High prices and increased production led to a blockbuster thirdquarter for PanCanadian Petroleum. The company’s cash flow morethan doubled to $654 million, or $2.59 per share, up from $303million, or $1.21 per share, during the same period last year. Netincome increased 194% to $297 million, or $1.17 per share comparedto $101 million, or $0.40 per share.

“Our natural gas focus and operational expertise have resultedin production growth of 105 MMcf/d over the third quarter of 1999,”said CEO David Tuer. “The effects of increased crude oil capitalspending are also evident, as production increased 14%. Thisproduction growth in a time of high commodity prices is reflectedin our outstanding financial results.”

Natural gas production averaged 940 MMcf/d. Production of crudeoil and natural gas liquids averaged 123,272 b/d. Total averageproduction of 280,000 boe reflects an increase of 14%. Averageprices for gas and crude oil production were $4.84/Mcf and$35.26/bbl compared to $2.67/Mcf and $25.26/bbl in 1999.

PanCanadian’s year-to-date performance continues at a recordpace with cash flow up 119% compared to 1999 and net income up241%.

The company expects natural gas and crude oil prices to remainstrong for the remainder of the year and plans to continue growingnatural gas production. It has hedged a percentage of its crude oilproduction. On a boe basis, between 10% and 15% of its productionis hedged to Dec. 31, 2001.

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