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HADSON ENERGY RESOURCES ANNOUNCES FIRST QUARTER EARNINGS AND CASH FLOWS

HADSON ENERGY RESOURCES ANNOUNCES FIRST QUARTER EARNINGS AND CASH FLOWS
 OKLAHOMA CITY, May 6 /PRNewswire/ -- Hadson Energy Resources Corporation (NASDAQ: HERC) today announced earnings for the first quarter of 1992 of $875,000, or $.14 per share, on total revenue of $10 million.
 This compares with net earnings of $1.8 million, or $.29 per share, on total revenue of $10.8 million for the first quarter of 1991. Cash flows provided by operating activities (before change in non-cash working capital) were $5.5 million ($.90 per share) for the current quarter as compared with $6.5 million ($1.07 per share) for the same quarter of 1991, a decrease of 15 percent. The decline in earnings and cash flows experienced in the current quarter were principally attributable to lower average oil prices in comparison to the prior year quarter.
 Continued Increases In Oil And Gas Production
 The company continued to report growth in both oil and gas production in relation to the prior year. Domestic oil production increased modestly to approximately 116,000 barrels as compared to 114,000 barrels for the first quarter of 1991. Further, despite the election to shut-in approximately 175 million cubic feet of gas in response to abnormally low spot prices, gas production improved to 1.2 billion cubic feet compared to 1.1 billion cubic feet for the prior year quarter. In Australia, the company's oil production increased to 286,000 barrels compared to 279,000 barrels of oil for the first quarter of 1991. This increase is largely attributable to production from the company's Tanami-1 discovery and was achieved despite production down- time resulting from Cyclone Ian which hit the company's offshore production facility in early March.
 Lower Average Oil Prices - Gas Prices Slightly Higher
 Average prices realized by the company for domestic and international oil sales during the current quarter were significantly lower than the prior year quarter. Such prices were $17.93 and $21.05 per barrel, respectively, as compared to $21.44 and $23.34 for the same period of 1991, representing decreases of 16 percent and 10 percent. Due to the company's election to shut-in certain lower-priced spot market gas during the quarter, the average gas price realized by the company increased slightly to $1.49 per thousand cubic feet as compared to $1.42 for the first quarter of 1991.
 Management's Comment
 William C. Rankin, senior vice president and chief financial officer, stated, "Financially, the company's first quarter results fell short of our expectations due to soft oil and gas prices and lost production time resulting from Cyclone Ian. These events caused oil and gas sales to be somewhat lower than anticipated. However, HERC has responded well to these events and its first quarter results were favorable, given the circumstances.
 The company's offshore gas gathering project in Australia was also affected adversely by Cyclone Ian. Project progress was somewhat delayed due to demobilization of men and equipment and the clean-up and repair resulting from cyclone damage. Although additional costs associated with Cyclone Ian were significant, such costs were largely covered by insurance. First sales from the project should commence in July of this year as originally scheduled and we anticipate that project costs will remain within previously disclosed estimates."
 Hadson Energy Resources Corporation is an energy company engaged in international and domestic crude oil and natural gas exploration, development and production.
 Selected financial and operating statistics for the three month periods ended March 31, 1992 and 1991 are presented below:
 HADSON ENERGY RESOURCES CORPORATION
 (In millions, except per share data)
 Three months ended March 31 1992 1991
 Financial Results
 Revenue $ 10,028 $ 10,763
 Net earnings 875 1,764
 Net earnings per share .14 .29
 Cash flows from operations 5,542 6,533
 Weighted average shares outstanding 6,128 6,127
 Operating Statistics
 Production:
 Domestic oil (MBbls) 116 114
 Domestic gas (MMcf) 1,177 1,085
 International oil (MBbls) 286 279
 Prices:
 Domestic oil (per Bbl) 17.93 21.44
 Domestic gas (per Mcf) 1.49 1.42
 International oil (per Bbl) 21.05 23.34
 -0- 5/6/92
 /CONTACT: William C. Rankin, senior vice president and chief financial officer of Hadson Energy Resources, 405-235-9531; or Warren M. Shimmerlik of Shimmerlik Corporate Communications, 212-237-2820, for Hadson Energy Resources/
 (HERC) CO: Hadson Energy Resources Corporation ST: Oklahoma IN: OIL SU: ERN


TS -- NY019 -- 6960 05/06/92 09:45 EDT
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Publication:PR Newswire
Date:May 6, 1992
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