United States Exploration, Inc. Announces Third Quarter Earnings.Energy Editors/Business Editors DENVER--(BUSINESS WIRE)--Nov. 14, 2003 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. Exploration, Inc. (AMEX AMEX See: American Stock Exchange :UXP UXP User Experience UXP User eXtension Protocol UXP Unequal Erasure Protection UXP Unexplained Phenomena ) today announced earnings for the third quarter of 2003. Net income for the quarter was $1,225,053 ($.07 per share), compared to net income of $361,606 ($.02 per share) in the third quarter of 2002. For the first nine months of 2003, net income was $3,356,577 ($.18 per share), compared to net income of $1,703,504 ($.09 per share) for the first nine months of 2002. Total oil and gas sales increased to $4,596,742 in the third quarter of 2003 from $2,171,609 in the third quarter of 2002 and to $13,299,067 in the first nine months of 2003 from $7,198,678 in the first nine months of 2002. "The third quarter earnings reflect increased production resulting from our development program and higher prevailing prices for oil and gas," said Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. D. Benson Benson may mean: Places in England:
adj. 1. Almost exact or correct: the approximate time of the accident. 2. 3,200 mmcfe in 2003 from approximately 2,400 mmcfe in 2002." "In September September: see month. , we announced a merger agreement under which U.S. Exploration would be acquired by a private company for $2.82 per share in cash. That transaction is currently in process and we will submit it to our shareholders in the near future," said Mr. Benson. "In connection with the merger agreement, we entered into hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. arrangements with respect to a portion of our oil through 2004 and a portion of our gas in 2005. As always, oil and gas prices are unpredictable and the net benefit or detriment Any loss or harm to a person or property; relinquishment of a legal right, benefit, or something of value. Detriment is most frequently applied to contract formation, since it is an essential element of consideration, which is a prerequisite of a legally enforceable contract. from these hedges will not be known until they run their course. However, they provide some protection against price declines from the relatively high levels in effect in recent months." This news release includes 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. within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 concerning the results of oil and natural gas drilling. Although the company believes that its expectations are based on reasonable assumptions, it can give no assurance that expected results will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include drilling risks, operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , market risks, including particularly the effects of fluctuations in prevailing price levels for oil and gas and the availability and cost of necessary goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , risks related to the need to obtain additional financing for development of its oil and gas properties and other risk facts as described in the Company's Form 10-QSB for the quarter ended September 30, 2003 as filed with the Securities and Exchange Commission. The Company has filed with the Securities and Exchange Commission a preliminary proxy statement Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. in connection with the merger. Upon completion of the Commission's review process, a final proxy statement will be mailed to the Company's shareholders with the notice of the meeting to be called to consider the merger. The Company urges shareholders to read the proxy statement carefully when it becomes available, because it will contain important information about the Company and the proposed transaction. Shareholders may obtain a free copy of the merger proxy statement when it is available, at the Commission's web site at www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. . United States Exploration, Inc. is engaged in the acquisition, exploration, development, production and marketing of natural gas and crude oil. The Company's reserves and producing properties are located in northeast “Northeastern” redirects here. For the Boston college, see Northeastern University, Boston. Northeast or north east is the ordinal direction halfway between north and east. It is the opposite of southwest. See boxing the compass. Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. . The Company's common stock trades on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. are under the symbol UXP.
UNITED STATES EXPLORATION, INC.
BALANCE SHEET
ASSETS
----------
September December
30, 31,
2003 2002
----------- -----------
(UNAUDITED)
-----------
CURRENT ASSETS
Cash & cash equivalents $ 627,400 $ 475,607
Accounts receivable 3,096,290 2,498,424
Due from related parties 30,402 6,489
Inventory 14,377 13,891
Prepaid expenses & deposits 140,760 69,862
Deferred tax asset-current 1,588,262 1,682,725
----------- -----------
Total current assets 5,497,491 4,746,998
PROPERTY AND EQUIPMENT, AT COST, NET:
Oil and gas property and equipment 31,336,521 29,881,707
Other equipment and leasehold improvements 98,631 136,946
----------- -----------
31,435,152 30,018,653
OTHER ASSETS
Loan costs, less accumulated
amortization of $56,486 at September 30,
2003 and $40,405 at December 31, 2002 7,112 23,192
Deferred tax asset 530,836 1,376,775
----------- -----------
537,948 1,399,967
----------- -----------
Total assets $37,470,591 $36,165,618
=========== ===========
UNITED STATES EXPLORATION, INC.
BALANCE SHEET
LIABILITIES AND STOCKHOLDERS' EQUITY
---------------------------------------
September December
30, 31,
2003 2002
----------- -----------
(UNAUDITED)
-----------
CURRENT LIABILITIES
Accounts payable $ 1,290,881 $ 2,260,498
Revenues payable 1,299,136 1,055,918
Taxes payable 1,689,675 1,311,864
Accrued liabilities 177,821 198,814
Due related parties 11,875 31,501
Accrued interest ---- 791
----------- -----------
Total current liabilities 4,469,388 4,859,386
NON-CURRENT LIABILITIES
Oil & gas price swaps obligation 2,973,568 ----
Asset retirement obligations 799,638 ----
Note payable-Bank ---- 3,632,700
----------- -----------
Total non-current liabilities 3,773,206 3,632,700
----------- -----------
Total Liabilities 8,242,594 8,492,086
STOCKHOLDERS' EQUITY
Common stock-$.0001 par value
Authorized-500,000,000 shares
issued and outstanding-18,879,529 shares
at September 30, 2003 (including 139,590
shares in treasury) and 18,855,906
shares at December 31, 2002
(including 139,590 shares in treasury) 1,887 1,885
Capital in excess of par 36,768,208 36,726,710
Accumulated deficit (5,477,934) (8,834,511)
Accumulated other comprehensive income
(loss) (1,843,612) ----
----------- -----------
29,448,549 27,894,084
Less 139,590 shares held in treasury, at
cost (220,552) (220,552)
----------- -----------
Total stockholders' equity 29,227,997 27,673,532
----------- -----------
Total liabilities & stockholders' equity $37,470,591 $36,165,618
=========== ===========
UNITED STATES EXPLORATION, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
----------- ----------- ----------- -----------
REVENUES
---------
Sale of oil and
gas $ 4,596,742 $ 2,171,609 $13,299,067 $ 7,198,678
Contracting and
operating fees 11,481 31,004 31,531 79,888
----------- ----------- ----------- -----------
4,608,223 2,202,613 13,330,598 7,278,566
COSTS & EXPENSES
------------------
Accretion-
retirement
obligations 13,296 ---- 39,888 ----
Production
costs-oil and
gas 1,013,134 631,670 2,857,500 1,934,711
Depletion,
depreciation,
and
amortization 960,866 706,760 3,037,797 2,196,009
General and
administrative
expenses 589,531 494,375 1,650,039 1,453,643
----------- ----------- ----------- -----------
2,576,827 1,832,805 7,585,224 5,584,363
Earnings from
operations 2,031,396 369,808 5,745,374 1,694,203
OTHER INCOME
(EXPENSE)
-------------
Interest income ---- 1,640 ---- 30,426
Interest
expense (11,328) (9,842) (80,995) (16,161)
Other ---- ---- ---- (4,964)
----------- ----------- ----------- -----------
(11,328) (8,202) (80,995) 9,301
----------- ----------- ----------- -----------
Income before
taxes 2,020,068 361,606 5,664,379 1,703,504
Deferred Income
taxes 795,015 ---- 2,182,287 ----
----------- ----------- ----------- -----------
Income before
cumulative effect
of change
in accounting
principle 1,225,053 361,606 3,482,092 1,703,504
Cumulative
effect of
change in
accounting
principle ---- ---- (125,515) ----
----------- ----------- ----------- -----------
Net income $ 1,225,053 $ 361,606 $ 3,356,577 $ 1,703,504
=========== =========== =========== ===========
Basic earnings per
common share:
Income before
cumulative effect
of change in
accounting
principle $0.07 $0.02 $0.19 $0.09
=========== =========== =========== ===========
Cumulative effect
of change in
accounting
principle $0.00 $0.00 $0.01 $0.00
=========== =========== =========== ===========
Net Income $0.07 $0.02 $0.18 $0.09
=========== =========== =========== ===========
Weighted average
common shares
outstanding 18,739,939 18,885,906 18,739,939 18,855,906
=========== =========== =========== ===========
Diluted earnings
per common share:
Income before
cumulative effect
of change in
accounting
principle $0.06 $0.02 $0.19 $0.09
=========== =========== =========== ===========
Cumulative effect
of change in
accounting
principle $0.00 $0.00 $0.01 $0.00
=========== =========== =========== ===========
Net Income $0.06 $0.02 $0.18 $0.09
=========== =========== =========== ===========
Weighted average
common shares
outstanding 18,891,167 18,885,906 18,846,350 18,891,965
=========== =========== =========== ===========
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