Fountain Oil announces year end results.HOUSTON--(BUSINESS WIRE)--Nov. 29, 1995--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 operating results for its fiscal year ending August 31, 1995. For the year ending August 31, 1995, the company recorded operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $625,457 (as compared to $3,613 in fiscal 1994) comprising sales and rental of and services related to 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] equipment. The operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. amounted to $7,882,920 of which general and administrative expenses amounted to $4,012,510 (as compared to $1,466,345 in fiscal 1994) reflecting the 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 for the company's oil and gas activities. Included in 1995, general and administrative expenses are $1,843,397 related to external services, approximately 62% of which represent fees for financial public relations Financial public relations Public relations division of a company charged with cultivating positive investor relations and proper disclosure information. activities which to a large extent are of a non-recurring nature and which have been paid primarily by the issuance of Common stock. Depreciation and amortization costs for 1995 were $1,156,722 of which $892,411 represents amortization of the patent right pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to the company's electrically enhanced oil recovery (EEOR) technology which reduced the net value to $1,866,000 at August 31, 1995. Although the technology has been tested successfully, further work needs to be undertaken to take it to the stage of full commercial viability. In view of this, the Board has deemed it prudent to recognize a further $1,866,000 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. to the intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . Detailed plans have been made for final commercial level development of the EEOR product in 1996. In 1994 the company changed its year end from Oct. 31 to Aug. 31. As a consequence the comparative results for the year ending Aug. 31, 1995, are for the ten month period ended Aug. 31, 1994. Although comparative results are provided, they are not meaningful for the reasons set out below. The operating results for the year ending Aug. 31, 1995 relates to a period during which the company changed its business strategy to focus on oil and gas production, assembled a new management team drawn from the international oil and gas industry and put in place a foundation for future growth. The results therefore include substantial costs incurred in 1995 in order to place Fountain in a position to exploit opportunities in the future, and do not reflect the significant progress which has been made towards assembling a portfolio of oil and gas projects with proven reserves capable of generating significant production over a long life. Subsequent to the end of fiscal 1995, the company closed its first major acquisition relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc gas reserves in Adygea, Russia, and other major acquisitions of oil and gas reserves are expected to be closed during fiscal 1996. As mentioned above, Fountain completed an agreement in Russia subsequent to the year end. The Adygea acquisition was achieved through the purchase of Gastron International Ltd., which has a 31% interest in a Russian private stock company holding rights to develop the Maykop gas field in the republic of Adygea. This gas field has remaining recoverable reserves of 495 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter of gas and 4.2 million barrels of 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. . A gas sales letter of agreement is in place. In addition, negotiations are at an advanced stage for significant interest in two producing oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. in Ukraine and one in Albania. In North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. the company has interests in two projects in Texas; Rocksprings and West Mexia, and two projects in Alberta. At the year end the company recorded a charge to income of $608,181 based on impairment of assets related to the first well drilled at Rocksprings and for a dry hole drilled in Louisiana. Subsequent to the year end work has continued at Rocksprings and one well is producing. Further development plans will be determined on the basis of test results and production information from the drilled wells. As of Aug. 31, 1995, the company had capitalized $1,909,890 related to oil and gas projects. Of the capitalized amount, $1,358,205 relates to projects 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. and $551,685 to oil and gas properties in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . As of Aug. 31, 1995 the company had current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of $5,290,601 of which $4,791,645 was in the form of cash and cash equivalents, and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. of $1,102,432 leaving the company with a working capital of $4,188,169. Total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. as of Aug. 31, 1995 was $9,607,890. President and 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. , Oistein Nyberg commented "Fountain Oil has achieved a rather impressive number of accomplishments and milestones in fiscal "95" including the building of a diversified global portfolio of significant proven and potential oil and gas reserves. Tangible results of the exhaustive and carefully planned efforts are on schedule for this new fiscal year. Management remains quite confident in the success of the projects." Fountain Oil incorporated is actively acquiring and developing a portfolio of oil and gas properties. The company has also developed and is marketing a patented, electrically enhanced oil recovery technology used to increase the production of paraffinic oil and heavy oil. -0-
Fountain Oil Inc.
Consolidated Statement of Operations
For the year ended Aug. 31, 1995
and the ten months ended Aug. 31, 1994
Year ended Ten Months ended
Aug. 31, 1995 Aug. 31, 1994
Operating Revenues:
Sales $ 464,044 $ 3,413
Power unit rentals 50,504 200
Consulting income 110,909 ---
625,457 3,613
Operating expenses:
Cost of sales 479,224 1,200
General and administrative 4,012,510 372,777
Depreciation and amortization 1,156,772 868,423
Employee stock compensation 152,038 150,000
Impairment of inventory 57,602 77,558
Impairment of property and equipment 175,450 --
Impairment of intangibles 1,866,600 --
Impairment of oil & gas properties 608,181 --
8,508,377 1,469,958
Operating loss (7,882,920) (1,466,345)
Other income (expense):
Interest income 251,276 1,543
Interest expense (28,475) (46,850)
Other, net 89,108 (7,348)
Gain (loss) on disposition of assets -- (313,502)
311,909 (366,157)
Net loss before income tax provision $(7,571,011) $(1,832,502)
Income tax expense $ (28,600) $ --
Net loss $(7,599,611) $(1,832,502)
Loss per common share $ (.91) $ (.45)
Weighted average number of common
shares outstanding 8,341,783 4,108,200
Fountain Oil Inc.
Consolidated Balance Sheet
As of Aug. 31, 1995
Assets
Cash and cash equivalents $ 4,791,645
Accounts receivable, net 44,020
Inventories 17,946
Prepaid expenses 436,990
Total current assets $ 5,290,601
Property and equipment, net 529,831
Oil and gas properties, net full
cost method (including
$357,533 unevaluated) 551,685
Notes receivable 2,980,000
Investment in oil ventures 1,358,205
Total assets $10,710,322
Liabilities and stockholders' equity
Accounts payable $ 666,903
Accrued liabilities 414,279
Notes payable 21,250
Total current liabilities 1,102,432
Stockholders' equity:
Preffered stock, par value $0.10
per share 5,000,000 shares
authorized; no shares issued
or outstanding $ ---
Common stock, par value $0.10 per
share 25,000,000 shares authorized:
10,834,063 shares issued
and outstanding 1,083,406
Capital in excess of par value 29,249,175
Accentuated deficit since
Oct. 31, 1988 when a deficit of
$39,952,292 was eliminated $(20,724,691)
Total stockholders' equity 9,607,890
Total liabilities and
stockholders' equity 10,710,322
CONTACT: Liviakis Financial Communications Inc. John M. Liviakis, 916/448-6084 or Fountain Oil Inc. 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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