3DX Technologies Inc. Reports Third Quarter 1997 Results.HOUSTON--(BUSINESS WIRE)--Nov. 5, 1997--3DX Technologies Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :TDXT) today reported a net loss of $590,000 ($.08 per common share) on total revenues of $928,000 for the third quarter ended Sept. 30, 1997. This compares to a net loss applicable to common stockholders of $624,000 ($.20 per common share) for the third quarter of 1996 on total revenues of $301,000. Oil and gas production for the third quarter of 1997 averaged 3.5 Mmcf equivalent of gas per day. This represents a significant increase over the production rate of .9 Mmcf equivalent per day in the third quarter of 1996. Below are the comments of C. Eugene Eugene, city (1990 pop. 112,669), seat of Lane co., W Oregon, on the Willamette River; inc. 1862. A processing and shipping center in a farming area, the "Emerald City" has lumbering, food-processing, and microchip and other electronics industries. Ennis Ennis, city (1990 pop. 13,883), Ellis co., N Tex.; inc. 1872. It is a trading, financial, rail, and processing center in a fertile blackland area that produces cattle, cotton, and grain. Ennis also has light manufacturing. , President and Chief Executive Officer of 3DX Technologies Inc. regarding the third quarter of 1997: To Our Stockholders: The company made solid progress with our drilling program during the third quarter, participating in a total of 14 wells. We expect to continue this level of drilling activity in the fourth quarter and are continuing to build our portfolio of drilling opportunities for 1998. Third Quarter Activities: 3DX participated in 14 gross wells (3.3 net) in the third quarter of 1997, bringing our total count to 19 gross wells (4.8 net) for the year. Of the 14 wells spudded during the quarter, 5 have been completed as producers, 3 are currently drilling and 6 were plugged and abandoned. Of the five wells which were successfully completed, three are a continuation of our Miocene trend play in the Texas Gulf Coast area. The other two, on the Geronimo Geronimo (jərŏn`əmō'), c.1829–1909, leader of a Chiricahua group of the Apaches, b. Arizona. As a youth he participated in the forays of Cochise, Victorio, and other Apache leaders. prospect, represent a new area of production for the company in San Patricio County, Texas San Patricio County is a county located in the U.S. state of Texas. It is part of the Corpus Christi Metropolitan Statistical Area. As of 2000, the population was 67,138. Its county seat is Sinton6. Geography According to the U.S. . These two wells on Geronimo are the first of five drilling locations which have been approved, and more locations may follow based on drilling results. A third well is currently drilling in this project area. Three of the 14 wells spudded in the third quarter were potential impact wells for the company. A potential impact well is one which, if successful, could significantly increase the proved oil and gas reserves of the company. These wells generally offer greater potential value and involve higher risk than the projects in the core drilling portfolio of the company. The first two potential impact wells, as previously disclosed, were unsuccessful. The third is currently drilling on the Ramrod ram·rod n. 1. A rod used to force the charge into a muzzleloading firearm. 2. A rod used to clean the barrel of a firearm. 3. A harshly demanding overseer; a disciplinarian. tr.v. prospect in Matagorda County, Texas Matagorda County is a county located in the U.S. state of Texas. As of 2000, the population was 37,957. Its county seat is Bay City6. Matagorda County is named for the canebrakes which once grew along the coast (Matagorda is a Spanish word meaning "thick bush"). . This well encountered a drilling break and gas shows while drilling into the target Frio Fri·o A river of southern Texas flowing about 354 km (220 mi) south and southeast to the Nueces River. formation at a depth of approximately 13,000'. Drilling has been temporarily delayed by mechanical issues dealing with the high pressures in the wellbore. Operations are continuing, but it will be at least two weeks before we reach a sufficient depth to log the objective formation. While encouraged by the preliminary indications from this well, we lack definitive information about the Frio objective. The company is planning to participate in three more potential impact wells in the fourth quarter. The first of these, on the Stag prospect in the deepwater Deepwater or Deep Water may refer to:
Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , was spudded at the end of October October: see month. . This well is located in approximately 1,700' of water in Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by Canyon Block 154 and is expected to reach its proposed total depth of 12,000' in early December. The company has a 10% working interest in this well. The other impact wells planned for the fourth quarter are a Rob sand test at the Raceland prospect in Lafourche Parish, Louisiana Lafourche Parish (French: Paroisse de Lafourche) is a parish located in the south of the U.S. state of Louisiana. The parish seat is Thibodaux. In 2000, its population was 89,974. Geography The parish has a total area of 3,813 km² (1,472 mi²). and a deep Vicksburg test on the Geronimo prospect. The company added three new projects to its portfolio in the third quarter. This brings our total for the year to 18, compared to 11 projects accepted at this time last year. The projects accepted during the quarter include the CI-202 block offshore Cote d'Ivoire in West Africa West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. . The company has a 10% working interest in both this block and the adjacent CI-24 block. The company expects to participate in an initial exploratory well in Cote d'Ivoire during the first half of 1998. The other two projects were in the Texas Gulf Coast area. We have seen both the number and quality of new project opportunities increase during the first nine months of 1997 compared to prior years. During the third quarter, we completed 3-D seismic acquisition on six major project areas covering 235 square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. . This seismic data was acquired and processed using the company's 3DXpress process for real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. seismic data evaluation. To date, we have identified eight drilling locations on these projects, and are continuing to evaluate the data for additional prospects. Two wells from these projects are already drilling, and at least three more are expected to spud in the fourth quarter. The industry commonly takes one year or longer between shooting the seismic and spudding a well. Using 3DXpress, the company has dramatically shortened short·en v. short·ened, short·en·ing, short·ens v.tr. 1. To make short or shorter. 2. this timeline
Timeline may refer to:
We have also commenced seismic acquisition on the Smith Point project in Chambers in chambers adj. referring to discussions or hearings held in the judge's office, called his chambers. It is also called "in camera." (See: in camera) County, Texas. This project is adjacent to Galveston Bay Noun 1. Galveston Bay - an arm of the Gulf of Mexico in Texas to the south of Houston Lone-Star State, Texas, TX - the second largest state; located in southwestern United States on the Gulf of Mexico and covers 25,000 acres under lease or option. The company has a 15% working interest in this project, which will be covered by an 80 square mile 3-D seismic survey. We are very enthusiastic about this project, which has potential in both the Frio and Vicksburg. 1997 Outlook The company is executing the strategy outlined for 1997 during the IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. . We have increased our average working interest to more than 20% so that our successful wells will have a larger positive impact on the company. We have overcome the delays associated with weather and rig availability in the first half of the year to get our 1997 drilling program performing well and we are continuing to build our inventory of drilling projects for 1998, including a well on our first international project in Cote d'Ivoire. We are seeing high quality project opportunities in the market. Our goal is to build an exploration and production company which can sustain unlimited growth. We appreciate the continuing support of our partners, employees and stockholders in this endeavor. -0- Certain statements in this news release regarding future expectations and plans for oil and gas exploration, development and production may be regarded as "forward looking statements" within the meaning of the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and other uncertainties inherent in the business of exploring for, developing and producing oil and gas which may be beyond the company's control. These risks are discussed in detail in the company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended Dec. 31, 1996. There can be no assurance that the company's exploration activities will be successful in meeting expectations. -0- 3DX Technologies Inc. is a knowledge-based oil and gas exploration company whose core competence Core competence Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. Primary areas of specialty. and strategic focus is the utilization of 3-D seismic imaging and other advanced technologies in the search for commercial quantities of hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. . -0-
3DX Technologies Inc.
Condensed Statements of Operations
(amounts in thousands, except per share data)
Three months ended Nine months ended
September 30, September 30,
1997 1996 1997 1996
(Unaudited) (Unaudited)
Revenues:
Oil and gas $ 718 $ 216 $2,040 $ 408
Rental income 88 27 205 120
Interest and other 122 58 530 218
----- ----- ------ -----
Total revenues 928 301 2,775 746
Costs and expenses:
Lease operating 72 13 175 28
Production and
ad valorem taxes 30 11 121 23
Depreciation, depletion and
amortization 599 36 1,402 126
Impairment of oil and gas
properties - 182 - 1,477
General and administrative 817 505 2,168 1,364
----- ----- ------ -----
Total costs and expenses 1,518 747 3,866 3,018
----- ----- ------ -----
Net loss (590) (446) (1,091) (2,272)
Dividends and accretion on
preferred stock - (179) - (546)
Net loss applicable to
common stockholders $ (590) $ (625) $(1,091) $(2,818)
------- ------- -------- --------
Loss per common share $ (0.08) $ (0.20) $ (0.15) $ (0.89)
-------- -------- -------- --------
Weighted average common
shares outstanding 7,218 3,152 7,184 3,150
----- ----- ----- -----
Oil and Gas Statistics:
Oil production -
Bbls per day 45 23 33 23
Gas production -
Mcf per day 3,181 786 3,007 451
Oil prices $ 18.13 $ 19.85 $ 19.42 $ 19.53
Gas prices $ 2.20 $ 2.41 $ 2.27 $ 2.30
3DX Technologies Inc.
Condensed Balance Sheets
(amounts in thousands)
September 30, December 31,
1997 1996
(Unaudited)
Assets:
Cash and cash equivalents $ 5,606 $ 17,522
Other current assets 741 719
Property and equipment, net 22,824 8,576
Other assets 8 10
------- --------
$ 29,179 $ 26,827
Liabilities and Stockholders' Equity:
Current liabilities $ 1,495 $ 2,253
Long-term debt - -
Stockholders' equity 27,684 24,574
------- -------
$ 29,179 $ 26,827
CONTACT: 3DX Technologies Inc. C. Eugene Ennis or Randall D. Keys, 281/579-3398 |
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