Announces the Initial Production Rates From Two Bakken and Two Three Forks Formation Wells
- Produced 444,702 BOE, or 1,215 BOE/D during the year from 83 gross (15.05 net) producing wells at December 31, 2012.
- Recognized a company record $32.5 million in oil and gas revenue during 2012, compared to revenues of $31.0 million during 2011. The $1.5 million increase in revenue is primarily due to higher oil sales volumes in 2012 when compared to 2011.
- At December 31, 2012, we had $2.8 million in cash and cash equivalents. Our working capital (current assets minus current liabilities) was $12.8 million.
- During the year ended December 31, 2012, we received an average of $2.7 million per month from our producing wells with an average operating cost of $462,000 per month (excluding workover costs) and production taxes of $291,000, for average cash flows of $2.0 million per month from oil and gas production before non-cash depletion expense.
- Excluding the $5.2 million non-cash impairment taken on our oil and gas properties during the period, oil and gas operations produced operating income of $6.9 million during the year ended December 31, 2012 as compared to operating income of $5.4 million during the year ended December 31, 2011. The increase is primarily due to (a) a $4.4 million increase in oil revenues during 2012 compared to 2011 and (b) $1.1 million lower lease operating expenses in the year ending December 31, 2012 as compared to the prior year. This increase was partially offset by $896,000 higher depletion expense in 2012 and a $2.8 million decrease in natural gas and natural gas liquids revenues primarily due to production declines from our wells in the Gulf Coast.
- At year-end 2012, the Company had estimated proved reserves of 2,913,324 BOE (90% oil and 10% natural gas), with a standardized measure value of $70.1 million and a PV10 of $76.5 million.
- On April 10, 2012, the borrowing base under the Wells Fargo Senior Credit Facility was redetermined and was increased from $28 million to $30 million and the commitment amount increased from $75 million to $100 million. At December 31, 2012 we had $10 million outstanding under the facility to fund our drilling programs.
- During the year ended December 31, 2012, we recorded a net loss after taxes of $11.2 million as compared to a net loss after taxes of $4.8 million during the same period of 2011. Earnings before interest, income taxes, depreciation, depletion and amortization, accretion of discount on asset retirement obligations, non-cash impairments, unrealized derivative gains and losses and non-cash stock compensation expense ("EBITDAX"), which is a non-GAAP performance measure was $13.2 million for the year ended December 31, 2012, an increase of 33.2% from $9.9 million for the same period of 2011. Please refer to the respective reconciliations in this release for additional information about this measure.