Castle Energy Announces Second Quarter Results for Fiscal 2005.KING OF PRUSSIA King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Pa. -- Castle Energy Corporation(1) (Nasdaq:CECX) (the "Company") reported net income of $2,880,000 ($.40 per share diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the quarter ended March 31, 2005. This compared to net income of $12,168,000 ($1.77 per share diluted) for the quarter ended March 31, 2004. For the six months ended March 31, 2005, the Company recorded net income of $3,223,000 ($.45 per share diluted) versus net income of $10,920,000 ($1.61 per share diluted) for the corresponding period in 2004. Mr. Joseph L. Castle II, Chairman and Chief Executive Officer, noted that the Company's net income for the quarters ending March 31, 2005 and March 31, 2004 was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to gains on the sale of shares of Delta Petroleum Company ("DPTR DPTR Data Pointer Register DPTR Division of Pediatric Translational Research and Treatment Development (US National Institute of Mental Health) DPTR Diplomatic Pouch Tournament Ratings DPTR Dynamic Progressive Transmission of Resolution " on Nasdaq) ("Delta") owned by the Company. During the quarter ended March 31, 2005, the Company sold 300,000 shares of Delta for $4,800,000 realizing a gain of $3,066,000 on the sale. During the corresponding quarter in 2004, the Company sold 2,260,414 shares of Delta resulting in a gain of $12,547,000. At March 31, 2005, the Company still owned 6,700,000 shares of Delta constituting approximately 16% of Delta. Mr. Castle also stated that the Company had used all of its tax carryforwards Carryforwards Tax losses allowed to be applied to offset future income in some specified number of future years. to reduce income taxes on these gains and other income during the quarter. On March 30 and March 31, 2004, the Company acquired interests in 166 Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York gas wells from Delta and two other parties for an estimated combined purchase price of $8,985,000. As a result of these acquisitions, the Company reentered the oil and gas exploration and production business effective March 30, 2004. The Company's petroleum reservoir reservoir (rĕz`əvôr, -vwär), storage tank or wholly or partly artificial lake for storing water. Building an embankment or dam to preserve a supply of water for irrigation is an ancient practice; India and Egypt have many old and engineer estimated the proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. applicable to the three purchases to be approximately 8 billion cubic feet of natural gas at date of purchase, of which approximately 87% represents proved producing reserves, while the remaining 13% represents behind pipe and undeveloped reserves. Approximately 130 of 166 wells in which the Company acquired interests are operated by the Company. 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. in this announcement 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. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, 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. risks, tax risks, risks related to the public market for the Company's stock, as well as general business risks. Please refer to the Company's Securities and Exchange Commission filings for additional information. (1)Castle Energy Corporation is not affiliated with Castle Oil Corporation.
CASTLE ENERGY CORPORATION
CECX (NASDAQ)
Three Months Ended
March 31,
------------------------
2005 2004
----------- ------------
(Unaudited) (Unaudited)
Revenues $812,000 $0
Net income (loss) $2,880,000 $12,168,000
Earnings per share:
Basic:
Average shares 6,987,084 6,651,203
Net income (loss) $.41 $1.83
Diluted:
Average shares 7,147,683 6,889,729
Net income (loss) $.40 $1.77
Six Months Ended
March 31,
------------------------
2005 2004
----------- ------------
(Unaudited) (Unaudited)
Revenues $1,511,000 $0
Net income (loss) $3,223,000 $10,920,000
Earnings per share:
Basic:
Average shares 6,939,249 6,622,269
Net income (loss) $.46 $1.65
Diluted:
Average shares 7,130,781 6,803,515
Net income (loss) $.45 $1.61
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