Chaparral Resources, Inc. Announces Year End Results

Apr 16, 2001, 01:00 ET from Chaparral Resources, Inc.

    HOUSTON, April 16 /PRNewswire/ -- Chaparral Resources, Inc. (Nasdaq:   CHAR)
 today reported a net loss of $26.8 million, or $6.01 loss per share, for
 fiscal year ended December 31, 2000.  This compares to a net loss of
 $5.16 million, or $5.63 loss per share, for the year ended December 31, 1999.
 The $21.64 million increase in net loss relates to interest charges and
 associated increases in general and administrative costs incurred during 2000
 in our efforts to finance the development of the Karakuduk Field.  As a
 partial offset to these additional expenses, we recognized equity income from
 our investment in Karakuduk Munay, JSC ("KKM") due to KKM's significant
 increase in the production and sale of crude oil during the year.
     Interest expense increased from $523,000 in 1999 to $27.03 million in
 2000, due to interest charges on our convertible notes and financing costs of
 our loan with Shell Capital.  Approximately $20.34 million of interest expense
 was a non-cash charge incurred from the September 21, 2000 conversion of
 $20.85 million of notes, plus accrued interest, into 11,690,259 shares of our
 common stock.  We also borrowed $21.50 million under our Shell Capital loan
 during the year, recognizing $4.38 million in interest expense on the loan and
 $909,000 in amortization of associated debt issuance costs.  We did not have
 any interest charges associated with the loan during 1999.
     General and administrative costs increased from $2.39 million as of
 December 31, 1999 to $3.69 million as of December 31, 2000.  The $1.3 million
 increase was due to approximately $1.0 million in insurance expense from
 premiums on our Overseas Private Investment Corporation ("OPIC") political
 risk insurance policy and amortization of transportation risk insurance
 required by Shell Capital as part of the loan.  Both the OPIC and
 transportation risk insurance policies were executed in 2000.  The remaining
 increase in general and administrative costs was associated with maintaining
 the Shell Capital loan and heightened operational activity in the Karakuduk
 Field.
     Our equity income from investment was $2.83 million in 2000, compared to
 an equity loss of $1.85 million in 1999, driven by KKM's recognition of
 initial revenue from commercial oil sales during the year.  KKM sold
 approximately 765,000 barrels of crude oil, accounting for $13.76 million in
 revenue, or $17.98 per barrel, net of transportation costs.  Associated
 operating costs were $3.68 million, or $4.81 per barrel.  KKM did not have any
 commercial oil sales prior to 2000.
     As of December 31, 2000, Chaparral has a net equity interest in
 16.5 million barrels of proved oil reserves in the Karakuduk Field.  Our
 reserve estimates as of December 31, 1999 have been restated from the original
 presentation, revising the original disclosure of 33.79 million barrels of
 proved reserves downward by 23.72 million barrels to 10.07 million barrels of
 proved reserves.  The restatement is to reflect the SEC's definition of proved
 undeveloped reserves, which differs from the definition employed by the
 Society of Petroleum Engineers.  Specifically, the restated amounts represent
 proved undeveloped reserves from "drilling units offsetting productive units
 that are reasonably certain of production when drilled" or from "other
 undrilled units ... where it can be demonstrated with certainty that there is
 a continuity of production from the existing productive formation."
 
 
      Financial Highlights
      (in thousands, except per share data)
 
                                                    Years Ended December 31
                                                       2000           1999
 
     Revenues                                            $---           $---
     Operating expenses                                (4,114)        (2,423)
     Other income (loss)                              (22,689)        (2,740)
     Net loss                                         (26,803)        (5,163)
     Cumulative annual dividend accrued on
      Series A Preferred Stock                           (250)          (250)
     Discount accretion on
      Series A Preferred Stock                           (100)          (100)
     Net loss available to common stockholders       $(27,153)       $(5,513)
 
     Basic and diluted earnings per share:
     Net loss per share                                $(6.01)        $(5.63)
     Weighted average number of shares
      outstanding (basic and diluted)               4,516,032        978,391
 
     Chaparral Resources, Inc. is an international oil and gas exploration and
 production company.  Chaparral participates in the development of the
 Karakuduk Field through KKM of which Chaparral is the operator.  Chaparral
 owns a 50% beneficial ownership interest in KKM with the other 50% ownership
 interest being held by Kazakh companies, including KazakhOil, the government-
 owned oil company.
     Information Regarding Forward-Looking Statements:  Except for historical
 information contained herein, the statements in this Press Release are
 forward-looking statements that are made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Forward-
 looking statements involve known and unknown risks and uncertainties which may
 cause the Chaparral's actual results in future periods to differ materially
 from forecasted results.  These risks and uncertainties include, among other
 things, the ability of Chaparral to secure financing, volatility of oil
 prices, product demand, market competition, risks inherent in the Company's
 international operations, imprecision of reserve estimates and Chaparral's
 ability to replace and expand oil and gas reserves.  These and other risks are
 described in the Chaparral's Annual Report on Form 10-K and other filings with
 the Securities and Exchange Commission.
 
 

SOURCE Chaparral Resources, Inc.
    HOUSTON, April 16 /PRNewswire/ -- Chaparral Resources, Inc. (Nasdaq:   CHAR)
 today reported a net loss of $26.8 million, or $6.01 loss per share, for
 fiscal year ended December 31, 2000.  This compares to a net loss of
 $5.16 million, or $5.63 loss per share, for the year ended December 31, 1999.
 The $21.64 million increase in net loss relates to interest charges and
 associated increases in general and administrative costs incurred during 2000
 in our efforts to finance the development of the Karakuduk Field.  As a
 partial offset to these additional expenses, we recognized equity income from
 our investment in Karakuduk Munay, JSC ("KKM") due to KKM's significant
 increase in the production and sale of crude oil during the year.
     Interest expense increased from $523,000 in 1999 to $27.03 million in
 2000, due to interest charges on our convertible notes and financing costs of
 our loan with Shell Capital.  Approximately $20.34 million of interest expense
 was a non-cash charge incurred from the September 21, 2000 conversion of
 $20.85 million of notes, plus accrued interest, into 11,690,259 shares of our
 common stock.  We also borrowed $21.50 million under our Shell Capital loan
 during the year, recognizing $4.38 million in interest expense on the loan and
 $909,000 in amortization of associated debt issuance costs.  We did not have
 any interest charges associated with the loan during 1999.
     General and administrative costs increased from $2.39 million as of
 December 31, 1999 to $3.69 million as of December 31, 2000.  The $1.3 million
 increase was due to approximately $1.0 million in insurance expense from
 premiums on our Overseas Private Investment Corporation ("OPIC") political
 risk insurance policy and amortization of transportation risk insurance
 required by Shell Capital as part of the loan.  Both the OPIC and
 transportation risk insurance policies were executed in 2000.  The remaining
 increase in general and administrative costs was associated with maintaining
 the Shell Capital loan and heightened operational activity in the Karakuduk
 Field.
     Our equity income from investment was $2.83 million in 2000, compared to
 an equity loss of $1.85 million in 1999, driven by KKM's recognition of
 initial revenue from commercial oil sales during the year.  KKM sold
 approximately 765,000 barrels of crude oil, accounting for $13.76 million in
 revenue, or $17.98 per barrel, net of transportation costs.  Associated
 operating costs were $3.68 million, or $4.81 per barrel.  KKM did not have any
 commercial oil sales prior to 2000.
     As of December 31, 2000, Chaparral has a net equity interest in
 16.5 million barrels of proved oil reserves in the Karakuduk Field.  Our
 reserve estimates as of December 31, 1999 have been restated from the original
 presentation, revising the original disclosure of 33.79 million barrels of
 proved reserves downward by 23.72 million barrels to 10.07 million barrels of
 proved reserves.  The restatement is to reflect the SEC's definition of proved
 undeveloped reserves, which differs from the definition employed by the
 Society of Petroleum Engineers.  Specifically, the restated amounts represent
 proved undeveloped reserves from "drilling units offsetting productive units
 that are reasonably certain of production when drilled" or from "other
 undrilled units ... where it can be demonstrated with certainty that there is
 a continuity of production from the existing productive formation."
 
 
      Financial Highlights
      (in thousands, except per share data)
 
                                                    Years Ended December 31
                                                       2000           1999
 
     Revenues                                            $---           $---
     Operating expenses                                (4,114)        (2,423)
     Other income (loss)                              (22,689)        (2,740)
     Net loss                                         (26,803)        (5,163)
     Cumulative annual dividend accrued on
      Series A Preferred Stock                           (250)          (250)
     Discount accretion on
      Series A Preferred Stock                           (100)          (100)
     Net loss available to common stockholders       $(27,153)       $(5,513)
 
     Basic and diluted earnings per share:
     Net loss per share                                $(6.01)        $(5.63)
     Weighted average number of shares
      outstanding (basic and diluted)               4,516,032        978,391
 
     Chaparral Resources, Inc. is an international oil and gas exploration and
 production company.  Chaparral participates in the development of the
 Karakuduk Field through KKM of which Chaparral is the operator.  Chaparral
 owns a 50% beneficial ownership interest in KKM with the other 50% ownership
 interest being held by Kazakh companies, including KazakhOil, the government-
 owned oil company.
     Information Regarding Forward-Looking Statements:  Except for historical
 information contained herein, the statements in this Press Release are
 forward-looking statements that are made pursuant to the safe harbor
 provisions of the Private Securities Litigation Reform Act of 1995.  Forward-
 looking statements involve known and unknown risks and uncertainties which may
 cause the Chaparral's actual results in future periods to differ materially
 from forecasted results.  These risks and uncertainties include, among other
 things, the ability of Chaparral to secure financing, volatility of oil
 prices, product demand, market competition, risks inherent in the Company's
 international operations, imprecision of reserve estimates and Chaparral's
 ability to replace and expand oil and gas reserves.  These and other risks are
 described in the Chaparral's Annual Report on Form 10-K and other filings with
 the Securities and Exchange Commission.
 
 SOURCE  Chaparral Resources, Inc.