Infinity Announces Third Quarter and Nine-Month Operating Results

DENVER, Nov. 11 /PRNewswire-FirstCall/ -- Infinity Energy Resources, Inc. (Pink Sheets: IFNY) ("Infinity" or "the Company"), an independent oil and gas exploration and development company, today reported its operating results for the third quarter and first nine months of 2008. The Company has scheduled an investor conference call for 11:00 a.m. EST tomorrow, November 12, 2008 (see details below) to discuss these operating results and other subjects of interest.

Operating Results for Third Quarter and Nine-Month Period

On November 10, 2008, the Company filed its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2008. It is recommended that interested parties consult the Form 10-Q, along with the Annual Report on Form 10-K for the year ended December 31, 2007, for additional information on the Company and its financial condition. A brief summary of operating results for the respective periods ended September 30, 2008 is provided below.

Revenues for the three months ended September 30, 2008 totaled $1,062,000, compared with $2,460,000 in the third quarter of 2007. The $1.4 million, or 57%, decrease in revenue consisted of an approximate $1.7 million decrease attributable to lower oil and gas production (principally the result of production in 2007 from properties subsequently sold to Forest Oil in January 2008), partially offset by a $0.3 million increase in average prices. The Company reported an operating loss of ($4,101,000) in the most recent quarter, versus an operating loss of ($1,074,000) in the prior-year quarter. The operating loss for the quarter ended September 30, 2008 included a non-cash ceiling write-down of oil and gas properties of $3,500,000. No such ceiling write-down was recorded in the quarter ended September 30, 2007. A net loss of ($4,640,000), or ($0.26) per share, was posted for the third quarter of 2008, compared with net income of $3,223,000, or $0.18 per diluted share, in the prior-year period. Net income in the quarter ended September 30, 2008 included a negative change in derivative value of ($173,000), whereas the quarter ended September 30, 2007 benefitted from a positive change in derivative fair value of $4,842,000.

Revenues for the nine months ended September 30, 2008 totaled $3,548,000, compared with $7,092,000 in the first nine months of 2007. The $3.5 million, or 50%, decrease in revenue consisted of an approximate $4.7 million decrease attributable to lower oil and gas production (principally the result of production in 2007 from properties sold to Forest Oil in January 2008), partially offset by a $1.1 million increase in average prices. The Company reported an operating loss of ($5,471,000) in the most recent nine-month period, versus an operating loss of ($20,534,000) in the prior-year period. The operating loss for the nine months ended September 30, 2008 included a non-cash ceiling write-down of oil and gas properties of $3,500,000, compared with a non-cash ceiling write-down of oil and gas properties totaling $15,750,000 in the nine months ended September 30, 2007. A net loss of ($6,717,000), or ($0.38) per share, was recorded in the first nine months of 2008, compared with a net loss of ($16,616,000), or ($0.93) per share, in the corresponding period of the previous year. The net loss in the nine months ended September 30, 2008 included a negative change in derivative fair value of ($207,000), compared with a negative change in derivative value of ($4,491,000) was recorded in the quarter ended September 30, 2007.