Benz Energy Inc. Announces First Quarter 2000 Results.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--May 25, 2000 Benz Benz , Karl Friedrich 1844-1929. German automobile pioneer credited with manufacturing the first vehicle powered with an internal-combustion engine, patented in 1886. Energy Inc. (CDX CDX Companion Dog Excellent (AKC Obedience Title) CDX Cyber-Defense Exercise CDX Central Data Exchange CDX Community Development Exchange (UK community development organization) CDX Commercial Data Exchange :BZG BZG Bristol Zoo Gardens (UK) ) today announces that oil and gas revenues increased by 60% to $2.2 million for the quarter ended March 31, 2000 compared to $1.4 million for the quarter ended March 31, 1999. Natural gas sales increased by 56% and oil and condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. sales increased by 84% due to higher average realized prices and production from wells completed during 1999. Natural gas contributed 86% of the total production revenues in the quarter. Net daily production during the first quarter averaged 9.7 million cubic feet of gas equivalent per day ("MMCFED"), an increase of 7% from the previous year, but a decrease of 13% from the previous quarter. The average gas price realized during the quarter was $2.31 per MCF MCF malignant catarrhal fever. in 2000 as compared to $1.70 per MCF in the first quarter of 1999 and $2.74 per MCF during the previous quarter. The average oil and condensate realized price increased to $28.52 per barrel in the first quarter of 2000 compared to $9.50 per barrel in the first quarter of 1999 and $18.90 per barrel during the previous quarter. Production costs increased to $0.29 per thousand cubic feet of gas equivalent ("MCFE MCFE MATLAB Central File Exchange ") in the first quarter of 2000 from $0.21 per MCFE in first quarter 1999 primarily due to repair costs on the gas-treating unit in the Oakvale Dome dome, a roof circular or (rarely) elliptical in plan and usually hemispherical in form, placed over a circular, square, oblong, or polygonal space. Domes have been built with a wide variety of outlines and of various materials. Field. Full cost depreciation, 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 and amortization ("DD&A") increased from $1.30 per MCFE to $1.39 per MCFE in the first quarter of 2000 compared to the same period in 1999. The property depletable de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d cost basis at March 31, 2000 was higher than the prior year due to the sale of unproved prospects at less than historical costs. General and administrative (G&A) costs decreased 36% from the prior year to $595,500. On an equivalent MCF basis, G&A costs declined 41% from the prior year to $0.68 per MCFE. As a result of the Company's restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). announced in January January: see month. 2000, average quarterly G&A costs are expected to decline by up to 50% during the remainder of 2000 compared to the first quarter. Interest expense for the quarter ended March 31, 2000 was $1.9 million compared to $1.6 in the first quarter 1999. Interest expense included $290,000 in noncash amortization in the current quarter and $659,900 in first quarter of 1999. The results of the Company were adversely affected by a charge of $750,000 from the sale of a portion of Harken har·ken v. Variant of hearken. Verb 1. harken - listen; used mostly in the imperative hark, hearken listen - hear with intention; "Listen to the sound of this cello" notes back to Harken, a $209,200 loss on the sale-leaseback of furniture, equipment and personal property and $145,000 on the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the remaining investment in the Company's Ecuador project. For the quarter ended March 31, 2000, the Company reported a net loss applicable to common stockholders of $3.5 million ($0.07 per share) compared to a net loss of $2.7 million ($0.08 per share) in first quarter 1999. The weighted average number of shares rose to 51.2 million shares during the current quarter due to preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividends paid in common stock and conversion of preferred stock by one holder. Cash provided by operations totaled approximately $2.0 million for the current quarter compared to a use of $153,600 cash in the first quarter 1999. Subsequent to the end of the quarter, the Company completed drilling of the PEOC PEOC Presidential Emergency Operations Center PEOC Polyethylene Oxide Compound No. 1 development well in Oakvale Dome Field, Miss. Log analysis indicated that while the objective horizons were present in reservoir quality and thickness, the horizons are structurally lower than anticipated and completion of the well is not economically justified. The well is included in the Company's independently estimated proven reserves as at January 1, 2000 and the adverse results of the PEOC drilling will reduce proven reserves by 13%. Near term production income will be substantially less than projected without contribution from a successful PEOC well and may impact our ability to comply with all of the terms of our senior secured production credit facility of $30 million. In addition, the Howell No. 1 and Fortenberry No. 1 production rates are declining earlier and faster than projected in the Company's independently engineered estimates. Based on performance and a review of well logs, the Company believes that certain reservoirs in the two wells are not open to production as previously thought and certain other reservoirs are not producing as expected due to limited size, reservoir quality or damage from drilling operations. Additional work must be conducted on the wells to restore the nonproducing reservoirs and to better understand the producing reservoirs before further development activity commences. In January, the Company announced its intent to consider strategic options including, but not limited to, a possible merger or sale. The Company is in ongoing discussions with its secured creditors One who holds some special monetary assurance of payment of a debt owed to him or her, such as a mortgage, collateral, or lien. and potential partners with regard to various alternatives, although no assurances can be given with respect to the completion of any transaction. Benz Energy Inc. is an exploitation and production oil and gas company based in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , focused on natural gas in the onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. U.S. Gulf Coast region of Mississippi Mississippi, state, United States Mississippi (mĭs'əsĭp`ē), one of the Deep South states of the United States. It is bordered by Alabama (E), the Gulf of Mexico (S), Arkansas and Louisiana, with most of the border formed by and Texas. Cautionary Statement as to Forward-Looking Information Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information ("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. (information)"). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and 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 partly or totally outside the control of the Company, including rates of inflation, natural gas prices, reserve estimates, drilling risks, future production of oil and gas, changes in future costs and expenses related to oil and gas activities and hedging, financing availability and other risks related to financial activities.
BENZ ENERGY INC.
Consolidated Statement of Operations
U.S. Dollars
(U.S. GAAP, unaudited)
Quarter Ended March 31,
-------------------------
2000 1999
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Petroleum Revenue $2,188,063 $1,370,957
Direct Expenses:
Lease operating expenses 254,171 168,168
Depreciation, depletion
and amortization 1,270,667 1,163,845
------------ ------------
1,524,838 1,332,013
------------ ------------
Production Income 663,225 38,944
------------ ------------
Other Expenses:
General and administrative
expenses 595,486 933,965
Interest expense 1,882,992 1,563,223
Other expense 866,914 (29,666)
------------ ------------
3,345,392 2,467,522
------------ ------------
Loss Before Preferred
Dividends (2,682,167) (2,428,578)
Preferred Dividends (820,865) (237,204)
------------ ------------
Net Loss for the Period $(3,503,032) $(2,665,782)
============ ============
Basic & Diluted Loss
Per Share $(0.07) $(0.08)
============ ============
Weighted Average Number
of Shares 51,156,886 33,727,724
============ ============
Operating Statistics
Gas Production, MCFGD 8,961 7,913
Oil Production, BOD 116 191
Equivalent (6:1) MCFGED 9,658 9,061
Average Gas Price US$ $2.31 $1.70
Average Oil Price US$ $28.52 $9.50
Balance Sheet Summary
Working Capital Deficit (327,612) (35,135,688)
Total Assets 94,586,312 97,890,925
Long Term Debt 59,405,114 41,871,586
Redeemable Preferred Stock 13,538,140 9,488,140
Total Equity 14,723,408 4,394,240
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