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PETROMINERALS CORP. ANNOUNCES SECOND QUARTER RESULTS

    TUSTIN, Calif., Aug. 13 /PRNewswire/ -- Petrominerals Corp. (NASDAQ: PTRO) today announced the financial results for the second quarter ended June 30, 1993.  The company reported a second quarter loss of $255,000, or $.03 per share, compared with a loss of $138,000, or $.02 per share, for the period ended June 30, 1992.  Revenues for the three months ended June 30, 1993, were $1,139,000, compared with revenues of $1,445,000 for the same period in 1992.  This decline in revenues was due to a significant reduction in the production service division's activities in the San Joaquin Valley.
    The company's well service division experienced a decline in rig utilization with 10 rigs in operation, compared with 15 rigs during the second quarter of 1992.  This resulted in a 25 percent decline in rig hours in 1993.  Due to an overall economic downturn in the California heavy crude oil market, the major oil companies have implemented management realignment and reorganization programs, consequently reducing their well servicing activities in the San Joaquin Valley.  At the current time, the company has 10 rigs in operation.
    Oil and gas revenues increased 9 percent, or $35,000, for the second quarter compared with a year ago, despite lower crude oil prices during the quarter.  This increase occurred as a result of increased production due to remedial workover operations performed on existing wells.
    The company anticipates that the oil and gas production and well servicing market will continue to be sluggish during the next quarter.
    In June 1993, the company entered into a Letter of Intent to acquire Hydro-Test International, a privately held New Mexico corporation. Hydro-Test is engaged in the hydro-static testing of tubular goods and pipelines, both onshore and offshore, for the oil and gas industry worldwide.  Hydro-Test operates 11 offices located in California and Texas, with an additional 15 offices operated by licensees in the United States and other countries.  The closing is subject to certain financing conditions and approval of the board of directors, and is expected to be completed in September.
    Petrominerals Corp. engages in the production and marketing of crude oil and natural gas in California and Louisiana.  Lunn Production service, a division of Petrominerals Corp., services and maintains oil and gas wells for major oil companies.
                          PETROMINERALS CORP.
                         Summary of Operations
                (In thousands, except per share amounts)
                              (Unaudited)
                                 Three Months Ended    Six Months Ended
                                      June 30,             June 30,
                                  1993       1992       1993       1992
    Operating revenues          $1,139     $1,445     $2,056     $3,123
    Net loss                      (255)      (138)      (512)      (378)
    Net loss per common share    ($.03)     ($.02)     ($.07)     ($.05)
    Shares outstanding       7,810,336  7,810,336  7,810,336  7,810,336
    -0-             08/13/93
    CONTACT:  Kenneth M. Padula, chief administrative officer of Petrominerals, 714-730-5400
    (PTRO) CO:  PETROMINERALS CORP. IN:  OIL SU:  ERN ST:  CA


-- LA007 -- X514 08/13/93
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Publication:PR Newswire
Date:Aug 13, 1993
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