Arch Petroleum reports second quarter results; record oil production.FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 15, 1996--Arch Petroleum 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 - ARCH) Thursday Thursday: see week. announced that it is reporting net income of $938,000 ($0.03 per common share after preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) ) from revenues of $23.42 million for the second quarter ended June 30, 1996. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in working capital was $1.68 million for the quarter. Arch reported net income of $435,000 ($0.00 per common share after preferred dividends) from revenues of $16.81 million for the comparable quarter in 1995. Arch's President, Larry Kalas KALAS Korean Association for Laboratory Animal Science , stated, "Revenues for the quarter were boosted by continuing strong oil and natural gas prices as well as by growing sales from our pipeline subsidiaries where gross margins of a record $1.27 million were reached on pipeline revenues of $16.87 million. "Oil production increased to a quarterly record of 142,700 barrels, due to a full quarter of Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. production and increased production in Lea County, N.M. Also contributing to the profit was the April sale of selected non-strategic assets in the Spraberry Trend area of West Texas. "As to our work on company projects during the quarter, three Lea County, N.M. wells were drilled and successfully completed in the Teague infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drilling program, with drilling continuing on this 10 well program at this time. A successful oil discovery was made in Young County, Texas where Arch holds a 43 percent interest. "In Canada, plans were finalized See finalization. on a drilling program which began early in the third quarter on several of the company's prospects in Alberta. Results from these prospects will be announced in the next few weeks. We look forward to a number of other meaningful domestic and Canadian projects coming up in the remaining two quarters of the year." Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. . It owns interests in domestic producing properties located in Texas and New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). and in Canadian producing properties in Alberta through its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Trax Petroleums Limited. Arch also holds interests in gas gathering and transmission through its subsidiaries, Saginaw Pipeline Company, L.C. and Onyx onyx (ŏn`ĭks), variety of cryptocrystalline quartz, differing from agate only in that the bands of which it is composed are parallel and regular. Pipeline Company, L.C. -0- ARCH PETROLEUM INC. SELECTED FINANCIAL HIGHLIGHTS AUG. 15, 1996 (000's except per share data and product prices) CONSOLIDATED STATEMENTS OF OPERATIONS
QUARTER SIX MONTHS
ENDED ENDED
6/30/96 6/30/95 6/30/96 6/30/95
------- ------- ------- -------
TOTAL REVENUES $23,416 $16,813 $43,248 $30,860
NET INCOME (LOSS)
BEFORE DIVIDENDS 938 435 1,426 156
DIVIDENDS 400 400 800 800
INCOME (LOSS) PER
COMMON SHARE 0.03 0.00 0.04 (0.04)
WEIGHTED AVERAGE COMMON AND
EQUIVALENT SHARES OUTSTANDING 17,231 17,167 17,234 17,176
PRODUCTION VOLUMES AND PRODUCT PRICES
QUARTER SIX MONTHS
ENDED ENDED
6/30/96 6/30/95 6/30/96 6/30/95
------- ------- ------- -------
OIL - Barrels 142.7 90.0 280.3 177.3
GAS - MCF 1,475.2 2,135.8 3,419.0 3,420.0
BOE - 6 Mcf to 1 Bbl,
equivalent 388.6 446.0 850.2 747.3
Average oil price received $ 21.11 $ 19.06 $ 20.06 $ 18.19
Average gas price received $ 1.59 $ 1.34 $ 1.59 $ 1.34
CONSOLIDATED BALANCE SHEETS
6/30/96 12/31/95
------- --------
TOTAL ASSETS $90,776 $ 79,672
LONG-TERM DEBT 27,455 17,821
CONVERTIBLE SUBORDINATED
NOTES 5,000 5,000
EXCHANGEABLE CONVERTIBLE
PREFERRED STOCK 20,000 20,000
COMMON SHAREHOLDERS' EQUITY 8,329 7,595
CONTACT: Arch Petroleum Inc. Ralph Manoushagian, 817/332-9209 or 800/772-8558. |
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