McMoRan Oil & Gas Co. Reports Second-quarter and Six-month 1998 Results.NEW ORLEANS--(BUSINESS WIRE)--July 21, 1998-- HIGHLIGHTS -- 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 Moxy may refer to:
-- Exploratory drilling at 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 well encountered hydrocarbons hydrocarbons (hīˈ·drō·kärˑ·b  nz),n. in April 1998. Production expected in the second half of 1999. -- Exploratory drilling at 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 159 No. 3 well encountered a total of 173 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 five sands. Development is in progress with initial production anticipated in early 1999. -- In April 1998, exploratory drilling 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 617 No. 1 well encountered 306 feet of net hydrocarbon pay in eight sands. Field development is being evaluated. -0-
Second Quarter Six Months
---------------- ------------------
1998 1997 1998 1997
------- ------- -------- -------
(In thousands, except per share amounts)
Revenues $ 5,999 $ 2,248 $ 11,778 $ 5,021
Operating loss (8,189) (1,192) (15,610) (3,452)
Net loss (7,858) (1,395) (14,878) (3,884)
Diluted net loss
per share (0.18) (0.10) (0.35) (0.28)
Diluted average
shares outstanding 42,862 14,063 42,816 14,044
McMoRan Oil & Gas Co. (NASDAQ:MOXY) today reported a net loss of $7.9 million, $0.18 per share, for the second quarter of 1998 compared with a net loss of $1.4 million, $0.10 per share, for the second-quarter of 1997. For the six months ended June June: see month. 30, 1998, MOXY recorded a net loss of $14.9 million, $0.35 per share, compared with a net loss of $3.9 million, $0.28 per share, for the comparable six month period in 1997. MOXY's second-quarter 1998 revenues totaled $6.0 million compared to $2.2 million during the second-quarter of 1997. Second-quarter 1998 exploration and development expenditures totaled $14.6 million compared with $5.5 million for the second-quarter of 1997. PRODUCTION: MOXY has a 25.5 percent net revenue interest, subject to an approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. 2.6 percent net profits interest, in the Vermilion 160 field unit, from which net daily production averaged approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 12 mmcf of gas and 306 barrels of condensate per day during the second-quarter. MOXY's 28 percent net revenue interest in the Vermilion Block 410 field provided net daily production of approximately 15 mmcf of gas during the second-quarter. EXPLORATION ACTIVITIES: -- Brazos Block A-19 - In April 1998, the Brazos Block A-19 No. 2 well encountered hydrocarbons in a separate reservoir reservoir (rĕz`əvôr, -vwär), storage tank or wholly or partly artificial lake for storing water. Building an embankment or dam to preserve a supply of water for irrigation is an ancient practice; India and Egypt have many old and compartment compartment a part of the body as a whole and divided from the rest by a physical partition. fluid compartment that liquid part of the body excluded by cell membranes. Includes intravascular and intercellular compartments. within the larger Picaroon pic·a·roon n. 1. a. A pirate. b. A pirate ship. 2. See picaro. intr.v. pic·a·rooned, pic·a·roon·ing, pic·a·roons To act as a pirate. Field area. The field extension was defined by a 3-D seismic survey. Platform and facility design work has begun with production expected in the second half of 1999. The operator continues to evaluate the field to determine the need for additional drilling. The No. 2 well was drilled to a total depth of 18,790 feet. MOXY has a 16.8 percent working interest and a 13.3 net revenue interest in the prospect. Additionally, MOXY has a 48 percent working interest in the adjacent Brazos Block A-26. The two blocks cover 11,520 acres located in approximately 135 feet of water, 35 miles offshore Texas. -- Vermilion Block 159 - During May 1998, the Vermilion Block 159 No. 3 exploratory well encountered 80 true vertical feet of net hydrocarbon pay in two sands logged between 13,566 feet and 13,870 feet. MOXY, as operator, set protective pipe and continued drilling to test additional objectives. The deeper drilling resulted in discoveries of an additional 93 feet of net hydrocarbon pay in three sands logged between 13,982 feet and 14,702 feet, bringing the total net hydrocarbon pay of the well to 173 true vertical feet in five sands. A substructure substructure /sub·struc·ture/ (-struk-chur) the underlying or supporting portion of an organ or appliance; that portion of an implant denture embedded in the tissues of the jaw. sub·struc·ture n. , deck (1) The part of a magnetic tape unit that holds and moves the tape reels. The term may refer to any equipment that serves as a physical framework for electronic or mechanical devices. See rack. See also DEC. and test facility are planned to be installed to allow first production to begin by early 1999, which will be processed at the Vermilion 160 No. 4 sidetrack facility. MOXY has a 48 percent working interest and a 33.8 percent net revenue interest in the Vermilion Block 159 No. 3 area, encompassing 3,438 acres, located in approximately 90 feet of water, 42 miles offshore Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. .-- West Cameron Block 617 - In April 1998, MOXY's West Cameron Block 617 No. 1 exploratory well encountered approximately 306 true vertical feet of net gas pay in eight sands logged above 7,919 feet true vertical depth. The West Cameron Block 617 No. 2 exploratory well commenced drilling in April 1998 to test an adjacent fault block. The well was drilled to a measured depth of 9,670 feet and was plugged and abandoned. Related costs of approximately $0.7 million were charged to income in the second-quarter. MOXY is evaluating development of the field. MOXY has a 24 percent working interest and a 19.2 percent net revenue interest in West Cameron Block 617, which encompasses 5,000 acres located in approximately 300 feet of water, 130 miles offshore Louisiana. -- In May 1998, the Atchafalaya Bay Atchafalaya Bay Inlet of the Gulf of Mexico on the Louisiana coast, U.S. Together with Four League Bay, it extends about 21 mi (34 km). The Atchafalaya River links the bay with Morgan City on the Gulf Intracoastal Waterway. The area includes many natural gas and oil fields. exploratory well and the Grand Isle Grand Isle can refer to:
DEVELOPMENT ACTIVITES: -- West Cameron Block 616 - MOXY's development of West Cameron Block 616 is proceeding as scheduled. The offshore production platform, with facilities designed for 75 mmcf/day, is scheduled for installation in early August, with production expected to begin in November November: see month. 1998 at a rate of approximately 70 mmcf/day from five well completions. MOXY, the operator, has a 50 percent working interest and an approximate 38 percent net revenue interest in West Cameron Block 616, which covers 5,000 acres located in approximately 300 feet of water, 130 miles offshore Louisiana. -- Vermilion Block 160 - A substructure was installed in late June 1998, and the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. of a deck with processing facilities continue for the Vermilion Block 160 No. 4 sidetrack development well, which is located outside the currently producing Vermilion Block 160 field unit. The processing facilities are being designed for 60 mmcf/day in order to accommodate production from both the Vermilion 159 No. 3 and Vermilion 160 No. 4 sidetrack wells. Production from both these wells is anticipated to commence by early 1999 at a combined rate of approximately 40 mmcfe/day. MOXY, the operator, has a 58 percent net revenue interest in the No. 4 sidetrack well, subject to a 12.7 percent net profits interest. Vermilion Block 160 is located approximately 42 miles offshore Louisiana in approximately 100 feet of water. Operational activities during the second half of 1998 will focus primarily on development of previous discoveries and identification of new exploration prospects. 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 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 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. and geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. experience and expertise through the use of 3-D seismic data and other 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 1997 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 and on our web site at http://www.moxy.com. -0-
McMoRan OIL & GAS CO.
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
1998 1997 1998 1997
-------- -------- -------- --------
(In Thousands,Except Per Share Amounts)
Revenues:
Oil and gas sales $ 5,999 $ 1,839 $ 11,778 $ 4,203
Other - 409 - 818
-------- -------- -------- --------
Total revenues 5,999 2,248 11,778 5,021
Costs and expenses:
Depreciation and amortization 5,763 2,965 10,970 4,822
Production and delivery costs 832 387 1,811 490
Exploration expenses 6,174a 1,822 12,258a 4,272
General and administrative
expenses 1,419 555 2,349 1,178
Gain on sale of oil and gas
property - (2,289) - (2,289)
-------- -------- -------- --------
Total costs and expenses 14,188 3,440 27,388 8,473
-------- -------- -------- --------
Operating loss (8,189) (1,192) (15,610) (3,452)
Interest expense - (321) - (681)
Other income, net 331 118 732 249
-------- -------- -------- --------
Net loss $ (7,858) $ (1,395) $(14,878) $ (3,884)
======== ======== ======== ========
Basic and diluted, net loss
per share $(0.18) $(0.10) $(0.35) $(0.28)
====== ====== ====== ======
Basic and diluted, average
shares outstanding 42,862 14,063 42,816 14,044
====== ====== ====== =======
a. Includes second quarter unsuccessful exploratory drilling and
leasehold costs of approximately $4.8 million associated with
Atchafalaya Bay well, the Grand Isle 54 No. 1 well and the West
Cameron Block 617 No. 2 well. Six month period includes drilling and
leasehold costs associated with the aforementioned projects as well as
costs associated with the West Cameron Block 157 No. 1 exploratory
well totaling approximately $4.5 million.
OPERATING DATA (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
1998 1997 1998a 1997
--------- ------- --------- ---------
Production:
Gas (thousand cubic feet,or
MCF) 2,441,200 828,700 5,022,500 1,621,000
Oil (barrels) 27,900 3,800 62,600 9,400
Average realization:
Gas (per MCF) $2.27 $2.11 $2.20 $2.44
Oil (per barrel) 12.58 19.61 14.52 21.89
a. The prior period effects of the re-determination of Vermilion
Block 160 were excluded from the above table, which would have reduced
six-month volumes of gas and oil by approximately 150,400 mcf and
6,200 barrels, respectively, and reduced the combined revenues from
gas and oil by approximately $486,000.
McMoRan OIL & GAS CO.
CONDENSED BALANCE SHEETS (Unaudited)
June 30, December 31,
1998 1997
-------- ----------
(In Thousands)
ASSETS
Cash and cash equivalents $ 19,355 $ 29,149
Accounts receivable and other 11,488 14,065
-------- ----------
Total current assets 30,843 43,214
Property, plant and equipment, net 67,489 57,705
Other assets 166 169
-------- ----------
Total assets $ 98,498 $ 101,088
======== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 19,777 $ 9,465
Other long-term liabilities 2,348 925
Stockholders' equity 76,373 90,698
-------- ----------
Total liabilities and stockholders' equity $ 98,498 $ 101,088
======== ==========
McMoRan OIL & GAS CO.
STATEMENTS OF CASH FLOW (Unaudited)
Six Months Ended
June 30,
------------------
1998 1997
-------- --------
(In Thousands)
Cash flow from operating activities:
Net loss $(14,878) $ (3,884)
Adjustments to reconcile net loss to
net cash provided by (used in)
operating activities:
Depreciation and amortization 10,970 4,822
Exploration expenses 12,258 4,272
Gain on sale of oil and gas property - (2,289)
(Increase) decrease in working capital and other 9,796 1,427
-------- --------
Net cash provided by (used in) operating activities 18,146 4,348
-------- --------
Cash flow from investing activities:
Exploration and development expenditures (27,940) (10,454)
Proceeds from sale of oil and gas interest - 2,884
-------- --------
Net cash used in investing activities (27,940) (7,570)
-------- --------
Cash flow from financing activities:
Proceeds from production loan - 4,741
Payments on production loan - (4,877)
-------- --------
Net cash provided by financing activities - (136)
-------- --------
Net decrease in cash and cash equivalents (9,794) (3,358)
Cash and cash equivalents at beginning of year 29,149 10,500
-------- --------
Cash and cash equivalents at end of period $ 19,355 $ 7,142
======== ========
CONTACT: McMoRan Oil & Gas Co., 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 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 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 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion