In short, we had another solid quarter with a 24% increase of net earnings over the previous quarter to about $1.3 million, or $0.05 per basic share and $0.04 per diluted share. Revenues increased about 20% over the previous quarter to $4.6 million and net production increased by about 12% to 569 BOE per day.
I'd like especially point out though that our production was 72% oil, 6% gas/liquids. Revenue in earnings growth continue to be driven by growing oil production at Delhi Field, and our Louisiana Light Sweet pricing there for crude oil averaged $115 in the quarter compared to about -- almost $106 in the prior quarter.
In the fiscal second quarter we just completed, our net income from operations was about $2.4 million and that's a sequential improvement of about 25% from the prior quarter. Now let's just talk about some of the specific assets that we have, which would obviously start with Delhi Field. Gross production there increased 13% over the prior quarter and got to a level of 4,946 barrels per day or about 366 barrels a day net to us. Gross production for the year ago quarter was only 920 barrels a day. So we've seen a very dramatic increase over the last year and since it all resulted in capital expenditures of 2009 and 2010.
Now at Delhi crude oil that was sold there for $115 during the quarter was a quaint 22% premium over WTI Cushing. This difference in oil price is creating substantial incremental value for the company. I would like to note that our June 30, 2011 reserves for Delhi in our SEC filing were based on a flat oil price of less than $95 per barrel, some $20 less than what we actually received in this last quarter.Read the rest of this transcript for free on seekingalpha.com
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts