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NAHAMA & WEAGANT ENERGY REPORTS EARNINGS

 NAHAMA & WEAGANT ENERGY REPORTS EARNINGS
 BAKERSFIELD, Calif., Aug. 14 /PRNewswire/ -- Nahama & Weagant Energy


Company (NASDAQ: NAWE) today said its net income for the three months ended June 30, 1992, declined to $28,000, or $.01 per share, on revenues of $1.2 million, from net income of $426,000, or $.08 per share, on revenues of $1.7 million in the second quarter last year.
 Last year's net income included $96,000, or $.02 per share, of extraordinary credit from utilization of net operating loss carryforwards. The company said lower gas prices, mechanical problems incurred at certain of its gas properties this year, along with significantly higher operating costs from related workovers, and pipeline construction delays caused in part by inclement weather accounted for the majority of the decline.
 "It was a tough quarter," said company President Rod Nahama, "but it should not be considered in any way to be indicative of the remainder of our year. Most of those problems have been solved, or are improving significantly. Gas prices are back up to over $2 per MMBTU; our average net daily gas production rate, including our Benton purchase, is up to 10 to 11 million cubic feet of gas (MMcf) per day, and production in the third quarter from new wells should improve upon that."
 Nahama added that the combination of the company's agreement to acquire all of the California gas and oil reserves of Benton Oil & Gas Company (effective July 1, 1992), recent increases in gas prices, significantly lower operating costs from the cessation of workover projects, and its development and exploratory drilling success in California and Oregon, should put the company back on track in terms of earnings and cash flow. He also said the company expects to drill up to 19 exploratory and development wells during the second half of this year.
 In other news, the company said it had tested a significant development well at its McCormack Gas Field near Sacramento, Calif. The well is the first development well drilled since the discovery well was completed there in the first quarter of this year. Although only one of several potentially productive zones has been tested to date, the well flowed at a rate of 2.8 MMcf per day on a 13/64-inch choke with flowing tubing pressure of 2,810 PSI. The company said it has identified three additional development locations it plans to drill there this year, which, if successful, could provide significant new additions to its reserve base and increase its net gas production rate in California, excluding the Benton purchase, by 20 percent to 25 percent. The company owns approximately 41 percent of the property and is currently selling an aggregate of 2.6 MMcf per day from the two wells in this field for $1.90 per MMBTU, netting the company approximately $1.77 per thousand cubic feet (Mcf).
 Based in Bakersfield, Nahama & Weagant Energy Company is an independent oil and gas exploration and production company engaged in oil and gas exploration, development and production, primarily in California and Oregon.
 NAHAMA & WEAGANT ENERGY COMPANY
 Statements of Operations
 Periods ended Three months Six months
 6/30/92(A) 7/31/91 6/30/92(A) 7/31/91
 Revenues $1,200,000 $1,704,000 $2,553,000 $2,951,000
 Net income before
 extraordinary credit 22,000 331,000 128,000 393,000
 Extraordinary credit -
 income tax net operating
 loss carryforwards 6,000 96,000 74,000 114,000
 Net income 28,000 426,000 201,000 507,000
 Per share information:
 Income before
 extraordinary credit $.01 $.06 $.03 $.07
 Extraordinary credit -- .02 .02 .02
 Net income .01 .08 .05 .09
 Cash flow .14 .29 .29 .69
 Wtd. avg. no. of
 com. & com. equivalent
 shares outstanding 4,465,803 2,653,968 4,465,803 2,653,968
 Estimated Proved Reserves Comparison
 1991 1990 1989 1988
 Billion cubic feet
 of gas equivalent 31.2 20.8 9.9 5.0
 Net present value
 (10 percent) before
 taxes ($ millions) $27.0 $17.6 $10.3 $4.8
 (A) -- Effective Dec. 31, 1991, the company changed its year-end from Jan. 31 to Dec. 31.
 -0- 8/14/92
 /CONTACT: Denis Fitzpatrick of Nahama & Weagant Energy, 805-323-9075, or Sam Witchel of Scharff, Witchell & Co., 212-983-1060, for Nahama & Weagant Energy/
 (NAWE) CO: Nahama & Weagant Energy Company ST: California IN: OIL SU: ERN


CK-OS -- NY020 -- 9935 08/14/92 10:25 EDT
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Date:Aug 14, 1992
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