Date: Wed, 19 Nov 1997 23:56:42 GMT Server: Apache/1.1.1 Content-type: text/html Content-length: 5548 Last-modified: Wed, 09 Jul 1997 15:57:37 GMT
Dear Investor:
Foreland Corporation was founded to pursue a high-risk, high-reward oil exploration program in Nevada. Yet by many measures, Foreland is now a complete oil exploration and development company that has combined successful exploration with a significant increase in oil production and cash flow. Because of the outstanding results we achieved in 1996 by applying 3D seismic technology to Nevada exploration, we are strongly committed to expanding our aggressive Nevada exploration program. At the same time, we will accelerate our development program to continue to build production and reserves in our existing fields.
Growth is one key component in assessing the health of a corporation, and by all measures, Foreland Corporation is a stronger company than at any time in its history. The previous year has been momentous for the Company, with the discovery of two new oil fields, including Ghost Ranch field, the first 3D seismic exploration success in the history of Nevada. The other discovery was made at the Deadman Creek well, which has opened a new area to production. The Company consolidated its ownership of Eagle Springs field in 1996 and can now continue development of this field, including the drilling of additional infill wells and the implementation of an enhanced recovery program.
Revenue, production, and reserves all increased dramatically in 1996, and development drilling in early 1997 has continued this growth. Revenue for 1996 climbed to $2 million, almost double the revenue of the previous year, continuing a strong and steady growth rate over the last few years. Oil production grew as a result of an increase in overall production from the Eagle Springs field, the purchase of the remaining 40% interest in the Eagle Springs field, and the commencement late in the year of production from the newly discovered Ghost Ranch field. The Company’s independent reserve report dated December 31, 1996 assessed our net proved reserves at 3.7 million barrels of oil, up 85% as compared to 2.0 million barrels a year earlier. With annual production of 118,000 barrels of oil in 1996, we had a reserve replacement rate of fourteen times our 1996 production.
Our primary focus will remain the high potential exploration of Nevada. Never before has our exploration program been better positioned, both technically and financially, to fully exploit the oil potential of Nevada. Foreland is the industry leader in the successful utilization of 3D seismic technology in Nevada for both exploration and development. We will continue our aggressive development strategy to build reserves and increase cash flow.
We are excited by our opportunities in the coming year. Foreland is positioned to grow through 3D seismic defined exploration, acquisition and development. We invite you to browse our website and feel free to contact us with your questions.
Sincerely,
Foreland Corporation - Copyright © 1997