Printer Friendly


 FORT WORTH, Texas, Aug. 17 /PRNewswire/ -- Arch Petroleum Inc. (NASDAQ: ARCH) announced today that it was reporting a net loss of $136,000 ($.02 per share) on revenues of $8.1 million for its second quarter ended June 30, 1993. Net income for the six months ended June 30, 1993 was $521,000 on revenues of $16.2 million. The company recorded losses of $5,000 and $55,000 for the comparable 1992 quarter and six-month period on revenues of $1.4 million and $2.6 million, respectively.
 The company attributed the second quarter loss to reduced production from its properties in the Keystone Ellenburger Field, Winkler County, Texas. To encourage water production as an integral part of the reservoir management plan, the existing field rules in the Keystone Ellenburger Field provided a bonus gas allowable of 1/2 mcf of natural gas per barrel of water produced from the Ellenburger formation. In May 1993, as previously reported, the Railroad Commission of Texas ("RRC") revised their interim order, which expires in May 1994, and will now require producers to accumulate all such bonus allowables for sale at a later date.
 The entire purpose of the reservoir management plan is to maximize the recovery of oil and natural gas from the reservoir. In sworn testimony before the RRC during earlier hearings, representatives of Bass Enterprises Production Company ("Bass") estimated that approximately 42 million barrels of recoverable oil and 450 billion cubic feet of recoverable gas remained in the reservoir. At the latest hearing Pennzoil Petroleum Company, who acquired Chevron's interests in the field after the 1992 hearings, endorsed the current reservoir management plan while urging a postponement of the production of the bonus allowable.
 Larry Kalas, president of Arch, said, "The temporary deferral of production from Keystone has obviously impacted Arch's current earnings, while not having any long-term detrimental effects. In compliance with the modified field rules, Arch continues to produce in excess of 30,000 barrels of formation water per day, thus earning and accumulating a bonus production allowable in excess of 15,000 mcf of natural gas per day. Because we have not booked reserves in the Keystone Ellenburger Field at the levels to which Bass has testified, there is considerable upside potential if their estimates are correct. We have also demonstrated Arch's ability to produce gas at quantities which were generating significant profitability. We continue to pursue expansion in our gas transmission and processing subsidiaries as well as evaluating opportunities to acquire oil and gas production."
 Arch Petroleum Inc. is an independent oil and gas exploration and production company headquartered in Fort Worth with interests in producing properties in Texas, New Mexico, Oklahoma, Louisiana and North Dakota. Arch participates in gas transmission and processing through its subsidiaries Onyx Gathering Company, L. C. and Saginaw Pipeline Company, L.C.
 (000's except per share data)
 Quarter Ended June 30 1993 1992
 Revenues $ 8,119 $ 1,383
 Net loss $ (136) $ (5)
 Loss per share $ (.02) $ (.00)
 Weighted average common and
 equivalent shares outstanding 8,579 8,431
 Six Months Ended June 30 1993 1992
 Revenues $16,156 $ 2,586
 Net income (loss) $ 521 $ (55)
 Earnings (loss) per share $ .06 $ (.01)
 Weighted average common and
 equivalent shares outstanding 8,561 8,399
 6/30/93 12/31/92
 Total assets $39,129 $40,760
 Long-term debt $ 0 $ 0
 Shareholders' equity $12,015 $11,855
 -0- 8/17/93
 /CONTACT: Randall W. Scroggins, vice president of Arch Petroleum Inc., 817-332-9209 or 800-772-8558/

CO: Arch Petroleum Inc. ST: Texas IN: OIL SU: ERN

SM-MG -- NY047 -- 3516 08/17/93 11:47 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 17, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters