HALLADOR ANNOUNCES 1992 FIRST QUARTER RESULTS
HALLADOR ANNOUNCES 1992 FIRST QUARTER RESULTS DENVER, May 16 /PRNewswire/ -- Hallador Petroleum Co.
(NASDAQ: HPET) announced a net loss of $220,000 (5 cents per share) on revenue of $1,800,000 for the first quarter of 1992 as compared to a net loss of $455,000 (11 cents per share) on revenue of $1,226,000 for the comparable 1991 period. Victor P. Stabio, CEO, stated, "The actions taken by the company during the past year to reduce overhead and raise cash through property sales are showing progress as evidenced by the $2,655,000 paid to the bank from sale proceeds during 1991 and the significant reduction in general and administrative expenses comparing first quarter 1992 to 1991."
As previously reported in the company's filings with the SEC, negotiations continue with representatives of the Robert C. Hardie family, the company's principal shareholder, regarding the restructuring of a $4,745,000 bridge loan due them on June 30, 1992. Management believes it is premature to speculate as to the ultimate terms of the restructuring which may or may not occur. The company's ability to continue as a going concern is primarily dependent on the ultimate outcome of this restructuring. The company continues to explore selling non-strategic oil and gas properties in order to reduce its debt with First Bank. The company has and continues to be in default with the terms of its bank loan. Historically, the bank has given management ample time to sell properties in an orderly fashion to reduce the debt. Through property sales, management plans to reduce the bank debt from $2,741,000 as of May 15, 1992 to less than $600,000 by Sept. 30, 1992. There can be assurances that the company will receive adequate sale proceeds to meet this goal. The company's approximate 65 percent working interest in the South Cuyama field located in Santa Barbara County, Calif. now accounts for over 90 percent of the company's operations. Oil prices for the company's California production have increased from an average of $13/bbl during the first quarter to $15.45 as of May 15, 1992. Gas from the South Cuyama field is sold pursuant to a fixed-price contract with ARCO. The contract is being renegotiated from a fixed price to a spot price which will fluctuate with the market. Management estimates that, effective June 1, 1992, the present price of $2.25 will be reduced by 60 cents to 70 cents per mcf. Hallador is an independent oil and gas production company based in Denver. The company's stock trades on the NASDAQ Bid and Ask System under the symbol HPET. The company's NASDAQ listing may be in jeopardy if certain listing requirements are not maintained. HALLADOR PETROLEUM CO. (In thousands, except per share amounts and average prices) Quarter Ended March 31, 1992 1991 Oil and gas revenue $1,792 $1,213 Total revenue 1,800 1,226 Lease operating 839 647 DD&A 623 370 G&A 178 432 Interest 365 232 Other 15 --- Total costs and expenses 2,020 1,681 Net loss (220) (455) Net loss per share (.05) (.11) Average price-oil 13.21 18.98 Average price-gas 2.00 1.62 Average price-NGLs 12.60 19.74 Oil production-BBLS 73 41 Gas production-MCF 312 247 NGLs production-BBLS 16 2 Bank debt as of quarter end 2,766 5,421 -0- 5/16/92 /CONTACT: Victor P. Stabio or W. Anderson Bishop, both of Hallador Petroleum, 303-839-5504/ (HPET) CO: Hallador Petroleum Co. ST: Colorado IN: OIL SU: ERN
MC -- DVSA1 -- 1062 05/16/92 10:00 EDT
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|Date:||May 16, 1992|
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