10 bagger
12 years ago
SPND.. $2.24..SPINDLETOP OIL & GAS CO. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Years Ended December 31,
2011 2010 2009
Revenues
Oil and gas revenues $ 8,000,000 $ 6,302,000 5,067,000
Revenue from lease operations 289,000 319,000 317,000
Gas gathering, compression, equip rental 172,000 179,000 192,000
Real estate rental income 436,000 448,000 503,000
Interest Income 83,000 158,000 208,000
Other 360,000 250,000 626,000
Total Revenues 9,340,000 7,656,000 6,913,000
Expenses
Lease operations 2,444,000 1,901,000 1,640,000
Production taxes, gathering and marketing 809,000 712,000 807,000
Pipeline and rental operations 25,000 33,000 34,000
Real estate operations 225,000 246,000 249,000
Depreciation and amortization 1,152,000 1,042,000 997,000
ARO accretion expense 34,000 48,000 86,000
General and administrative 3,275,000 3,467,000 3,332,000
Interest expense 55,000 84,000 71,000
Total Expenses 8,019,000 7,533,000 7,216,000
Income Before Income Tax 1,321,000 123,000 (303,000)
Current income tax provision (benefit) (229,000) (97,000) (226,000)
Deferred income tax provision (benefit) (203,000) (227,000) (116,000)
Total income tax provision (benefit) (432,000) (324,000) (342,000)
Net Income $ 1,753,000 $ 447,000 39,000
Earnings per Share of Common Stock
Basic and Diluted $ 0.23 $ 0.06 $ 0.01
Weighted Average Shares Outstanding
Basic and Diluted 7,645,858 7,631,652 7,618,940
10 bagger
12 years ago
SPND.. $1.66.. This is a table pounder..
When filing for the NT 10K SPND was asked several questions which it had to answer with the late filing.. Usually Late filings are of little interest because they almost alway's are the prelude to bad or sloppy bookkeeping with not such good results..
In this case earnings as they as super conservative should be above $1,650,000.00 EPS of over $0.21 per share vrs. $0.06 the prior year.. Cash flow of $2,960.000.00 is equal to $0.387 or almost twice the previous years cash flow of $0.195.. Cash should increase to to over $9,000,000.00 or $1.18 vrs $0.82 for the previous year..
On cash flow I would evaluate SPND at 6 times or $2.32 and if you add the cash of $1.18 you get $3.48.. Last on SPND was $1.66 so I can see at least a double from here W/O any undue risk.. If 4'th qtr. results were ther the same in the next 4 Qtrs I see the value of SPND being $5.32..
Net income for the period ended December 31, 2011 is anticipated to increase as compared with the same period in 2010. In 2010 we reported a net income of $447,000, however we anticipate that net income for the period ended December 31, 2011 will be in the area of approximately $1,500,000 - $1,750,000.
This estimated increase is due primarily to an increase in total oil and gas revenues from approximately $6,302,000 in 2010 to approximately $8,000,000 in 2011.
From the NT 10K...
Spindletop Oil & Gas Co. is unable to file its quarterly report on Form 10-K for the period ended December 31, 2011, without unreasonable effort and expense due to the late receipt of information required from consolidated subsidiaries.
PART IV - OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this notification.
Chris G. Mazzini 972 644-2581
(2) Have all other periodic reports required under Section 13 or 15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment Company Act of 1940 during the preceding 12 months or for such shorter period that the registrant was required to file such report(s) been filed? If answer is no, identify report(s), [X] YES [ ] NO
(3) Is it anticipated that any significant change in results of operations from the corresponding period for the last fiscal year will be reflected by the earnings statements to be included in the subject report or portion
thereof? [X] YES [ ] NO
If so, attach an explanation of the anticipated change, both narratively and quantitatively, and, if appropriate, state the reasons why a reasonable estimate of the results cannot be made.
Net income for the period ended December 31, 2011 is anticipated to increase as compared with the same period in 2010. In 2010 we reported a net income of $447,000, however we anticipate that net income for the period ended December 31, 2011 will be in the area of approximately $1,500,000 - $1,750,000.
This estimated increase is due primarily to an increase in total oil and gas revenues from approximately $6,302,000 in 2010 to approximately $8,000,000 in 2011.
March 30, 2012
By: /s/ Chris G. Mazzini
Chris G. Mazzini
President, Principal Executive Officer
dizzydon
13 years ago
Some historical background on the company...
this section no longer appears in the companies filings
.......from 2002 10-K filed 3/31/2003........
______________________ BACKGROUND_____________________________
The Company is a Texas Corporation. The Company was previously known as Prairie States Energy Co. ("PSE"). On July 13, 1990, Spindletop Oil & Gas Co., a Utah Corporation, ("SOG UTAH") merged into PSE, and the name of PSE was changed to Spindletop Oil & Gas Co., the Company herein.
The Company was originally incorporated in Colorado as Mid-America Drilling & Exploration, Inc., on August 9, 1978 as a wholly owned subsidiary of Mid-America Petroleum, Inc.("MAP"). The principal business of the Company at that time was contract drilling of oil and gas wells. The initial public offering of the Company occurred by prospectus dated December 13, 1979. In
January 1981, the shares of the Company owned by MAP were distributed as a dividend to the shareholders of MAP. The Company's name was changed to Prairie States Exploration, Inc. on March 15, 1983.
Prairie States Exploration, Inc. became insolvent in late 1983, and filed for protection under Chapter 11 of the Bankruptcy Code on December 14, 1983.
Prairie States Exploration, Inc. was successfully reorganized under Chapter 11 of the Bankruptcy Code, and the Bankruptcy Court approved the plan of reorganization on September 9, 1985. Pursuant to the Plan, the Company merged into a wholly owned subsidiary, Prairie States Energy Co., a Texas Corporation.
The Plan of Reorganization was proposed and funded by Paul E. Cash.
Since the reorganization, the Company has engaged in the general oil and gas
business, including exploration, development, and production of oil and gas,
the rental of oilfield production equipment and the ownership and construction
and operation of pipelines for the gathering and marketing of natural gas. SOG
Utah was incorporated on August 15, 1975 as Main Street Equities, Inc., a Utah
corporation. SOG Utah sold 5,000,000 shares of common stock in a public
offering in 1976. Until 1981, the business of the company consisted of minor
real estate operations. In October 1981 the name was changed to Aledo Oil and
Gas Company, and in January 1983 the name was changed to Spindletop Oil & Gas
Co.
The name "Spindletop" has been used by Paul E. Cash since 1975 in conjunction
with several previous oil and gas businesses in which he was engaged.
On July 13, 1990, SOG Utah was merged into PSE, and the name of the surviving
company was changed to Spindletop Oil & Gas Co., a Texas corporation. In the
merger, each shareholder of PSE received one-half share of the common stock of
the surviving company, for each share of PSE owned prior to the merger. Each
shareholder of SOG Utah received one and one-half shares of the common stock
of the surviving company, for each share of SOG Utah owned prior to the merger.
After the merger, the Company had 44,922,564 shares of common stock
outstanding, 32,255,195 of which were owned by the shareholders of PSE and
12,667,369 by shareholders of SOG Utah. Shares issued to the former
shareholders of SOG Utah have not been registered with the Securities and
Exchange Commission but according to Rule 144-K these shares would
automatically become free trading three years from date of issuance.
The Company's management believes that all shares issued to the former shareholders of SOG Utah are now free trading in accordance with Rule 144-K.
On January 31, 1997, the Company effected a one for six reverse stock split.
The Company reduced the authorized common shares from 150,000,000 to
100,000,000 and increased the par value from $.001 to $.01 per share.
On December 1, 1999, Giant Energy Corp. purchased controlling interest in Spindletop Oil & Gas Co. Giant purchased 5,860,889 shares of the Registrant's outstanding Common Stock and as of December 31, 2002 owns 77.3 percent of the Registrant's 7,582,471 shares of outstanding Common Stock.
Chris Mazzini,President and Chairman of the Board of the Registrant, is sole owner of Giant.
____________________________________________________________________________________________________
.......current insider ownership...............
Chris Mazzini and Michelle Mazzini ... 5,900,543 (1) 77%
12850 Spurling Rd., Suite 200 Dallas, Texas 75230
All officers&directors,as a group .....5,900,543
West Coast Asset Management, Inc. .. 703,000 9%
West Coast Opportunity Fund, LLC
1205 Coast Village Road
Montecito, California 93108
(1) Chris Mazzini directly owns 39,654 shares (1%). Giant Energy Corp. directly owns 5,860,889 shares (76%).
Chris Mazzini owns 100% of the common stock of Giant Energy Corp.
............ and Paul E. Cash.....
Common Stock 265,036 (3.47%) as of 01/29/2008
(he'd had 308,478 shares but sold 43,442 between 12/15/2006 and 7/23/2007)
...add these up and you get 6,868,579,or 90% of the 7,630,803 current outstanding
_________________________________________________________________________________________________________
here's something from West Coast Asset Management's ownership registration which may not mean a thing............
ITEM 4. Purpose of Transaction.
The Reporting Persons originally acquired all of the shares of common stock reported herein for investment purposes.
As an investor in the Issuer, the Reporting Persons have had from time to time general discussions with representatives of the Issuer, and with representatives of third parties, regarding various matters related to Issuer’s business and operations. Some of these discussions have included brief and cursory discussions of hypothetical strategic alternatives designed to maximize shareholder value.
The Reporting Persons intend to engage in communications with one or more stockholders, officers, or directors of the Issuer, and/or other third parties, regarding the Issuer’s operations and strategic direction. These communications may include ideas that, if effected, would result in, among other things: (i) the Reporting Persons acquiring additional shares of common stock, or disposing of any or all of their shares of common stock; (ii) an extraordinary corporate transaction, such as a merger, sale, reorganization, or liquidation involving the Issuer; (iii) a material change to Issuer’s present capitalization or dividend policy; (iv) any other material change in the Issuer’s business or corporate structure; (v) soliciting proxies or consents, to be used at either the Issuer’s regular annual meeting of shareholders, or at a special meeting of shareholders, or otherwise, with respect to the matters described above; (vi) seeking alone or with others to acquire control of the Issuer through a merger, proxy solicitation, tender offer, exchange offer or otherwise; and/or (vii) taking such other actions with respect to the Issuer as the Reporting Persons may from time to time determine.
Based on such discussions and upon the Reporting Persons’ continuous evaluation and review of Issuer, and other factors, the Reporting Persons will continue to consider various alternative courses of action and will in the future take such actions with respect to their investment in the Issuer as they deem appropriate in light of the circumstances existing from time to time.
Although the Reporting Persons expect to undertake one or more of the actions described above, there exists no agreement between the Reporting Persons of the kind described in subparagraphs (a) through (j) of Item 4 of Schedule 13D. Except to the extent that the foregoing discussions may be deemed a plan or proposal, none of the Reporting Persons has any plans or proposals that relate to or would result in any of the transactions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
dizzydon
14 years ago
WoW..that message certainly was a surprise!
haven't been in SPND or any other energy stocks in some time
..nice to see SpindleTop Oil&Gas Co. still generating some interest..Balnce Sheet stronger then when it was trading in the $5 to $7 range several years ago.
Looks like they hit a bit of a speed bump or something on Revenue and Profit last year vs. '08 & '07..hopefully that's just a temporary situation.
Their website looks impressive..nice improvement from '05 & '06, but they still let their filings and asset's do the talk'n for 'em!
right now i'm just pursueing a penny by the symbol CHDO..they should be giving their Q3 result's shortly and i'm hoping for a nice increase in the PPS and marked improvement in Volume
Best Of Luck with SPND
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Community Involvement
Spindletop Sponsors Shoe Drive and Blood Drive
Spindletop Oil & Gas Co. is very fortunate to have some exceptionally generous employees and tenants at Spindletop's building, One Spindletop Centre! Below are some of the ways in which Spindletop, through its employees and tenants, was engaged in bettering the community throughout the month of October.
During October, Spindletop had a shoe drive benefiting Austin Street Shelter. We put out the word that we were collecting wearable shoes to be donated to the shelter, and the response was overwhelming. Thanks to the generosity of all of those Spindletop employees and tenants, we were able to collect a multitude of shoes that were donated to the Austin Street Shelter. Austin Street Shelter serves the less fortunate and has myriad needs year round.
Spindletop Oil & Gas Co. partnered with Carter Bloodcare to host the One Spindletop Centre Blood Drive at the end of October 2007. The blood donations that Carter Bloodcare received from Spindletop employees and tenants were enough to save the lives of 48 people in the Dallas/Ft. Worth area! In addition, Carter Bloodcare pledged funds for each donor at the One Spindletop Centre Blood Drive to the Light the Night Walk (a fundraising event for the Leukemia and Lymphoma Society for which Bob Lilly, Jr., CEO of Bob Lilly Professional Promotions, was the Dallas area chairperson and Spindletop Oil & Gas Co. was a banner sponsor). Remember, it takes 1,100 blood donations per day to meet the needs of the Dallas/Ft. Worth area! Please donate blood at any area Carter Bloodcare.
Spindletop hosted a luncheon at One Spindletop Centre on the same day as the One Spindletop Centre Blood Drive. It provided an excellent opportunity for all of the tenants of One Spindletop Centre to spend time together (and for that morning?s blood donors to raise their blood sugar!). It was a festive Halloween-themed event, replete with spooky costumes, delicious candy, and spirited decorations. It was an occasion for Spindletop Oil & Gas Co. to let their spectacular tenants know how much they are appreciated!
Here's a link to their most recent 10-Q..
Community InvolvementSpindletop Sponsors Shoe Drive and Blood Drive
Spindletop Oil & Gas Co. is very fortunate to have some exceptionally generous employees and tenants at Spindletop?s building, One Spindletop Centre! Below are some of the ways in which Spindletop, through its employees and tenants, was engaged in bettering the community throughout the month of October.
During October, Spindletop had a shoe drive benefiting Austin Street Shelter. We put out the word that we were collecting wearable shoes to be donated to the shelter, and the response was overwhelming. Thanks to the generosity of all of those Spindletop employees and tenants, we were able to collect a multitude of shoes that were donated to the Austin Street Shelter. Austin Street Shelter serves the less fortunate and has myriad needs year round.
Spindletop Oil & Gas Co. partnered with Carter Bloodcare to host the One Spindletop Centre Blood Drive at the end of October 2007. The blood donations that Carter Bloodcare received from Spindletop employees and tenants were enough to save the lives of 48 people in the Dallas/Ft. Worth area! In addition, Carter Bloodcare pledged funds for each donor at the One Spindletop Centre Blood Drive to the Light the Night Walk (a fundraising event for the Leukemia and Lymphoma Society for which Bob Lilly, Jr., CEO of Bob Lilly Professional Promotions, was the Dallas area chairperson and Spindletop Oil & Gas Co. was a banner sponsor). Remember, it takes 1,100 blood donations per day to meet the needs of the Dallas/Ft. Worth area! Please donate blood at any area Carter Bloodcare.
Spindletop hosted a luncheon at One Spindletop Centre on the same day as the One Spindletop Centre Blood Drive. It provided an excellent opportunity for all of the tenants of One Spindletop Centre to spend time together (and for that morning?s blood donors to raise their blood sugar!). It was a festive Halloween-themed event, replete with spooky costumes, delicious candy, and spirited decorations. It was an occasion for Spindletop Oil & Gas Co. to let their spectacular tenants know how much they are appreciated!
link to SPND's most recent 10-Q..
http://yahoo.brand.edgar-online.com/DisplayFiling.aspx?dcn=0000867038-10-000015
..well well..up to $13m in Shareholder's Equity!..very nice
OilStockReport
14 years ago
The last press announcement listed on their website. I wonder why they stopped putting out press announcements?
PRESS RELEASE
SPINDLETOP OIL & GAS CO. RELEASES EARNINGS FOR FIRST HALF OF 2008.
DALLAS, August 19 /PRNewswire-FirstCall/ -- Spindletop Oil & Gas Co. (OTC
Bulletin Board: SPND) (the "Company") has released its earnings for the six months
ended June 30, 2008. The Company reported Net Income of $2,194,000 on gross
revenues of $6,963,000 for the six months ended June 30, 2008 as compared with Net
Income of $730,000 on gross revenues of $3,577,000 for the six months ended June 30,
2007. Earnings per share of common stock for the six months ended June 30, 2008 was
$0.29 per share compared to $0.10 per share for the same period in 2007.
Natural gas revenues for the first six months of 2008 were $5,197,000 compared to
$2,284,000 for the same period in 2007, an increase of $2,913,000, or 128%. Natural gas
volumes for the first half of 2008 were 679,000 mcf compared to 349,000 mcf during the
first half of 2007, an increase of 330,000 mcf, or 95 %. This increase was due to the
addition of five new Barnett Shale wells that started producing gas during the third
quarter of 2007 through the first half of 2008. Average natural gas prices received were
$8.84 per mcf in the first half of 2008 as compared to $6.55 per mcf in the first half of
2007, an increase of 35%.
Oil sales for the first six months of 2008 were $1,192,000 compared to $692,000 in the
first six months of 2007, an increase of $500,000 or 72%. Oil volumes for the first half
of 2008 were 13,000 bbls compared to 12,000 bbls during the first half of 2007, an
increase of 1,000 bbls, or 8%. Average oil prices received were $96.55 per bbl in the
first half of 2008 compared to $56.68 per bbl in the first half of 2007, an increase of 70%.
This press release may contain "forward-looking statements" as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such statements are based on
management's current expectations and are subject to a number of factors and
uncertainties which could cause actual results to differ materially from those described
herein. Although the Company believes the expectations in such statements to be
reasonable, there can be no assurance that such expectations will prove to be correct.
Spindletop Oil & Gas Co. is a publicly held independent exploration and production
company headquartered in Dallas, Texas that operates oil and gas properties throughout
Texas, Alabama, Arkansas, Louisiana, Oklahoma and New Mexico. The company also
operates several gas pipeline gathering systems and owns interests in outside operated oil
and gas producing properties in sixteen states. Approximately 87% of the company's
reserves are natural gas and 13% are crude oil and condensate.
The company filed its Annual Report Form 10-K with the Securities and Exchange
Commission on April 14, 2008. For more information, please go to the Company’s
website at http://www.spindletopoil.com, or contact Robert E. Corbin, Controller of
Spindletop Oil & Gas Co., 972-644-2581.
OilStockReport
14 years ago
Summary of operations from 10q
North Texas:
------------
During the fourth quarter of 2008, the Poston #1 well, located on our Godley
North Block, in Johnson County, Texas was drilled to the Barnett Shale Formation at a depth of 6,754 ft. and cased. The well was completed and was placed on-line and went into sales with an initial rate of 400 mcfgpd on August 2, 2010. The well is located in the Newark, E. (Barnett Shale) field. The Company owns a 91% working interest in this well.
West Texas:
-----------
During the first half of 2010, the Company participated in the drilling of four non-operated wells located in the Fuhrman-Mascho field in Andrews County, Texas. Three of the wells were cased, completed and placed in production during the second quarter of 2010. The fourth well was cased and completed July 2, 2010 and placed in production July 11, 2010. The Miles #13, #14, #15, and #16 wells had initial production rate of 148 bopd, 69 bopd, 99 bopd, and 76 bopd respectively, and 30 mcfgpd , 30 mcfgpd, 28 mcfgpd, and 16 mcfgpd respectively from the San Andres formation at an approximate depth of 4,750 ft. The Company owns a 4.6875% working interest and a 3.28125% net revenue interest in these wells.
South Texas:
------------
During the second quarter of 2010, the Company acquired working interests in five natural gas wells in Victoria County, Texas. The Company assumed operatorship of three of these wells effective April 1, 2010.
The Vaquero #1 well produces gas from the Rob Welder (Wilcox 9100) field in the Wilcox Group from a perforated interval of 9,314-46 ft. Production from the Vaquero #1 is approximately 25 mcfgpd and one-half bopd. The Vaquero "A" #2 well produces gas from the Welder Ranch field from a perforated interval of 12,026-90 ft. in the Wilcox Group. The Vaquero "A" #2 well was initially shut-in for mechanical repairs but prior to issuance of this report has been re-opened and is expected to produce approximately 25 mcfgpd. The Rob Welder #1 well produces gas from the McFaddin (5700) field from a perforated interval at 5,660-58 ft. in the Yegua Formation. Production from this well is approximately 120 mcfgpd and one-half bopd. The working interests in these three wells are 94.6308%, 85%, and 100% with net revenue interests of 64.6859%, 58.1254%, and 68% respectively.
The interests acquired in the two remaining wells were non-operated working interests. The Company acquired a 25% non-operating working interest and 17% net revenue interest in the Welder Ranch #1 well which produces gas from the Rob Welder (Wilcox 10,400) field from the perforated interval of 10,480-10,520 ft. in the Wilcox Group. Production from this well is approximately 19 mcfgpd and one-half bopd. The Company acquired a 24.171123% non-operating working interest and 16.437236% net revenue interest in the Welder Ranch A #2 well which produces gas from the Marshall (Middle Wilcox) field from a perforated interval of 10,306-12 ft. in the Middle Wilcox Group. Production from this well is approximately 168 mcfgpd and 3.7 bopd.
East Texas:
-----------
The Company participated for a 45% non-operated working interest in the drilling of two wells operated by Giant Energy Co., LP, a related entity. The two wells are located in Nacogdoches County, Texas. The Giant Gas Unit #1 well was spud on November 11, 2009 and reached a total depth of 9,700 ft. on December 6, 2009. Production casing was set to a depth of 9,616 ft. through the Travis Peak Formation. The Giant Gas Unit #2 well was spud on June 1, 2010 and reached a total depth of 9,608 ft. on July 7, 2010. Production casing was set to a depth of 9,605 ft. through the Travis Peak Formation. The wells are awaiting a pipeline connection.
For all of the above wells, the Company cautions that initial production rates may not be an indicator of stabilized production rates or an indicator of the ultimate recoveries obtained.
OilStockReport
14 years ago
I am very impressed with their company after reading the last 10q.
Results of Operations
Six months ended June 30, 2010 compared to six months ended June 30, 2009
Oil and gas revenues for the first half of 2010 were $3,161,000, an increase of $715,000 or 29% from revenues of $2,446,000 during the same period in 2009.
Natural gas revenues for the first six months of 2010 were $2,042,000 compared to $1,840,000 for the same period in 2009, an increase of 202,000, or 11%. Natural gas volumes sold for the first half of 2010 were approximately 399,000 mcf compared to approximately 478,000 mcf during the first half of 2009, a
decrease of approximately 79,000 mcf, or 17 %.
Average natural gas prices received were approximately $5.37 per mcf during the first half of 2010 as compared to approximately $3.85 per mcf in the first half of 2009, an increase of approximately $1.52 per mcf or 39%.
Oil sales for the first six months of 2010 were approximately $1,119,000 compared to approximately $606,000 in the first six months of 2009, an increase of approximately $513,000 or 85%. Oil volumes sold for the first six months of 2010 were approximately 15,000 bbls compared to approximately 14,000 bbls during the first six months of 2009, an increase of approximately 1,000 bbls,
or 7%.
Average oil prices received were $72.15 per bbl in the first half of 2010 compared to $43.57 per bbl in the first half of 2009, an increase of approximately $28.58 or 66%. This increase in the average sales price is the result of the overall improvement in crude oil pricing.
Revenue from lease operations for the first half of 2010 was approximately $133,000 compared to approximately $173,000 for the first half of 2009, a decrease of about $40,000 or 23%. This net decrease between periods resulted from a decrease of approximately $16,000 in field operations income, a decrease of approximately $28,000 in operator overhead income, and an increase of
approximately $4,000 in pumper service revenue.
Revenue from gas gathering, compression and equipment rental for the first half of 2010 was approximately $71,000, compared to approximately $95,000, a net decrease of $24,000 or 25% for the same period in 2009. Gas gathering and compression revenue is generated from the volume of MCFs that are processed through the Company's gathering systems. Gas sales volumes for the first half
of 2010 were less than during the same period in 2009, causing the decrease in revenues.
Interest income for the first half of 2010 was approximately $84,000 as compared with approximately $111,000 for the same period in 2009, a decrease of about $27,000 or 24%. Interest earned on amounts in money market accounts and in certificates of deposit decreased between the two periods as interest rates
continued to decrease. During 2009, the Company moved amounts normally invested in certificates of deposit into business checking accounts at its primary banking institution to take advantage of the unlimited FDIC insurance coverage. The Company also moved money to take advantage of higher FDIC coverage of $250,000 at other banks in order to protect the Company's liquid
assets from risk of loss for bank failures.
Other income for the first half of 2010 was approximately $37,000 as compared with approximately $151,000 for the same period in 2009, a decrease of approximately $114,000 or 76%. Approximately $90,000 of this amount was for severance and ad valorem tax services provided by the Company to several of its leases. Approximately $18,000 was for divestitures of a non-operated lease
interest and land not associated with oil and gas interests in 2009. The remaining decrease was due to other miscellaneous items.
Lease operating expenses in the first half of 2010 were $643,000 as compared to $629,000 for the same period in 2009, an increase of approximately $14,000, or 2%.
Production taxes, gathering, transportation and marketing expenses for the first half of 2010 were approximately $347,000 as compared to $428,000 during the first half of 2009, a net decrease of approximately $81,000 or 19%. The decrease is due to timing differences of severance tax credits on high cost wells drilled and placed on line during 2008. The credits were accrued as of
December 31, 2008 and reversed in January 2009. A portion of the credits were utilized in May, 2009 with the remaining $169,000 being utilized in July, 2009. As a result, the six months ended June 30, 2009 production taxes were approximately $169,000 higher. The remaining increase in this line item of approximately $88,000 relates to the overall increase in revenues subject to severance tax.
For presentation purposes, the Company split out amounts for production taxes, gathering, transportation, and marketing expenses separately from lease operations. In prior years, these amounts were presented together under the line item description of lease operating expenses. There have been no changes to the expenses for 2009 but the presentation for 2009 has been restated to conform to the new presentation. The Company feels the separate reporting of amounts gives a better look at the results of the Company's expenses to operate its leases.
Real estate expenses during the first six months of 2010 were approximately $99,000 compared to approximately $95,000 for the same period in 2009, an increase of $4,000 or 4%. The Company's real estate expenses have been consistent for the period with no significant differences.
Depreciation, depletion, and amortization for the first half of 2010 was $424,000 as compared to $609,000 for the same period in 2009, a decrease of $185,000, or 30%. $361,000 of the amount for the first half of 2010 was for amortization of the full cost pot of capitalized costs compared to $372,000 for the second half of 2009, a decrease of $11,000 or 3%. The Company re-evaluated
its proved oil and gas reserve quantities as of December 31, 2009. This re-evaluated reserve base was adjusted at the end of each quarter for the estimated addition and disposition of reserves during the first six months of 2010 and reduced for oil and gas reserves that were produced or sold during the period. A depletion rate of 1.866% for the first quarter of 2010 and a
depletion rate of 1.546% for the second quarter of 2010 was calculated and applied to the Company's full cost pot of capitalized oil and gas properties compared to a total depletion rate of 3.475% for the first six months of 2009.
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
seven-up
4 years ago
Lazarus
5 years ago
UserAlias1
8 years ago
Hot Features
Premium
