Credo Petroleum Corporation Reports Third Quarter and Nine Months 1996 Earnings.DENVER--(BUSINESS WIRE)--Sept. 24, 1996--CREDO Petroleum Corp. reported today that for the nine months ended July July: see month. 31, 1996, net earnings were $150,000, or $.05 per share, on total revenue of $1,660,000. This compares to net earnings of $188,000, or $.06 per share, on total revenue of $1,600,000 last year. For the third fiscal quarter ended July 31, 1996, net earnings were $47,000, or $.02 per share, on total revenue of $576,000, compared to $54,000, or $.02 per share, on total revenue of $524,000 last year. Lower net earnings in the first nine months of 1996 reflect increased costs related to a significant program of remedial REMEDIAL. That which affords a remedy; as, a remedial statute, or one which is made to supply some defects or abridge some superfluities of the common law. 1 131. Com. 86. The term remedial statute is also applied to those acts which give a new remedy. Esp. Pen. Act. 1. work on wells to improve production in response to higher product prices. Natural gas price hedging had the effect of stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. total gas price realizations between the fiscal 1996 and 1995 periods. Production Increases to Record Levels For the first nine months of 1996, oil and natural gas production totaled a record 600,000 Mcf gas-equivalent units, an increase of 10% compared to 545,000 Mcf gas-equivalent units last year. Natural gas production increased 20% to a record 410,000 Mcf compared to 340,000 Mcf last year. During the period, CREDO acquired interests in 20 wells located primarily in 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). . Reserve additions from this acquisition are expected to replace approximately 50% of the company's 1996 gas production. Crude oil sales volume in the first nine months of 1996 declined 7% to 31,700 barrels due primarily to divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of 34 gross (17 net) marginal wells. Oil and natural gas production in the third quarter of 1996 totaled a record 204,000 Mcf gas-equivalent units, up 19% from 171,000 Mcf gas-equivalent units last year. Natural gas production increased 37% to a record 142,000 Mcf compared to 104,000 Mcf last year. Third quarter 1996 crude oil sales volume declined 8% to 10,300 barrels compared to 11,200 barrels last year. Wellhead well·head n. 1. The source of a well or stream. 2. A principal source; a fountainhead. 3. The structure built over a well. wellhead Noun 1. Prices Improve Net wellhead gas prices for the first nine months of 1996 increased 23% to $1.62 per Mcf compared to $1.32 per Mcf last year. Total gas price realizations, which reflect the effects of hedging transactions, fell 6% to $1.56 per Mcf in the first nine months of 1996 compared to $1.67 per Mcf last year. Hedging transactions resulted in a $.06 per Mcf loss in the 1996 period compared to a $.35 per Mcf gain in the prior year period. Oil price realizations increased 14% to $18.87 per barrel in the first nine months of 1996 compared to $16.58 per barrel last year. For the third quarter of 1996, net wellhead gas prices increased 32% to $1.66 per Mcf compared to $1.26 per Mcf in the same period last year. Total gas price realizations decreased 3% to $1.66 per Mcf compared to $1.71 per Mcf last year. There were no hedging transactions in the third quarter of 1996, however, such transactions generated gains of $.45 per Mcf in the prior year period. Oil price realizations increased 18% to $19.95 per barrel in the third quarter of 1996, up from $16.89 per barrel last year. "CREDO's average wellhead gas price continues to be undermined by low prices in the Rocky Mountain region The Rocky Mountain Region is a floristic region within the Holarctic Kingdom in western North America (Canada and the United States) delineated by Armen Takhtajan and Robert F. Thorne. where approximately 40% of the company's gas production is located," said James T. Huffman, president. "While mainline mainline Drug slang verb To inject a drug gas prices in other regions of the U.S. have increased 35% to 60% during 1996, Rocky Mountain region gas prices have increased only 4% and continue to range between $1.00 to $1.20 per Mcf," Huffman said. Operating Activities CREDO is generating exploration projects in the Mid-Continent region using 3-dimensional and high resolution 2-dimensional seismic together with other computer aided technology. Three wells are scheduled for drilling in September and October 1996. CREDO will operate and own 50% of an 8,800 foot Morrow mor·row n. 1. The following day: resolved to set out on the morrow. 2. The time immediately subsequent to a particular event. 3. Archaic The morning. formation well to be drilled in Ellis County, Oklahoma Ellis County is a county located in the U.S. state of Oklahoma. As of 2000, the population is 4,075. Its county seat is Arnett6. Geography According to the U.S. Census Bureau, the county has a total area of 3,190 km² (1,232 mi²). . In Jackson County, Oklahoma Jackson County is a county located in the U.S. state of Oklahoma. As of 2000, the population was 28,439. Its county seat is Altus6. Geography According to the U.S. Census Bureau, the county has a total area of 2,083 km² (804 mi²). , the company will own 25% of a wildcat wildcat, common name of two Old World cats, the European wildcat, Felis sylvestris, of Europe and W Asia, and the African wildcat, or kaffir cat, F. lybica, of Africa and Asia. to test a seismically defined Mississippian formation reef at 9,050 feet, and in Oklahoma County, Oklahoma Oklahoma County is a county located in the central part of the U.S. state of Oklahoma. As of 2000, the population was 660,448, but, in 2006, the county's population was estimated at 691,266. Its county seat and principal city is Oklahoma City6. it will own 15% of a 7,050 foot wildcat to test the Hunton, Wilcox and Oil Creek Oil Creek may refer to: Communities:
A Strong Financial Position At third quarter-end, total assets were $8,793,000 including cash and temporary cash investments of $2,732,000. Working capital totaled $2,747,000, up 7% from fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. 1995. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. (book value) was $7,708,000, or $2.51 per share, and the company had no debt. CREDO Petroleum Corp. is a publicly traded independent oil and gas company headquartered in Denver, Colo. The company explores for, develops and produces oil and natural gas, and engages in secondary oil recovery projects in the Mid-Continent and Rocky Mountain regions. The company's stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on System under the symbol "CRED" and is quoted daily in the "NASDAQ Small-Cap Small-cap A stock with a small capitalization, meaning a total equity value of less than $500 million. small-cap 1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock Issues" section of The Wall Street Journal. -0-
CREDO PETROLEUM CORPORATION
FINANCIAL HIGHLIGHTS
Nine Months Nine Months Quarter Quarter
Ended Ended Ended Ended
Condensed Operating July 31, July 31, July 31, July 31,
Information (Unaudited) 1996 1995 1996 1995
Revenues:
Oil and Gas Sales $1,238,000 $1,134,000 $440,000 $366,000
Operating 310,000 317,000 104,000 101,000
Interest and Other 112,000 149,000 32,000 57,000
========== ========== ======== ========
1,660,000 1,600,000 576,000 524,000
Expenses:
General and
Administrative 459,000 432,000 153,000 145,000
Depreciation,
Depletion and
Amortization 422,000 412,000 146,000 130,000
Oil and Gas
Production 548,000 467,000 204,000 165,000
========== ========== ======== ========
1,429,000 1,311,000 503,000 440,000
Earnings Before Income Taxes 231,000 289,000 73,000 84,000 Income Taxes (81,000) (101,000) (26,000) (30,000) Net Earnings $150,000 $188,000 $47,000 $54,000 Earnings Per Share $.05 $.06 $.02 $.02 Weighted Average Common Shares Outstanding During the Period 3,114,000 3,214,000 3,098,000 3,204,000
July 31, 1996 October 31, 1995
Condensed Balance Sheet (Third Qtr. End) (Fiscal Yr. End)
Information Unaudited Audited
Cash and Temporary Cash
Investments $2,732,000 $2,710,000
Other Current Assets 465,000 338,000
Oil and Gas Properties, Net 5,313,000 5,310,000
Other Assets 283,000 360,000
========== ==========
$8,793,000 $8,718,000
Current Liabilities $450,000 $473,000
Deferred Income Taxes 635,000 557,000
Stockholders' Equity 7,708,000 7,688,000
========== ==========
$8,793,000 $8,718,000
CONTACT: Credo Petroleum Corporation, Denver B.J. Sullivan, 303/297-2200 |
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