3DX Technologies Inc. reports first quarter results.HOUSTON--(BUSINESS WIRE)--May 7, 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 $40,000 ($.01 per common share) on revenues of $924,000 for the first quarter of 1997. This compares to a net loss applicable to common shareholders of $638,000 ($.20 per common share) for the first quarter of 1996 on revenues of $196,000. 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 first quarter of 1997: To our stockholders: With the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of our $27.3 million initial public offering, 3DX has made solid progress in its first quarter as a public company. Though adverse weather slowed drilling this quarter, we are rapidly executing our unique business plan. We expect to drill over 40 wells in 1997 to meet our aggressive targets for the year. First Quarter: Progress toward our goals In the first quarter of 1997, 3DX generated 19 well locations which our partners have authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: for drilling. This equals the total number of locations approved in all of 1996 and nearly half of our drilling target for the current year. In order to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. another phase of our growth strategy, we significantly increased our average working interest in those wells to over 20 percent. Further, we brought seven new projects into our expanding portfolio. These represent five new project areas, including our first international project offshore 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. and our first projects in the deep-water deep-wa·ter adj. Of, relating to, or carried on in waters of a relatively great depth: a deep-water port; deep-water drilling for oil. Adj. 1. flex trend in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico 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 , both with Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Energy Resources Inc. (NYSE NYSE See: New York Stock Exchange : SFR SFR Swiss Franc (national currency) SFR Société Française du Radiotéléphone (French cellular provider) SFR Single Family Residence SFR Single Family Residence (real estate) ). As 1997 began we were active in three trends. During the first quarter we added two additional trends, acquiring 3-D seismic data and gaining control of extensive acreage there. By the quarter's end we controlled nearly 600,000 gross acres in our five active trend areas and had increased our proprietary 3-D seismic inventory to 1,150 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. . We also added two new partners during the first quarter, Rutherford Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. Oil Corp. and Union Gas Corp., in pursuit of our dynamic growth in projects. Unusually high rainfall in several project areas plus problems with rig availability prevented us from spudding three wells which were originally scheduled for this quarter. Our target for the quarter had been five wells; two were spudded. We expect to make up this difference during the year and finish 1997 on target. Our production for the first quarter averaged 2.6 Mmcf equivalent of gas per day. This represents a six-fold Adj. 1. six-fold - having six units or components sextuple, sixfold multiple - having or involving or consisting of more than one part or entity or individual; "multiple birth"; "multiple ownership"; "made multiple copies of the speech"; "his multiple increase over the .45 Mmcfe per day in the first quarter of 1996 and is a 50 percent increase over the fourth quarter of 1996. However, our highest priority is getting our 1997 drilling program into high gear to sustain these production increases into the future. To accommodate the continuing growth in new project activity, we added to our infrastructure, bringing on eight new people, substantially increased our computing computing - computer resources, and initiated a college hiring program to provide the basis for future growth of the company. 1997 Outlook Given the current pace, we anticipate meeting all targets we set for 1997: spudding at least 40 gross wells, attaining a 15 percent to 20 percent average working interest in projects, adding five new, high-quality partners and 25 projects, increasing our team to 25 employees, and building a substantial drilling inventory for 1998. We look forward to a year that continues to reflect the success of 3DX Technologies' unique, high-growth business model. Thank you for participating with us in this exciting growth opportunity. 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 known and unknown 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, as well as other 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 December 31, 1996. Actual results may vary materially. 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. .
3DX Technologies Inc.
Condensed Statements of Operations
(amounts in thousands, except per share data)
Three months ended
______________________
March 31, March 31,
1997 1996
__________ __________
(unaudited) (unaudited)
Revenues:
Oil and gas $ 672 $ 94
Rental income 85 13
Interest and other 167 89
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Total revenues 924 196
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Costs and expenses:
Lease operating 41 9
Production and ad valorem taxes 50 6
Depreciation, depletion and
amortization 426 138
Impairment of oil and gas properties - 204
General and administrative 447 292
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Total costs and expenses 964 649
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Net loss (40) (453)
Dividends and accretion on
preferred stock - (185)
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Net loss applicable to
common stockholders $ (40) $ (638)
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Loss per common share $ (0.01) $ (0.20)
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Weighted average common shares
outstanding 7,112 3,149
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___________________________________________________________________
Oil and Gas Statistics:
Oil production - Bbls per day 22 25
Gas production - Mcf per day 2,504 296
Oil prices $ 24.05 $ 18.88
Gas prices $ 2.77 $ 1.95
___________________________________________________________________
3DX Technologies Inc.
Condensed Balance Sheets
(amounts in thousands)
March 31, December 31,
1997 1996
__________ ____________
(unaudited)
Assets:
Cash and cash equivalents $ 16,258 $ 17,522
Other current assets 668 719
Property and equipment, net 12,876 8,576
Other assets 9 10
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$ 29,811 $ 26,827
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Liabilities and Stockholders' Equity:
Current liabilities $ 1,344 $ 2,253
Redeemable preferred stock - -
Stockholders' equity 28,467 24,574
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$ 29,811 $ 26,827
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CONTACT: 3DX Technologies Inc., Houston C. Eugene Ennis, 281/579-3398 or Randall D. Keys, 281/579-3398 |
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