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GERRITY OIL & GAS CEASES SALE EFFORT; WILL FOCUS ON A LONG-TERM STRATEGY FOR GROWTH

 DENVER, Jan. 6 /PRNewswire/ -- Gerrity Oil & Gas Corp. (NYSE: GOG) announced today that it is terminating the process of seeking potential buyers for the company.
 The company also announced that it is initiating a business plan that will expand Gerrity Oil & Gas into new markets on a selected basis. Going forward, the company will use its productive capacity in the Denver-Julesburg Basin and its financial flexibility to expand into other areas via acquisitions.
 Since its inception, the company's business strategy has been to create a mono-dimensional asset that would provide an acquiring company with an attractive operating base. After investigating the possibility of selling the company over the past three months, the board of directors has determined, based on internal valuations and on the advice of senior management, the indications of interest which have been received and current industry factors, that greater shareholder value is likely to be achieved by continuing as an independent company rather than by selling or merging the company in today's circumstances. Therefore, the board decided to terminate the current efforts to seek a buyer for the company.
 Robert W. Gerrity, chairman, said, "Our D-J reserves are long-lived and create net income margins that are among the highest in the industry. We will reinvest the cash flow generated here in both additional D-J activity and to fund expansion into selected targeted areas."
 Gerrity also noted that, "Given the recent decline in commodity prices, I believe that this is an excellent time to grow a company and be an acquirer instead of being acquired. Gerrity has in the past made great strides to expand its production base and its net income margins during periods of depressed commodity prices."
 As of Sept. 30, 1993, Gerrity estimated its ratio of reserves to production to be in excess of 13. The company currently has over 1,800 gross producing wells in the D-J, with an average working interest ownership of 94 percent, and has in its inventory of drillsites over 1,800 locations and/or behind-the-pipe opportunities. Despite flat price realizations over the past three years, Gerrity has seen its net income margins grow to $3.08 per boe for the nine months ended Sept. 30, 1993.
 Capital expenditures for 1994, exclusive of acquisitions, are currently estimated to be $45 million. This is based on estimated realized prices of $17 for oil and $1.95 for natural gas. In the event that commodity prices change the company anticipates it will adjust its spending program accordingly.
 The company estimates that it will perform 450 well completions in the D-J Basin alone, compared to the approximately 560 performed in 1993. As in 1993, drilling and recompletion activity will be weighted toward the middle two quarters of the year. The goal is to increase productive capacity 15 percent per annum.
 Denver-based Gerrity Oil & Gas is a mid-cap sized energy firm whose operations have been concentrated in the Denver-Julesburg Basin, recognized as one of the largest oil and gas plays in the United States.
 -0- 1/6/94
 /CONTACT: Greg Barnett of Gerrity Oil & Gas, 303-757-1110/
 (GOG)


CO: Gerrity Oil & Gas Corp. ST: Colorado IN: OIL SU:

MC -- DV005 -- 9800 01/06/94 13:29 EST
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Publication:PR Newswire
Date:Jan 6, 1994
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