Natural gas flame.

Brinco Oil & Gas Limited

During 1981 Brinco Oil & Gas Limited
participated in a total of 54 wells resulting
in 10 oil wells and 28 gas wells. Major areas
of drilling activity were in eastcentral
Alberta and northeastern British Columbia.

Crude oil production decreased from 391
barrels per day in 1980 to 333 barrels per
day in 1981. Reduced production in 1981
resulted from a normal decline in producing
properties, partially offset by production
from new wells completed in 1981. Gas
production declined from an average of
2.667 MCF per day to 1,910 MCF per day
resulting from normal production declines
and poor market conditions. As of
mid-1981 the net present value of proven
and producing properties of Brinco Oil &
Gas Limited had increased about 10% over
1980. At the same time ultimate oil
reserves were reduced following operating
difficulties and a more conservative
interpretation of a few major properties.

5

Shareholders’ Investment

The following table summarizes
shareholders’ assets and investments as at
year end 1980 and 1981.

1981 1980
(in thousands)
Cash $ 21,000 $ 6,322
Accounts receivable
and inventories 43,574 35,401
Income and mining
taxes recoverable
(payable) 596 (4,571)
Property plant and
equipment
Asbestos 113,402 113,100
Oil and gas 62,680 62,856
Coal 7,064 3,293
Uranium 9,413 9,385
Gold 8,366 1,232
Corporate 763 736
Advances to joint
venture Partner 6,043 —
Long Term
Investments 22,171 3,059
Other Assets 4,658 3,090
Total Assets 299,730 233,903
Liabilities 146,876 78,056
Shareholders’
Investment $152,854 $155,847