Blue Dolphin Energy Company Fourth Quarter 1998 Impairment.HOUSTON--(BUSINESS WIRE)--March 2, 1999--The Company (Nasdaq:BDCO) reported that 4th quarter 1998 results will include a pretax, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $11 million reflecting the impairment of its oil and gas properties, and write down of certain exploration activity costs. The Company follows the full cost method of accounting, which requires that long-lived assets held by the company be reviewed for impairment whenever events or circumstances change which indicate the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of an asset may not be recoverable. The impairment results from lower oil and gas prices and changes to the Company's development plans, whereby development of oil and gas properties have been delayed. In addition, the Company has written down certain prospect development costs. Blue Dolphin Blue Dolphin may refer to:
Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , 713/227-7660. For further information see our home page at http://www.blue-dolphin.com. |
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