3Dx Technologies Inc. Reports Writedown of Oil and Gas Properties.HOUSTON--(BUSINESS WIRE)--Feb. 11, 1998--3DX Technologies Inc. (Nasdaq:TDXT) today released a preliminary estimate of a non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. to reflect the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of its oil and gas properties under the full cost method of accounting. Under the rules of the Securities and Exchange Commission ("SEC"), the net capitalized costs of evaluated oil and gas properties cannot exceed the present value of estimated future net revenues from proved oil and gas reserves, using oil and gas prices in effect at the end of the period, discounted at ten percent. Based on preliminary estimates of the SEC value of proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. by the Company's independent reservoir engineers, the Company expects to record a non-cash charge for the impairment of oil and gas properties of approximately $9,000,000 in the quarter ended December 31, 1997. This non-cash charge for impairment reflects 1) the decline in oil and gas prices during the quarter ended December 31, 1997, 2) the results of unsuccessful drilling activities in the fourth quarter of 1997 and 3) a conservative initial estimate of proved reserves on a recent discovery. On the previously announced discovery 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"). , the estimate of proved reserves by the Company's independent reservoir engineers was significantly below the Company's expectations. Based upon its evaluation of available seismic, drilling and geologic data, the Company believes that the ultimate reserve recovery from this field should be in excess of the initial estimate of proved reserves, but recognizes that these additional reserves cannot be classified as proved under SEC guidelines at this time. Gene Ennis, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of 3DX Technologies Inc. had the following comments regarding the impairment: "While we are disappointed that the results of our drilling activities in 1997 were not sufficient to overcome this writedown, the employees of 3DX remain committed to the success of the Company. We are enthusiastic about the opportunities for 1998, including the delineation of the Ramrod discovery. We appreciate the patience of our shareholders during this difficult period in the Company's history." 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. There can be no assurance that the Company's exploration activities will be successful in meeting the Company's expectations. 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. CONTACT: 3DX Technologies Inc., Houston C. Eugene Ennis or Randall D. Keys, 281/579-3398 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion