American Energy Reports Second Quarter Financial Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Feb. 16, 2000 The American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Energy Group, Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AMEL) today reported record revenues and earnings for the quarter ended Dec. 31, 1999 as reported in its Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission. Oil revenues for the quarter increased by approximately three hundred forty percent (340%) to $476,763 from $107,724 for the prior year's comparable quarter. The Company attributes this increase to the reactivation reactivation to become active after a period of quiescence or, as in bacterial and viral infections, latency. cross reactivation of previously inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. wells in its two domestic fields, combined with an increase in the average price received for its oil of one hundred and nine percent (109%) over the average price of last year's comparable quarter. The Company experienced a net profit for the quarter of $178,071, or $0.005 per share, versus a net loss of $244,480, or ($0.008) per share in the quarter ended Dec. 31, 1998. On a quarter-to-quarter basis, the Company realized a fifty-one Adj. 1. fifty-one - being one more than fifty 51, li cardinal - being or denoting a numerical quantity but not order; "cardinal numbers" percent (51%) increase in revenues and a seven hundred fifty-three percent (753%) increase in earnings compared to the quarter ended Sept. 30, 1999. The primary factors contributing to this increase were increased domestic production and sales of oil at prices which were, on average, higher than the prices received in the prior quarter.
THE AMERICAN ENERGY GROUP LTD.
FINANCIAL HIGHLIGHTS
For the Quarter For the Quarter
ended ended
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12/31/99 12/31/98
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Revenues $476,763 $107,724
Net income (loss) $178,071 ($244,480)
Earnings (loss) per share 0.005 ( 0.008 )
Weighted average shares
outstanding (basic) 33,314,222 29,779,205
STATUS OF PAKISTAN PROJECT The Company also announced that it is continuing its efforts to raise capital primarily for application to its Pakistan project. The Company's wholly-owned subsidiary, Hycarbex-American Energy Inc., has on deposit in its Pakistan bank account, as a reserve, certain cash funds for application to the future costs incurred in connection with the replacement well for the David No. 1A well, abandoned in the spring of 1999, which well is required to be commenced by June June: see month. 1, 2000. Hycarbex is required to maintain on deposit $1,100,000 allocated to the replacement well and to have on deposit by June 1, 2000 an additional $1,100,000 for allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as to the next required exploration well after the replacement well is drilled. The funds on deposit do not satisfy the deposit requirements for these wells and must be supplemented by funds from outside loans, private sales of securities or other sources. The Company's efforts to raise the necessary capital during the quarter ended Dec. 31, 1999 were unsuccessful. In the event that continued capital raising efforts are unsuccessful within the current and next fiscal quarter, the Company will not have sufficient funds to satisfy the deposit requirements for its current proposed Pakistan exploration schedule. Such a lack of funds would probably cause the Company to default on its drilling obligations, which in turn would likely result in the forfeiture The involuntary relinquishment of money or property without compensation as a consequence of a breach or nonperformance of some legal obligation or the commission of a crime. The loss of a corporate charter or franchise as a result of illegality, malfeasance, or Nonfeasance. of the Concession CONCESSION. A grant. This word is frequently used in this sense when applied to grants made by the French and Spanish governments in Louisiana. due to non-performance. The American Energy Group Ltd. is an independent oil and gas exploration, drilling, and production company based in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , involved with both domestic and international exploration projects. Certain matters described in this report are forward looking statements and are subject to risks and uncertainties that could cause actual results to differ materially from those projected. |
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