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EQUITY OIL REPORTS 1992 SECOND QUARTER AND FIRST HALF RESULTS ANNOUNCES SEMI-ANNUAL DIVIDEND OF TEN CENTS PER SHARE

 EQUITY OIL REPORTS 1992 SECOND QUARTER AND FIRST HALF RESULTS
 ANNOUNCES SEMI-ANNUAL DIVIDEND OF TEN CENTS PER SHARE
 SALT LAKE CITY, Aug. 12 /PRNewswire/ -- Equity Oil Company (NASDAQ: EQTY) today reported a net loss of ($93,282) or ($.01) per share for the second quarter ended June 30, 1992 on total revenues of $3,787,498, compared to a net loss of ($249,650) or ($.02) per share on total revenues of $3,819,371 in the same period of 1991.
 For the first six months of 1992, net income was $12,726 on total revenues of $7,474,791, compared to net income of $81,582 or $.01 per share on total revenues of $7,835,016 in the first half of 1991.
 Fred H. Evans, president of Equity Oil, commenting on the results, stated, "While we experienced slight increases in second quarter and first half oil and gas sales, year-to-date 1992 revenues have been adversely impacted by significant decreases in interest and other income caused by lower cash balances available for investment and abnormally low interest rates.
 "A true indication of our financial strength is evidenced by the company's improving cash flow. For the six months of 1992, net cash provided by operations increased by more than $800,000 over the same period a year ago."
 Pricing and Production in 1992 First Half
 In the first half of 1992, the average posted oil price at the Rangley Weber Sand Unit, which accounts for over 65 percent of the company's oil and gas production, declined from an average of $20.69 per barrel in 1991 to $19.73 per barrel in 1992. Oil prices began the year at the $18.50 level and have since risen to $21.75 at July 31, 1992. Average gas prices received during the first half of 1992 were $1.33 per MCF, down 6 percent from 1991.
 Oil production in the first half of 1992 increased by 9 percent to 375 thousand barrels over 345 thousand barrels last year, reflecting the company's purchase of an additional working interest at the Rangely Weber Sand Unit in 1991. However, natural gas production decreased by 6 percent form 586 million cubic feet in the first half of 1991 to 533 million cubic feet in the corresponding period in 1992. The decrease in gas production was primarily attributable to lower pipeline deliveries in Wyoming and the continuing pipeline pressure problems in Canada. Equity Oil expects gas production will increase by year-end as the Canadian pipeline pressure situation has been remedied, and marketing arrangements in Wyoming are being renegotiated.
 Exploration Highlights
 During the first half of 1992, Equity Oil participated in a total of nine different wells, each in various stages of drilling or completion. Two have been completed as producing wells, one is in the process of being completed, one has been temporarily abandoned, and five have been plugged and abandoned.
 The following is an update of Equity Oil's 1992 exploration program:
 -- Vaugh Petroleum/Smackover Program: The second well of this five well program, the number 1 Reed, was completed in the first quarter of 1992 as an oil well. The well will be placed on production during the third quarter of 1992. A stabilized initial production rate has not year been obtained; however, the operator anticipates initial production in the range of 250-350 barrels per day. the third well, the No. 1 McCreight, has been temporarily abandoned pending further evaluation. The fourth well, No. 1 Tinney in Wood County, Texas, began drilling in July. The fifth well will begin drilling following the completion of the No. 1 Tinney.
 -- Hatch Point Prospect: The first well in this prospect, the No. 1 Hatch Point, has reached total depth and has been tested in three different zones. Artificial lift equipment has recently been installed which will permit a long-term production test.
 -- Pegasus Prospect: A horizontal test of the Bakken Shale located in Billings County, North Dakota, the No. 1-36 Pegasus well is being completed as an oil well. Plans are underway to drill a second well on the prospect in the fourth quarter of 1992.
 Symskaya Exploration
 As reported previously, Equity Oil formed Symskaya Exploration, Inc. an 80 percent owned subsidiary, for the purpose of exploring for oil and gas in the Krasnoyarsk region in Eastern Siberia in the Russian Federation. Protocols entered into in November and December of 1991 set forth the rights to select 10 percent of approximately 11 million acres (or 1.1 million acres) on which Symskaya will have the exclusive exploration, development and production rights. These rights are to be reflected in a Production Sharing Agreement.
 As of June 30, 1992, Symskaya has received the original data package called for under the protocols and has prepared a draft of a Feasibility Study and Production Sharing Agreement to be submitted to its Russian counterparts. Complete analysis of the geophysical data in the data package and that portion of the reprocessed seismic data received subsequent to the end of the quarter confirm the presence of at least seventeen significant structural features that will be included in the 1.1 million acres to be selected in August 1992.
 Equity believes that the negotiations relating to the Production Sharing Agreement are in the final stage and that the agreement could be signed on or about Oct. 1, 1992. Following the signing of this agreement, it will be submitted to appropriate Russian authorities for approval and confirmation. Full approval of the agreement may require up to six months, but could be concluded by year-end of 1992.
 Dividend
 Equity Oil Company, at its regular board of directors meeting held Aug. 12, 1992, declared a regular semi-annual dividend of ten cents per share. This dividend will be payable on Oct. 5, 1992 to shareholders of record on Sept. 11, 1992.
 Outlook
 "Going into the second half on 1992, we are well-positioned to take advantage of stronger oil prices and expect increases in both oil and gas production. Moreover, our ongoing cash flow and enviable balance sheet will continue to allow for our pursuit of exciting exploration and development activities," Evans concluded.
 Other Matters
 At the regular board of directors meeting on Aug. 12, 1992, the board of directors appointed Paul M. Dougan, 54, corporate secretary of the company, to the board to fill the unexpired term of J. Lynn Dougan, who resigned from the board for personal reasons.
 Equity Oil Company, headquartered in Salt Lake City, is an independent oil and gas exploration and development company with operations in nine western states and Canada.
 EQUITY OIL COMPANY
 Statements of Operations
 For the three months ended June 30, 1992 and 1991
 (Unaudited)
 Period ended Three months
 June 30 1992 1991
 Revenues
 Oil and gas sales $3,639,351 $3,512,667
 Partnership income 77,844 75,756
 Interest income 47,650 199,321
 Other 22,653 31,627
 Total revenues 3,787,498 3,819,371
 Expenses
 Operating costs 1,800,850 1,782,111
 Depreciation, depletion and
 amortization 875,000 810,000
 Lease rentals 6,839 20,957
 Leasehold abandonments 10,635 374,538
 Exploration 720,118 649,055
 General and administrative 465,562 386,441
 Interest expense 35,796 --
 Total expenses 3,914,800 4,023,102
 Income (loss) before income taxes (127,302) (203,731)
 Provision (benefit) for
 income taxes (34,020) 45,919
 Net income (loss) (93,282) (249,650)
 Weighted average shares of
 common stock outstanding 12,239,048 12,239,048
 Net income (loss) per weighted
 share outstanding (0.01) (0.02)
 Cash dividend per share -- --
 Period ended Six months
 June 30 1992 1991
 Revenues
 Oil and gas sales $7,159,579 $7,133,426
 Partnership income 150,312 152,624
 Interest income 122,750 415,108
 Other 42,150 133,858
 Total revenues 7,474,791 7,835,016
 Expenses
 Operating costs 3,538,369 3,716,045
 Depreciation, depletion and
 amortization 1,925,000 1,800,000
 Lease rentals 31,899 53,946
 Leasehold abandonments 19,994 395,508
 Exploration 1,039,083 868,909
 General and administrative 881,144 756,357
 Interest expense 72,596 --
 Total expenses 7,508,085 7,590,765
 Income (loss) before income taxes (33,294) 244,251
 Provision (benefit) for
 income taxes (46,020) 162,669
 Net income (loss) 12,726 81,582
 Weighted average shares of
 common stock outstanding 12,241,240 12,241,240
 Net income (loss) per weighted
 share outstanding -- 0.01
 Cash dividend per share .10 .10
 BALANCE SHEET AS OF JUNE 30, 1992, AND DEC. 31, 1991
 ASSETS 6/30/92 12/31/91
 (Unaudited)
 Current assets:
 Cash $5,371,928 $5,637,779
 Notes receivable-Arco -- 1,062,431
 Accounts & advances receivable 2,653,922 3,483,880
 Income taxes receivable 157,389 207,137
 Other current assets 314,253 329,759
 Total 8,497,492 10,720,986
 Property and equipment 87,513,716 85,391,074
 Less allowance for depletion,
 depreciation and amortization 42,228,248 40,363,416
 Total 45,285,468 45,027,658
 Other assets:
 Raven Ridge Pipeline Investment 1,008,000 1,083,818
 Total assets 54,790,990 56,832,462
 Liabilities and Stockholders' equity
 Current liabilities:
 Accounts payable 1,460,172 1,863,972
 Accrued liabilities 479,898 208,958
 Accrued pension 79,702 138,165
 Income taxes payable -- --
 Current portion - note payable 460,000 460,000
 Current deferred income taxes 1,348,560 1,348,560
 Total 3,828,332 4,019,655
 Deferred income taxes 9,847,275 10,256,275
 Note payable 1,610,000 1,840,000
 Deferred compensation 33,333 33,333
 Total 11,490,608 12,129,608
 Stockholders' equity
 Capital stock 12,583,631 12,583,631
 Paid in capital 2,401,352 2,401,352
 Retained earnings 25,569,064 26,780,213
 Less treasury stock (1,081,997) (1,081,997)
 Total 39,472,050 40,683,199
 Total liabilities and stockholders'
 equity 54,790,990 56,832,462
 STATEMENT OF CASH FLOWS
 For the six months ended June 30, 1992 and 1991
 (Unaudited)
 1992 1991
 Cash Flow From Operations
 Net income $ 12,726 $ 81,582
 Adjustments
 Depreciation, depletion and
 amortization 1,925,000 1,800,000
 Partnership distribution in
 excess of income 75,788 66,760
 Property dispositions 111,309 510,277
 Decrease in deferred taxes (409,000) (171,000)
 Increase (decrease) from changes in:
 Receivable & operator advances 879,706 1,008,001
 Other assets 15,506 (4,533)
 Accounts payable & accrued liabilities (132,859) (1,465,962)
 Taxes payable -- (141,630)
 Plan contributions (58,463) (67,953)
 Net cash provided by operations 2,419,713 1,615,542
 Cash Flows From Investments:
 Property & equipment additions (2,294,119) (1,735,751)
 Proceeds from sale of property -- 325,396
 Payment received on Arco note for
 sale of leases 1,062,431 1,039,606
 Net cash from investments (1,231,688) (370,749)
 Cash Flows From Financing Activities:
 Dividends paid (1,223,876) (1,224,346)
 Payment of long-term debt (230,000) --
 Purchase of treasury stock -- (27,542)
 Net cash used in financing activities (1,453,876) (1,251,888)
 Net increase (decrease) in cash (265,851) (7,095)
 Cash balance at beginning of period 5,637,779 10,065,556
 Cash balance at end of period 5,371,928 10,058,461
 Supplemental disclosures of cash flow information:
 Cash paid during the period for:
 Income taxes $264,716 $727,165
 Interest 79,784 --
 -0- 8/12/92
 /CONTACT: Fred H. Evans or Paul M. Dougan of Equity Oil Company,


801-521-3515; or Marisa Heine or Jennifer Wall of D.F. King & Co., 212-269-5550, for Equity Oil Company/
 (EQTY) CO: Equity Oil Company ST: Utah IN: OIL SU: ERN


KD-LR -- NY069 -- 6338 08/12/92 16:15 EDT
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Date:Aug 12, 1992
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