Aspen Group Reports Second Quarter Results.OKLAHOMA CITY Oklahoma City (1990 pop. 444,719), state capital, and seat of Oklahoma co., central Okla., on the North Canadian River; inc. 1890. The state's largest city, it is an important livestock market, a wholesale, distribution, industrial, and financial center, and a farm -- Company's U.S. Banking Facility Back in Good Standing Aspen aspen, in botany aspen: see willow. Aspen, city, United States Aspen (ăs`pən), city (1990 pop. 5,049), alt. 7,850 ft (2,390 m), seat of Pitkin co., S central Colo. Group Resources Corporation, (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :ASR (Automatic Speech Recognition) Using voice recognition to replace keypad entry for telephone voice menus. Typically used to speak the digits 0 through 9 insted of keying them, ASR systems may be able to recognize a limited vocabulary. See voice recognition and AVSR. ) ("Aspen" or the "Company"), announced its financial results for the second quarter and first six months of fiscal 2004 ended June 30, 2004. Aspen reports its results in US dollars. For the six-month period ended June 30, 2004, Aspen reported revenues of $4.2 million compared to $4.4 million recorded in the same period last year. For the period, Aspen recorded a net loss of $984 thousand, or $0.018 per share, compared to a loss of $204 thousand or $0.004 per share, at June 30, 2003. 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 for the six-month period was $810 thousand compared to $1.2 million in 2003. For the three-month period ended June 30, 2004, Aspen reported revenues of $1.7 compared to $1.7 million recorded in the same period last year. For the period, Aspen recorded a loss of $753 thousand, or $0.013 per share, versus a loss of $210 thousand or $0.004 per share, June 30, 2003. Aspen reported negative cash flow from operations for the three-month period of $126,480 thousand compared to positive cash flow of $283 thousand in the same period last year. Results for the three and six month period were negatively impacted by several factors including higher than expected one-time costs associated with the Company's on-going 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. with former members of its management team, which increased general and administrative expense by $620 thousand for the six month period. Also affecting earnings were higher depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able costs. Aspen also announced that it has received written notification from its U.S. lender that all of its required loan criteria have been met and the Company is now fully compliant with all covenants associated with its bank loans in the U.S. and is therefore no longer in default. In October of 2002 the Company was notified by its U.S. lender of the default. Since the notification, Aspen's management has worked successfully to reduce debt and repair the default in order to put the loan back in good standing. Recent Business Highlights -- On April 5, 2004, Aspen closed a Cdn. $3 million equity private placement. The offering, which was oversubscribed Refers to connecting more users to a system than can be fully supported if all of them were using it at the same time. Networks and servers are almost always designed with some amount of oversubscription, counting on the fact that everybody does not need the service simultaneously. , was led by Jones Gable gable Triangular section formed by a roof with two slopes, extending from the eaves to the ridge where the two slopes meet. It may be miniaturized over a dormer window or entranceway. & Co. Limited and Fort House Inc. 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). have been used for drilling, general corporate purposes, and to reduce debt. -- During the months of May through August 2004, Aspen successfully participated in three land auctions in Saskatchewan, Canada through its Joint Venture with Westchester Resources Inc. (TSX-V:WSR WSR Weather Surveillance Radar WSR West Somerset Railway WSR Weather Service Radar WSR Wirtschafts- und Sozialwissenschaftliches Rechenzentrum (Vienna, Austria) WSR Waverly-Shell Rock (Waverly, IA school system) ) ("Westchester"). As announced on August 13, 2004, the Joint Venture was successful in acquiring a total of 82 contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. sections (52,533 acres) of Crown leases in Saskatchewan at a gross cost of approximately Cdn.$1.5 million. Aspen and Westchester each own a 50 percent working interest in the Crown leases with Aspen acting as operator. Drilling operations for the first well have been initiated. -- On July 7, 2004, Aspen announced it signed a Binding Letter of Intent ("LOI LOI Letter of Indemnity (international trade and carriage business) LOI Letter Of Intent LOI Loss On Ignition LOI Letter of Inquiry LOI Lack Of Information LOI Lack of Interest LOI Letter of Invitation LOI List Of Items ") with Crusader Energy Corp., a private US company based in Oklahoma, to sell all its US assets (except United Cementing and Acidizing Inc., Aspen's 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. for US$22 million. The transaction is expected to close by October 1, 2004. "Although we reported a loss for the period, we are pleased with the overall direction in which Aspen is moving," stated Robert Calentine, 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 Aspen. "Our loss in the quarter is primarily related to the cost of legacy legal issues and we put another legacy issue, the bank default, behind us. From an operations perspective, we are moving forward with new projects like the Saskatchewan properties, through our Joint Venture with Westchester, that will define Aspen's future." Comparative summary results for six-month period ended June 30, 2004 are in the following tables. Additional information is contained in the Company's financial statements, which are available for review in the SEDAR SEDAR System for Electronic Document Analysis and Retrieval SEDAR Southeast Data, Assessment, and Review database.
Condensed Consolidated Summary Balance Sheet as at
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(In US Dollars)
June 30, 2004 Dec. 31, 2003
(Unaudited) (Audited)
Assets
Current assets $ 4,272,738 $ 5,189,120
Proved Oil and gas properties
(net of depletion) 38,175,854 39,487,383
Property, equipment and other assets
(net of depreciation) 872,833 947,075
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Total Assets $ 43,321,425 $ 45,623,578
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Liabilities and Stockholders' Equity
Accounts payable and accrued
interest and expenses $ 5,063,042 $ 5,853,165
Notes payable and current maturities
of long-term debt 11,217,148 13,443,332
Long-term debt, net of current
maturities 47,564 99,005
Provision for Site Restoration 340,337 317,846
Deferred Income Taxes -
Stockholders' Equity 26,653,334 25,910,230
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Total Liabilities and Stockholders'
Equity $ 43,321,425 $ 45,623,578
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Condensed Consolidated Summary Statements of Operations
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(Unaudited In US Dollars)
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Six Months ended June 30 Three Months ended June 30
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2004 2003 2004 2003
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Revenue $ 4,207,959 $ 4,428,521 $ 1,715,404 $ 1,746,535
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Expenses
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Production,
operating 1,746,700 1,883,686 917,213 818,314
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General,
administrative 1,359,603 916,214 822,933 446,569
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Depreciation,
depletion 1,794,446 1,340,897 626,817 566,968
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Interest,
financing costs 291,666 416,840 101,698 192,319
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Total expenses $ 5,192,415 $ 4,557,637 $ 2,468.661 $ 2,024,170
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Net income (loss)
before taxes $ (984,456) $ (129,116) $ (753,297) $ (277,635)
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Net income (loss)
after tax $ (984,456) $ (204,142) $ (753,297) $ (210,282)
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Net income (loss)
per share $ (0.018) $ (0.004) $ (0.013) $ (0.004)
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Weighted avg.
shares 58,374,946 48,659,805 58,303,134 48,659,805
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Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in the Mid Continent Region in the US and the Western Canadian Basin in Canada. Aspen's shares trade on The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the symbol ASR. Portions of this document include "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ", which may be understood as any statement other than a statement of historical fact. Forward-looking statements contained in this document are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may vary materially from management's expectations and projections expressed in this document. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's Annual Report on Form 20-F and other reports filed with the Securities and Exchange Commission. Such factors include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , risks related to exploratory and developmental drilling, competition, government regulation, and the ability of the company to implement its business strategy. |
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