Castleguard Energy Reports Results of Operations.Energy Editors/Business Editors DALLAS--(BUSINESS WIRE)--April 20, 2004 Dallas-based Castleguard Energy (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :MOAT) reported a loss for the year ended December December: see month. 31, 2003, of ($122,541) (($0.01) per share) compared to earnings of $105,929($0.01 per share) for the year 2002. Revenues declined 27% compared to 2002 from declines of 67% in gas volume and 26% in oil volumes sold, partially offset by increased prices of 110% on gas and 20% on oil. Mechanical difficulties with two natural gas wells in Minden Minden, city, Germany Minden (mĭn`dən), city (1994 pop. 80,423), North Rhine–Westphalia, NW Germany, a port on the Weser River and the Midland Canal. It is an industrial center and rail junction. , La., which were first encountered in January January: see month. of 2002, continued to adversely affect 2003 operations. Production rates were significantly lower than in 2002 and declined throughout the year. As a consequence, cash flow diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. ; financial resources were depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d ; and a significant downward revision in oil and gas reserves resulted from the more rapid production decline curve evidenced through 2003. The reserve reduction in turn caused an increase in the rate of 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), driving a fourth quarter increase for dd&a. The downward revision also triggered a ceiling test impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. non-cash write down of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $203,000 in Castleguard oil and gas interests. Fourth quarter results were adversely impacted by the provision for depreciation, depletion and amortization (dd&a). The provision and the ceiling test impairment were the principal cause of a net loss of ($226,507) compared to a profit of $8,404 in 2002. Castleguard Energy holds working interests in properties located in Texas, Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. and Alabama Alabama, indigenous people of North AmericaAlabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). . Castleguard focuses on development projects, joint working relationships and non-operated properties. This report includes 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Castleguard believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political developments in foreign countries, federal and state regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. developments, the timing and extent of changes in commodity prices, the timing and extent of success in drilling, discovering, developing and producing or acquiring oil and gas reserves, and conditions of the capital and equity markets during the periods covered by the forward-looking statements. Castleguard's periodic reports filed with the Securities and Exchange Commission include a discussion of important factors that could cause actual results to differ materially from those indicated in forward-looking statements.
CASTLEGUARD ENERGY
FINANCIAL & OPERATING
HIGHLIGHTS
Three Months Year Ended
Ended December 31 December 31
(unaudited)
2003 2002 2003 2002
----------- --------- ---------- ---------
INCOME STATEMENT DATA
Oil and gas sales $77,575 $108,706 $486,894 $668,585
----------- --------- ---------- ---------
Lease operating expense
and taxes 19,412 35,391 87,326 131,570
Depreciation depletion
and amortization 142,511 22,176 206,293 195,578
Impairment of oil & gas
interests 202,969 202,969
General and
administrative 41,241 30,239 148732 152,510
----------- --------- ---------- ---------
406,133 87,806 645320 479,658
----------- --------- ---------- ---------
Income (loss) from
operations (328,558) 20,900 (158,426) 188,927
Interest and financing
costs (5,142) (8,896) (24,508) (37,585)
Income (loss) before
income taxes (333,700) 12,004 (182,934) 151,342
Income taxes (benefit) (107,193) 3,600 (60,393) 45,413
----------- --------- ---------- ---------
Net Income (Loss) ($226,507) $8,404 ($122,541) $105,929
=========== ========= ========== =========
Basic Earnings (Loss) Per
Share ($0.02) $0.00 ($0.01) $0.01
Weighted average shares
outstanding (Thousands) 17,365 17,365 17,365 17,334
SALES VOLUMES
Natural gas (Mcf) 11,316 15,651 64412 196,507
Crude oil (Bbls) 810 1,921 3905 5,243
AVERAGE SALES PRICE
Natural gas (per Mcf) $4.58 $3.73 $5.72 $2.73
Crude oil (per Bbl) $31.74 $25.91 $30.14 $25.04
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion