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 BAKERSFIELD, Calif., Nov. 17 /PRNewswire/ -- Nahama & Weagant said its net income for the three months ended Sept. 30, 1993 increased by 75 percent to $367,000, or $.07 per share, on revenues of $1.7 million from net income of $210,000, or $.04 per share, on revenues of $1.6 million in the third quarter of 1992. The Company's cash flow increased by 27 percent to $1.2 million in the third quarter of 1993 from the same period last year; although, on a per share basis, cash flows were similar in both periods ($.21 in 1993 and $.20 in 1992) due to the increase in the weighted average number of shares in 1993 versus 1992, resulting primarily from the Company's secondary offering of common stock during 1992. These increases were primarily due to a combination of new gas field or pool discoveries, development drilling and operational enhancements at various Company gas properties, and higher gas prices.
 Net income for the nine months ended Sept. 30, 1993 more than tripled to $998,000, or $.18 per share, on revenues of $5.4 million, from net income of $300,000, or $.06 per share, on revenues of $4.1 million in the same period last year. The Company's cash flow increased by 59 percent to $3.6 million, or $.64 per share, in the first nine months of 1993 from $2.2 million, or $.48 per share in the same period last year. These increases were partially offset by lower than anticipated increases in production rates this year, principally due to delays in hooking up new wells and decreasing production at three of the Company's older gas fields in California.
 "The decision to expand our operations into Oregon is turning out to be a key move in our efforts to expand shareholder value", said Company President Rod Nahama. "When we purchased the Mist Gas Field from Arco last year, it was producing a little less than 7 million cubic feet of gas per day. Today, we have more than doubled the production rates, and that can be attributed to our exploration and exploitation efforts. However, we believe the gas storage facilities we're developing could be even more valuable. We expect to find that out soon. We have submitted requests for proposals to the 40 or so companies who have expressed an interest in the initial project, a 7 billion cubic feet ("Bcf") working capacity gas storage facility and expect responses by month end." Nahama added that the Company has additional gas storage projects planned for Oregon and will soon be sending out proposals for a 33 Bcf working capacity gas storage facility located near Sacramento, Calif., where a number of currently existing and planned gas pipelines intersect.
 Based in Bakersfield, Nahama & Weagant Energy Company (NASDAQ: NAWE) is primarily engaged in exploring for, developing producing and selling natural gas and, to a lesser extent, crude oil, in California and Oregon. The Company's common stock is traded on the NASDAQ National Market System under the symbol NAWE.
 Statements of Operations
 Period ended Three months Nine months
 Sept. 30, 1993 1992 1993 1992
 Revenues $ 1,676,000 $ 1,564,000 $ 5,379,000 $ 4,117,000
 Net income (A) 367,000 210,000 998,000 300,000
 Per share information:
 Cash flow (B) 1,170,000 921,000 3,582,000 2,246,000
 Net income (A) .07 .04 .18 .06
 Cash flow .21 .20 .64 .48
 Weighted average number
 of common equivalent
 shares outstndg. 5,619,000 4,675,000 5,606,000 4,675,000
 Estimated Year-End Proved Reserves Comparison
 1992 1991 1990 1989 1988
 Billion cubic feet of
 gas equivalent 38.4 32.0 20.8 9.9 5.0
 Net present value
 (10 percent) before
 taxes ($ millions) $ 31.9 $ 25.4 $ 17.6 $ 10.9 $ 4.8
 (A) Restated to reflect the adoption, in 1993, of Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes," which had the effect of decreasing reported net income for the nine months ended Sept. 30, 1993 and 1992 by the following amounts:
 1993 1992
 Decrease in net income $ 157,000 $ 238,000
 Decrease in earnings per share $ .03 $ .05
 (B) Net income, plus depletion, depreciation, amortization, and deferred income taxes.
 -0- 11/17/93
 /CONTACT: Sam Witchel of Scharff, Witchel & Co., 212-983-1060/

CO: Nahama & Weagant Energy Company ST: California IN: OIL SU: ERN

LG-MP -- NY034 -- 5384 11/17/93 10:39 EST
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Publication:PR Newswire
Date:Nov 17, 1993

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