
    Net Earnings for the Period         44,716    12,396   100,163    25,377 
    Depletion and Depreciation          32,960    23,260   102,582    78,000 
    Future Income Taxes                 38,488     7,208    89,078    20,300 
    Amortization of Deferred Foreign 
     Exchange Losses                       257       118       713       648 
    ------------------------------------------------------------------------ 
    Cash Flows from Operating 
     Activities                        116,421    42,982   292,536   124,325 
    Change in Non-Cash Working Capital   2,109     6,290   (27,718)  (21,326) 
    ------------------------------------------------------------------------ 
                                       118,530    49,272   264,818   102,999 
    ------------------------------------------------------------------------ 
      Cash Flows from Financing Activities 
    Bank Debt                          (92,758)   42,206     9,510    82,478 
    Senior Notes Payable                75,869        (4)   75,905       (39) 
    Common Shares                          823       152     5,692     7,183 
    ------------------------------------------------------------------------ 
                                       (16,066)   42,354    91,107    89,622 
    ------------------------------------------------------------------------ 
      Cash Flows used in Investing Activities 
    Additions to Petroleum Property 
     and Equipment                     (77,084)  (42,355) (237,847) (174,520) 
    Acquisitions of Petroleum Property 
     and Equipment                     (13,396)  (1,808)  (146,923)  (50,414) 
    Sales of Petroleum Property and 
     Equipment                          23,022     5,969    25,730    28,325 
    Site Restoration and Reclamation      (270)     (121)     (693)     (214) 
    Change in Non-Cash Working Capital (23,672)  (53,311)   14,872     4,202 
    ------------------------------------------------------------------------ 
                                       (91,400)  (91,626) (344,861) (192,621) 
    ------------------------------------------------------------------------ 
    Change in Cash                      11,064         -    11,064         - 
    ------------------------------------------------------------------------ 
    ------------------------------------------------------------------------ 
      Cash Flows from Operations Per Share 
    Basic                                 1.06      0.40      2.68      1.16 
    Fully Diluted                         1.00      0.38      2.53      1.10 
    ------------------------------------------------------------------------ 
    ------------------------------------------------------------------------ 


>> 
  

SOURCE Encal Energy Ltd.  
-0-              02/21/2001  
/CONTACT: David D. Johnson, President and Chief Executive Officer or 
Steven A. Allaire, Vice President, Finance and Chief Financial Officer, Encal 
Energy Ltd., Telephone: 403-750-3300, Facsimile: 403-266-2337, Email: 
invrel@encal.com, Web: www.encal.com/  
(ENL. ECA)  
CO: Encal Energy Ltd. 
ST: Alberta 
IN: OIL 
SU: ERN  
  -30- 
-0- Feb/22/2001  0:23 GMT
 
 
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