- Contract Drilling Revenue Increased 19%
- Announces Review of Strategic Alternatives
LEXINGTON, Ky., Nov. 9, 2010 (GLOBE NEWSWIRE) -- NGAS Resources (Nasdaq:NGAS) today reported third quarter 2010 total revenue of $11.0 million, compared to $11.2 million for the comparable quarter in 2009. Results for the quarter reflect a 19% increase in contract drilling revenue offset by lower production and higher transportation costs. Oil and gas production revenue was down 10% in the quarter reflecting a 15% production decline partially offset by slightly higher natural gas prices.
For the quarter, the company reported a net loss of $2.5 million, compared to a net loss of $1.1 million in third quarter 2009. Loss per share was $0.06, compared with a $0.04 loss per share in the same period last year. Third quarter 2009 results were positively impacted by a one-time, pre-tax gain of $3.4 million, or $0.07 per share, on the sale of the Appalachian gas gathering assets. Discretionary cash flow per share was $0.01 in third quarter 2010 compared to $0.14 in the same period last year. (A reconciliation of this non-GAAP measure is provided at the end of this release.)
William S. Daugherty, President and CEO commented, "We are continuing to reduce our cost structure to maximize our margins, particularly during this period of low gas prices. As we drill more horizontal wells, efficiencies are driving costs down." Added Mr. Daugherty, "During the quarter, we drilled our longest extended lateral to date in the Devonian shale to 4,800 feet. In addition to our improved economics from these extended laterals, we are accelerating our focus on oil drilling to take advantage of the disparity between oil and gas prices. We are very encouraged with the early results from our first two Weir oil and gas wells and plan to continue development on our Weir prospect."