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ALAMCO REPORTS HIGHER SECOND QUARTER 1993 EARNINGS, REPAYMENT OF REVOLVING CREDIT FACILITY, INCREASES TO 1993 CAPITAL INVESTMENT PROGRAM

 CLARKSBURG, W.Va., Aug. 16 /PRNewswire/ -- Alamco, Inc. (AMEX: AXO) today announced higher second quarter 1993 net income and income from operations.
 The company reported net income increased by 84 percent to $215,000 (or $0.08 per share) for the quarter ended June 30, 1993, as compared to restated net income of $117,000 (or $0.05 per share) for the second quarter of 1992. Income from operations totaled $248,000 for the quarter and represents a $129,000, or 108 percent, improvement over income from operations for the quarter ended June 30, 1992. Cash flow from operations for the second quarter of 1993 totaled $936,000, an increase of $194,000 or 26 percent over second quarter 1992.
 Net income for the first six months of 1993 totaled $672,000 (or $0.26 per share) as compared to $1,389,000 (or $0.54 per share) for the same period in 1992, which included $1,058,000 (or $0.41 per share) related to the cumulative effect, net of tax, of an accounting change. Income from operations totaled $827,000 for the first six months of 1993, an increase of $433,000 or 110 percent, as compared to income from operations of $394,000 for the same period last year. Cash flow from operations totaled $2,816,000 for the first six months of 1993, an increase of $623,000 or 28 percent over last year.
 John L. Schwager, president and chief executive officer, announced that on July 29, 1993, the company repaid its revolving credit facility loan balance of $8.6 million with BANK ONE, Texas, N.A. with funds received in connection with the company's recently completed public stock offering. The prepayment extinguishes all but $660,000 of the company's long-term debt. Also, Schwager reported that the company and BANK ONE have reached an agreement to amend the credit facility to increase the maximum available credit line under the revolving facility to $14.8 million from $13.0 million.
 Schwager also reported that through the first half of 1993 the company has invested $2.3 million in gas and oil investment activities, as compared to $2.2 million invested in gas and oil activities for the entire year 1992. Through June 30, 1993, the company has drilled 15 wells, of which 12 wells were successful. The company's average ownership in these successful wells exceeds 90 percent. The company has also increased its ownership in approximately 105 company-operated wells. On Aug. 13, 1993, the company's board of directors approved an increase in the company's 1993 capital investment program. The company now anticipates investing over $5.3 million in gas and oil investment activities and drilling a total of 30 wells in 1993.
 Alamco, headquartered in Clarksburg, is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO.
 ALAMCO, INC. AND SUBSIDIARY
 Condensed Consolidated Statement of Income
 (Unaudited)
 (In thousands, except share data)
 Period Ended Three Months Six Months
 June 30 1992 1993 1992 1993
 Revenues:
 Gas and oil sales $2,067 $2,194 $4,050 $4,541
 Well tending income 592 523 1,194 1,090
 Other 60 48 106 119
 Total revenues 2,719 2,765 5,350 5,750
 Expenses:
 Operating 978 1,005 1,912 2,069
 General and administrative 656 665 1,184 1,166
 Depreciation, depletion and
 amortization 773 686 1,475 1,365
 Interest 193 161 385 323
 Total expenses 2,600 2,517 4,956 4,923
 Income from operations 119 248 394 827
 Other nonoperating income,
 net 53 36 93 83
 Income before income taxes and
 cumulative effect of DD&A
 accounting change 172 284 487 910
 Income tax provision 55 69 156 238
 Income before cumulative effect
 of DD&A accounting change 117 215 331 672
 Cumulative effect of DD&A accounting
 change, net of tax -- -- 1,058 --
 Net income 117 215 1,389 672
 Per share:
 Income before cumulative effect
 of DD&A accounting
 change $0.05 $0.08 $0.13 $0.26
 Cumulative effect of DD&A
 accounting change, net of
 tax -- -- $0.41 --
 Net income per share $0.05 $0.08 $0.54 $0.26
 Weighted average number of
 shares outstanding 2,555,423 2,528,661 2,549,694 2,547,340
 Other Selected Financial Data
 Cash flow from operations $742 $936 $2,193 $2,816
 -0- 8/16/93
 /CONTACT: Jane Merandi of Alamco, 1-800-873-2526/
 (AXO)


CO: Alamco, Inc. ST: West Virginia IN: OIL SU: ERN

DM-JM -- PG004 -- 3024 08/16/93 11:18 EDT
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Publication:PR Newswire
Date:Aug 16, 1993
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