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SABA ANNOUNCES THIRD QUARTER RESULTS

 IRVINE, Calif., Nov. 23 /PRNewswire/ -- Saba Petroleum Co. (AMEX: SAP.EC), citing a sharp decline in the price of crude oil since June 1993, together with higher than anticipated operating costs and additional cost depletion expense associated with the newly acquired Cat Canyon and Gato Ridge properties in California, reported a loss for the third quarter of $93,027 or $.03 per common share. This compared with net earnings of $234,298 or $.08 per common share for the same period in 1992. Revenue declined to $2,556,042 from $2,903,882 for the same period in 1992. Net earnings for the first nine months were $256,394 compared to $424,402 for the corresponding period in 1992.
 The company noted that the average sales price per barrel of oil equivalent ("BOE") in the second quarter of 1993 was $15.06 compared with $13.73 in the third quarter of 1993 (excluding the newly acquired Cat Canyon and Gato Ridge properties). The decline in prices of $1.33 per BOE and the increase in cost depletion of $1.48 per BOE combined to decrease third quarter earnings before income taxes by approximately $479,000 when compared to the second quarter of 1993.
 Production increased by 13,507 BOE to 197,755 BOE in the third quarter of 1993 over the second quarter of 1993. Production costs decreased $0.47 to $7.71 per BOE for the third quarter of 1993 as compared to the second quarter of 1993.
 William L. Wineland, president of Saba, observed that the company's California oil properties, with their higher operating costs, are more sensitive to oil price fluctuations. The company is continuing to actively review its operations to improve production and reduce costs.
 Wineland noted that the Cat Canyon and Gato Ridge properties, acquired in June 1993, generated approximately $192,000 less cash flow for the quarter ended Sept. 30, 1993 than was originally projected. The decline in cash flow is due to the cumulative effect of the decrease in oil prices and the cost of operational improvements still being made to the under-maintained infrastructure of these recent acquisitions. Management projects that such operational improvements will continue through the end of 1993.
 Ownership of the Cat Canyon and Gato Ridge properties also resulted in additional cost depletion of $155,000 being recorded by the company during the third quarter to account for amortization of future well abandonment costs, thereby further depressing the company's earnings.
 SABA PETROLEUM CO.
 Financial Highlights
 Three Months Ended
 Sept. 30, Sept. 30,
 1993 1992
 Total Revenues $2,556,042 $2,903,882
 Operating income (loss) ($91,497) $413,340
 Net earnings (loss) ($93,027) $234,298
 Earnings (loss)/share ($0.03) $0.08
 Shares outstanding 3,587,744 2,821,037
 -0- 11/23/93
 /CONTACT: William J. Hickey (investor relations) of Saba Petroleum, 714-724-1112/
 (SAP)


CO: Saba Petroleum Co. ST: California IN: OIL SU: ERN

EH-MF -- LA021 -- 7251 11/23/93 12:00 EST
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Publication:PR Newswire
Date:Nov 23, 1993
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