PETROMINERALS CORP. ANNOUNCES FIRST QUARTER RESULTS
PETROMINERALS CORP. ANNOUNCES FIRST QUARTER RESULTS TUSTIN, Calif., May 18 /PRNewswire/ -- Petrominerals Corp.
(NASDAQ: PTRO) today announced the financial results for the first quarter ended March 31, 1992. The company reported a first quarter loss of $240,000, or $.03 per share, compared with a loss of $64,000 or $.00 per share, for the period ended March 31, 1991. Revenues for the three months ended March 31, 1992, were $1,687,000, compared with revenues of $2,267,000, for the same period in 1991.
Kenneth M. Padula, chief administrative officer, stated that the average price the company received for its crude decreased 26 percent to $9.17 from $12.40 during the first quarter of 1992. In addition, the company experienced a 7 percent decrease in oil production volume for the first quarter of 1992, compared with the first quarter of 1991. The decline in oil production was a result of heavy rains in February 1992, and management's decision to temporarily shut-in wells which became uneconomic to produce due to low oil prices. The utilization rate for well service rigs of the company's Lunn Production Service division declined during the first quarter, as rigs were released by the major oil companies for whom the company performs well servicing. This was due to a decline in the price of crude throughout the first quarter of 1992. The well servicing division experienced an 18 percent reduction in service rig hours, while the average rig rate for the first quarter of 1992 remained constant, as compared with the same period in 1991. As a result, the production service revenues declined 20 percent, with service rig operating expenses declining 21 percent. Overall, the production service division realized an 18 percent decrease in the gross margin. The company currently has 15 out of 25 rigs in operation. The company reported that current oil price postings have increased, and are approximately $2.25 per barrel higher than the March 31, 1992, prices, and $1.00 to $2.25 per barrel higher than the Dec. 31, 1991, prices. General and administrative expenses decreased 4 percent in the first quarter of 1992, compared to the same period in 1991. This decrease is a result of the cost reduction program which the company implemented in March 1992. Management anticipates that this program will materially decrease costs related to field operations, general and administrative overhead and the well servicing division, as the year progresses. Petrominerals Corp. engages in the production and marketing of crude oil and natural gas in California and Louisiana. Lunn Production Service, a division of Petrominerals Corp., services and maintains oil and gas wells for a number of major oil companies. PETROMINERALS CORP. Summary of Operations (In thousands, except per share amounts) (Unaudited) Three months ended March 31, 1992 1991 Operating revenues $1,687 $2,267 Net loss 240 64 Net loss per common share $.03 $--- Shares outstanding 7,810,336 7,810,336 -0- 5/18/92 /CONTACT: Virginia M. Lazar of Petrominerals, 714-730-5400/ (PTRO) CO: Petrominerals Corp. ST: California IN: OIL SU: ERN
CH-AL -- LA017 -- 1258 05/18/92 11:08 EDT
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|Date:||May 18, 1992|
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