Numac Announces Consolidated Financial and OperatingResults; Part 2 of 2.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 27, 1998--Numac Energy Inc.(TSE:NMC.)(ME:NMC.)(AMEX:NMC)

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                              Highlights
                             (unaudited)


                           Three Months        Nine Months
                        Ended




				

				
				 
				


 September 30  Ended September 30
                        ------------------  ------------------
                         1998       1997      1998       1997
                         ----       ----      ----       ----
                                    (as                  (as
                                restated)            restated)
FINANCIAL
($ thousands, except per
 share and per unit amounts)

Revenue                  44,937    60,394    148,325  185,819
Funds from operations    15,885    29,154     54,761   94,730
  Per share                0.17      0.30       0.57     0.98
Net income (loss)      (114,754)      365   (127,054)   7,498
  Per share               (1.20)        -      (1.33)    0.08
Average prices
  Crude oil and natural
   gas liquids ($/Bbl)    15.55     21.05      15.09    22.62
  Natural gas ($/Mcf)      1.46      1.42       1.78     1.69
Capital expenditures
  Exploration
   and production        12,676    36,971     76,979  124,621
  Acquisitions            1,780     2,894      4,303  140,858
  Proceeds on sale
   of property           20,683     1,615     51,746   18,008

OPERATIONS Production Crude oil and natural gas liquids (Bbls/day) 17,931 20,966 18,386 19,954 Natural gas (Mmcf/day) 144 152 150 136 Expenses per BOE of production Operating expense 4.94 4.89 5.25 4.64 General and administrative expense(1) 1.35 0.51 1.10 0.57 Wells drilled Gross 40 75 83 204 Net 12 54 42 135 Success rate(net)(percent) 96 95 85 94

(1) Includes severance and restructuring charges of $0.45 per BOE in the nine months and $0.64 per BOE in the three months ended September 30, 1998, respectively.

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                          Numac Energy Inc.
                     Consolidated Balance Sheets
                            ($ thousands)

                                  As at            As at
                               September 30,    December 31,
                                   1998             1997
                               -------------    ------------
                                (unaudited)     (as restated)

ASSETS
Current Assets
 Cash and temporary cash
  investments                   $     870         $   3,063
 Accounts receivable               34,582            42,024
 Assets held for sale              62,063            25,400
                                ---------         ---------
                                   97,515            70,487
Future income taxes (note)         12,707                 -
Property, plant and equipment
 - net (note)                     445,303           714,977
                                ---------         ---------
                                $ 555,525         $ 785,464
                                ---------         ---------
                                ---------         ---------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
 Accounts payable and
  accrued liabilities           $  58,647         $  79,399
Long-term debt                    265,863           267,484
Deferred credits and other
 long-term obligations             22,724            28,648
Future income taxes (note)              -            73,528
                                ---------         ---------
                                  347,234           449,059
                                ---------         ---------
Shareholders' Equity

 Share capital                    435,018           435,951
 Contributed surplus               72,178            72,305
 Deficit (note)                  (298,905)         (171,851)
                                ---------         ---------
                                  208,291           336,405
                                ---------         ---------
                                $ 555,525         $ 785,464
                                ---------         ---------
                                ---------         ---------

NOTE TO THE CONSOLIDATED FINANCIAL STATEMENTS

Future Income Taxes

Numac has adopted the new income tax standard issued by the Canadian Institute of Chartered Accountants. The income tax standard has been adopted retroactively resulting in the restatement of 1997 results. The impact of this restatement on the December 31, 1997 financial statements is as follows:

                         As Reported  Adjustments  As Restated
                         -----------  -----------  -----------
As at December 31, 1997
 Property, plant and
  equipment - net            736,488     (21,511)     714,977
  Future income taxes         37,424      36,104       73,528
  Deficit                   (114,236)    (57,615)    (171,851)
For the Year Ended
 December 31, 1997
 Depletion, depreciation and
  future site restoration     94,817      (1,568)      93,249
  Future income tax expense   18,781      14,749       33,530
  Net income (loss)
   for the year               12,602     (13,181)        (579)
  Net income (loss) per
  common share
   - basic and fully diluted    0.13       (0.14)       (0.01)

As a result of the restatement, net income for the nine months ended September 30, 1997 decreased $3.3 million ($0.03 per share) due to a $4.1 million increase in future income tax expense and a $0.8 million decrease in depletion and depreciation expense.

For the three months ended September 30, 1997, net income increased $0.2 million due to a $0.7 million decrease in depletion and depreciation expense, and a $0.5 million increase in future income tax expense.

                          Numac Energy Inc.
            Consolidated Statements of Income and Deficit
                             (unaudited)
            ($ thousands, except amounts per common share)

                    Three Months Ended      Nine Months Ended
                        September 30           September 30
                      1998        1997      1998         1997
                    --------    -------   --------     ------
                                   (as                   (as
                              restated)             restated)
REVENUES
Crude oil and natural
 gas sales        $  44,937   $  60,394  $ 148,325  $ 185,819
Royalties            (5,685)     (8,685)   (22,123)   (32,512)
Other                  (458)         (3)    (1,077)     1,142
                  ---------   ---------  ---------  ---------
                     38,794      51,706    125,125    154,449
                  ---------   ---------  ---------  ---------

EXPENSES
Operating            14,673      16,250     47,751     42,422
General and
 Administrative       4,019       1,709     10,039      5,176
Interest on
 long-term debt       4,766       4,577     13,617     10,955
Depletion, depreciation
 and future site
 restoration        217,151      25,039    266,211     66,912
                   --------    --------   --------   --------
                    240,609      47,575    337,618    125,465
                   --------    --------   --------   --------
Income (loss)
 before taxes      (201,815)      4,131   (212,493)    28,984
                   --------    --------   --------   --------

INCOME AND OTHER TAXES
Current tax (benefit)   (28)        837        796      2,506
Future income tax
 (benefit)          (87,033)      2,929    (86,235)    18,980
                   --------    --------    -------   --------
                    (87,061)      3,766    (85,439)    21,486
                   --------    --------    -------   --------
NET INCOME (LOSS)  (114,754)        365   (127,054)     7,498
Deficit, beginning
 of period         (184,151)   (164,139)  (171,851)  (171,272)
                   --------    --------    -------   --------
Deficit, end
 of period        $(298,905)   (163,774)  (298,905)  (163,774)
                   --------    --------    -------    -------
Net income (loss)
 per common share
 (basic and fully
  diluted)        $   (1.20)          -      (1.33)      0.08
                   --------    --------   --------    -------

Net income (loss) per common share has been calculated based on a weighted average of 95.5 million common shares for the three and nine months ended September 30, 1998 (three months ended September 30, 1997: 96.3 million shares; nine months ended September 30, 1997: 96.5 million shares).

                          Numac Energy Inc.
                 Consolidated Statements of Cash Flow
                             (unaudited)
                            ($ thousands)

                          Three Months         Nine Months
                       Ended September 30   Ended September 30
                        1998        1997     1998        1997
                        ----        ----     ----        ----
                                     (as                  (as
                                restated)            restated)
OPERATING ACTIVITIES
Net income (loss) for
 the period        $ (114,754) $     365 $ (127,054) $  7,498
Add (deduct) non-cash
 items:
 Depletion, depreciation
  and future site
  restoration         217,151     25,039    266,211    66,912
 Future income tax
  (benefit)           (87,033)     2,929    (86,235)   18,980
 Amortization of deferred
  credits and other
  long-term obligations   521        821      1,839     1,340
                      -------    -------    -------    ------
Funds from operations  15,885     29,154     54,761    94,730
Change in working capital
 other than cash        8,213       (104)     6,635       737
                      -------    -------    -------    ------
Cash provided by
 operating activities  24,098     29,050     61,396    95,467
                      -------    -------    -------   -------

INVESTING ACTIVITIES
Expenditures on property,
 plant and equipment  (12,676)   (36,971)   (76,979) (124,621)
Acquisitions           (1,780)    (2,894)    (4,303) (140,858)
Proceeds on sale of
 property              20,683      1,615     51,746    18,008
Change in working capital
 other than cash          586     (6,418)   (19,945)   (4,752)
                      -------    -------    -------   -------
Cash provided by (used in)
 investing activities   6,813    (44,668)   (49,481) (252,223)
                      -------    -------    -------   -------

FINANCING ACTIVITIES
Increase (decrease) in
 long-term debt       (39,655)       (66)   (13,048)  119,436
Purchase of common
 shares                     -       (335)    (1,060)   (4,233)
Common shares issued        -        196          -       268
                      -------    -------    -------   -------
Cash provided by (used in)
 financing activities (39,655)      (205)   (14,108)  115,471
                      -------    -------    -------   -------
Decrease in cash
 during the period     (8,744)   (15,823)    (2,193)  (41,285)
Cash, beginning
 of period              9,614     21,626      3,063    47,088
                      -------    -------    -------   -------
Cash, end of period   $   870  $   5,803   $    870  $  5,803
                      -------    -------    -------   -------

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Cash consists of cash and temporary cash investments.