Cotton Valley Announces Strong Results for First Half Fiscal Year 1998.DALLAS--(BUSINESS WIRE)--Feb. 24, 1998--Cotton Valley Resources Corporation (AMEX AMEX See: American Stock Exchange :KTN Ktn Kaernten (German: Carinthia; Austria Europe) KTN Knowledge Transfer Network KTN Kenya Television Network KTN Kawish Television Network (Pakistan) ) announced financial results today for the six months ended December December: see month. 31, 1997. The condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated net income after tax was $54,403 on revenue of $1,157,985. This compares very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. with a net loss of $602,116 on revenue of $41,365 for the comparable period in the previous fiscal year. The Company reported revenue of $532,784 and net loss of $78,919 for the second quarter. "The slight drop in revenue and slight increases in general and administrative expenses from the first quarter to second quarter were due mainly to the concentration of efforts to bring additional equipment and facilities on-line at the Mustang mustang [Sp. mesteño=a stray], small feral horse of the W United States. Mustangs are descended from escaped Native American horses, which in turn were descended from horses of North African blood, brought to the New World by the Spanish c.1500. Companies," stated Gene Soltero Soltero is the musical project of songwriter Tim Howard who currently resides in Wilmington, NC. Soltero has had several incarnations, including a five-piece band (w/trumpet and rhodes) and a louder four-piece band, as well as solo and duo acoustic lineups. , 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. and chairman of Cotton Valley. "Of key importance to the Company's strategy, we completed the organization of our Mustang oilfield services operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. including Mustang Oilfield Equipment Company, Mustang Horizontal Services, Inc. and, most recently, Mustang Well Servicing Company." "As a result, our well workover program has begun and is progressing rapidly. Currently, we are now operating our own workover rigs in the Means (Queen) Unit purchased in the first quarter and the Sears Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. property which we purchased during the second quarter. While it is premature to quantify Quantify - A performance analysis tool from Pure Software. , initial development is resulting in increased production, revenues and income from oil and gas." "Finally," concluded Soltero, "we are quite pleased with the progress of our Mustang operating companies operating company A business that engages in transactions with outsiders. . In one quarter, these subsidiaries have put together technical personnel equipment and are really moving forward with our development programs. While that is our primary motivation, Cotton Valley is also poised to benefit from increasing incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. revenue from third-party equipment sales and oilfield servicing. For the Company as a whole, we expect our third quarter and fourth quarter of this fiscal year to show materially increasing gains over the results of the first half. The condensed consolidated statement of operations See Income statement. for the first half of FY 1998 and the condensed consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. for December 31, 1997, are attached." Cotton Valley Resources Corporation concentrates on acquiring and improving Texas and Oklahoma Oklahoma (ōkləhō`mə), state in SW United States. It is bordered by Missouri and Arkansas (E); Texas, partially across the Red R. (S, W); New Mexico, across the narrow edge of the Oklahoma Panhandle (W); and Colorado and Kansas (N). oil and gas properties using new technologies and its own service companies. There are approximately 17 million common shares outstanding. -0-
COTTON VALLEY RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in U.S. Dollars)
(Unaudited)
Period from Period from
July 1, 1997 to July 1, 1996 to
December 31, 1997 December 31, 1996
----------------- -----------------
REVENUE:
Oil and gas sales $ 435,289 $ 41,365
Equipment sales 713,622
Interest Income 8,140
Other Income 934
----------- -----------
Total Revenue 1,157,985 41,365
----------- -----------
EXPENSES:
Oil and gas production 225,925
Equipment purchase and rework 259,573
General and administrative 515,944 903,319
Interest 27,388 35,162
Depreciation and Depletion 56,618
----------- -----------
Total Expenses 1,085,448 938,481
----------- -----------
PROFIT (LOSS) BEFORE INCOME TAXES 72,537 (897,116)
INCOME TAX BENEFIT (PROVISION) (18,134) 295,000
----------- -----------
NET PROFIT (LOSS) $ 54,403 $ (602,116)
=========== ===========
NET PROFIT (LOSS) PER SHARE $ 0.00 $ (0.05)
(Basic and Diluted) =========== ===========
WEIGHTED AVERAGE SHARES 15,457,000 13,390,524
=========== ===========
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
COTTON VALLEY RESOURCES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
December 31, 1997
(Unaudited)
ASSETS
------
CURRENT ASSETS: (U.S. Dollars)
Cash $ 405,430
Accounts receivable 542,425
Prepaid expenses 94,138
Cash deposits 329,750
------------
Total Current Assets 1,371,743
RESTRICTED CASH 2,570,280
OIL AND GAS PROPERTIES 20,120,591
OILFIELD EQUIPMENT INVENTORY 2,614,069
OFFICE EQUIPMENT 71,742
------------
Total Assets $ 26,748,425
============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES: (U.S. Dollars)
Accounts payable and accrued liabilities $ 1,172,548
Current portion of long-term debt $ 150,250
------------
Total Current Liabilities 1,322,798
LONG TERM DEBT 4,564,710
DEFERRED INCOME TAXES 2,486,812
STOCKHOLDERS' EQUITY:
Preferred Stock, no par value,
authorized-unlimited, none issued
Common Stock, no par value,
authorized-unlimited, 17,283,248 issued 21,513,857
Deficit accumulated in development stage (2,769,155)
Treasury Stock (270,000 shares) (425,000)
Accumulated Earnings 54,403
------------
Total Stockholders' Equity 18,374,105
------------
Total Liabilities and Stockholders' Equity $ 26,748,425
============
CONTACT: Cotton Valley Resources Corporation, Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. Patty Dickerson, 214/363-1968 |
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