NAHAMA & WEAGANT REPORTS RECORD NINE-MONTHS REVENUES AND EARNINGS
BAKERSFIELD, Calif., Dec. 17 /PRNewswire/ -- Nahama & Weagant Energy Company (NASDAQ: NAWE) today reported record sales and earnings for the nine months ended Oct. 31, 1991. The company announced net income of $263,000, or 5 cents per share for the three months ended Oct. 31, 1991, as compared to $367,000, or 7 cents per share, for the same period last year. Included in net income for these periods were extraordinary credits for utilization of net operating loss carryforwards (NOL) of $57,000, or 1 cent per share, and $159,000, or 3 cents per share, respectively. Net income for the nine months ended Oct. 31, 1991, was $769,000, or 14 cents per share as compared to $464,000, or 9 cents per share for the same period last year. NOL credits of $171,000 or 3 cents per share and $201,000, or 4 cents per share in 1991 and 1990 respectively were included in net income. The company also said it had restated its fiscal 1991 first and second quarter results to reflect purchase accounting adjustments resulting from its Feb. 1, 1991, purchase of certain properties from a limited partnership for which it serves as general partner. The restated net income for the three months ended April 30, 1991, was $80,000, or 1 cent per share (after extraordinary credit of $18,000), and the restated net income for the three months ended July 31, 1991, was $426,000, or 8 cents per share (after extraordinary credit of $96,000, or 2 cents per share), last year.
In other news, company President Rodney Nahama said the company and certain industry partners (the partners) expect to sign an agreement this month to acquire Atlantic Richfield Company's (ARCO) interest in the Mist Gas Field in Northwestern Oregon. The purchase would increase the company's total proved equivalent gas reserves by approximately three billion cubic feet to approximately 34 billion cubic feet. The company will pay 21 percent of the purchase price for a 25 percent ownership interest. Included in the total purchase price of $5.1 million is approximately 10.5 billion cubic feet of producing gas reserves and the buyout of ARCO's 25 percent back-in and 5 percent royalty interest in a farmout agreement between ARCO and the partners to drill a minimum of 25 wells in the Mist Gas Field area before December 1993. To date, the partners have drilled eight exploratory wells, of which five have been successful. The partners will also continue to have access to ARCO's seismic geological data covering over 200,000 acres in the Mist Gas Field area.
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
Statement of Operations
Periods ended Three months Nine Months
Oct. 31 1991 1990 1991 1990
Revenues $1,602,755 $1,018,654 $4,554,237 $2,054,797
Net income before
extraord. credit 205,782 208,319 598,344 262,968
Net income 262,782 367,407 769,344 463,789
Earnings per share
credit .04 .04 .11 .05
Earnings per share
credit .05 .07 .14 .09
Wghtd. avg. no. of
common equiv. shares
outstg. 5,361,348 5,279,552 5,361,348 5,279,552
/CONTACT: Denis J. Fitzpatrick of Nahama & Weagant, 805-323-9075, or Sam Witchel of Scharff, Witchel & Co., 212-983-1060, for Nahama & Weagant/
(NAWE) CO: Nahama & Weagant Energy Company ST: California IN: OIL SU: ERN KD-FC -- NY074 -- 3097 12/17/91 16:02 EST