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EQUITY OIL REPORTS 1992 FIRST QUARTER RESULTS REPORTS ON DOMESTIC AND RUSSIAN EXPLORATION PROGRAMS

 EQUITY OIL REPORTS 1992 FIRST QUARTER RESULTS
 REPORTS ON DOMESTIC AND RUSSIAN EXPLORATION PROGRAMS
 SALT LAKE CITY, Utah, May 13 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) announced today at its annual meeting that first quarter net income was $106,008 or $.01 per share, compared to 1991 first quarter net income of $331,232 or $.03 per share. Total revenues for the period ended March 31, 1992 were $3,687,293 compared with total revenues of $4,015,645 in the same period a year ago. The decrease in 1992 revenues was due to lower oil and gas prices, lower gas production and decline in interest and other income.
 Fred H. Evans, president of Equity Oil, commenting on the results stated, "While the oscillations in oil and gas prices affected first quarter results, we benefited from our purchase of an additional working interest in Rangely Weber Sand Unit in 1991. Net oil production at the Rangely Unit increased by over 20 percent and total oil production increased by 10 percent."
 Evans also reported that the "initial analysis from Symskaya Exploration, Inc., our 80 percent owned subsidiary formed to explore for oil and gas reserves in Eastern Siberia, indicates that there are at least 15 significant structural features on which Symskaya will have exclusive exploration and development rights. These structures may contain hydrocarbon reserves in excess of five billion barrels."
 Oil Pricing and Production
 Total oil production for the first quarter of 1992 increased by 10 percent to 187,892 barrels from 170,922 barrels in 1991, arising from Equity's purchase of an additional working interest in Rangely Weber Sand Unit. Gas production was 269 million cubic feet, 18 percent lower than 330 million cubic feet in the first quarter of 1991 due to lower pipeline takes.
 The average posted price at the Rangely Weber Sand Unit, which accounts for 68 percent of the company's oil production, dropped 13 percent from an average of $21.16 per barrel in 1991 to $18.49 per barrel during the first quarter of 1992. The current average posted price at the Rangely Weber Sand Unit is $20.50 per barrel.
 Update on Exploration and Development
 In addition to announcing first quarter results at the annual meeting, Evans reported on the status of Equity's domestic and Russian exploration programs. During the first quarter, Equity had eight wells in various stages of drilling and completion. One of the four wells has been placed in production, one is in the process of being evaluated, two are currently drilling and four were plugged and abandoned. Highlights of our exploration program include:
 -- Vaughn Petroleum/Smackover Program:
 In mid-1991, Equity committed to participate in the drilling of five Smackover trend prospects generated by Vaughn Petroleum, Inc. of Dallas in which Equity will have a 12.5 percent working interest in each well. The first of those prospects, the No. 1 Harris, was completed in 1991 and is on production at a daily rate of 1.1 million cubic feet of gas and 185 barrels of condensate per day. The second prospect, the No. 1 Reed, has been completed and tested at initial rates of 250 to 300 barrels of oil per day. The well will be placed on production as soon as a pumping unit is installed. The third well, the No. 1 McCreight, is drilling at 13,800 ft., 1,000 ft. from its projected total depth of 14,800 ft.
 -- Hatch Point:
 An 8,300 foot Missippian test with Giant Oil Company in San Juan County, Utah, was started in March and reached total depth of 8,486 ft. on May 2nd. Casing has been run and the company is anticipating completion within the next month. The prospect includes 6,315 acres in which Equity will have a 25 percent working interest.
 -- Symskaya Exploration
 In 1991, Equity Oil and Coastline Exploration announced the formation of Sysmkaya Exploration, Inc. for the purpose of exploring for oil and gas in the Symskaya Area of the Krasnoyarsk region in Eastern Siberia. Symskaya is proceeding with the acquisition and analysis of the geologic and geophysical data on the 11 million acre Symskaya Area. The drafting of documents relating to a production sharing agreement to be negotiated between Symskaya and ENISEYGEOFIZIKA and ENISEYNEFTEGASGEOLOGIYA (ENI) is also underway.
 During the first quarter of 1992, Symskaya paid ENI $250,000 for the delivery of a data package covering the Symskaya Area that includes geological information and approximately 3,000 kilometers of seismic data. The initial review of the data package indicates the presence of at least 15 significant structural features that may be included in the 1.1 million acres (10 percent of the Symskaya Area) on which Symskaya will have exclusive exploration and development rights. Exploratory and development drilling on these structures may develop hydrocarbon reserves in excess of five billion barrels. The seismic data is currently being reprocessed by ENI and the delivery of the reprocessed data is expected by the end of the second quarter.
 If the reprocessing of the seismic data confirms the initial analysis and is delivered on schedule, Equity anticipates that Symskaya may be able to complete the negotiations relating to a production sharing agreement and a drilling contract for an initial test well by the end of the third quarter. Actual drilling of the well would begin shortly thereafter.
 Outlook
 "The strength of our balance sheet and ongoing cash flow will continue to provide the company with the resources needed to pursue aggressive exploration programs, and if the right opportunity exists, to purchase additional high-quality, long-life reserves. In addition, we are pleased that the current progress of the negotiations between Symskaya and ENI are going as scheduled," Evans concluded.
 EQUITY OIL COMPANY
 Statement of Operations (unaudited)
 Three months ended March 31 1992 1991
 Revenues
 Oil and gas sales $3,520,228 $3,620,759
 Partnership income 75,100 76,868
 Interest income 72,468 215,787
 Other 19,497 102,231
 Total revenues 3,687,293 4,015,645
 Expenses
 Operating costs 1,737,519 1,933,934
 Depreciation, depletion and amortization 1,050,000 990,000
 Lease rentals 25,060 32,989
 Leasehold abandonments 9,359 20,970
 Exploration 318,965 219,854
 General and administrative 415,582 369,916
 Interest expense 36,800 --
 Total expenses 3,593,285 3,567,663
 Income before income taxes 94,008 447,982
 Provision for income taxes (12,000) 116,750
 Net income 106,008 331,232
 Weighted average shares of
 common stock outstanding 12,238,760 12,243,457
 Net income per weighted
 shares outstanding 0.01 0.03
 Cash dividends per share declared/paid .10 .10
 EQUITY OIL COMPANY
 Balance Sheet as of March 31, 1992, and Dec. 31, 1991
 ASSETS
 3/31/92 12/31/91
 (unaudited)
 Current assets:
 Cash $ 6,190,687 $ 5,637,779
 Notes receivable-Arco -- 1,062,431
 Accounts & advances receivable 2,807,825 3,483,880
 Income taxes receivable 179,400 207,137
 Other current assets 419,375 329,759
 Total 9,597,287 10,720,986
 Property and equipment 86,632,317 85,391,074
 Less allowance for depletion,
 depreciation and amortization 41,404,320 40,363,416
 Total 45,227,997 45,027,658
 Other assets:
 Raven Ridge Pipeline Investment 1,044,749 1,083,818
 Total assets 55,870,033 56,832,462
 Liabilities and Stockholders' Equity
 Current liabilities:
 Accounts payable 1,068,859 1,863,972
 Accrued liabilities 322,411 208,958
 Accrued pension 38,887 138,165
 Dividend payable 1,223,876 --
 Current portion - note payable 460,000 460,000
 Current deferred income taxes 1,348,560 1,348,560
 Total 4,462,593 4,019,655
 Deferred income taxes 10,083,775 10,256,275
 Note payable 1,725,000 1,840,000
 Deferred compensation 33,333 33,333
 Total 11,842,108 12,129,608
 Stockholders' Equity
 Capital stock 12,583,631 12,583,631
 Paid in capital 2,401,351 2,401,351
 Retained earnings 25,662,346 26,780,213
 Less treasury stock (1,081,996) (1,081,996)
 Total 39,565,332 40,683,199
 Total liabilities and stockholders'
 equity 55,870,033 56,832,462
 -0- 5/13/92
 /CONTACT: Fred H. Evans or Paul M. Dougan of Equity Oil, 801-521-3515, or Marisa Heine or Jennifer Wall of D.F. King & Co., 212-269-5550, for Equity Oil/
 (EQTY) CO: Equity Oil Company ST: Utah IN: OIL SU: ERN


KD-OS -- NY098 -- 9919 05/13/92 17:09 EDT
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