Fountain Oil announces first quarter results.HOUSTON--(BUSINESS WIRE)--Jan. 16, 1996--Fountain Oil Inc. ("Fountain"),(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 NMS See NetWare Management System. :GUSH) announced today the results of operations for the first quarter fiscal 1996, which ended on Nov. 30, 1995. Revenue in the quarter ended Nov. 30, 1995 amounted to $36,173, compared to $90,110 for the comparable period last year. While modest, all but $1,913 of current period revenue is attributable to oil and gas production by Fountain. A year ago, all of the revenue related to sales and rentals of equipment utilized in connection with Fountain's electrically enhanced oil recovery Enhanced Oil Recovery (EOR) is a generic term for techniques for increasing the amount of oil that can be extracted from an oil field. Using EOR, 30-60 %, or more, of the reservoir's original oil can be extracted [1] compared with 20-40% [2] technology. While general and administration expenses remained substantial in relation to revenue, it reflects the continuing build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. of an organization and infrastructure to manage the company's planned oil and gas activities. General and administrative expense for the current quarter amounted to $1,020,061, up from $314,022 a year ago. The net loss for the quarter ended Nov. 30, 1995 was $1,023,850, $0,09 per share reflecting primarily the modest amount of revenue and the general administrative expense. The net loss for the quarter ended Nov. 30, 1994 was $556,369, or $0,09 per share. The difference is largely attributable to the higher current period general and administration expense partially offset by lower depreciation, depletion and amortization expenses in the current period. The modest amount of oil and gas revenue for the quarter ended Nov. 30, 1995 was generated by the Inverness Inverness, town, Scotland Inverness (ĭn'vərnĕs`), town (1991 pop. 39,736), Highland, N Scotland, on the Moray Firth at the mouth of the Ness River. Unit No. 1 of the Inverness Field in the Swan Hill producing area in Alberta, Canada, in which the company has an effective 5 percent interest, and Sweeten sweet·en v. sweet·ened, sweet·en·ing, sweet·ens v.tr. 1. To make sweet or sweeter by adding sugar, honey, saccharin, or another sweet substance. 2. To make more pleasant or agreeable. Well No. 2 in the Rocksprings Field in West Texas, in which Fountain effectively has an 37 1/2 percent interest. The Inverness Unit No. 1 is currently producing approximately 450 barrels of oil per day. A drilling program encompassing an additional five wells is being undertaken, and the testing of the first of these wells is expected during the second fiscal quarter of 1996. Sweeten Well No. 2, which began producing in November 1995, is generating approximately 145,000 cubic feet of gas per day from its upper, Canyon sand. Testing of the Canyon sand in an existing Champlin well will commence this month, and results of these tests will help determine future activity in the Rocksprings Field. Effective Oct. 19, 1995, Fountain acquired the entire issued share capital of Gastron International Ltd. The principal assets of Gastron are (i), a 31 percent interest in Intergas, a closed private joint stock company incorporated in Russia having the rights to develop the 12,500 acre Maycop gas condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. Field in the Republic of Adygea, Russian Federation Russian Federation: see Russia. , (ii) an interest in two drilling rigs and related equipment, and (iii) a $1,800,000 current account receivable account receivable Any amount owed to a business as the result of a purchase of goods or services from it on a credit basis. Although the firm making the sale receives no written promise of payment, it enters the amount due as a current asset in its books. from Mostrangas, a shareholder in Intergas. At the time of acquisition, Gastron owed Fountain $2,450,000, which Fountain had advanced to permit Gastron's acquisition of its interest in the rigs and equipment, and Gastron owed third parties some $2,085,000. Fountain has thus far paid only nominal consideration for the stock of the Gastron, but Fountain has an obligation to pay additional consideration of up to $1 million and 1 million common shares in Fountain upon satisfaction of various conditions. During the quarter ended Nov. 30, 1995, Fountain invested an additional $1 million in various oil and gas ventures in Eastern Europe Eastern Europe The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. in which it has or expects to acquire an interest. Fountain is actively acquiring and developing a portfolio of oil and gas properties. The company also developed and is marketing a patented, electrically enhanced oil recovery technology used to increase the production of paraffinic and heavy oil. CONTACT: Liviakis Financial Communications Inc. John M. Liviakis, 916/448-6084 or Fountain Oil Inc., Houston Gary J. Plisga, 713/492-6992 or in Europe Fountain Oil Inc. Nils N. Trulsvik, (47) 66 90 3144 or Burson-Marsteller Dag Dag(h)da great god of Celts; father of Danu. [Celtic Myth.: Parrinder, 68; Jobes, 405] See : Fatherhood Dag (h)da god of abundance, war, healing. [Celtic Myth. Vangsnes, (47) 22 50 45 50 |
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