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VANTAGE POINT ENERGY INC. ANNOUNCES RECORD 1991 FINANCIAL RESULTS

VANTAGE POINT ENERGY INC. ANNOUNCES RECORD 1991 FINANCIAL RESULTS
 TULSA, Okla. - Vantage Point Energy Inc. (NASDAQ: VPEI) announced today net income of $1,503,001 ($.86 per share) for the year ended Dec. 31, 1991 on revenues of $9,629,528. Cash from operating activities before changes in noncash working capital (net income plus depreciation, depletion and amortization) was $3,239,992.
 For the prior year, net income was $361,471 ($.19 per share) on revenues of $6,363,734. Cash from operating activities was $1,842,263.
 S. Lee Crawley, president, said, "This was the best year in the company's history. We reported record earnings, cash flows, revenues and sales volumes, all by substantial margins over any previous year. In addition, the fourth quarter was our fifth consecutive profitable quarter. These improvements resulted primarily from acquisitions made in late 1989, during 1990 and early 1991. Our performance was above our expectations due to higher oil production, lower operating costs, lower interest rates and receipt of a gas contract settlement."
 Crawley continued, "Our previously announced transaction with Convest Energy Corporation, whereby they will become the owner of 100 percent of the company's outstanding common stock, is progressing slowly. The drop in energy prices since the signing of the Letter of Intent on Nov. 1, 1991, has not been helpful. Recently, Convest proposed that the $10 million consideration be reduced. We are continuing to negotiate the final terms of the definitive agreement, including a reduction in the price to be paid for our common stock. We are hopeful that the agreement will be signed in the next few weeks."
 The company's crude oil sales increased 72 percent, from 147,461 barrels in 1990 to 254,024 barrels in 1991. Natural gas sales increased six percent from 1,493,887 MCF to 1,587,913 MCF for the same periods.
 Crude oil prices averaged $20.14 per barrel in 1991 and $24.23 per barrel in 1990, a decrease of 17 percent. However, the impact of this decrease was mitigated by the company's crude oil hedge which generated $551,100 during 1991. During 1990, the company paid $249,800 under the hedge agreement. Natural gas prices declined four 4 percent to $1.54 per MCF in 1991, compared with $1.60 per MCF in 1990.
 During 1991, the company's cash from operating activities and cash generated from sales of nonstrategic/marginal properties was used primarily to purchase the Horseshoe Gallup Waterflood unit, make improvements on other key properties and reduce bank debt.
 Vantage Point Energy Inc. is a financially oriented, independent oil and gas company headquartered in Tulsa. It acquires, manages and develops oil and gas assets using financial engineering and operation expertise to produce efficiencies and effectiveness to increase its shareholders' value.
 Financial Highlights
 Quarter and Year Ended Dec. 31, 1991 and 1990
 Quarter Year
 1991 1990 1991 1990
 Oil and Gas Sales $2,372,009 $2,187,552 $8,316,485 $5,708,117
 Other Revenue 330,568 237,287 1,313,043 655,617
 Net Income 572,599 603,259 1,503,001 361,471
 Net Income per
 Common Share .33 .35 .86 .19
 NOTE: On May 1, 1990, the company completed a stock and cash for assets exchange with Sceptre Resources Limited whereby it acquired all of Scpetre's U.S. oil and gas assets. These assets were owned by various wholly owned subsidiaries of Sceptre, referred to as the Oakwood Entities. As part of the same transaction, the company's predecessor, ZG Energy Corp., was merged into Vantage Point. As a result, Sceptre owns approximately 80 percent of the company's common stock.
 When comparing the 1991 financial results with 1990 as shown above, it should be noted that since voting control of the company was acquired by Sceptre, the transactions have been treated as a purchase of ZG Energy by Sceptre and the Oakwood Entities. Therefore, the financial results for the period prior to May 1, 1990, include only the activities of the Oakwood Entities, whereas the results subsequent to May 1, 1990 include the financial results of the combined entities.
 There are two basic differences between the Oakwood Entities and the company. First, the Oakwood Entities were wholly owned subsidiaries of Sceptre which provided many corporate services, including financing, without charge; whereas Vantage Point is an autonomous, publicly held entity which provides for all of its own corporate services. Second, the ZG Energy properties are principally company-operated, while the Oakwood properties are primarily non-operated.
 -0- 4/2/92
 /CONTACT: S. Lee Crawley of Vantage Point Energy Co.,


918-664-2100/
 (VPEI) CO: Vantage Point Inc. ST: Oklahoma IN: OIL SU: ERN


RM -- SF002 -- 4328 04/02/92 11:21 EST
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Date:Apr 2, 1992
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