The United States is too reliant on foreign oil and should expand domestic drilling, Sen. Lisa Murkowski, R-Alaska, said in the party's weekly address Saturday.
The average price for a gallon of regular gas in the country has risen by 40 cents to $3.50 in the past month, and Murkowski, the lead Republican member of the Senate Energy and Natural Resources Committee, said President Barack Obama's Democrats needed to take action.
"If energy prices keep climbing, our nation could slip back into recession just as we're finally emerging from the last one," Murkowski said.
She called for a loosening of a moratorium on deep-water drilling Obama imposed after last year's Gulf of Mexico oil spill.
"America now imports 11 million barrels of oil every day," she said. "Last year alone, we spent more than $330 billion on foreign oil, much of it in countries that are not our friends.
"Republicans know that it's past time to produce more of America's oil."
Source
Showing posts with label Oil Exploration. Show all posts
Showing posts with label Oil Exploration. Show all posts
Saturday, March 12, 2011
Monday, October 25, 2010
BHP (NYSE:BHP) Spending $900 Million on Gas and Oil Exploration in Fiscal Year
In their fiscal year ending June 2011, BHP Billiton Ltd. (NYSE:BHP) said they plan on spending a record $900 million in oil and gas exploration.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
The 2010 fiscal year exploration budget of BHP was $817 million. Spending in the quarter ending September 30 was only $74 million, as the bulk of the spending will occur in the second half of their fiscal year.
On the company website, BHP says their primary gas and oil exploration focus going forward will be the Gulf of Mexico, Australia, Canada, the Falklands and Malaysia.
Even with Gulf operations being slowed by the Obama administration moratorium, BHP still sees results being in line with 2010's.
Overall production for last year increased by 15 percent to 158.6 million barrels.
Tuesday, May 18, 2010
Murphy Oil (NYSE:MUR) EPS Look Solid
Murphy Oil (NYSE:MUR) has had a mixed outlook from analysts, as they have been largely torn between which direction the company is going, and more than likely confusion has been added over the last couple of weeks because of the weakening EU economy and China inflation fears.
Much of what has been expected for a lot of companies has been downwardly revised, or at minimum put on hold, as there are too many macro-variable happening out there which could impact any company providing products for consumers, who seem to be getting skittish again, as the fast run-up in gold price show.
So with that in mind, it's difficult at this time to project where a company will go, as they're still attempting to recover from the great recession which is still lingering, and the possibility of being ravaged by the forces coming from the debt crisis in Europe and probable cutback in imports from China from measures they take to battle inflation.
What Murphy Oil has going for them is a low debt-to-capital ratio, which has positioned them to take advantage of weaknesses in the industry, which could help them to grow organically or through acquisitions.
The Exploration & Production segment of the company exploded in earnings growth over the first quarter last year, generating gains of 391 percent.
Now this quarter that is being challenged by the recent drop in prices, as it seems the higher oil inventories suggest people are still being tight with their wallets, and that could and probably will translate to pressure on their margins, and consequently earnings.
Even so, they may be able to turn product over quicker because of the debt-to-capital ratio, by generating more business, making the margin levels less important than overall sales.
Production is probably the key to their near-term performance, and that is one of the strengths of the company, and even with the economic challenges, they're probably in as good a place as any of their competitors no matter which way the winds blow to put up some pretty good earnings numbers.
Much of what has been expected for a lot of companies has been downwardly revised, or at minimum put on hold, as there are too many macro-variable happening out there which could impact any company providing products for consumers, who seem to be getting skittish again, as the fast run-up in gold price show.
So with that in mind, it's difficult at this time to project where a company will go, as they're still attempting to recover from the great recession which is still lingering, and the possibility of being ravaged by the forces coming from the debt crisis in Europe and probable cutback in imports from China from measures they take to battle inflation.
What Murphy Oil has going for them is a low debt-to-capital ratio, which has positioned them to take advantage of weaknesses in the industry, which could help them to grow organically or through acquisitions.
The Exploration & Production segment of the company exploded in earnings growth over the first quarter last year, generating gains of 391 percent.
Now this quarter that is being challenged by the recent drop in prices, as it seems the higher oil inventories suggest people are still being tight with their wallets, and that could and probably will translate to pressure on their margins, and consequently earnings.
Even so, they may be able to turn product over quicker because of the debt-to-capital ratio, by generating more business, making the margin levels less important than overall sales.
Production is probably the key to their near-term performance, and that is one of the strengths of the company, and even with the economic challenges, they're probably in as good a place as any of their competitors no matter which way the winds blow to put up some pretty good earnings numbers.
Wednesday, September 9, 2009
Brazil Finds Another Huge Oil Field
Brazil continues to increase its reputation as a major player in the oil business, discovering another major oil field, with estimates of up to two billion barrels of oil able to be recovered from it.
This oil discovery is called Guara, and is the result of the new techniques being used which can find oil under the salty sea bottom, which were undiscoverable before.
Estimates in the overall region is what is being called pre-salt reserves, cover a huge range, from a low of 60 billion barrels of oil to 150 billion barrels of oil.
There is no doubt that once the economic crisis begins to wane down, which could still be several years away, Brazil is poised to be come the major oil producer in the region, and as a result change the political and social structure of the region, as they become the largest Latin American provider of energy, overtaking the socialist foolishness of Hugo Chávez and his continuing destruction of Venezuela.
So far it is the largest area of oil discovered this century, and more than likely won't be the last, as the ocean floors are scoured for new oil fields that couldn't be seen in the recent past.
This oil discovery is called Guara, and is the result of the new techniques being used which can find oil under the salty sea bottom, which were undiscoverable before.
Estimates in the overall region is what is being called pre-salt reserves, cover a huge range, from a low of 60 billion barrels of oil to 150 billion barrels of oil.
There is no doubt that once the economic crisis begins to wane down, which could still be several years away, Brazil is poised to be come the major oil producer in the region, and as a result change the political and social structure of the region, as they become the largest Latin American provider of energy, overtaking the socialist foolishness of Hugo Chávez and his continuing destruction of Venezuela.
So far it is the largest area of oil discovered this century, and more than likely won't be the last, as the ocean floors are scoured for new oil fields that couldn't be seen in the recent past.
Monday, September 7, 2009
Everyone Drilling Oil but U.S.?
Oil Exploration and Drilling
It's extraordinary that countries around the world are drilling and pursuing oil, with the exception of off the coasts of America and within its borders as well, where billion's of barrels are sitting there because of the far left environmental activists pressuring Democrats, who refuse to ignore them and open up our land and coasts to the billions of barrels of oil already known to be available to us, along with the potentially huge, unknown reserves there for the taking.
I'm not saying American Oil Companies aren't drilling, just that they're not drilling off the coasts of the U.S., which would be very lucrative and helpful to the American economy and American people.
Bizarrely, the Obama administration continues to resist drilling off the shores of the U.S. while oil companies from other nations cash in, like BP from the UK did recently in the Gulf, where they found billions of barrels of oil recently, although it'll take time to know how much it is overall. They are also going to drill a second place in attempts to tap into even more reserves, while the U.S. oil policy is in shambles because of political special interests.
Even though Congress repealed the restrictions on 85 percent of American waters, the Department of Interior under the Obama administration hasn't issued one lease to an oil company for drilling and exploration.
Foolishly, the result will be continued dependence on foreign oil and whims, while we sit on potential resources that could help ween us from this foreign oil dependence in a big way.
Interestingly, the discovery of the Tiber oil by BP in the gulf recently has led some to believe it is a big piece of evidence that strengthens the abiotic theory of oil's origins.
The abiotic theory of oil asserts that any type of hydrocarbon, which includes gas and oil, is the result of natural chemical processes deep in the earth which rise through the fissures of the planet and is usually deposited in sedimentary layers beneath the surface.
What is hypocritical in all this is under the Obama administration, the U.S.Export-Import bank loaned $2 billion to Brazil's Petrobras for furthering their offshore drilling efforts. This gives support to billionaire George Soros, an avid Obama supporter, who owns a stake in Petrobras, which is a state-owned oil and gas company.
Oil Exploration and Drilling
It's extraordinary that countries around the world are drilling and pursuing oil, with the exception of off the coasts of America and within its borders as well, where billion's of barrels are sitting there because of the far left environmental activists pressuring Democrats, who refuse to ignore them and open up our land and coasts to the billions of barrels of oil already known to be available to us, along with the potentially huge, unknown reserves there for the taking.
I'm not saying American Oil Companies aren't drilling, just that they're not drilling off the coasts of the U.S., which would be very lucrative and helpful to the American economy and American people.
Bizarrely, the Obama administration continues to resist drilling off the shores of the U.S. while oil companies from other nations cash in, like BP from the UK did recently in the Gulf, where they found billions of barrels of oil recently, although it'll take time to know how much it is overall. They are also going to drill a second place in attempts to tap into even more reserves, while the U.S. oil policy is in shambles because of political special interests.
Even though Congress repealed the restrictions on 85 percent of American waters, the Department of Interior under the Obama administration hasn't issued one lease to an oil company for drilling and exploration.
Foolishly, the result will be continued dependence on foreign oil and whims, while we sit on potential resources that could help ween us from this foreign oil dependence in a big way.
Interestingly, the discovery of the Tiber oil by BP in the gulf recently has led some to believe it is a big piece of evidence that strengthens the abiotic theory of oil's origins.
The abiotic theory of oil asserts that any type of hydrocarbon, which includes gas and oil, is the result of natural chemical processes deep in the earth which rise through the fissures of the planet and is usually deposited in sedimentary layers beneath the surface.
What is hypocritical in all this is under the Obama administration, the U.S.Export-Import bank loaned $2 billion to Brazil's Petrobras for furthering their offshore drilling efforts. This gives support to billionaire George Soros, an avid Obama supporter, who owns a stake in Petrobras, which is a state-owned oil and gas company.
Oil Exploration and Drilling
Saturday, August 8, 2009
Chevron Angola Oil Discovery
In what is at this time only being identified as a major oil discovery, Chevron announced that the find off Angola's shores still needs to be confirmed by further drilling, but the prospects of a significant oil field are pretty much ensured; it's only a matter of how much oil the field holds, which in cases like this are usually considered over 500 million barrels.
The oil and natural gas field is located off the Cabinda coast of Angola, enlarging the already significant portfolio Chevron has in the African nation.
Its affiliate Cabinda Gulf Oil Co made the find, of which Chevron has a 39.2 percent stake in. The state oil company of Angola - Sonangol owns 41 percent of Cabinda, while Total SA of France owns 10 percent and ENI SpA of Italy has a 9.8 percent stake in Cabinda.
This find continues to underscore the West African nation's growing importance to Chevron and the country's rising stature as an energy producer as its neighbor Nigeria continues to deal with militant attacks on its oil pipelines, which has cut oil production by 20 percent over the last three years.
This is one of many oil and gas discoveries off of Angola, which produced 1.85 million barrels of oil a day in July 2009.
Chevron, which now pumps over 500,000 barrels of oil a day from Angola, said the discovery, in Block 0, was drilled in March in 397 feet of water to a total vertical depth of 13,000 feet. It encountered over 225 feet of net hydrocarbon pay in the Upper Pinda formation, according to the company. Overall, Angola's output stands at about 2.1 million barrels of oil a day, which is a huge 53 percent increase from 2006.
Chevron also said the 79-3XST1 discovery well had a flow rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons a day.
The oil and natural gas field is located off the Cabinda coast of Angola, enlarging the already significant portfolio Chevron has in the African nation.
Its affiliate Cabinda Gulf Oil Co made the find, of which Chevron has a 39.2 percent stake in. The state oil company of Angola - Sonangol owns 41 percent of Cabinda, while Total SA of France owns 10 percent and ENI SpA of Italy has a 9.8 percent stake in Cabinda.
This find continues to underscore the West African nation's growing importance to Chevron and the country's rising stature as an energy producer as its neighbor Nigeria continues to deal with militant attacks on its oil pipelines, which has cut oil production by 20 percent over the last three years.
This is one of many oil and gas discoveries off of Angola, which produced 1.85 million barrels of oil a day in July 2009.
Chevron, which now pumps over 500,000 barrels of oil a day from Angola, said the discovery, in Block 0, was drilled in March in 397 feet of water to a total vertical depth of 13,000 feet. It encountered over 225 feet of net hydrocarbon pay in the Upper Pinda formation, according to the company. Overall, Angola's output stands at about 2.1 million barrels of oil a day, which is a huge 53 percent increase from 2006.
Chevron also said the 79-3XST1 discovery well had a flow rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons a day.
Tuesday, January 27, 2009
Oil | Gasprom, Statoil, Petrobras
What to the names Gasprom, Statoil and Petrobras have in common? They're all state-owned oil and natural gas energy companies that have a lot of upside potential for oil investors.
When you consider the national monopolies represented by state-owned oil & gas companies, you realize the great potential an energy investor has, assuming they do their homework, as not all nationalized oil companies are the same. Take Mexico and Venezuela, who run their oil exploration companies horribly, and you'd have to have oil in your veins to invest in them.
But in some cases, the competitive advantage for a well run national oil company offers great opportunity.
Take Petrobras of Brazil for a moment. They discovered huge offshore oil fields over the last couple years, and the government offered the prime drilling locations to who? You got it: Petrobras. If any other oil companies are allowed in, you know all they'll get is the leftovers.
Now Statoil, or StoilHydro, from Norway, is in a similar situation, and are positioned for some good profits going forword.
As far as Russian oil company Gazprom, which also has a presence in the UK, they are obviously a much more risky investment, but worthwhile testing out with your spare change rather than serious energy investment money. The Gazprom news is a little more volatile than the oil news concerning other energy companies owned by governments.
Now that the idea is being floated around out there that all the easy oil has been accessed (it hasn't but that's a different story), these national oil and natural gas exploration companies should receive a lot of positive attention from news outlets as the idea of scarcity and higher prices woo oil investors.
We're going to see more oil rigs offshore, and those will be installed by companies like statoil, Petrobras and Gazprom.
Many energy investors don't realize the size of some of the state oil companies even when compared to huge oil and gas firms like Exxon Mobile. Exxon Mobile doesn't have anywhere near the oil and gas capacity that these state oil & gas companies have, and they have to pay taxes, contrary to the national oil and gas companies.
Where does that leave us? It leaves us with huge companies that own a monopoly exploring and drilling a natural resource that will be needed for decades and decades ahead.
Those energy companies owned run by those countries operationally sound way, will bring good returns for investors for years to come. Just think of the country producing the oil and gas to see what the risks are. As risky as the country is in other areas, will be the risk involved for investors in oil and gas.
New techniques used allow oil & gas exploration companies to see through the salty ocean bottoms to find new energy reserves. That is what allowed Petrobras to discover the Tupi and other oil fields which had been there all along.
Depending on what your energy investment strategy is and your personal risk disposition, national companies like Gazprom, Statoil and Petrobras could be places you put your dollars for the long haul.
When you consider the national monopolies represented by state-owned oil & gas companies, you realize the great potential an energy investor has, assuming they do their homework, as not all nationalized oil companies are the same. Take Mexico and Venezuela, who run their oil exploration companies horribly, and you'd have to have oil in your veins to invest in them.
But in some cases, the competitive advantage for a well run national oil company offers great opportunity.
Take Petrobras of Brazil for a moment. They discovered huge offshore oil fields over the last couple years, and the government offered the prime drilling locations to who? You got it: Petrobras. If any other oil companies are allowed in, you know all they'll get is the leftovers.
Now Statoil, or StoilHydro, from Norway, is in a similar situation, and are positioned for some good profits going forword.
As far as Russian oil company Gazprom, which also has a presence in the UK, they are obviously a much more risky investment, but worthwhile testing out with your spare change rather than serious energy investment money. The Gazprom news is a little more volatile than the oil news concerning other energy companies owned by governments.
Now that the idea is being floated around out there that all the easy oil has been accessed (it hasn't but that's a different story), these national oil and natural gas exploration companies should receive a lot of positive attention from news outlets as the idea of scarcity and higher prices woo oil investors.
We're going to see more oil rigs offshore, and those will be installed by companies like statoil, Petrobras and Gazprom.
Many energy investors don't realize the size of some of the state oil companies even when compared to huge oil and gas firms like Exxon Mobile. Exxon Mobile doesn't have anywhere near the oil and gas capacity that these state oil & gas companies have, and they have to pay taxes, contrary to the national oil and gas companies.
Where does that leave us? It leaves us with huge companies that own a monopoly exploring and drilling a natural resource that will be needed for decades and decades ahead.
Those energy companies owned run by those countries operationally sound way, will bring good returns for investors for years to come. Just think of the country producing the oil and gas to see what the risks are. As risky as the country is in other areas, will be the risk involved for investors in oil and gas.
New techniques used allow oil & gas exploration companies to see through the salty ocean bottoms to find new energy reserves. That is what allowed Petrobras to discover the Tupi and other oil fields which had been there all along.
Depending on what your energy investment strategy is and your personal risk disposition, national companies like Gazprom, Statoil and Petrobras could be places you put your dollars for the long haul.
Sunday, January 25, 2009
Oil: OPEC Production Cuts
OPEC countries are under increasing pressure to cut oil production as oil prices aren't able to prop up the many countries so reliant on higher prices to take care of their needs.
It's not a stretch to say the leaders of oil producing countries will have their hands full as people start to get edgy over consequences of low prices.
In reality, there's not much OPEC and other oil producing countries can do about it, as the economic crisis has lowered demand for oil, and no matter how far oil production is cut, it's not going to get people to spend their money on gas they're not going to use.
Cutting oil production will only cause people to travel even less, undercutting the very strategy attempted by countries to prop up their crude prices.
If oil prices rise than there will be a high cost of oil that will sit there not being used, as people continue to save rather than spend their money.
Oil storage and reserves are growing while consumers hold back from buying, that isn't going to change for OPEC or oil companies. The oil industry can cut production, and it has already, but that won't solve the problem the market has already decided.
All that corporations and countries should do is get out of the way and let the market figure it out. Intervention into the oil market will cause unintended consequences as government interference always does, and only prolong the economic pain for everyone.
There is nothing driving the oil markets, prices, supply, costs, drilling and production other than consumer demand. Nothing can be done to change that until the economic crisis ends and then money flowing back into consumer goods and services.
The oil industry can only stand by and watch, cut cost, get leaner, and prepare for when the turnaround in the oil market comes.
This will be essential for the industry, as once demand rises, there will probably be a huge surge in buying as pent up demand explodes. Oil companies and refineries need to be ready for that time, as they'll soon forget the bad oil news of today and their profits will again surge ahead.
Oil exploration is another important factor in the mix, as there is plenty of oil out there, and the demand will come back stronger than ever as America, China and other nations will return to their insatiable appetites for oil that they had in the recent past.
So OPEC and oil companies just need to relax a bit. Yes there's problems related to low oil prices, but forcing the issue in attempts to artificially raise the price of oil above market levels never works.
We just have to wait out the tough times and wait for oil demand to rebound.
It's not a stretch to say the leaders of oil producing countries will have their hands full as people start to get edgy over consequences of low prices.
In reality, there's not much OPEC and other oil producing countries can do about it, as the economic crisis has lowered demand for oil, and no matter how far oil production is cut, it's not going to get people to spend their money on gas they're not going to use.
Cutting oil production will only cause people to travel even less, undercutting the very strategy attempted by countries to prop up their crude prices.
If oil prices rise than there will be a high cost of oil that will sit there not being used, as people continue to save rather than spend their money.
Oil storage and reserves are growing while consumers hold back from buying, that isn't going to change for OPEC or oil companies. The oil industry can cut production, and it has already, but that won't solve the problem the market has already decided.
All that corporations and countries should do is get out of the way and let the market figure it out. Intervention into the oil market will cause unintended consequences as government interference always does, and only prolong the economic pain for everyone.
There is nothing driving the oil markets, prices, supply, costs, drilling and production other than consumer demand. Nothing can be done to change that until the economic crisis ends and then money flowing back into consumer goods and services.
The oil industry can only stand by and watch, cut cost, get leaner, and prepare for when the turnaround in the oil market comes.
This will be essential for the industry, as once demand rises, there will probably be a huge surge in buying as pent up demand explodes. Oil companies and refineries need to be ready for that time, as they'll soon forget the bad oil news of today and their profits will again surge ahead.
Oil exploration is another important factor in the mix, as there is plenty of oil out there, and the demand will come back stronger than ever as America, China and other nations will return to their insatiable appetites for oil that they had in the recent past.
So OPEC and oil companies just need to relax a bit. Yes there's problems related to low oil prices, but forcing the issue in attempts to artificially raise the price of oil above market levels never works.
We just have to wait out the tough times and wait for oil demand to rebound.
Monday, December 22, 2008
Governor Palin Disappointed by Shell Decision to Cancel Drilling Activities in the OCS
December 18, 2008, Anchorage, Alaska – Governor Sarah Palin today expressed her disappointment in Shell Oil Company’s decision to cancel drilling activities in the Outer Continental Shelf (OCS) of Alaska’s Beaufort Sea for 2009.
The decision comes on the heels of a ruling by a three-judge panel of the Ninth Circuit Court of Appeals on November 20. “Alaska’s economic past and future are tied directly to the development of our abundant natural resources," the governor said. “The loss of this exploration activity will cost our state’s families hundreds of jobs next year.”
The governor also announced today that the state of Alaska intends to support Shell’s petition to the Ninth Circuit Court of Appeals for a rehearing in front of the full court.
The decision comes on the heels of a ruling by a three-judge panel of the Ninth Circuit Court of Appeals on November 20. “Alaska’s economic past and future are tied directly to the development of our abundant natural resources," the governor said. “The loss of this exploration activity will cost our state’s families hundreds of jobs next year.”
The governor also announced today that the state of Alaska intends to support Shell’s petition to the Ninth Circuit Court of Appeals for a rehearing in front of the full court.
Wednesday, November 26, 2008
Environmental Thugs Continue Attack on Consumers in Oil Lawsuit Frenzy
The environmental religion continues to produce attacks on regular, hurting people, as they sue oil companies every time a drilling lease permit is granted to them.
"Every lease that has been granted in the last several years has been immediately challenged in the lawsuits 100 percent," said Rep. Virginia Foxx, R-N.C.
This thuggery is hurting people and will damage the lives of human beings, as environmental crackpots continue their assualt against them.
These earth and animal worshippers would rather see human beings suffer through high energy costs and inability to heat their homes, than the lie that polar bears are endangered (which has proven to be false) and other bogus claims of endangerment.
It doesn't matter to these wackos, as lying to achieve their ends is part of their way of operating.
What's more evil about this is they know they can't win, they'll only increase the cost of doing business, which is always passed on to regular people.
These people aren't real conservationists doing this, rather they are elitest who care about their earth religion rather than human beings. People continue to be an insult to their sensibilities, and they would rather see them hurt than their earth-mother.
Screw 'em. Hopefully we'll start to see true conservation groups emerge who truly care about managing our resources. Hunters and fisherman are especially concerned and good at this, knowing we need to keep our resources managed properly.
These environmental terrorists need to be sued into oblivion, and associations need to be formed in order to make that a reality.
"Every lease that has been granted in the last several years has been immediately challenged in the lawsuits 100 percent," said Rep. Virginia Foxx, R-N.C.
This thuggery is hurting people and will damage the lives of human beings, as environmental crackpots continue their assualt against them.
These earth and animal worshippers would rather see human beings suffer through high energy costs and inability to heat their homes, than the lie that polar bears are endangered (which has proven to be false) and other bogus claims of endangerment.
It doesn't matter to these wackos, as lying to achieve their ends is part of their way of operating.
What's more evil about this is they know they can't win, they'll only increase the cost of doing business, which is always passed on to regular people.
These people aren't real conservationists doing this, rather they are elitest who care about their earth religion rather than human beings. People continue to be an insult to their sensibilities, and they would rather see them hurt than their earth-mother.
Screw 'em. Hopefully we'll start to see true conservation groups emerge who truly care about managing our resources. Hunters and fisherman are especially concerned and good at this, knowing we need to keep our resources managed properly.
These environmental terrorists need to be sued into oblivion, and associations need to be formed in order to make that a reality.
Wednesday, November 19, 2008
Global National Oil Companies Look for Oil to Drop to $40 a Barrel
National oil companies from around the world said in a recent meeting in Beijing that prices would probably fall to around $40 a barrel, according to Fu Chengyu, chief executive of China National Offshore Oil Corporation.
Fu added that the tone of the meeting was one on the verge of panic, as the reality of what is happening with oil is setting in.
Commenting on the idea of OPEC to cut back more on production, Fu said that it probably won't have any significant impact on the price of oil. The major reason for that is the economic climate around the world, which is making oil nowhere near the priority of consumers, who have cut back on travel and vacationing, and are spending only on necessities.
Another outcome of this is oil companies will cut back on investing in new projects, as the current and eventual price of oil can't sustain them.
Most extraction projects were initiated assuming a minimum price of $60 a barrel to break even, and up to $90 a barrel.
“When most of the oil companies budgeted their projects, they were using $70, $80, even $100 a barrel for their cash flow calculations,” Fu said. “For those projects that have started, certainly they will try to complete them, but for those projects that have not started yet they will delay or cancel. Simply, they don’t have enough cash to do all of those that they budgeted.”
Fu added that the tone of the meeting was one on the verge of panic, as the reality of what is happening with oil is setting in.
Commenting on the idea of OPEC to cut back more on production, Fu said that it probably won't have any significant impact on the price of oil. The major reason for that is the economic climate around the world, which is making oil nowhere near the priority of consumers, who have cut back on travel and vacationing, and are spending only on necessities.
Another outcome of this is oil companies will cut back on investing in new projects, as the current and eventual price of oil can't sustain them.
Most extraction projects were initiated assuming a minimum price of $60 a barrel to break even, and up to $90 a barrel.
“When most of the oil companies budgeted their projects, they were using $70, $80, even $100 a barrel for their cash flow calculations,” Fu said. “For those projects that have started, certainly they will try to complete them, but for those projects that have not started yet they will delay or cancel. Simply, they don’t have enough cash to do all of those that they budgeted.”
Friday, November 14, 2008
Enterprise Oilfield Group, Inc. Announces Third Quarter Results
Nov 14, 2008 12:28 ETEnterprise Oilfield Group, Inc. Announces Third Quarter Results
ST. ALBERT, ALBERTA--(Marketwire - Nov. 14, 2008) - Enterprise Oilfield Group, Inc. ("Enterprise") (TSX:E). Consolidated revenue for the three months ended September 30, 2008 was $8.7 million versus $8.5 million for the comparable period in 2007. The Company had EBITDAS_ of $1.6 million and a net income of $0.6 million for the three month period ended September 30, 2008 versus EBITDAS of $1.4 million and a net income of $0.9 million for the comparable period in 2007.
For the nine month period ended September 30, 2008 consolidated revenue was $28.1 million versus $32.1 million for the comparable period in 2007. The Company had EBITDAS of $4.2 million and a net income of $1.3 million for the nine month period ended September 30, 2008 versus EBITDAS of $4.5 million and a net income of $2.0 million for the comparable period in 2007. The Interim Financial Statements and the Management Discussion and Analysis have been filed and can be viewed at www.SEDAR.com.
Outlook
Management believes the long term outlook for its business segments is positive. Although year to date operational results have been positive in the face of volatile commodity prices, global financial and economic turmoil has added to near-term uncertainty for commodity prices. Weaker commodity prices have however been buffered to a large extent by the devaluation of the Canadian dollar relative to the US dollar. Continuing credit market instability will likely adversely affect the energy industry during 2009. However, Enterprise is positioned well due to the diversity of its business and strong performance of its infrastructure services division. Enterprise has a history of success due to the commitment of its field staff to provide excellent service to its customers regardless of industry conditions, and the commitment of its management to prudent financial management. Consequently, Enterprise will continue to actively pursue opportunities to enter new geographic territories and make strategic acquisitions. While the Company is uncertain of near-term movements in the financial markets, we are well-positioned to continue generating positive growth relative to our peers. Enterprise has positioned itself for improved levels of demand for its services and will continue to pursue opportunistic growth initiatives. Management is very encouraged with its high quality people, modern equipment, and service locations. Enterprise's position in the current market place is exceptional and believes that the remainder of 2008 and into 2009 holds tremendous opportunities for continued revenue growth. From the beginning, the Company's goal has been to increase the level of customer service with the best and safest practices, the newest equipment and the best field staff. And the plan is working with great success. Enterprise has paid down over $2.4 million in long term debt during the current year through its accelerated debt repayment plan, has purchased several pieces of new equipment for the operations and is selling off older equipment in order to maintain a new, efficient and cost effective fleet. Additionally, the Company's expansion into the Peace River area has opened the door to very profitable, year round, infrastructure and facilities maintenance opportunities, smoothing out the cyclical effects of the traditional pipeline industry. As well, Peace River holds tremendous potential for pipeline services work due to all of the heavy oil production in the area.
Energy and Construction Services
Although commodity prices have been volatile in the third and fourth quarters of 2008, field activity levels in our oilfield energy and construction services division remains strong. We continue to look at growth opportunities from both an internal perspective and from an acquisition perspective.
Utility and Directional Drilling Services
A number of the Company's clients have significant backlogs of outstanding maintenance orders to replace miles of underground cable. Significant infrastructure investment from all levels of government and the Company's focus on organic growth within this sector will prove to be meaningful contributor to revenues and profitability. The Company's continued efforts to broaden its infrastructure services to a larger regional footprint have been met with success. The outlook for this sector remains strong.
Conclusion
Management believes that balanced and diversified positions in both the infrastructure and energy services sectors are the best path to generating shareholder value. The Company has hired additional management experienced in infrastructure projects to spearhead more civic-related construction and maintenance as there are inherent synergies related to the heavy equipment and crews of both sectors. Enterprise expects to continue distancing itself from its peers by delivering profits in a challenging operating environment. Over the last few quarters, Enterprise's competitive landscape has shrunk with some competing companies choosing to cease operations and exit the industry, while others were forced to file for creditor protection. Our Company will continue to exercise fiscal and operational prudence. Enterprise remains confident in its strategic and operational plans and has a seasoned leadership team to guide the Company. Enterprise is committed to the further expansion of its customer base in central and northern Alberta and strives to provide excellent customer service. Management is excited about Enterprise's future prospects.
(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization, and Stock Based Compensation.
Forward Looking Statements
This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
For more information, please contact
Enterprise Oilfield Group, Inc.
Leonard D. Jaroszuk
President & CEO
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)
or
Enterprise Oilfield Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)
Email: contact@EnterpriseOil.ca
Website: www.EnterpriseOil.ca Click here to see all recent news from this company Privacy Statement | Terms of Service | Sitemap |© 2008 Marketwire, Incorporated. All rights reserved.
Your newswire of choice for expert news release distribution.
1-800-774-9473 (US) | 1-888-299-0338 (Canada) | +44-20-7562-6550 (UK)
ST. ALBERT, ALBERTA--(Marketwire - Nov. 14, 2008) - Enterprise Oilfield Group, Inc. ("Enterprise") (TSX:E). Consolidated revenue for the three months ended September 30, 2008 was $8.7 million versus $8.5 million for the comparable period in 2007. The Company had EBITDAS_ of $1.6 million and a net income of $0.6 million for the three month period ended September 30, 2008 versus EBITDAS of $1.4 million and a net income of $0.9 million for the comparable period in 2007.
For the nine month period ended September 30, 2008 consolidated revenue was $28.1 million versus $32.1 million for the comparable period in 2007. The Company had EBITDAS of $4.2 million and a net income of $1.3 million for the nine month period ended September 30, 2008 versus EBITDAS of $4.5 million and a net income of $2.0 million for the comparable period in 2007. The Interim Financial Statements and the Management Discussion and Analysis have been filed and can be viewed at www.SEDAR.com.
Outlook
Management believes the long term outlook for its business segments is positive. Although year to date operational results have been positive in the face of volatile commodity prices, global financial and economic turmoil has added to near-term uncertainty for commodity prices. Weaker commodity prices have however been buffered to a large extent by the devaluation of the Canadian dollar relative to the US dollar. Continuing credit market instability will likely adversely affect the energy industry during 2009. However, Enterprise is positioned well due to the diversity of its business and strong performance of its infrastructure services division. Enterprise has a history of success due to the commitment of its field staff to provide excellent service to its customers regardless of industry conditions, and the commitment of its management to prudent financial management. Consequently, Enterprise will continue to actively pursue opportunities to enter new geographic territories and make strategic acquisitions. While the Company is uncertain of near-term movements in the financial markets, we are well-positioned to continue generating positive growth relative to our peers. Enterprise has positioned itself for improved levels of demand for its services and will continue to pursue opportunistic growth initiatives. Management is very encouraged with its high quality people, modern equipment, and service locations. Enterprise's position in the current market place is exceptional and believes that the remainder of 2008 and into 2009 holds tremendous opportunities for continued revenue growth. From the beginning, the Company's goal has been to increase the level of customer service with the best and safest practices, the newest equipment and the best field staff. And the plan is working with great success. Enterprise has paid down over $2.4 million in long term debt during the current year through its accelerated debt repayment plan, has purchased several pieces of new equipment for the operations and is selling off older equipment in order to maintain a new, efficient and cost effective fleet. Additionally, the Company's expansion into the Peace River area has opened the door to very profitable, year round, infrastructure and facilities maintenance opportunities, smoothing out the cyclical effects of the traditional pipeline industry. As well, Peace River holds tremendous potential for pipeline services work due to all of the heavy oil production in the area.
Energy and Construction Services
Although commodity prices have been volatile in the third and fourth quarters of 2008, field activity levels in our oilfield energy and construction services division remains strong. We continue to look at growth opportunities from both an internal perspective and from an acquisition perspective.
Utility and Directional Drilling Services
A number of the Company's clients have significant backlogs of outstanding maintenance orders to replace miles of underground cable. Significant infrastructure investment from all levels of government and the Company's focus on organic growth within this sector will prove to be meaningful contributor to revenues and profitability. The Company's continued efforts to broaden its infrastructure services to a larger regional footprint have been met with success. The outlook for this sector remains strong.
Conclusion
Management believes that balanced and diversified positions in both the infrastructure and energy services sectors are the best path to generating shareholder value. The Company has hired additional management experienced in infrastructure projects to spearhead more civic-related construction and maintenance as there are inherent synergies related to the heavy equipment and crews of both sectors. Enterprise expects to continue distancing itself from its peers by delivering profits in a challenging operating environment. Over the last few quarters, Enterprise's competitive landscape has shrunk with some competing companies choosing to cease operations and exit the industry, while others were forced to file for creditor protection. Our Company will continue to exercise fiscal and operational prudence. Enterprise remains confident in its strategic and operational plans and has a seasoned leadership team to guide the Company. Enterprise is committed to the further expansion of its customer base in central and northern Alberta and strives to provide excellent customer service. Management is excited about Enterprise's future prospects.
(1) EBITDAS = Earnings Before Income Tax, Depreciation, Amortization, and Stock Based Compensation.
Forward Looking Statements
This Company Press Release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.
The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.
For more information, please contact
Enterprise Oilfield Group, Inc.
Leonard D. Jaroszuk
President & CEO
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)
or
Enterprise Oilfield Group, Inc.
Desmond O'Kell
Vice President, Corp. Development
(780) 418-4400 or Toll Free: 1-888-303-3361
(780) 418-1941 (FAX)
Email: contact@EnterpriseOil.ca
Website: www.EnterpriseOil.ca Click here to see all recent news from this company Privacy Statement | Terms of Service | Sitemap |© 2008 Marketwire, Incorporated. All rights reserved.
Your newswire of choice for expert news release distribution.
1-800-774-9473 (US) | 1-888-299-0338 (Canada) | +44-20-7562-6550 (UK)
Zion Oil & Gas Reports Third Quarter Results
CAESAREA, Israel, Nov 14, 2008 (BUSINESS WIRE) -- Zion Oil & Gas, Inc. (NYSE Alternext US: ZN) of Dallas, Texas and Caesarea, Israel, reported today its results for the quarter ended September 30, 2008. The company reported a net loss of $865 thousand or $(0.08) per share for the third quarter of 2008 compared to a net loss of $748 thousand or $(0.07) per share for the same quarter a year earlier. The company has no revenues as it is still an exploration stage company.
On release of the third quarter results, Zion's Chief Executive Officer, Richard Rinberg, commented: "Zion is moving forward with its exploration and drilling plans. We anticipate that the refurbished 2,000 horsepower drilling rig, with which we plan to drill Zion's planned Ma'anit-Rehoboth #2 well 'directionally' to below 18,000 feet, will be shipped into Israel during January 2009. We have almost finished preparing the drill site and expect to commence drilling shortly after the rig arrives on location. Zion's public offering of $10 units continues, in order to raise further funds for our planned multi-well drilling program."
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres.
The Company's financial statement information is summarized below:
(In thousands, except for per share income)
STATEMENT OF OPERATIONS Three months ended
September 30
2008 2007
Revenues - -
Total Expenses 853 748
Net Income (loss) (853) (748)
Earnings (loss) per common share -- basic (0.08) (0.07)
and diluted
Weighted avg. shares issued and outstanding -- 10,125 10,121
basic and diluted
CASH FLOW DATA Nine months ended
September 30
2008 2007
Net cash (used in) operating activities (3,125) (2,970)
Net cash used in investing activities (1,014) (2,653)
Net cash provided by financing activities - 8,218
BALANCE SHEET DATA September 30, 2008 December 31, 2007
Current Assets 1,392 4,716
Total Assets 5,114 7,421
Total Liabilities 2,110 1,633
Total Shareholders Equity 3,004 5,788
FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's operations and planned operations and an ability to raise additional capital, are forward-looking statements as defined in the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion's periodic reports filed with the SEC and are beyond Zion's control. These risks could cause Zion's actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
NOTICE
Zion Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas or its underwriter will arrange to send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). Direct links to the SEC location, or to the documents in PDF, may be found on the home page of Zion Oil & Gas, Inc., at www.zionoil.com
SOURCE: Zion Oil & Gas, Inc.
Zion Oil & Gas, Inc.
Brittany Russell, 214-221-4610
brittany@zionoil.com
Copyright Business Wire 2008
On release of the third quarter results, Zion's Chief Executive Officer, Richard Rinberg, commented: "Zion is moving forward with its exploration and drilling plans. We anticipate that the refurbished 2,000 horsepower drilling rig, with which we plan to drill Zion's planned Ma'anit-Rehoboth #2 well 'directionally' to below 18,000 feet, will be shipped into Israel during January 2009. We have almost finished preparing the drill site and expect to commence drilling shortly after the rig arrives on location. Zion's public offering of $10 units continues, in order to raise further funds for our planned multi-well drilling program."
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located on-shore between Haifa and Tel Aviv. It currently holds two petroleum exploration licenses, the Joseph and the Asher-Menashe Licenses, between Netanya, in the south, and Haifa, in the north, covering a total of approximately 162,000 acres.
The Company's financial statement information is summarized below:
(In thousands, except for per share income)
STATEMENT OF OPERATIONS Three months ended
September 30
2008 2007
Revenues - -
Total Expenses 853 748
Net Income (loss) (853) (748)
Earnings (loss) per common share -- basic (0.08) (0.07)
and diluted
Weighted avg. shares issued and outstanding -- 10,125 10,121
basic and diluted
CASH FLOW DATA Nine months ended
September 30
2008 2007
Net cash (used in) operating activities (3,125) (2,970)
Net cash used in investing activities (1,014) (2,653)
Net cash provided by financing activities - 8,218
BALANCE SHEET DATA September 30, 2008 December 31, 2007
Current Assets 1,392 4,716
Total Assets 5,114 7,421
Total Liabilities 2,110 1,633
Total Shareholders Equity 3,004 5,788
FORWARD LOOKING STATEMENTS: Statements in this press release that are not historical fact, including statements regarding Zion's operations and planned operations and an ability to raise additional capital, are forward-looking statements as defined in the "Safe Harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion's periodic reports filed with the SEC and are beyond Zion's control. These risks could cause Zion's actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
NOTICE
Zion Oil & Gas, Inc. has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about Zion Oil & Gas and its offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Zion Oil & Gas or its underwriter will arrange to send you the prospectus if you request it by calling toll free 1-888-TX1-ZION (1-888-891-9466). Direct links to the SEC location, or to the documents in PDF, may be found on the home page of Zion Oil & Gas, Inc., at www.zionoil.com
SOURCE: Zion Oil & Gas, Inc.
Zion Oil & Gas, Inc.
Brittany Russell, 214-221-4610
brittany@zionoil.com
Copyright Business Wire 2008
Saratoga Resources, Inc. Reports Third Quarter 2008 Results
Saratoga Resources, Inc. Reports Third Quarter 2008 Results
HOUSTONTX-SARATOGA-RESOURCES
HOUSTON--(BUSINESS WIRE)--
Saratoga Resources, Inc. (OTCBB: SROE) (the 'Company') today announced fiscal third quarter results for the period ended September 30, 2008.
The company reported net income for the three months ended September 30, 2008 of $6,224,842, or $0.41 per basic share and $0.36 per diluted share, on revenues of $12,550,937 as compared to a net loss of $29,452, or $0.01 per share, on revenues of $16,220 for the three months ended September 30, 2007. For the nine months ended September 30, 2008, the company reported net income of $5,907,084, or $0.48 per basic share and $0.45 per diluted share, on revenues of $12,586,046 as compared to a net loss of $62,520, or $0.01 per share, on revenues of $25,000 during the nine month period in 2007.
Results for the current quarter and year to date period reflect the acquisition by the Company of Harvest Oil & Gas and The Harvest Group in July 2008 and also reflect the effects of Hurricanes Gustav and Ike which temporarily disrupted production and resulted in an estimated $710,000 of damage to the Company south Louisiana properties. Based on daily production volumes at the time, storm-related production delays reduced production during the quarter by an estimated 19.4 Mbls of oil and 113.1 Mmcf of natural gas, resulting in an estimated reduction in revenues for the period of $3,098,600. As of September 30, 2008, production had been restored to substantially 100% of pre-hurricane levels.
'We are pleased with our results for the 2008 third quarter,' Saratoga Chairman and CEO Tom Cooke said. 'We successfully consummated our acquisition of the Harvest companies and have progressed quickly in integrating the Harvest operations and team and in commencement of our planned development of the Harvest properties. We came through two hurricanes in good condition, rapidly bringing operations back to pre-hurricane levels and, despite the lost production and revenues from the hurricanes and the incurrence of costs associated with integrating the Harvest companies, we managed to produce strong operating cash flows and profits for the period.'
About Saratoga Resources
Saratoga Resources, Inc. is an independent exploration and production company headquartered in Austin, Texas with offices in Houston, Texas and Covington, Louisiana. The Company engages in the acquisition and development of oil and gas producing properties that allow the Company to grow through low-risk development and risk-managed exploration. The Company currently operates properties in Texas and Louisiana with principal holdings covering approximately 30,000 net acres located in the state waters offshore Louisiana.
Forward-looking Statements
This press release includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to actual costs of storm-related damages, actual production volumes following the period, the company's ability to integrate the operations of the Harvest companies as well as anticipated operating and financial performance, growth opportunities, growth rates, potential acquisition opportunities, and other statements of expectation. Words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'assumes,' 'seeks,' 'estimates,' 'should,' and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the 'Risk Factors' section of the company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.
Saratoga Resources, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2008 and 2007
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2008 2007 2008 2007
Revenues:
Crude oil, condensate and natural gas liquids $ 10,626,472 $ - $ 10,626,472 $ -
Natural gas 1,924,465 16,220 1,959,574 25,000
Total revenues 12,550,937 16,220 12,586,046 25,000
Operating Expense:
Lease operating expense 3,598,214 13,625 3,602,888 16,740
Depreciation, depletion and amortization 5,194,983 88 5,194,983 263
General and administrative 1,643,854 18,599 1,962,590 32,625
Taxes other than income 1,424,576 - 1,424,576 -
Total operating expenses 11,861,627 32,312 12,185,037 49,628
Operating income (loss) 689,310 (16,092 ) 401,009 (24,628 )
Other income (expenses):
Commodity derivative income, net 12,855,560 - 12,855,560 -
Other income 526,839 - 526,839 -
Interest income 37,945 - 37,945 -
Interest expense (4,645,655 ) (13,360 ) (4,675,112 ) (37,892 )
Total other income (expense) 8,774,689 (13,360 ) 8,745,232 (37,892 )
Net income (loss) before income taxes 9,463,999 (29,452 ) 9,146,241 (62,520 )
Income tax provision:
Current 560,007 - 560,007 -
Deferred 2,679,150 - 2,679,150 -
Net income (loss) $ 6,224,842 $ (29,452 ) $ 5,907,084 $ (62,520 )
Net income (loss) per share:
Basic $ 0.41 $ (0.01 ) $ 0.48 $ (0.01 )
Diluted $ 0.36 $ (0.01 ) $ 0.45 $ (0.01 )
Weighted average number of common shares outstanding:
Basic 15,183,205 7,540,292 12,254,701 7,540,292
Diluted 17,058,426 7,540,292 13,199,147 7,540,292
HOUSTONTX-SARATOGA-RESOURCES
HOUSTON--(BUSINESS WIRE)--
Saratoga Resources, Inc. (OTCBB: SROE) (the 'Company') today announced fiscal third quarter results for the period ended September 30, 2008.
The company reported net income for the three months ended September 30, 2008 of $6,224,842, or $0.41 per basic share and $0.36 per diluted share, on revenues of $12,550,937 as compared to a net loss of $29,452, or $0.01 per share, on revenues of $16,220 for the three months ended September 30, 2007. For the nine months ended September 30, 2008, the company reported net income of $5,907,084, or $0.48 per basic share and $0.45 per diluted share, on revenues of $12,586,046 as compared to a net loss of $62,520, or $0.01 per share, on revenues of $25,000 during the nine month period in 2007.
Results for the current quarter and year to date period reflect the acquisition by the Company of Harvest Oil & Gas and The Harvest Group in July 2008 and also reflect the effects of Hurricanes Gustav and Ike which temporarily disrupted production and resulted in an estimated $710,000 of damage to the Company south Louisiana properties. Based on daily production volumes at the time, storm-related production delays reduced production during the quarter by an estimated 19.4 Mbls of oil and 113.1 Mmcf of natural gas, resulting in an estimated reduction in revenues for the period of $3,098,600. As of September 30, 2008, production had been restored to substantially 100% of pre-hurricane levels.
'We are pleased with our results for the 2008 third quarter,' Saratoga Chairman and CEO Tom Cooke said. 'We successfully consummated our acquisition of the Harvest companies and have progressed quickly in integrating the Harvest operations and team and in commencement of our planned development of the Harvest properties. We came through two hurricanes in good condition, rapidly bringing operations back to pre-hurricane levels and, despite the lost production and revenues from the hurricanes and the incurrence of costs associated with integrating the Harvest companies, we managed to produce strong operating cash flows and profits for the period.'
About Saratoga Resources
Saratoga Resources, Inc. is an independent exploration and production company headquartered in Austin, Texas with offices in Houston, Texas and Covington, Louisiana. The Company engages in the acquisition and development of oil and gas producing properties that allow the Company to grow through low-risk development and risk-managed exploration. The Company currently operates properties in Texas and Louisiana with principal holdings covering approximately 30,000 net acres located in the state waters offshore Louisiana.
Forward-looking Statements
This press release includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to actual costs of storm-related damages, actual production volumes following the period, the company's ability to integrate the operations of the Harvest companies as well as anticipated operating and financial performance, growth opportunities, growth rates, potential acquisition opportunities, and other statements of expectation. Words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'assumes,' 'seeks,' 'estimates,' 'should,' and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the 'Risk Factors' section of the company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.
Saratoga Resources, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 2008 and 2007
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2008 2007 2008 2007
Revenues:
Crude oil, condensate and natural gas liquids $ 10,626,472 $ - $ 10,626,472 $ -
Natural gas 1,924,465 16,220 1,959,574 25,000
Total revenues 12,550,937 16,220 12,586,046 25,000
Operating Expense:
Lease operating expense 3,598,214 13,625 3,602,888 16,740
Depreciation, depletion and amortization 5,194,983 88 5,194,983 263
General and administrative 1,643,854 18,599 1,962,590 32,625
Taxes other than income 1,424,576 - 1,424,576 -
Total operating expenses 11,861,627 32,312 12,185,037 49,628
Operating income (loss) 689,310 (16,092 ) 401,009 (24,628 )
Other income (expenses):
Commodity derivative income, net 12,855,560 - 12,855,560 -
Other income 526,839 - 526,839 -
Interest income 37,945 - 37,945 -
Interest expense (4,645,655 ) (13,360 ) (4,675,112 ) (37,892 )
Total other income (expense) 8,774,689 (13,360 ) 8,745,232 (37,892 )
Net income (loss) before income taxes 9,463,999 (29,452 ) 9,146,241 (62,520 )
Income tax provision:
Current 560,007 - 560,007 -
Deferred 2,679,150 - 2,679,150 -
Net income (loss) $ 6,224,842 $ (29,452 ) $ 5,907,084 $ (62,520 )
Net income (loss) per share:
Basic $ 0.41 $ (0.01 ) $ 0.48 $ (0.01 )
Diluted $ 0.36 $ (0.01 ) $ 0.45 $ (0.01 )
Weighted average number of common shares outstanding:
Basic 15,183,205 7,540,292 12,254,701 7,540,292
Diluted 17,058,426 7,540,292 13,199,147 7,540,292
TransAtlantic Petroleum Corp.: Third Quarter 2008 Financial Results and Operations Update
CALGARY, ALBERTA, Nov 14, 2008 (MARKET WIRE via COMTEX) ----TransAtlantic Petroleum Corp. (TSX: TNP) today reported the following (all results in U.S. dollars):
Consolidated net loss for the quarter ended September 30, 2008 was $1.5 million or $0.02 per share, compared to a net loss of $2.2 million or $0.05 per share for the same quarter last year. The Company's consolidated net loss for the third quarter 2008 is primarily composed of general and administrative costs of $719,000 and international expenditures of $858,000. As of September 30, 2008, the Company had cash and cash equivalents of $10.1 million, no debt and working capital of $9.4 million compared to cash and cash equivalents of $657,000, current debt of $4.0 million and working capital of $316,000 at September 30, 2007.
With regard to the development of its international properties, in October 2008 the Company began re-entry operations on one well in Morocco. In September 2008, the Company agreed to farm-in to Sterling Resources Ltd.'s Sud Craiova Block in western Romania. In exchange for a 50% working interest, the Company will drill three 1,000 meter exploration wells on the Sud Craiova license. The Company expects to commence drilling operations in Romania in December 2008. Also in September 2008, the Company agreed to farm-in to Incremental Petroleum Limited's License 4262 in southeastern Turkey. In exchange for a 60% working interest, the Company agreed to drill one exploration well. By drilling this well, the Company will also earn an undivided 75% working interest in four additional licenses covering 1,863 square kilometers (460,321 acres) in southeastern Turkey, subject to government approval. The Company began drilling operations on this well in October 2008. By the end of November 2008, drilling operations will commence to test the Bedinan Ordivician formation (approximately 3,700 meters) on Block 4174 in southeastern Turkey pursuant to a farmout agreement in which the Company retains a 25% working interest. The Company will be carried through testing of the well.
The re-entry operation in Morocco is being performed with a drilling rig supplied by Longe Energy Limited. As announced in the Company's press releases dated August 27 and September 19, 2008, the Company has agreed to acquire Longe Energy Limited in a transaction expected to close in December 2008, subject to regulatory and shareholder approval.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in Morocco, Turkey and Romania. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol "TNP."
This news release contains statements regarding drilling, plans, plans to raise capital, and plans to acquire a company, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to the continuing ability of the Company to operate effectively internationally, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, the results of exploration, development and drilling, imprecision in estimates of future production capacity, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE: TransAtlantic Petroleum Corp.
http://www.tapcor.com Copyright 2008 Market Wire, All rights reserved.
Consolidated net loss for the quarter ended September 30, 2008 was $1.5 million or $0.02 per share, compared to a net loss of $2.2 million or $0.05 per share for the same quarter last year. The Company's consolidated net loss for the third quarter 2008 is primarily composed of general and administrative costs of $719,000 and international expenditures of $858,000. As of September 30, 2008, the Company had cash and cash equivalents of $10.1 million, no debt and working capital of $9.4 million compared to cash and cash equivalents of $657,000, current debt of $4.0 million and working capital of $316,000 at September 30, 2007.
With regard to the development of its international properties, in October 2008 the Company began re-entry operations on one well in Morocco. In September 2008, the Company agreed to farm-in to Sterling Resources Ltd.'s Sud Craiova Block in western Romania. In exchange for a 50% working interest, the Company will drill three 1,000 meter exploration wells on the Sud Craiova license. The Company expects to commence drilling operations in Romania in December 2008. Also in September 2008, the Company agreed to farm-in to Incremental Petroleum Limited's License 4262 in southeastern Turkey. In exchange for a 60% working interest, the Company agreed to drill one exploration well. By drilling this well, the Company will also earn an undivided 75% working interest in four additional licenses covering 1,863 square kilometers (460,321 acres) in southeastern Turkey, subject to government approval. The Company began drilling operations on this well in October 2008. By the end of November 2008, drilling operations will commence to test the Bedinan Ordivician formation (approximately 3,700 meters) on Block 4174 in southeastern Turkey pursuant to a farmout agreement in which the Company retains a 25% working interest. The Company will be carried through testing of the well.
The re-entry operation in Morocco is being performed with a drilling rig supplied by Longe Energy Limited. As announced in the Company's press releases dated August 27 and September 19, 2008, the Company has agreed to acquire Longe Energy Limited in a transaction expected to close in December 2008, subject to regulatory and shareholder approval.
TransAtlantic is engaged in the exploration, development and production of crude oil and natural gas in Morocco, Turkey and Romania. Common shares of TransAtlantic are listed on the Toronto Stock Exchange under the symbol "TNP."
This news release contains statements regarding drilling, plans, plans to raise capital, and plans to acquire a company, as well as other expectations, plans, goals, objectives, assumptions or information about future events, conditions, results of operations or performance that may constitute forward-looking statements or information under applicable securities legislation. Such forward-looking statements or information are based on a number of assumptions which may prove to be incorrect. In addition to other assumptions identified in this news release, assumptions have been made regarding, among other things, the ability of the Company to continue to develop and exploit attractive foreign initiatives.
Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by the Company and described in the forward-looking statements or information. These risks and uncertainties include but are not limited to the continuing ability of the Company to operate effectively internationally, reliance on current oil and gas laws, rules and regulations, volatility of oil and gas prices, fluctuations in currency and interest rates, imprecision of resource estimates, the results of exploration, development and drilling, imprecision in estimates of future production capacity, changes in environmental and other regulations or the interpretation of such regulations, the ability to obtain necessary regulatory approvals, weather and general economic and business conditions.
The forward-looking statements or information contained in this news release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.
SOURCE: TransAtlantic Petroleum Corp.
http://www.tapcor.com Copyright 2008 Market Wire, All rights reserved.
China North East Petroleum Reports Third Quarter 2008 Financial Results
HARBIN, China and NEW YORK, Nov.14 /Xinhua-PRNewswire-FirstCall/ -- China North East Petroleum Holdings Limited (the "Company") (OTC Bulletin Board: CNEH), an oil producing company in Northern China, today announced consolidated financial results for the third quarter ended September 30, 2008.
Third Quarter 2008 Results
Total sales for the third quarter were $19.1 million, a 227% increase compared to $5.8 million over the same period last year. This increase was due to an increase in crude oil production and the average price received for crude oil. Crude oil production for the third quarter doubled to 172,730 barrels from 86,222 barrels for the comparable quarter in the prior year. The increase in production was attributable to refracturing improvements and the implementation of water injection technology which improved efficiency of existing oil wells as well as from the addition of 30 new wells drilled during the third quarter of 2008.
The cost of sales in the third quarter increased by 214% to $9.2 million from $2.9 million for the three months ended September 30, 2007. The increase in cost of sales resulted primarily from the increase in production, depreciation of oil and gas properties, and an increase in the absolute amount of oil surcharges as a result of increased production.
Gross profit in the third quarter increased 241% to $9.9 million from $2.9 million in the same period last year. Third quarter gross margin increased to 52.0% compared to 49.9% in the year ago period.
Operating expenses increased to $978 thousand, or 5.1% of sales, from $291 thousand, or 5.0% of sales, in the third quarter 2007. This is primarily a result of an increase in selling, general and administrative costs. Operating income increased 241% to $8.9 million, or 46.8% of total sales, compared to $2.6 million, or 44.9% of total sales, in the prior year period.
Net income for the third quarter increased 229% to $4.9 million, or $0.24 per diluted share, versus $1.5 million, or $0.08 per diluted share, in the third quarter of 2007.
Mr. Hongjun Wang, President of China North East Petroleum commented, "We were pleased to report another strong quarter of revenue and profit growth and are on plan to report record production increases in 2008. We added 30 new wells during the third quarter bringing our total oil well count to 218 wells through September. Most of these wells have been installed in the Qian'an 112 oilfield where the majority of our wells are located.
During the quarter, we were particularly satisfied to see significant improvements to our financial liquidity. We grew our cash position by 220% sequentially to nearly $8 million and our operating cash flow improved notably as well. Based on the reserves within our four existing oilfields (Qian'an 112, Hetingbao 301, Daan 34, Gudian 31), we believe we have the capability of drilling approximately 675 wells in the coming years and believe the cash flows derived from oil we yield from our existing wells can support much of our well expansion activities in these areas.
Heading into the fourth quarter, we expect to be impacted by lower per- barrel oil prices which will likely impact revenue growth but believe we can sustain our full year net profit projection of $14.5-$15 million and diluted EPS of $0.62-$0.65 due to our strong production rates in the second half of the year as well as from a lower government oil surcharge rate. As oil prices decline, the amount of oil surcharge we are required to pay to the Chinese government declines. During this difficult market environment, we are keeping our operating costs low and continue to implement strict cost controls in all key areas of operation. We are encouraged with our opportunity in the market and continue to focus on expanding our position in China's oil market by adding more wells to our production capacity and seeking additional oil fields to lease and operate. We continue to expect very healthy quarterly revenue, EBITDA and profit growth, even at current oil price levels, and believe the growth plan we have in place will yield strong financial results ahead," concluded Wang.
Nine Month 2008 Results
Sales for the nine month period ended September 30, 2008 increased 273% to $44.1 million compared to $11.8 million for the nine month prior year period. Crude oil production through the first nine months of 2008 increased 143% to 422,788 barrels from 174,280 barrels for the comparable period in the prior year.
Gross profit for the first nine months was $23.6 million, a 292% increase over $6.0 million in the same period last year. Gross margin increased 260 basis points to 53.6% compared to 51.0% in the year ago period.
Operating expenses through the first nine months of 2008 were $2.0 million, or 4.4% of sales, compared to $939 thousand, or 8.0% of sales, in the prior year period. Operating income increased 326% to $21.7 million, or 49.2% of sales, compared to $5.1 million, or 43.1% of sales, in the prior year nine month period.
Net income increased by 223% to $9.8 million, or $0.54 per diluted share, from $3.0 million, or $0.12 per diluted share, for the nine months ended September 30, 2007.
2008 Financial Outlook
The Company expects 2008 crude oil production to total approximately 623,000 barrels and the anticipated number of oil producing wells is expected to total approximately 240 wells by year-end 2008. This is a 133% increase from 267,516 barrels produced in 2007, when the company finished the year with 157 wells.
Based on the Company's results through the first nine months of 2008, its drilling schedule for the remainder of 2008, and the current per-barrel price of oil received from PTR, the Company reiterates comfort with 2008 net income growth of 190%-200% to $14.5-$15.0 million, and fully diluted earnings per share growth of 195%-200% to $0.62-$0.65, compared to the 2007 fiscal year. The fully diluted EPS estimate range is based on a share count of approximately 24.0 million shares and assumes the exercise of all outstanding Company warrants.
Oil Pricing
Please note that CNEH's sole customer, PTR pays the Company a price per barrel which is calculated on a monthly basis, and is based upon a lagged, daily price per barrel average for a relatively heavy, sour grade of crude oil that trades in Singapore. This daily price index is one of a large number of crude oil price indices maintained by Platts, an international commodity and trading company. The grade of oil for which the company is paid typically trades at a discount to West Texas or London Brent crude.
Government Oil Surcharge
Under a regulation introduced in June 2006 by the Chinese government, a surcharge of 20% has been imposed on Chinese oil producers on the portion of the selling price of crude oil which exceeds $40 per barrel and a surcharge of 40% is imposed on the portion of the selling price of crude oil which exceeds $60 per barrel.
ABOUT CHINA NORTH EAST PETROLEUM
China North East Petroleum Holdings Ltd. is engaged in the production of crude oil in Northern China. The Company has a guaranteed arrangement with the Jilin Refinery of PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates four oilfields in Northern China.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
(Financial tables on following pages)
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited) (Unaudited)
Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
$ 19,060,007 $ 5,826,506 $44,051,519 $ 11,804,007
NET SALES
COST OF SALES
Production costs 895,155 704,568 2,390,432 1,669,166
Depreciation of
Oil and gas
properties 3,774,327 1,361,732 8,155,321 2,601,561
Amortization of
intangible assets 2,975 2,695 8,743 7,972
Government oil
surcharge 4,480,955 848,315 9,865,655 1,500,902
Total Cost
of Sales 9,153,412 2,917,310 20,420,151 5,779,601
GROSS PROFIT 9,906,595 2,909,196 23,631,368 6,024,406
OPERATING EXPENSES
Selling, general
and administrative
expenses 793,479 194,697 1,339,404 694,103
Professional fees 42,850 26,245 140,180 46,245
Consulting fees 91,926 27,125 319,764 81,375
Depreciation of
fixed assets 50,445 42,609 160,930 117,593
Total
Operating
Expenses 978,700 290,676 1,960,278 939,316
INCOME FROM
OPERATIONS 8,927,895 2,618,520 21,671,090 5,085,090
OTHER INCOME
(EXPENSE)
Other income 809 -- 66,651 --
Other expense (2,000) (3,878) (107,601) (3,878)
Interest expense (296,761) (28,186) (721,805) (51,290)
Amortization of
deferred financing
costs (74,140) -- (172,992) --
Amortization of
discount on
debenture (486,803) -- (1,135,874) --
Imputed interest
expense (16,794) (6,404) (49,535) (139,079)
Interest income 4,238 615 34,204 1,105
Gain on disposal
of fixed assets -- 460 -- 15,217
Recovery of deposit
from a supplier
previously written
off -- 2,515 -- 358,609
Total Other
Income
(Expense),
net (871,451) (34,878) (2,086,952) 180,684
NET INCOME BEFORE TAXES
AND MINORITY INTERESTS 8,056,444 2,583,642 19,584,138 5,265,774
Income tax expense (2,390,961) (885,188) (5,695,498) (1,825,513)
Minority interests (726,566) (198,959) (1,889,457) (399,836)
NET INCOME 4,938,917 1,499,495 11,999,183 3,040,425
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation gain 152,651 235,873 2,020,632 450,633
COMPREHENSIVE INCOME $ 5,091,568 $ 1,735,368 $14,019,815 $ 3,491,058
Net income per share
- basic $ 0.25 $ 0.08 $ 0.62 $ 0.12
- diluted $ 0.24 $ 0.08 $ 0.61 $ 0.12
Weighted average number of shares
outstanding during the period
- basic 19,987,123 19,224,080 19,480,284 25,780,857
- diluted 20,676,711 19,224,080 19,624,216 25,780,857
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September December
30, 2008 31, 2007
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 7,762,017 $ 74,638
Accounts receivable, net 10,595,234 4,852,633
Prepaid expenses and other
current assets 2,261,853 398,046
Current portion of deferred
financing costs, net 296,557 --
Value added tax recoverable -- 651,905
Total Current Assets 20,915,661 5,977,222
PROPERTY AND EQUIPMENT
Oil and gas properties, net 56,007,998 40,345,008
Fixed assets, net 1,462,703 885,474
Oil and gas properties under
construction 784,851 2,550,058
Total Property and Equipment 58,255,552 43,780,540
LAND USE RIGHTS, NET 39,168 45,076
LONG-TERM DEFERRED FINANCING
COSTS, NET 716,680 --
DEFERRED TAX ASSETS 209,102 --
TOTAL ASSETS $ 80,136,163 $ 49,802,838
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 10,806,009 $ 6,580,930
Current portion of secured
debenture, net of discount 1,399,451 --
Other payables and accrued
liabilities 825,947 1,020,980
Due to related parties 14,588 28,036
Note payable -- 273,444
Income tax and other taxes
payable 7,605,514 2,687,449
Due to a stockholder 783,258 123,105
Total Current Liabilities 21,434,767 10,713,944
LONG-TERM LIABILITIES
Accounts payable 7,783,956 15,467,661
Secured debenture, net of
discount 6,197,571 --
Deferred tax payable -- 543,100
Due to a related party 486,714 3,118,085
Total Long-term Liabilities 14,468,241 19,128,846
TOTAL LIABILITIES 35,903,008 29,842,790
COMMITMENTS AND CONTINGENCIES -- --
MINORITY INTERESTS 3,014,421 1,124,964
STOCKHOLDERS' EQUITY
Common stock ($0.001 par value, 150,000,000
shares authorized, 20,784,080 shares issued
and outstanding as of September 30, 2008;
19,224,080 shares issued and outstanding as
of December 31, 2007) 20,784 19,224
Additional paid-in capital 21,147,979 11,361,579
Deferred stock compensation (1,451,250) (27,125)
Retained earnings
Unappropriated 17,200,090 5,200,907
Appropriated 916,263 916,263
Accumulated other comprehensive
income 3,384,868 1,364,236
Total Stockholders' Equity 41,218,734 18,835,084
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 80,136,163 $ 49,802,838
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2008 and 2007 (Unaudited)
2008 2007
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $ 11,999,183 $ 3,040,425
Adjusted to reconcile
net income to cash
provided by operating
activities:
Depreciation of oil
and gas properties 8,155,321 2,601,561
Depreciation of fixed
assets 160,930 117,593
Amortization of land
use rights 8,743 7,972
Amortization of
deferred financing
costs 172,992 --
Amortization of
discount on debenture 1,135,874 --
Amortization of stock
option compensation 163,402 --
Warrants issued for
services 154,171 --
Minority interests 1,889,457 399,836
Stocks issued for
services 27,125 81,375
Stocks-based
compensation for
service 168,750 --
Imputed interest
expenses 49,535 139,079
Gain on disposal of
fixed assets -- (15,217)
Changes in operating
assets and liabilities
(Increase) decrease in:
Accounts receivable (5,742,601) (2,026,688)
Prepaid expenses and
other current assets (1,863,807) (262,501)
Due from related
parties -- 38,692
Value added tax
recoverable 651,905 (1,200,623)
Deferred financing
costs (1,186,229) --
Deferred tax assets (209,102) --
Increase (decrease)
in:
Accounts payable (3,458,626) 3,781,456
Other payables and
accrued liabilities (195,033) (2,824)
Income tax and other
taxes payable 4,918,065 2,123,234
Deferred tax payable (543,100) 363,774
Net cash provided by
operating activities 16,456,955 9,187,144
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of oil and
gas properties (18,300,636) (8,992,444)
Purchase of fixed
assets (668,233) (321,211)
Additions to oil and
gas properties under
construction (649,786) (714,885)
Proceeds on disposal
of fixed assets -- 23,451
Net cash used in
investing activities (19,618,655) (10,005,089)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from the
issuances of notes
payable -- 798,128
Repayment of note
payable -- (133,021)
Proceeds from
issuance of secured
debenture 15,000,000 --
Repayment of secured
debenture (750,000) --
Decrease in other
loans payable -- (25,612)
Proceeds from
exercise of stock
warrants 12,000 --
Increase in due to a
stockholder 660,153 146,813
(Decrease) increase
in due to related
parties (2,644,819) 1,280,048
Net cash provided by
financing activities 12,277,334 2,066,356
EFFECT OF EXCHANGE RATE ON
CASH (1,428,255) (950,576)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 7,687,379 297,835
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 74,638 13,746
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 7,762,017 $ 311,581
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period
for:
Income tax expense $ 4,932,518 $ 208,315
Interest expense $ 721,805 $ 51,290
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING ACTIVITIES:
During 2008, the Company issued 360,000 shares of common stock valued at $1,620,000 as employee stock bonuses.
SOURCE China North East Petroleum Holdings Ltd.
Third Quarter 2008 Results
Total sales for the third quarter were $19.1 million, a 227% increase compared to $5.8 million over the same period last year. This increase was due to an increase in crude oil production and the average price received for crude oil. Crude oil production for the third quarter doubled to 172,730 barrels from 86,222 barrels for the comparable quarter in the prior year. The increase in production was attributable to refracturing improvements and the implementation of water injection technology which improved efficiency of existing oil wells as well as from the addition of 30 new wells drilled during the third quarter of 2008.
The cost of sales in the third quarter increased by 214% to $9.2 million from $2.9 million for the three months ended September 30, 2007. The increase in cost of sales resulted primarily from the increase in production, depreciation of oil and gas properties, and an increase in the absolute amount of oil surcharges as a result of increased production.
Gross profit in the third quarter increased 241% to $9.9 million from $2.9 million in the same period last year. Third quarter gross margin increased to 52.0% compared to 49.9% in the year ago period.
Operating expenses increased to $978 thousand, or 5.1% of sales, from $291 thousand, or 5.0% of sales, in the third quarter 2007. This is primarily a result of an increase in selling, general and administrative costs. Operating income increased 241% to $8.9 million, or 46.8% of total sales, compared to $2.6 million, or 44.9% of total sales, in the prior year period.
Net income for the third quarter increased 229% to $4.9 million, or $0.24 per diluted share, versus $1.5 million, or $0.08 per diluted share, in the third quarter of 2007.
Mr. Hongjun Wang, President of China North East Petroleum commented, "We were pleased to report another strong quarter of revenue and profit growth and are on plan to report record production increases in 2008. We added 30 new wells during the third quarter bringing our total oil well count to 218 wells through September. Most of these wells have been installed in the Qian'an 112 oilfield where the majority of our wells are located.
During the quarter, we were particularly satisfied to see significant improvements to our financial liquidity. We grew our cash position by 220% sequentially to nearly $8 million and our operating cash flow improved notably as well. Based on the reserves within our four existing oilfields (Qian'an 112, Hetingbao 301, Daan 34, Gudian 31), we believe we have the capability of drilling approximately 675 wells in the coming years and believe the cash flows derived from oil we yield from our existing wells can support much of our well expansion activities in these areas.
Heading into the fourth quarter, we expect to be impacted by lower per- barrel oil prices which will likely impact revenue growth but believe we can sustain our full year net profit projection of $14.5-$15 million and diluted EPS of $0.62-$0.65 due to our strong production rates in the second half of the year as well as from a lower government oil surcharge rate. As oil prices decline, the amount of oil surcharge we are required to pay to the Chinese government declines. During this difficult market environment, we are keeping our operating costs low and continue to implement strict cost controls in all key areas of operation. We are encouraged with our opportunity in the market and continue to focus on expanding our position in China's oil market by adding more wells to our production capacity and seeking additional oil fields to lease and operate. We continue to expect very healthy quarterly revenue, EBITDA and profit growth, even at current oil price levels, and believe the growth plan we have in place will yield strong financial results ahead," concluded Wang.
Nine Month 2008 Results
Sales for the nine month period ended September 30, 2008 increased 273% to $44.1 million compared to $11.8 million for the nine month prior year period. Crude oil production through the first nine months of 2008 increased 143% to 422,788 barrels from 174,280 barrels for the comparable period in the prior year.
Gross profit for the first nine months was $23.6 million, a 292% increase over $6.0 million in the same period last year. Gross margin increased 260 basis points to 53.6% compared to 51.0% in the year ago period.
Operating expenses through the first nine months of 2008 were $2.0 million, or 4.4% of sales, compared to $939 thousand, or 8.0% of sales, in the prior year period. Operating income increased 326% to $21.7 million, or 49.2% of sales, compared to $5.1 million, or 43.1% of sales, in the prior year nine month period.
Net income increased by 223% to $9.8 million, or $0.54 per diluted share, from $3.0 million, or $0.12 per diluted share, for the nine months ended September 30, 2007.
2008 Financial Outlook
The Company expects 2008 crude oil production to total approximately 623,000 barrels and the anticipated number of oil producing wells is expected to total approximately 240 wells by year-end 2008. This is a 133% increase from 267,516 barrels produced in 2007, when the company finished the year with 157 wells.
Based on the Company's results through the first nine months of 2008, its drilling schedule for the remainder of 2008, and the current per-barrel price of oil received from PTR, the Company reiterates comfort with 2008 net income growth of 190%-200% to $14.5-$15.0 million, and fully diluted earnings per share growth of 195%-200% to $0.62-$0.65, compared to the 2007 fiscal year. The fully diluted EPS estimate range is based on a share count of approximately 24.0 million shares and assumes the exercise of all outstanding Company warrants.
Oil Pricing
Please note that CNEH's sole customer, PTR pays the Company a price per barrel which is calculated on a monthly basis, and is based upon a lagged, daily price per barrel average for a relatively heavy, sour grade of crude oil that trades in Singapore. This daily price index is one of a large number of crude oil price indices maintained by Platts, an international commodity and trading company. The grade of oil for which the company is paid typically trades at a discount to West Texas or London Brent crude.
Government Oil Surcharge
Under a regulation introduced in June 2006 by the Chinese government, a surcharge of 20% has been imposed on Chinese oil producers on the portion of the selling price of crude oil which exceeds $40 per barrel and a surcharge of 40% is imposed on the portion of the selling price of crude oil which exceeds $60 per barrel.
ABOUT CHINA NORTH EAST PETROLEUM
China North East Petroleum Holdings Ltd. is engaged in the production of crude oil in Northern China. The Company has a guaranteed arrangement with the Jilin Refinery of PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates four oilfields in Northern China.
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
(Financial tables on following pages)
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited) (Unaudited)
Three months ended Nine months ended
September 30 September 30
2008 2007 2008 2007
$ 19,060,007 $ 5,826,506 $44,051,519 $ 11,804,007
NET SALES
COST OF SALES
Production costs 895,155 704,568 2,390,432 1,669,166
Depreciation of
Oil and gas
properties 3,774,327 1,361,732 8,155,321 2,601,561
Amortization of
intangible assets 2,975 2,695 8,743 7,972
Government oil
surcharge 4,480,955 848,315 9,865,655 1,500,902
Total Cost
of Sales 9,153,412 2,917,310 20,420,151 5,779,601
GROSS PROFIT 9,906,595 2,909,196 23,631,368 6,024,406
OPERATING EXPENSES
Selling, general
and administrative
expenses 793,479 194,697 1,339,404 694,103
Professional fees 42,850 26,245 140,180 46,245
Consulting fees 91,926 27,125 319,764 81,375
Depreciation of
fixed assets 50,445 42,609 160,930 117,593
Total
Operating
Expenses 978,700 290,676 1,960,278 939,316
INCOME FROM
OPERATIONS 8,927,895 2,618,520 21,671,090 5,085,090
OTHER INCOME
(EXPENSE)
Other income 809 -- 66,651 --
Other expense (2,000) (3,878) (107,601) (3,878)
Interest expense (296,761) (28,186) (721,805) (51,290)
Amortization of
deferred financing
costs (74,140) -- (172,992) --
Amortization of
discount on
debenture (486,803) -- (1,135,874) --
Imputed interest
expense (16,794) (6,404) (49,535) (139,079)
Interest income 4,238 615 34,204 1,105
Gain on disposal
of fixed assets -- 460 -- 15,217
Recovery of deposit
from a supplier
previously written
off -- 2,515 -- 358,609
Total Other
Income
(Expense),
net (871,451) (34,878) (2,086,952) 180,684
NET INCOME BEFORE TAXES
AND MINORITY INTERESTS 8,056,444 2,583,642 19,584,138 5,265,774
Income tax expense (2,390,961) (885,188) (5,695,498) (1,825,513)
Minority interests (726,566) (198,959) (1,889,457) (399,836)
NET INCOME 4,938,917 1,499,495 11,999,183 3,040,425
OTHER COMPREHENSIVE
INCOME
Foreign currency
translation gain 152,651 235,873 2,020,632 450,633
COMPREHENSIVE INCOME $ 5,091,568 $ 1,735,368 $14,019,815 $ 3,491,058
Net income per share
- basic $ 0.25 $ 0.08 $ 0.62 $ 0.12
- diluted $ 0.24 $ 0.08 $ 0.61 $ 0.12
Weighted average number of shares
outstanding during the period
- basic 19,987,123 19,224,080 19,480,284 25,780,857
- diluted 20,676,711 19,224,080 19,624,216 25,780,857
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
September December
30, 2008 31, 2007
(Unaudited) (Audited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 7,762,017 $ 74,638
Accounts receivable, net 10,595,234 4,852,633
Prepaid expenses and other
current assets 2,261,853 398,046
Current portion of deferred
financing costs, net 296,557 --
Value added tax recoverable -- 651,905
Total Current Assets 20,915,661 5,977,222
PROPERTY AND EQUIPMENT
Oil and gas properties, net 56,007,998 40,345,008
Fixed assets, net 1,462,703 885,474
Oil and gas properties under
construction 784,851 2,550,058
Total Property and Equipment 58,255,552 43,780,540
LAND USE RIGHTS, NET 39,168 45,076
LONG-TERM DEFERRED FINANCING
COSTS, NET 716,680 --
DEFERRED TAX ASSETS 209,102 --
TOTAL ASSETS $ 80,136,163 $ 49,802,838
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 10,806,009 $ 6,580,930
Current portion of secured
debenture, net of discount 1,399,451 --
Other payables and accrued
liabilities 825,947 1,020,980
Due to related parties 14,588 28,036
Note payable -- 273,444
Income tax and other taxes
payable 7,605,514 2,687,449
Due to a stockholder 783,258 123,105
Total Current Liabilities 21,434,767 10,713,944
LONG-TERM LIABILITIES
Accounts payable 7,783,956 15,467,661
Secured debenture, net of
discount 6,197,571 --
Deferred tax payable -- 543,100
Due to a related party 486,714 3,118,085
Total Long-term Liabilities 14,468,241 19,128,846
TOTAL LIABILITIES 35,903,008 29,842,790
COMMITMENTS AND CONTINGENCIES -- --
MINORITY INTERESTS 3,014,421 1,124,964
STOCKHOLDERS' EQUITY
Common stock ($0.001 par value, 150,000,000
shares authorized, 20,784,080 shares issued
and outstanding as of September 30, 2008;
19,224,080 shares issued and outstanding as
of December 31, 2007) 20,784 19,224
Additional paid-in capital 21,147,979 11,361,579
Deferred stock compensation (1,451,250) (27,125)
Retained earnings
Unappropriated 17,200,090 5,200,907
Appropriated 916,263 916,263
Accumulated other comprehensive
income 3,384,868 1,364,236
Total Stockholders' Equity 41,218,734 18,835,084
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 80,136,163 $ 49,802,838
CHINA NORTH EAST PETROLEUM HOLDINGS LIMITED AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
For the nine months ended September 30, 2008 and 2007 (Unaudited)
2008 2007
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $ 11,999,183 $ 3,040,425
Adjusted to reconcile
net income to cash
provided by operating
activities:
Depreciation of oil
and gas properties 8,155,321 2,601,561
Depreciation of fixed
assets 160,930 117,593
Amortization of land
use rights 8,743 7,972
Amortization of
deferred financing
costs 172,992 --
Amortization of
discount on debenture 1,135,874 --
Amortization of stock
option compensation 163,402 --
Warrants issued for
services 154,171 --
Minority interests 1,889,457 399,836
Stocks issued for
services 27,125 81,375
Stocks-based
compensation for
service 168,750 --
Imputed interest
expenses 49,535 139,079
Gain on disposal of
fixed assets -- (15,217)
Changes in operating
assets and liabilities
(Increase) decrease in:
Accounts receivable (5,742,601) (2,026,688)
Prepaid expenses and
other current assets (1,863,807) (262,501)
Due from related
parties -- 38,692
Value added tax
recoverable 651,905 (1,200,623)
Deferred financing
costs (1,186,229) --
Deferred tax assets (209,102) --
Increase (decrease)
in:
Accounts payable (3,458,626) 3,781,456
Other payables and
accrued liabilities (195,033) (2,824)
Income tax and other
taxes payable 4,918,065 2,123,234
Deferred tax payable (543,100) 363,774
Net cash provided by
operating activities 16,456,955 9,187,144
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of oil and
gas properties (18,300,636) (8,992,444)
Purchase of fixed
assets (668,233) (321,211)
Additions to oil and
gas properties under
construction (649,786) (714,885)
Proceeds on disposal
of fixed assets -- 23,451
Net cash used in
investing activities (19,618,655) (10,005,089)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from the
issuances of notes
payable -- 798,128
Repayment of note
payable -- (133,021)
Proceeds from
issuance of secured
debenture 15,000,000 --
Repayment of secured
debenture (750,000) --
Decrease in other
loans payable -- (25,612)
Proceeds from
exercise of stock
warrants 12,000 --
Increase in due to a
stockholder 660,153 146,813
(Decrease) increase
in due to related
parties (2,644,819) 1,280,048
Net cash provided by
financing activities 12,277,334 2,066,356
EFFECT OF EXCHANGE RATE ON
CASH (1,428,255) (950,576)
NET INCREASE IN CASH AND
CASH EQUIVALENTS 7,687,379 297,835
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 74,638 13,746
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 7,762,017 $ 311,581
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period
for:
Income tax expense $ 4,932,518 $ 208,315
Interest expense $ 721,805 $ 51,290
SUPPLEMENTAL DISCLOSURE OF NON-CASH OPERATING ACTIVITIES:
During 2008, the Company issued 360,000 shares of common stock valued at $1,620,000 as employee stock bonuses.
SOURCE China North East Petroleum Holdings Ltd.
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.
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.
ISRAMCO, INC. Reports Third Quarter Results
HOUSTON, Nov 14, 2008 /PRNewswire-FirstCall via COMTEX/ -- ISRAMCO, INC. (ISRL) reported today that third quarter 2008 revenues were $17,866,000, compared to $5,355,000 in the third quarter of 2007, an increase of approximately 234%. Major components of revenues in the third quarter of 2008 were oil and gas sales of $17,855,000 compared to $5,877 in the third quarter of 2007. Revenues for the nine months ended September 30, 2008 were $44,469,000 compared to $15,692,000 during the comparable period in 2007.
The increase in oil and gas revenues is mainly attributable to the oil and gas properties that the Company purchased from GFB Acquisition - I, L.P. ("GFB") and Trans Republic Resources, Ltd. on March 27, 2008 and from Five States Energy Company, L.L.C. on March 2, 2007, and the increase in oil and gas prices. These increases were partially offset by the natural decline in production from our older oil and gas properties.
The Company reported a net income of $34,488,000 or $12.69 per share for the third quarter of 2008 compared to net loss of $647,000 or ($0.24) per share for the same period in 2007. The increase in the net income recorded during the three months ended September 30, 2008 as compared to the net loss recorded for the same period in 2007 is primarily attributable to an aggregate $53,336,000 increase in gain on swap transactions as well as the increase in operating income. This increase was partially offset by an $18,439,000 increase in interest expenses and an income tax benefit.
The Company reported a net loss of $5,346,000 or ($1.97) per share for the nine months ended September 30, 2008, compared to net loss of $1,215,000 or ($0.45) per share for the comparable nine month period in 2007. The increase in the loss recorded during the nine months ended September 30, 2008, as compared to the net loss recorded for the same period in 2007, is primarily attributable to an aggregate $17,220,000 increase in loss on swap transactions as well as the increase in interest expense. This was partially offset by a $15,007,000 increase in operating income and an income tax benefit.
The Company uses oil and gas swaps to hedge its future production. However, the Company does not apply hedge accounting. As a result, all the changes in the mark-to-market value of the derivatives per SFAS 133 are reflected as unrealized gain or loss in the statements of operations. Due to the increase in oil prices, the Company recorded a loss on derivative (hedging) contracts of $17,917,000 for the nine months ended September 30, 2008.
There are currently 2,717,691 shares of Common Stock issued and outstanding.
Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
STATEMENT OF OPERATIONS
DATA
Revenues $17,866 $5,355 $44,469 $15,692
Total operating
expenses 13,590 4,969 27,760 12,041
Operating income 4,276 386 16,709 3,651
Net income (loss) 34,488 (647) (5,346) (1,215)
Net income (loss)
per common share 12.69 (0.24) (1.97) (0.45)
CASH FLOW DATA
Net cash provided by
(used by) operating
activities 12,614 (178)
Net cash used in
investing activities (98,988) (65,587)
Net cash provided by
financing activities 91,377 67,264
September 30, December 31,
2008 2007
BALANCE SHEET DATA
Current assets $21,756 $11,103
Total assets 214,347 110,708
Current liabilities 37,630 11,273
Long - term liabilities 158,909 73,964
Total shareholders' equity 17,808 25,471
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE- HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2007, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.
SOURCE ISRAMCO, INC.
Copyright (C) 2008 PR Newswire. All rights reserved
The increase in oil and gas revenues is mainly attributable to the oil and gas properties that the Company purchased from GFB Acquisition - I, L.P. ("GFB") and Trans Republic Resources, Ltd. on March 27, 2008 and from Five States Energy Company, L.L.C. on March 2, 2007, and the increase in oil and gas prices. These increases were partially offset by the natural decline in production from our older oil and gas properties.
The Company reported a net income of $34,488,000 or $12.69 per share for the third quarter of 2008 compared to net loss of $647,000 or ($0.24) per share for the same period in 2007. The increase in the net income recorded during the three months ended September 30, 2008 as compared to the net loss recorded for the same period in 2007 is primarily attributable to an aggregate $53,336,000 increase in gain on swap transactions as well as the increase in operating income. This increase was partially offset by an $18,439,000 increase in interest expenses and an income tax benefit.
The Company reported a net loss of $5,346,000 or ($1.97) per share for the nine months ended September 30, 2008, compared to net loss of $1,215,000 or ($0.45) per share for the comparable nine month period in 2007. The increase in the loss recorded during the nine months ended September 30, 2008, as compared to the net loss recorded for the same period in 2007, is primarily attributable to an aggregate $17,220,000 increase in loss on swap transactions as well as the increase in interest expense. This was partially offset by a $15,007,000 increase in operating income and an income tax benefit.
The Company uses oil and gas swaps to hedge its future production. However, the Company does not apply hedge accounting. As a result, all the changes in the mark-to-market value of the derivatives per SFAS 133 are reflected as unrealized gain or loss in the statements of operations. Due to the increase in oil prices, the Company recorded a loss on derivative (hedging) contracts of $17,917,000 for the nine months ended September 30, 2008.
There are currently 2,717,691 shares of Common Stock issued and outstanding.
Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
2008 2007 2008 2007
STATEMENT OF OPERATIONS
DATA
Revenues $17,866 $5,355 $44,469 $15,692
Total operating
expenses 13,590 4,969 27,760 12,041
Operating income 4,276 386 16,709 3,651
Net income (loss) 34,488 (647) (5,346) (1,215)
Net income (loss)
per common share 12.69 (0.24) (1.97) (0.45)
CASH FLOW DATA
Net cash provided by
(used by) operating
activities 12,614 (178)
Net cash used in
investing activities (98,988) (65,587)
Net cash provided by
financing activities 91,377 67,264
September 30, December 31,
2008 2007
BALANCE SHEET DATA
Current assets $21,756 $11,103
Total assets 214,347 110,708
Current liabilities 37,630 11,273
Long - term liabilities 158,909 73,964
Total shareholders' equity 17,808 25,471
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE- HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2007, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.
SOURCE ISRAMCO, INC.
Copyright (C) 2008 PR Newswire. All rights reserved
Rancher Energy Corp. Announces Second Quarter Fiscal 2009 Financial Results
DENVER, CO, Nov 14, 2008 (MARKET WIRE via COMTEX) -- Rancher Energy Corp. (RNCH) today announced financial results for its second fiscal quarter ended September 30, 2008.
Second Quarter Summary
The Company reported a 100% increase in second quarter revenue, to $3.3 million from $1.7 million in the same quarter last year. Total revenue included oil & gas sales of $2.0 million, up from $1.7 million in the same quarter last year, and gains on derivative activities of $1.3 million. The Company had no derivative contracts in place for the second quarter of 2007. The increased oil & gas sales revenue was due to a higher average sales price of $109.79 per barrel in the second quarter versus $69.88 per barrel in the second quarter a year ago. Rancher Energy sold 18,179 barrels of oil -- its net interest -- in the second quarter, down from 23,622 barrels a year ago due to mechanical-related downtime on certain producing wells as well as normal, year-over-year production declines.
The Company recorded a $6.8 million, non-cash impairment charge in the second quarter, reflecting excess carrying costs of certain properties over the anticipated future realized value. With the exception of production taxes, which increased 21% to $243,000 in the second quarter, the Company reduced costs in all other expense categories. In particular, general and administrative expense declined by 37% to $960,000 from $1.5 million, reflecting year-over-year reductions in headcount, professional fees and other overhead expenses. Due to the $6.8 million, non-cash impairment, total operating expenses in the second quarter increased to $8.9 million from $2.9 million a year ago.
Other expense in the second quarter totaled $1.7 million versus $1.4 million in the corresponding quarter a year ago. Other expense primarily included amortization of deferred financing costs and interest expense on the GasRock note payable, which due date has been extended to April 30, 2009. Net loss for the second quarter, which included the $6.8 million, non-cash impairment charge, was $7.3 million, or $0.06 per basic and diluted share, versus a net loss of $2.6 million, or $0.02 per basic and diluted share, in the same quarter last year.
Rancher Energy closed the second quarter with cash and cash equivalents of $5.1 million versus $6.8 million at March 31, 2008, fiscal year end.
Six-Month Summary
Total revenue through six months ended September 30, 2008, increased to nearly $3.3 million from $3.0 million in the same period last year. Oil & gas sales of $3.9 million were partially offset by a $590,000 loss related to hedging activities required by the GasRock loan. Through six months the Company sold 34,262 barrels of oil at an average price of $113.68 versus 46,056 barrels of oil sold at an average price of $64.73 per barrel in the same period last year. Again, the decline in production was attributed to mechanical problems at certain producing wells.
Total operating expenses increased to $11.1 million from $6.6 million due to the $6.8 million, non-cash impairment charge incurred in the second quarter. Excluding the $6.8 million impairment charge, total operating expenses declined by $2.3 million, reflecting decreases in all expense categories except production taxes, which increased to $474,000 from $363,000 in the same period last year based on higher oil & gas sales revenue. General and administrative expense declined by more than 50% to $2.0 million from $4.1 million as the Company aggressively cut overhead expenses.
Total other expense in the six-month period was $3.4 million, up from $2.8 million in the same period last year. Interest expense increased to $747,000 from $113,000 in association with the GasRock note payable. The Company also incurred a $2.7 million charge for amortization of deferred financing costs and discount on note payable in the six-month period, up from $99,000 in the year-ago period. Conversely, in the year-ago six-month period the Company had $2.6 million in liquidated damages pursuant to a registration rights arrangement versus no expense in that category in the 2008 period. Net loss for the six-month period, including the $6.8 million impairment, was $11.2 million, or $0.10 per basic and diluted share, as compared with $6.4 million, or $0.06 per basic and diluted share, in the same period last year.
About Rancher Energy Corp.
Rancher Energy is an innovative oil & gas exploration & development company with a targeted strategy to reinvigorate older, historically productive oil fields in the hydrocarbon-rich Rocky Mountain region of the United States. Using waterflood injection and CO2 flooding, coupled with other leading edge hydrocarbon recovery techniques such as 3-D seismic data and directional drilling, Rancher Energy plans to extract proven in-place oil that remains behind in mature fields. Rising energy demand combined with advances in oil recovery have made this strategy profitable. Rancher Energy is taking advantage of this convergence by acquiring low risk, high quality, historically productive plays with under-exploited reserves and developing customized enhanced recovery strategies to maximize production.
Forward-Looking Statements
This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include the Company's ability to obtain financing to implement its plan, to construct pipeline and other infrastructure, and for other operational and working capital purposes, the uncertainty of recovery factors for the enhanced oil recovery projects, the volatility of oil prices, general economic and business conditions, and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.
Rancher Energy Corp.
Consolidated Statements of Operations
(unaudited)
Three months ended Six months ended
September 30, September 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Revenues:
Oil & gas sales $ 1,995,901 $ 1,650,628 $ 3,894,869 $ 2,981,107
Gain (loss) on
derivative
activities, net 1,305,551 - (589,743) -
------------ ------------ ------------ ------------
Total revenues 3,301,452 1,650,628 3,305,126 2,981,107
Operating expenses:
Production taxes 243,366 201,182 473,649 362,651
Lease operating
expenses 549,441 691,429 1,172,863 1,279,661
Depreciation,
depletion and
amortization 301,708 368,724 577,549 700,256
Accretion expense 30,835 31,618 77,111 77,608
Impairment of
unproved
properties 6,800,000 - 6,800,000 -
Exploration expense - 89,668 9,602 130,829
General and
administrative
expense 959,777 1,513,100 2,008,154 4,053,091
------------ ------------ ------------ ------------
Total operating
expenses 8,885,127 2,895,721 11,118,928 6,604,096
------------ ------------ ------------ ------------
Loss from operations (5,583,675) (1,245,093) (7,813,802) (3,622,989)
------------ ------------ ------------ ------------
Other income (expense):
Liquidated damages
pursuant to
registration rights
arrangement - (1,268,283) - (2,645,393)
Amortization of
deferred financing
costs and discount
on note payable (1,366,527) (99,254) (2,675,702) (99,254)
Interest expense (375,399) (41,941) (746,694) (113,180)
Interest and other
income 8,737 25,541 19,318 73,865
------------ ------------ ------------ ------------
Total other
expense (1,733,189) (1,383,937) (3,403,078) (2,783,962)
------------ ------------ ------------ ------------
Net loss $ (7,316,864) $ (2,629,030) $(11,216,880) $ (6,406,951)
============ ============ ============ ============
Basic and diluted
net loss per share $ (0.06) $ (0.02) $ (0.10) $ (0.06)
============ ============ ============ ============
Basic and diluted
weighted average
shares outstanding 115,457,475 108,018,888 115,213,149 105,888,646
Rancher Energy Corp.
Consolidated Balance Sheets
(Unaudited)
September 30, March 31,
2008 2008
ASSETS ------------ ------------
Current Assets:
Cash and cash equivalents $ 5,141,371 $ 6,842,365
Accounts receivable and prepaid expenses 1,000,029 1,170,641
------------ ------------
Total current assets 6,141,400 8,013,006
Oil & gas properties, at cost
(successful efforts method):
Unproved 54,054,852 54,058,073
Proved 20,920,412 20,734,143
Less: Accumulated depletion, depreciation,
amortization and impairment (8,810,672) (1,531,619)
------------ ------------
Net oil & gas properties 66,164,592 73,260,597
Other assets:
Furniture and equipment, net of accumulated
depreciation of $288,107 and $204,420,
respectively 863,643 997,196
Other assets 903,630 1,300,382
------------ ------------
Total other assets 1,767,273 2,297,578
------------ ------------
Total assets $ 74,073,265 $ 83,571,181
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,229,472 $ 2,114,204
Accrued oil & gas property costs 250,000 250,000
Asset retirement obligation 360,638 337,685
Note payable, net of unamortized discount
of $366,123 and $2,527,550, respectively 11,873,877 9,712,450
Derivative liability 713,063 590,480
------------ ------------
Total current liabilities 14,427,050 13,004,819
Long-term liabilities:
Derivative liability 55,158 246,553
Asset retirement obligation 974,311 922,166
------------ ------------
Total long-term liabilities 1,029,469 1,168,719
Commitments and contingencies: - -
Stockholders' equity:
Common stock 1,162 1,150
Additional paid-in capital 92,226,152 91,790,181
Accumulated deficit (33,610,568) (22,393,688)
------------ ------------
Total stockholders' equity 58,616,746 69,397,643
------------ ------------
Total liabilities and stockholders' equity $ 74,073,265 $ 83,571,181
============ ============
Contacts:
John Works
Chief Executive Officer
Rancher Energy Corp.
303-629-1125
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
SOURCE: Rancher Energy
Copyright 2008 Market Wire, All rights reserved.
Second Quarter Summary
The Company reported a 100% increase in second quarter revenue, to $3.3 million from $1.7 million in the same quarter last year. Total revenue included oil & gas sales of $2.0 million, up from $1.7 million in the same quarter last year, and gains on derivative activities of $1.3 million. The Company had no derivative contracts in place for the second quarter of 2007. The increased oil & gas sales revenue was due to a higher average sales price of $109.79 per barrel in the second quarter versus $69.88 per barrel in the second quarter a year ago. Rancher Energy sold 18,179 barrels of oil -- its net interest -- in the second quarter, down from 23,622 barrels a year ago due to mechanical-related downtime on certain producing wells as well as normal, year-over-year production declines.
The Company recorded a $6.8 million, non-cash impairment charge in the second quarter, reflecting excess carrying costs of certain properties over the anticipated future realized value. With the exception of production taxes, which increased 21% to $243,000 in the second quarter, the Company reduced costs in all other expense categories. In particular, general and administrative expense declined by 37% to $960,000 from $1.5 million, reflecting year-over-year reductions in headcount, professional fees and other overhead expenses. Due to the $6.8 million, non-cash impairment, total operating expenses in the second quarter increased to $8.9 million from $2.9 million a year ago.
Other expense in the second quarter totaled $1.7 million versus $1.4 million in the corresponding quarter a year ago. Other expense primarily included amortization of deferred financing costs and interest expense on the GasRock note payable, which due date has been extended to April 30, 2009. Net loss for the second quarter, which included the $6.8 million, non-cash impairment charge, was $7.3 million, or $0.06 per basic and diluted share, versus a net loss of $2.6 million, or $0.02 per basic and diluted share, in the same quarter last year.
Rancher Energy closed the second quarter with cash and cash equivalents of $5.1 million versus $6.8 million at March 31, 2008, fiscal year end.
Six-Month Summary
Total revenue through six months ended September 30, 2008, increased to nearly $3.3 million from $3.0 million in the same period last year. Oil & gas sales of $3.9 million were partially offset by a $590,000 loss related to hedging activities required by the GasRock loan. Through six months the Company sold 34,262 barrels of oil at an average price of $113.68 versus 46,056 barrels of oil sold at an average price of $64.73 per barrel in the same period last year. Again, the decline in production was attributed to mechanical problems at certain producing wells.
Total operating expenses increased to $11.1 million from $6.6 million due to the $6.8 million, non-cash impairment charge incurred in the second quarter. Excluding the $6.8 million impairment charge, total operating expenses declined by $2.3 million, reflecting decreases in all expense categories except production taxes, which increased to $474,000 from $363,000 in the same period last year based on higher oil & gas sales revenue. General and administrative expense declined by more than 50% to $2.0 million from $4.1 million as the Company aggressively cut overhead expenses.
Total other expense in the six-month period was $3.4 million, up from $2.8 million in the same period last year. Interest expense increased to $747,000 from $113,000 in association with the GasRock note payable. The Company also incurred a $2.7 million charge for amortization of deferred financing costs and discount on note payable in the six-month period, up from $99,000 in the year-ago period. Conversely, in the year-ago six-month period the Company had $2.6 million in liquidated damages pursuant to a registration rights arrangement versus no expense in that category in the 2008 period. Net loss for the six-month period, including the $6.8 million impairment, was $11.2 million, or $0.10 per basic and diluted share, as compared with $6.4 million, or $0.06 per basic and diluted share, in the same period last year.
About Rancher Energy Corp.
Rancher Energy is an innovative oil & gas exploration & development company with a targeted strategy to reinvigorate older, historically productive oil fields in the hydrocarbon-rich Rocky Mountain region of the United States. Using waterflood injection and CO2 flooding, coupled with other leading edge hydrocarbon recovery techniques such as 3-D seismic data and directional drilling, Rancher Energy plans to extract proven in-place oil that remains behind in mature fields. Rising energy demand combined with advances in oil recovery have made this strategy profitable. Rancher Energy is taking advantage of this convergence by acquiring low risk, high quality, historically productive plays with under-exploited reserves and developing customized enhanced recovery strategies to maximize production.
Forward-Looking Statements
This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include the Company's ability to obtain financing to implement its plan, to construct pipeline and other infrastructure, and for other operational and working capital purposes, the uncertainty of recovery factors for the enhanced oil recovery projects, the volatility of oil prices, general economic and business conditions, and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.
Rancher Energy Corp.
Consolidated Statements of Operations
(unaudited)
Three months ended Six months ended
September 30, September 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Revenues:
Oil & gas sales $ 1,995,901 $ 1,650,628 $ 3,894,869 $ 2,981,107
Gain (loss) on
derivative
activities, net 1,305,551 - (589,743) -
------------ ------------ ------------ ------------
Total revenues 3,301,452 1,650,628 3,305,126 2,981,107
Operating expenses:
Production taxes 243,366 201,182 473,649 362,651
Lease operating
expenses 549,441 691,429 1,172,863 1,279,661
Depreciation,
depletion and
amortization 301,708 368,724 577,549 700,256
Accretion expense 30,835 31,618 77,111 77,608
Impairment of
unproved
properties 6,800,000 - 6,800,000 -
Exploration expense - 89,668 9,602 130,829
General and
administrative
expense 959,777 1,513,100 2,008,154 4,053,091
------------ ------------ ------------ ------------
Total operating
expenses 8,885,127 2,895,721 11,118,928 6,604,096
------------ ------------ ------------ ------------
Loss from operations (5,583,675) (1,245,093) (7,813,802) (3,622,989)
------------ ------------ ------------ ------------
Other income (expense):
Liquidated damages
pursuant to
registration rights
arrangement - (1,268,283) - (2,645,393)
Amortization of
deferred financing
costs and discount
on note payable (1,366,527) (99,254) (2,675,702) (99,254)
Interest expense (375,399) (41,941) (746,694) (113,180)
Interest and other
income 8,737 25,541 19,318 73,865
------------ ------------ ------------ ------------
Total other
expense (1,733,189) (1,383,937) (3,403,078) (2,783,962)
------------ ------------ ------------ ------------
Net loss $ (7,316,864) $ (2,629,030) $(11,216,880) $ (6,406,951)
============ ============ ============ ============
Basic and diluted
net loss per share $ (0.06) $ (0.02) $ (0.10) $ (0.06)
============ ============ ============ ============
Basic and diluted
weighted average
shares outstanding 115,457,475 108,018,888 115,213,149 105,888,646
Rancher Energy Corp.
Consolidated Balance Sheets
(Unaudited)
September 30, March 31,
2008 2008
ASSETS ------------ ------------
Current Assets:
Cash and cash equivalents $ 5,141,371 $ 6,842,365
Accounts receivable and prepaid expenses 1,000,029 1,170,641
------------ ------------
Total current assets 6,141,400 8,013,006
Oil & gas properties, at cost
(successful efforts method):
Unproved 54,054,852 54,058,073
Proved 20,920,412 20,734,143
Less: Accumulated depletion, depreciation,
amortization and impairment (8,810,672) (1,531,619)
------------ ------------
Net oil & gas properties 66,164,592 73,260,597
Other assets:
Furniture and equipment, net of accumulated
depreciation of $288,107 and $204,420,
respectively 863,643 997,196
Other assets 903,630 1,300,382
------------ ------------
Total other assets 1,767,273 2,297,578
------------ ------------
Total assets $ 74,073,265 $ 83,571,181
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 1,229,472 $ 2,114,204
Accrued oil & gas property costs 250,000 250,000
Asset retirement obligation 360,638 337,685
Note payable, net of unamortized discount
of $366,123 and $2,527,550, respectively 11,873,877 9,712,450
Derivative liability 713,063 590,480
------------ ------------
Total current liabilities 14,427,050 13,004,819
Long-term liabilities:
Derivative liability 55,158 246,553
Asset retirement obligation 974,311 922,166
------------ ------------
Total long-term liabilities 1,029,469 1,168,719
Commitments and contingencies: - -
Stockholders' equity:
Common stock 1,162 1,150
Additional paid-in capital 92,226,152 91,790,181
Accumulated deficit (33,610,568) (22,393,688)
------------ ------------
Total stockholders' equity 58,616,746 69,397,643
------------ ------------
Total liabilities and stockholders' equity $ 74,073,265 $ 83,571,181
============ ============
Contacts:
John Works
Chief Executive Officer
Rancher Energy Corp.
303-629-1125
Jay Pfeiffer
Pfeiffer High Investor Relations, Inc.
303-393-7044
SOURCE: Rancher Energy
Copyright 2008 Market Wire, All rights reserved.
Blue Dolphin Energy Company Reports Third Quarter Results
HOUSTON, Nov 13, 2008 /PRNewswire-FirstCall via COMTEX/ -- Blue Dolphin Energy Company (BDCO) ("we" or "our"), an independent oil and gas company with operations in the Gulf of Mexico, today released financial results for the three and nine month periods ended September 30, 2008.
For the three months ended September 30, 2008, we reported a net loss of $442,737 on revenues of $681,279 compared to a net loss of $238,148 on revenues of $785,588 for the three months ended September 30, 2007. The increase in net loss and reduction in revenues were primarily attributable to the impact of Hurricane Ike. As a result of Hurricane Ike, from September 13, 2008 forward, our oil and gas wells have been shut-in and our pipeline transportation revenues were significantly reduced. Although pipeline transportation revenues returned to pre-Hurricane Ike levels in early October, our oil and gas production remains shut-in due to downstream third-party onshore infrastructure damage. We experienced minimal physical damage to our assets; our pipeline and shore facilities are fully operational. Our oil and gas production is not expected to resume until late in the fourth quarter of 2008 or early first quarter of 2009.
(In thousands, except per share amounts)
Three Months Ended
September 30, Net Change
2008 2007 2008 vs 2007
Revenues $681 $786 $(105)
Net loss $(443) $(238) $(205)
Net loss per common share
Basic $(0.04) $(0.02) $(0.02)
Diluted $(0.04) $(0.02) $(0.02)
For the nine months ended September 30, 2008, we reported a net loss of $1,143,590 on revenues of $2,348,771 compared to a net loss of $1,341,821 on revenues of $2,261,511 for the nine months ended September 30, 2007. Despite the adverse impact of Hurricane Ike on both our oil and gas production and pipeline transportation revenues, our financial results reflect a reduction in the net loss for the nine months of 2008, primarily due to an increase in revenue from oil and gas sales and a decrease in pipeline operating expenses.
(In thousands, except per share amounts)
Nine Months Ended
September 30, Net Change
2008 2007 2008 vs 2007
Revenues $2,349 $2,262 $87
Net loss $(1,144) $(1,342) $198
Net loss per common share
Basic $(0.10) $(0.12) $0.02
Diluted $(0.10) $(0.12) $0.02
There are currently 11,654,207 shares of our common stock issued and outstanding.
Blue Dolphin Energy Company is engaged in the gathering and transportation of natural gas and condensate and production of oil and gas. For further information visit the Company's website at http://www.blue-dolphin.com.
Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Blue Dolphin Energy Company
Copyright (C) 2008 PR Newswire. All rights reserved
For the three months ended September 30, 2008, we reported a net loss of $442,737 on revenues of $681,279 compared to a net loss of $238,148 on revenues of $785,588 for the three months ended September 30, 2007. The increase in net loss and reduction in revenues were primarily attributable to the impact of Hurricane Ike. As a result of Hurricane Ike, from September 13, 2008 forward, our oil and gas wells have been shut-in and our pipeline transportation revenues were significantly reduced. Although pipeline transportation revenues returned to pre-Hurricane Ike levels in early October, our oil and gas production remains shut-in due to downstream third-party onshore infrastructure damage. We experienced minimal physical damage to our assets; our pipeline and shore facilities are fully operational. Our oil and gas production is not expected to resume until late in the fourth quarter of 2008 or early first quarter of 2009.
(In thousands, except per share amounts)
Three Months Ended
September 30, Net Change
2008 2007 2008 vs 2007
Revenues $681 $786 $(105)
Net loss $(443) $(238) $(205)
Net loss per common share
Basic $(0.04) $(0.02) $(0.02)
Diluted $(0.04) $(0.02) $(0.02)
For the nine months ended September 30, 2008, we reported a net loss of $1,143,590 on revenues of $2,348,771 compared to a net loss of $1,341,821 on revenues of $2,261,511 for the nine months ended September 30, 2007. Despite the adverse impact of Hurricane Ike on both our oil and gas production and pipeline transportation revenues, our financial results reflect a reduction in the net loss for the nine months of 2008, primarily due to an increase in revenue from oil and gas sales and a decrease in pipeline operating expenses.
(In thousands, except per share amounts)
Nine Months Ended
September 30, Net Change
2008 2007 2008 vs 2007
Revenues $2,349 $2,262 $87
Net loss $(1,144) $(1,342) $198
Net loss per common share
Basic $(0.10) $(0.12) $0.02
Diluted $(0.10) $(0.12) $0.02
There are currently 11,654,207 shares of our common stock issued and outstanding.
Blue Dolphin Energy Company is engaged in the gathering and transportation of natural gas and condensate and production of oil and gas. For further information visit the Company's website at http://www.blue-dolphin.com.
Certain of the statements included in this press release, which express a belief, expectation or intention, as well as those regarding future financial performance or results, or which are not historical facts, are "forward-looking" statements as that term is defined in the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The words "expect", "plan", "believe", "anticipate", "project", "estimate", and similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance or events and such statements involve a number of risks, uncertainties and assumptions, including but not limited to industry conditions, prices of crude oil and natural gas, regulatory changes, general economic conditions, interest rates, competition, and other factors. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE Blue Dolphin Energy Company
Copyright (C) 2008 PR Newswire. All rights reserved
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