McMoRan OIL & GAS CO. REPORTS FOURTH- QUARTER & YEAR-END 1997 RESULTS.NEW ORLEANS New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded , La.--(BUSINESS WIRE)--Jan. 20, 1998 HIGHLIGHTS . Recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. plan completed, $92.2 million net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from sale of 28.6 million shares of common stock used to repay outstanding debt and acquire working interests in Vermilion vermilion, vivid red pigment of durable quality. It is a chemical compound of mercury and sulfur and is known as red sulfide of mercury; it was formerly obtained by grinding pure cinnabar but is now commonly prepared synthetically. Block 160 and Block 410 producing fields. Remaining proceeds to fund new, expanded multi-year exploration program. . MOXY Moxy may refer to:
n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. totaled 29 million cubic feet (mmcf) and 450 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. . . Reserve discoveries at West Cameron Cam·er·on , Mount A peak, 4,342.6 m (14,238 ft) high, in the Rocky Mountains of central Colorado. Block 616, West Cameron Block 492 and Vermilion Block 160; development is scheduled for 1998. -0-
Fourth Quarter Twelve Months
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1997 1996 1997 1996
------- ------- ------- -------
(In thousands, except per share amounts)
Revenues $ 5,844 $ 1,129 $13,552 $ 4,070
Operating loss (177) (3,761) (9,904) (9,883)
Net loss (109) (3,909) (10,538) (9,862)
Net loss per share 0.00 (0.28) (0.56) (0.71)
Average shares 33,201 13,971 18,847 13,895
outstanding
McMoRan Oil & Gas Co. (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 :MOXY) today reported a net loss of $109,000, $0.00 per share, for the fourth quarter of 1997 compared with net loss of $3,909,000, $0.28 per share, for the fourth quarter of 1996. For the years ended December December: see month. 31, 1997 and 1996, MOXY recorded net losses of $10,538,000, $0.56 per share, and $9,862,000, $0.71 per share, respectively. MOXY's revenues for the fourth quarter of 1997 totaled $5,844,000 consisting of $5,426,000 from oil and gas production and $418,000 of administrative fees earned. Total 1997 exploration and development expenditures incurred were $59,268,000 (including $24.5 million to acquire additional interests in Vermilion Blocks 160 and 410), compared with $20,678,000 in 1996. During the quarter, MOXY successfully completed its recapitalization plan raising $92.2 million net proceeds from its rights offering. A total of 24.74 million shares, representing 86.5 percent of shares available under the rights offering, were purchased by rights holders and the remaining 3.85 million shares available under the rights offering were purchased by Phosphate phosphate, salt or ester of phosphoric acid, H3PO4. Because phosphoric acid is tribasic (having three replaceable hydrogen atoms), it forms monophosphate, diphosphate, and triphosphate salts in which one, two, or three of the hydrogens of the Resource Partners, Limited Partnership (NYSE NYSE See: New York Stock Exchange : PLP (Presentation Level Protocol) A North American standard protocol for videotex. ), formerly Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc., (NYSE: FCX) often called simply Freeport, is the world's lowest-cost copper producer and one of the world's largest producers of gold. Resource Partners, Limited Partnership, pursuant to its standby agreement Standby agreement In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. . These proceeds were used to acquire PLP's interest in the Vermilion Blocks 160 and 410 producing gas fields for $24.5 million and to repay its $20.0 million operating loan to PLP. The remaining proceeds are committed to MOXY's exploration and development expenditures in its newly formed $200 million MOXY Exploration Program. MOXY is the operator of the program and will generate and explore prospects in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east and Gulf Coast areas. Production from three new development wells at Vermilion Block 160 field unit commenced during the 1997 fourth quarter and the field was averaging approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 53 mmcf of gas and 1,600 barrels of condensate per day as of December 31, 1997. During the 1997 fourth quarter, MOXY drilled and saved the Vermilion Block 160 No.4 sidetrack development well at a location remote from the existing platform and outside of the field unit area. The No.4 sidetrack well encountered 106 feet of net gas pay in four sands. Fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of a platform is in progress and development of these new reserves is planned for 1998. MOXY has a 58 percent net revenue interest in the No.4 sidetrack well and a 28 percent net revenue interest in the Vermilion 160 field unit, which is subject to re-determination in 1998. In addition, the interest in two of the four blocks within the Vermilion Block 160 field unit is subject to a 30 percent net profits interest. The Vermilion Block 160 field is located approximately 155 miles west southwest Southwest or south west is the ordinal direction halfway between south and west, the opposite of northeast. Southwest or south west may also refer to:
 ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. in 100 feet of water.During the fourth quarter of 1997, MOXY drilled and saved for future production the West Cameron Block 616 No.3 exploratory well. This well encountered a total of 426 feet of net gas pay in eight sands. MOXY subsequently drilled and saved for future production the West Cameron Block 616 No.4 well to develop reserves discovered by the No.3 well. In early January January: see month. 1998, MOXY initiated drilling the No.5 well to develop the reserves discovered by the West Cameron Block 616 No.2 well. The No.2 well, drilled in 1996 and located approximately one mile southeast Southeast or south east is the ordinal direction halfway between south and east. It the opposite of northwest. Southeast or South East can refer to: MOXY's West Cameron Block 492 No.1 well discovered 93 feet of net hydocarbon pay in five sands during the fourth quarter. Additionally, the West Cameron Block 492 No.3 well, which was successfully drilled as a delineation well, encountered 83 feet of net hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen pay in two sands, 57 feet of which was in a new sand. Both wells were saved for future production. Further drilling in 1998 is contemplated on this block. MOXY owns a 19 percent net revenue interest in this block. West Cameron Block 492 is located in 150 feet of water offshore in the Gulf of Mexico, approximately 110 miles south of Lake Charles, Louisiana
Lake Charles can also refer to Lake Charles, Nova Scotia a lake in the Halifax Regional Municipality, Nova Scotia Lake Charles , and encompasses 5,000 acres. In late December 1997, the Brazos Brazos (brăz`əs), river, 870 mi (1,410 km) long (1,210 mi/1,947 km long with its main tributary), rising in E N.Mex. From its source it flows SE across Texas to enter the Gulf of Mexico at Freeport. Block A-19 No.2 exploratory well commenced drilling with a proposed total measured depth of approximately 19,000 feet. MOXY owns a 13 percent net revenue interest in this 5,760 acre block, which is located in 135 feet of water offshore in the Gulf of Mexico, approximately 95 miles southwest of Galveston, Texas
MOXY is an independent oil and gas company engaged in the exploration, development and production of oil and natural gas offshore in the Gulf of Mexico and onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. in the Gulf Coast area. The company continues to generate prospects and evaluate farmin opportunities utilizing its geological ge·ol·o·gy n. pl. ge·ol·o·gies 1. The scientific study of the origin, history, and structure of the earth. 2. The structure of a specific region of the earth's crust. 3. A book on geology. expertise through the use of 3-D seismic data and state-of-the-art technology. CAUTIONARY STATEMENT. This press release contains certain 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. . Important factors that might cause future results to differ from these projections are described in more detail in MOXY's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission. A copy of this release is available by calling 1-800-469-1256. -0-
McMoRan OIL & GAS CO.
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Years Ended
December 31, December 31,
--------------------- ---------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
(In Thousands, Except Per Share Amounts)
Revenues:
Oil and gas sales $ 5,426 720 $ 11,441 $ 2,434
Management fees 418 409 2,111 1,636
---------- ---------- ---------- ----------
Total revenues 5,844 1,129 13,552 4,070
---------- ---------- ---------- ----------
Costs and expenses:
Production and delivery,
including depreciation and
amortization 3,882 385 11,251 1,500
Exploration expenses 1,456 3,943 11,966 9,818a
General and administrative
expenses 683 562 2,528 2,635
Gain on sale of oil & gas
property - - (2,289)b -
---------- ---------- ---------- ----------
Total costs and
expenses 6,021 4,890 23,456 13,953
---------- ---------- ---------- ----------
Operating loss (177) (3,761) (9,904) (9,883)
Interest expense (232) (269) (1,272) (403)
Other income, net 300 121 638 424
---------- ---------- ---------- ----------
Net loss $ (109)$ (3,909)$ (10,538)$ (9,862)
========== ========== ========== ==========
Net loss per share $0.00 $(0.28) $(0.56) $(0.71)
========== ========== ========== ==========
Average shares
outstanding 33,201 13,971 18,847 13,895
========== ========== ========== ==========
a. Includes a reduction of $2.1 million ($0.15 per share)
resulting from the reimbursement of previously expensed costs in
connection with the sale of an interest in MOXY's North Bay
Junop/East Fiddler's Lake prospect area.
b. Results from sale of MOXY's interest in the West Cameron Block
503 property during the 1997 second quarter.
OPERATING DATA (Unaudited)
Three Months Ended Years Ended
December 31, December 31,
--------------------- ---------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Production:
Gas (thousand cubic
feet, or MCF) 1,689,900 174,600 4,061,200 630,900
Oil (barrels) 22,200 6,400 34,400 29,000
Average realization:
Gas (per MCF) $ 2.93 $ 3.04 $ 2.62 $ 2.72
Oil (per barrel) 18.04 25.25 19.19 22.22
McMoRan OIL & GAS CO.
CONDENSED BALANCE SHEETS (Unaudited)
December 31,
------------------------
1997 1996
---------- ----------
(In Thousands)
ASSETS
Cash and cash equivalents $ 29,149 $ 10,500
Accounts receivable and other 14,065 2,249
---------- ----------
Total current assets 43,214 12,749
Property, plant and equipment, net 57,705 18,231
Other assets 169 -
---------- ----------
Total assets $ 101,088 $ 30,980
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 9,465 $ 9,777
Production loan, less current portion - 12,391
Other liabilities 925 566
Stockholders' equity 90,698 8,246
---------- ----------
Total liabilities and stockholders'
equity $ 101,088 $ 30,980
========== ==========
McMoRan OIL & GAS CO.
STATEMENTS OF CASH FLOW (Unaudited)
Years Ended
December 31,
--------------------------
1997 1996
---------- ----------
(In Thousands)
Cash flow from operating activities:
Net loss $ (10,538) $ (9,862)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization 10,071 741
Exploration expenses 11,966 9,818
Gain on sale of oil and gas property (2,289) -
Decrease in working capital and other (13,136) 5,966
---------- ----------
Net cash provided by (used in) operating
activities (3,926) 6,663
---------- ----------
Cash flow from investing activities:
Exploration and development expenditures (34,763) (20,678)
Purchase of oil and gas reserves from PLP (24,505) -
Proceeds from joint venture arrangements,
property sales and other 2,382 2,059
---------- ----------
Net cash used in investing activities (56,886) (18,619)
---------- ----------
Cash flow from financing activities:
Rights Offering proceeds, net 92,217 -
Proceeds from production loan 13,520 12,927
Payments on production loan (26,276) (794)
---------- ----------
Net cash provided by financing activities 79,461 12,133
---------- ----------
Net increase (decrease) in cash and cash
equivalents 18,649 177
Cash and cash equivalents at beginning
of year 10,500 10,323
---------- ----------
Cash and cash equivalents at end of year $ 29,149 $ 10,500
========== ==========
CONTACT: McMoRan Oil & Gas Co., New Orleans Financial Contacts: Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System D. Sammons, 504/582-4474 or Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. E. Saporito, 504/582-4476 Media Contact: Garland Robinette Garland Robinette (born in Boutte, Louisiana ca. 1943) is a journalist in the New Orleans area. He currently is host of "The Think Tank" on New Orleans radio station WWL (AM). , 504/582-1627 URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. : http://www.moxy.com |
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