OMOG: OMDA Oil and Gas, Inc. Offers Legal Update for Shareholders Friday October 13, 8:00 am ET
Company Also Offers Update on Investor Relations Department
HOUSTON, TX--(MARKET WIRE)--Oct 13, 2006 -- OMDA Oil and Gas, Inc. (Other OTC:OMOG.PK - News) offers legal update in the case of OMDA Oil & Gas V. Lanza et al. ADVERTISEMENT
Back in April 2006, OMDA Oil and Gas, Inc. (OMOG) announced that it had approved and filed a 4th amended pleading adding Black Dragon Resources (Black Dragon) as a defendant to its initial suit filed in March 2005. Since this time, Lanza and the other defendants have had to acquire new legal counsel. Black Dragon and Lanza's new counsel were granted a continuance in order to familiarize themselves with the case. The original trial date was set for November of 2006. The new trial date is now set for September of 2007.
"I felt it was important to keep the shareholders current on the legal proceedings of this case," commented Adam Barnett, Chairman. "We are moving full steam ahead with this lawsuit, and the acquisition of new legal counsel by the defendant(s) has made us more confident than ever. The granted continuance should be viewed as an overall positive for our case; due to the fact that we will have more time to investigate and collect evidence on Black Dragon and the other defendants. We also plan to continue our depositions next month."
Investor Relations Department
OMDA's full investor communication service department has been in place for nearly two years. The company has been, and is still fully committed to investor relations and shareholder communications; however, these services can be quite expensive. In the past, shareholders had voiced their opinions that all financial resources should go toward new company assets and ongoing litigations, and that investor relations should be kept at a minimum. OMDA decided to adopt these suggestions and scaled back this department for the past thirty days; however, due to overwhelming shareholder demand, we are pleased to announce that we will be reinstating our full investor communications services as of today.
Barnett stated, "Due to the fact that investor relations was simply only able to relay public information, it has often been argued that the company should not spend any money right now on this service (i.e. live responses, web development, 800 numbers, etc). In response to this, we did try a bare-bones approach to this service over the last month. The popularity of our investor relations department was reaffirmed immediately by a myriad of shareholder complaints. This service is now back up and functioning as it once was, and it will continue to be an active part of OMDA Oil and Gas, Inc. in the future."
About OMDA Oil and Gas, Inc.
OMDA Oil and Gas, Inc. and its wholly owned subsidiaries, OMDA Oil & Gas Management, Inc. and Texas OMDA Drilling & Operating, Inc. and OMDA Oil & Gas, Inc. (Texas), are in the business of oil and gas production and lease acquisition. Currently the Company owns average participation interests approaching 47%, in 355 producing and non-producing oil and gas wells in Louisiana and Texas. Current acreage interests include a 15% working interest in 800 acres in Shelby County, TX and a Carried back-in working interest of at least 7.5% up to 37.5% in a 12 well work over play in the Concorde Dome Field in Andersen County, TX.
This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties including, but not limited to, statements relating to the future anticipated direction of the Oil and Gas Industry, plans for expansion, various business development activities, planned capital expenditures, future funding resources, anticipated sales growth and potential contracts. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Contact: Contact: OMDA Oil and Gas, Inc. Investor Relations 800-621-0113 IR@omogoil.com http://www.omogoil.com
Gulfport Energy shuts in Louisiana gas facilities Thu Oct 12, 2006 5:05pm ET Market View GPOR (Gulfport Energy Corp ) Last: $10.62 Change: +0.20 (+1.92%) Revenue (ttm): $31.7M EPS: 0.48 Market Cap: $364.70M Time: 8:00pm ET
Stock Details Company Profile Analyst Research Email This Article | Print This Article | Reprints [-] Text [+] SAN FRANCISCO, Oct 12 (Reuters) - Gulfport Energy Corp. (GPOR.O: Quote, Profile, Research) said on Thursday it has temporarily shut-in all of its production from the West Cote Blanche Bay gas field in Louisiana following reports of a fire north of the field.
Gulfport said it took the move as a precaution and added that no damage has been reported to its West Cote Blanche Bay production facilities.
The company said the fire involved two contracted vessels that were performing work on its behalf in the field.
"Our first priority is the safety of our employees and contractors," said Gulfport Chief Executive Officer Jim Palm in a statement.
"At this point, all Gulfport employees have been accounted for. We are continuing to try to gather information about our contractors at the scene. We are deeply concerned for all those involved acknowledging the severity of the situation."
Confirmation of JED Oil Chairman's Shareholdings Thursday October 12, 3:10 pm ET Company corrects serious error in Bloomberg information
CALGARY, Alberta--(BUSINESS WIRE)--JED Oil Inc. (AMEX: JDO - News) today provided confirmation on the shareholdings of its Chairman, Reg Greenslade, after being notified that these were being reported with serious errors. It had been brought to JED's attention that Bloomberg was erroneously reporting that Mr. Greenslade had sold 149,653 shares in September 2006 and currently held only 2,673 shares. This information is totally incorrect. Bloomberg has been contacted and has corrected its information. ADVERTISEMENT
A spokesperson for Bloomberg, who asked not to be named, told JED's General Counsel that the error had been corrected at 7:00 p.m. (Eastern time) Wednesday evening, October 11, 2006 after Bloomberg had first been contacted about the error. JED was further informed that it is not Bloomberg's policy to issue retractions or take any actions regarding errors other than correcting them. Bloomberg was unable to tell JED how long the erroneous information had been posted or how the error occurred. It is surmised at JED however, that the trading report filed on behalf of Mr. Greenslade showing an acquisition of 347 shares was misread or misunderstood by Bloomberg personnel. The acquisition was through JED's employee Stock Savings Plan through its Trustee, Olympia Trust Company of Calgary. Mr. Greenslade's holdings in this plan totaled 2,673 shares after the reported addition. In addition Mr. Greenslade directly holds 150,000 common shares, which were apparently overlooked by Bloomberg, which then showed a net disposition of 149,653 shares rather than the acquisition of 347 shares.
"The magnitude of this error would have been of serious concern to the Company at any time, but during a period when our stock is under pressure, such a mistake is completely unacceptable and the extent of the damage done to both the Company and its stockholders is hard to even estimate," stated JED's CEO, Tom Jacobsen.
Information on Mr. Greenslade's holdings and transactions, as well as all of the Company's insiders, can be viewed on the System for Electronic Disclosure (SEDI) at http://www.sedi.ca, which is the reporting system for insiders of Canadian public companies. As per the information in the SEDI system, Mr. Greenslade has been recently adding to his share position on a monthly basis through JED's Stock Savings Plan and has never sold any shares of JED. Information on SEDI further shows that none of JED's current officers and directors have ever sold shares of JED while in office.
About JED
Established in September 2003, JED Oil Inc. is an oil and natural gas company that commenced operations in the second quarter of 2004 and develops and operates oil and natural gas properties principally in western Canada and the United States.
Contact: Company Contacts: JED Oil Inc. Reg Greenslade, Chairman (403) 213-2507 Al Williams, President (403) 537-3250 http://www.jedoil.com or Investor Relations Counsel The Equity Group Inc. Linda Latman (212) 836-9609 Lena Cati (212) 836-9611 http://www.theequitygroup.com
One of the first people to book her was Roger Saillant, the chief executive officer of Plug Power Inc. His alternative-energy company was a highflier in 2000, with a stock that briefly traded as high as $150 a share. Three years later, the company's shares had plunged to single-digit levels. Losses were mounting and cash was scarce.
Plug Power spent $5,000 to bring Ms. Meili for a two-day visit to its headquarters in Latham, N.Y. There, she shared stories about learning to walk again after spending months in a coma. She urged people to "live totally in the present," instead of obsessing about a wonderful past that might be gone for good.
Mr. Saillant says she struck a chord. "We wanted to know how her experience could be a metaphor for what was happening at Plug Power," he says. "She had been in a near-death state but was able to pull herself out of it, thanks to the support of others and her own will not to give in. We constantly needed to raise money to keep going. There were similarities."
DWOG: Deep Well Oil & Gas, Inc.: Preliminary Drilling Results at Sawn Lake Market Wire - October 13, 2006 8:01 AM (EDT)
EDMONTON, ALBERTA, Oct 13, 2006 (MARKET WIRE via COMTEX) -- Deep Well Oil & Gas, Inc. and its subsidiaries ("Deep Well") (PINK SHEETS: DWOG) (News) are pleased to announce the preliminary results of the most recently drilled wells located at 4-32-91-12W5M ("4-32") and 7- 30 -91-12W5M ("7-30") in the Sawn Lake oil sands property. These are the second and third wells drilled by Signet on the Sawn Lake Project.
The vertical sections of the wells at 4-32 and 7-30 were cored, logged and drill-stem tested in the Bluesky formation. Analysis of the cores from the second and third wells indicates the formation has a porosity greater than 30%, permeability's ranging up to eight darcies and average heavy oil saturations of 78 and 68 percent, respectively. Oils spun out of the cores of 4-32 and 7-30 wells show an extrapolated oil viscosity of approximately 500,000 centistokes at 20 degrees Celsius, which is approximately the temperature of the formation at Sawn Lake. The reservoir at both locations displays very high vertical to horizontal permeability ratios. This is an important parameter and a major benefit to reservoirs exhibiting such values for thermal recovery methods. Review of the Logs from wells 4-32 and 7-30 shows net oil pays of 23 and 22 meters respectively.
While the analysis of the cores and logs of second and third wells shows very high average oil saturation over the pay zone, to date the 7-30 well has produced only water with some showings of oil flecks not suitable for assay.
An oil sample recovered from the pump rotor on the 4-32 well indicates a density range of 3.1 degrees to 5.5 degrees API at 15.6 degrees Celsius; viscosity analyses are currently being conducted.
The preliminary analysis of both the spun core and surface oil samples together with the absence of produced oil indicates this portion of the reservoir is better suited for alternative recovery methods.
The fourth well at 13-29-91-12W5M "13-29" will not be drilled at its proposed location because it would not provide any significant additional geological information concerning the Sawn Lake reservoir beyond that of the 3 completed wells. Please refer to the map showing the locations of these wells on our web site to see the proximity of the "13-29" initially proposed location to the other wells. On the same web site http://www.deepwelloil.com you can also view photographs of the oil recovered from the second well drilled.
Production testing of the second and third well has been suspended due to the lack of cold flow production.
Deep Well Oil & Gas, Inc. is a Nevada corporation based in Alberta Canada. Deep Well and its subsidiaries Northern Alberta Oil Ltd. and Deep Well Oil & Gas (Alberta) Ltd. have an 80% working interest, subject to a farmout agreement, in 63 contiguous sections of oil sands leases and 6.5 sections of oil sands permits in the Sawn Lake heavy oil area in North Central Alberta. The permits and leases cover 43,964 acres. To fully earn their interest in the project, Signet Energy Inc. must drill 10 wells at no cost to Deep Well by, February 25, 2008. Once the 10 wells are drilled, Deep Well will then directly hold 40% of the project. In addition, Deep Well owns 7.55 million common shares of Signet. A previously published independent engineering report estimated that, there are 819.5 million original barrels of oil in place.
This press release contains forward-looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements." Actual results could differ materially from those projected in the Company's proposed oil and gas related business. The Company's business is subject to various risks, which are discussed in the Company's filings with the Securities and Exchange Commission ("SEC"). The Company's filings may be accessed at the SEC's Edgar system at http://www.sec.gov. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place reliance on such statements. Unless otherwise required by applicable law, we do not undertake, and we specifically disclaim any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such a statement. Deep Well Oil & Gas, Inc. (PINK SHEETS: DWOG - News)
Contacts: Deep Well Oil & Gas, Inc. Investor Relations 1-888-OILSAND (1-888-645-7263) Website: http://www.deepwelloil.com
FSNR; Freestone Resources, Inc. (FSNR) Updates Carroll Unit #1 Recompletion Business Wire - October 13, 2006 9:00 AM (EDT)
FAIRFIELD, Texas, Oct 13, 2006 (BUSINESS WIRE) -- A 'Basic Energy Solutions' work over rig is now in place to begin the recompletion of the Carroll Unit #1 gas well. The rig has been positioned to begin drilling out the first cement plug on Friday, October 13. Once the operation is started, the process to drill through all five plugs and re-enter the well will take approximately ten working days. At the end of the ten day work-over procedure the well will be evaluated for pressure and volume of gas and volume of oil produced. At that time, the well will be produced at its current rate of recovery or one of multiple stimulation techniques will be used to increase production. Afterwards, a production pipeline will be laid, in order to begin selling gas.
The Carroll Unit #1 is located in the Cheneyboro Field in northern Freestone County. The Carroll Unit #1 was originally drilled to a depth of 14,345 feet. We intend to re-enter to a total depth of 9,801 feet, which will allow us to exploit the Cotton Valley Formation. This will leave two bailout zones at shallower depths, being the Travis Peak and Rodessa Formations, both being historically prolific production zones. The well was drilled and completed by Clayton Williams Energy, Inc. in March of 1998. Freestone Resources is optimistic that this recompletion will proceed on schedule and will yield a highly productive well. The drilling consultant for this project stated, "All indications, past and present, tell me that this will be a very profitable well." Upon completion of a successful well, Freestone will obtain approximately another 3,000 acres adjacent to the property, in which Freestone Resources can drill up to 87 new gas wells. Photos of the current recompletion process of the Carroll Unit #1 can be seen on our website at http://www.freestoneresourcesinc.com. Updated photos and technical data will be added in the following days, as they become available.
Freestone Resources Inc. is also in negotiations to drill several new gas wells in Crockett County, Texas near the town of Ozona. This potential joint-venture will greatly enhance Freestone Resources' presence in the West Texas gas field, and could generate a significant quarterly profit for our shareholders.
About Freestone Resources, Inc.:
Freestone Resources, Inc. is an East Texas based Oil and Gas company which is actively pursuing opportunities in Texas and New Mexico oil and gas fields in the areas of lease acquisitions, exploration, production, recompletions, and waste disposal. Freestone Resources, Inc. is also diligently working to develop and utilize emerging technologies and products related to increasing oil and gas production, efficiency and profitability.
SAFE HARBOR STATEMENTS:
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
SOURCE: Freestone Resources, Inc.
Freestone Resources, Inc. Lloyd Lane, 903-389-8817 info@freestoneresourcesinc.com
EGY: VAALCO Energy Selects VDM Specialists for Its Transfer from AMEX to NYSE Friday October 13, 8:00 am ET
NEW YORK, Oct. 13 /PRNewswire/ -- VDM Specialists, LLC has commenced trading of VAALCO Energy, Inc. (NYSE: EGY - News), a growing international exploration and production company, on the New York Stock Exchange (NYSE). ADVERTISEMENT
Since 2004, VAALCO had been listed on the American Stock Exchange. The company's daily trading volume, in September, was approximately 763,000 shares. VAALCO did not issue additional shares, nor raise capital, as part of its NYSE listing. Currently, there are 58,358,314 shares outstanding.
In the past year, seven companies have selected VDM Specialists as their specialist for their transfer to the NYSE. Companies typically moved their share listings from the AMEX to the NYSE to take advantage of the Exchange's market quality, low volatility and deep liquidity.
"We are excited to join the ranks of some of the world's largest and most prestigious companies," stated Robert Gerry, Chairman and CEO of VAALCO Energy, Inc. "We expect that our listing on the NYSE will increase VAALCO's visibility and investor base, due to the Exchange's strong brand, high listing standards and global appeal. VDM's guidance and support were instrumental in our decision, and we look forward to working closely with our new partner in the capital markets to ensure our investment story and value proposition are fully understood."
Robert Fagenson, CEO of VDM Specialists, commented: "VAALCO is a highly respected and fast-growing energy company, and we are pleased to help initiate their trading today on the NYSE. The company's listing expands VDM's growing reputation as a preferred specialist to the energy industry, as well as leader in helping companies navigate the uncertainty of moving from one exchange to another without disruption. We welcome VAALCO to the NYSE, and intend to leverage our trading expertise and insights to help increase liquidity in the company's shares and ensure it fully enjoys the expanded benefits of its new NYSE membership."
About VAALCO Energy, Inc.
VAALCO Energy, Inc. is a Houston-based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas. VAALCO's strategy is to increase reserves and production through a program that balances lower risk acquisitions and exploratory drilling on our domestic acreage with high potential international prospects. The Company's properties and exploration activities are located offshore and onshore Gabon, West Africa, offshore Angola, West Africa, and in the Texas Gulf Coast region. For more information on VAALCO Energy, Inc., please visit http://www.vaalco.com.
About VDM Specialists, LLC
As one of the largest specialist firms on the NYSE, VDM Specialists represents over 400 leading issues including Pfizer, Hewlett-Packard, The Walt Disney Co. and Apache Corp. VDM Specialists is part of publicly traded Van der Moolen Holdings NV (NYSE: VDM - News). For more information about VDM Specialists, please visit http://www.vdm-usa.com.
New York Stock Exchange Welcomes VAALCO Energy Inc. as its 15th Transfer in 2006 Friday October 13, 9:21 am ET 7th TRANSFER FROM AMEX in 2006 20th Energy Listing on NYSE Group in 2006 Total market cap for NYSE Group Energy Companies Totals more than $3 trillion
NEW YORK--(BUSINESS WIRE)--Today, NYSE Group, Inc. (NYSE: NYX - News) welcomed VAALCO Energy, Inc., ranked the #1 fastest growing company by Fortune Magazine in 2006, as its 15th transfer to the Exchange and seventh transfer from AMEX year-to-date. VAALCO Energy (NYSE: EGY - News), a global independent energy company engaged in exploration, development and production of crude oil, joins the NYSE Group as the 20th energy company listing in 2006. The company, with a market cap of $425 million, brings the total market capitalization for all NYSE Group energy listings to $3.1 trillion.
Based on market capitalization, 96% of the qualified domestic energy-related stocks are currently listed on NYSE Group.
Recent energy listings on NYSE Group in 2006 include Helix Energy Solutions (NYSE: HLX - News) with a market cap of $3.04 billion; Penn West Energy Trust (NYSE: PWE - News) with a market cap of $6.1 billion; and CNX Gas Corporation (NYSE: CXG - News) with a market cap of $4.1 billion.
Source: NYSE Group, Inc.
· VAALCO Energy, Inc. (NYSE: EGY) Chairman & CEO Robert L. Gerry III rings the Opening Bell Thursday to celebrate the company's transfer from AMEX to the NYSE. VAALCO Energy is the 20th transfer to the NYSE year-to-date.. View Multimedia Gallery
"We are pleased to welcome VAALCO Energy, Inc. to our family of listed companies," said NYSE Group, Inc. President & co-COO Catherine R. Kinney. "Ranked as a pioneer in its industry, VAALCO Energy will take its place among fellow energy leaders as a NYSE Group -listed company. We look forward to an outstanding partnership with VAALCO Energy and providing the company and its shareholders with the unsurpassed visibility and liquidity offered by the NYSE market."
To celebrate the company's listing, Chairman & CEO Robert L. Gerry, III will ring The Opening Bell.
About VAALCO Energy, Inc.
VAALCO Energy, Inc. is a Houston-based independent energy company principally engaged in the acquisition, exploration, development and production of crude oil. VAALCO's strategy is to increase reserves and production through a program that balances lower risk development drilling with high potential international prospects. The company's properties and exploration activities are located in the Texas Gulf Coast region and offshore Gabon and Angola, West Africa.
About NYSE Group, Inc.
NYSE Group, Inc. (NYSE:NYX - News) operates two securities exchanges: the New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The NYSE is the world's largest and most liquid cash equities exchange. The NYSE provides a reliable, orderly, liquid and efficient marketplace where investors buy and sell listed companies' common stock and other securities. On June 30, 2006, our listed operating companies represent a total global market capitalization of over $ 22.6 trillion. In the second quarter 2006, on an average trading day, almost 1.8 billion shares, valued at over $68.5 billion, were traded on the NYSE.
NYSE Arca operates the first open, all-electronic stock exchange in the United States and has a leading position in trading exchange-traded funds and exchange-listed securities. NYSE Arca is also an exchange for trading equity options. NYSE Arca's trading platform provides customers with fast electronic execution and open, direct and anonymous market access.
NYSE Regulation, an independent not-for-profit subsidiary, regulates member organizations through the enforcement of marketplace rules and federal securities laws. NYSE Regulation also ensures that companies listed on the NYSE and NYSE Arca meet their financial and corporate governance listing standards.
For more information on NYSE Group, go to: http://www.nyse.com. Information contained on our website does not constitute a part of the prospectus relating to the proposed offering.
Cheaper gas tugs on retail sales Drop in cost of gasoline results in unexpected reduction in total retail spending, but sales excluding gas stations increase. October 13 2006: 9:02 AM EDT
NEW YORK (CNNMoney.com) -- Consumer spending fell in September, according to a government report, but a big part of that drop was a result of spending less at the gas pump.
The Census Bureau reported that retail sales fell 0.4 percent in September, following a revised 0.1 percent rise in August. Economists surveyed by Briefing.com had forecast a 0.2 percent rise in sales.
Credit Card Rates
Find the best credit card for you among thousands of issuing banks. Select a card type from the pulldown menu and click on the arrow to begin. Select a card type Standard Gold Platinum
But gasoline station sales fell 9.3 percent in the month compared to August, as gasoline prices fell sharply. Spending away from gasoline stations, sales rose 0.6 percent.
Spending by consumers accounts for more than two-thirds of the nation's economic activity, and thus retail sales are an important factor in determining the strength of the economy. While there has been expectation of a slowing economy in the second half of the year, the Friday report suggested that consumer spending could get a boost from falling gasoline prices, which could allow them to spend more on other products.
The nation's leading retail chains reported generally strong sales in the month, as department stores Kohl's (Charts) and JC Penney's (Charts) and Nordstrom (Charts) had big jumps in sales at stores open at least a year, a closely watched retail measure known as same-store sales. But No. 1 retailer Wal-Mart (Charts) reported only a 1.3 percent gain in same store sales, which was lower than its early reading for the period.
The other way often used to measure retail sales excludes sales from autos, sales fell 0.5 percent in the period. Economists had forecast that sales would be unchanged excluding autos for September.
The number of new vehicles sales sold in the month fell 8.9 percent from August, when automakers make a push to sell 2006 models to make room for 2007 models in showrooms. But the government report, which showed auto sales little changed from August, is adjusted for that seasonal change.
The government report also measures money spent on autos, rather than the number of vehicles sold, and the newer models sold in September often go for a higher price than the previous-year's models that make up most of August's sales.
ASPN 3.75 + .35 may finally be coming off a bottom for the winter natural gas play.
This one has gotten killed with the collapse of natural gas prices. Remember 1-1.5 years ago the so-called experts were predicting prices would go through the roof? OK, now they say record lows to continue. Sounds like a buying opportunity. This company has a near perfect record of drilling and the share price has come down from over 9 last year.
Ignis Petroleum Group Announces Fiscal Year 2006 Results Friday October 13, 7:46 pm ET
DALLAS--(BUSINESS WIRE)--Ignis Petroleum Group, Inc. (OTCBB: IGPG - News) today announced its financial results for the fiscal year ended June 30, 2006. Following are financial highlights from the Company's Annual Report on Form 10-KSB: ADVERTISEMENT
Fiscal Year Results
For the fiscal year ended June 30, 2006, Ignis reported a net loss of $12.424 million, or $0.26 per average diluted share. The loss includes $519,535 of revenue from oil and gas sales, $4.813 million in exploration expenses, including a dry hole impairment expense, $1.932 million non-cash charge for amortization of the discount of debentures, and a $1.299 non-cash charge from valuation of derivatives related to the $5.0 million convertible debt financing.
Sales from production were 5,874 barrels of oil and 20.5 million cubic feet of natural gas or 9,294 barrels of oil equivalent. The average prices the Company received for its oil and natural gas were $58.88 per barrel of oil and $7.89 per thousand cubic feet of gas. The sales were primarily related to new oil and natural gas production volumes from the Company's Acom A-6 well, which commenced operations in October 2005. As of June 30, 2006, the Company had estimated total proved reserves of 29,495 barrels of oil equivalent of which 100% were proved producing reserves. This compares with no proved reserves for the period ended June 30, 2005.
Exploration Expenses
Exploration expenses, including a dry hole, were partly comprised of a $2.813 million expense for the Wefel Family Trust 19-1 #1 well, located in Escambia County, Alabama that we decided to plug and abandon. In addition, we recorded a $2.000 million impairment expense related to our North Wright prospect investments. Compared to other opportunities, this prospect does not meet the technical and economic criteria put in place by current management. Accordingly we have decided not to drill the prospect.
Financing Expenses
To obtain funding for our ongoing operations, we entered into securities purchase agreements during fiscal 2006 with Cornell Capital Partners, LP ("Cornell"), for the sale of $5,000,000 in secured convertible debentures and 12,000,000 warrants from which we received total net proceeds of $4,265,000 after fees associated with the transaction. The convertible feature of the debenture allows Cornell the option to have the note repaid with shares of our common stock. In accordance with accounting rules, the $5.0 million face amount of the note was discounted into both: 1) a derivative liability (to reflect the beneficial conversion feature) in an amount of $1.306 million, and 2) a warrant liability (to reflect the warrant value) in the amount of $3.694 million.
The derivative liability is marked to market at the end of each reporting period. As of June 30, 2006, after adjustment, we revalued this derivative liability and recorded a non-cash expense of $1.299 million. Generally, as the common stock price increases, gains are recorded because fewer shares are required to repay the debt. Conversely, as the common stock price decreases losses are recorded because more shares are required to repay the debt. We also recorded a non-cash expense of $1.931 million to reflect the amortization of the discount on the debenture.
Management Comments
Michael P. Piazza, Ignis' President and Chief Executive Officer, stated, "Fiscal 2006 was our first full year of operation with the current management. We built a team of experienced world-class individuals, generated revenues from production volumes, completed multiple financings, and defined and executed a strategy to source, select and acquire high-potential projects. For example, we recently signed a definitive agreement to acquire 45% of acreage, producing properties and a natural gas gathering and treating system owned by W. B. Osborn Oil & Gas Operations, Ltd. and St. Jo Pipeline Limited within the St. Jo Ridge (Barnett Shale) Field located in North Texas." Piazza continued, "Our recently announced acquisition and development program is progressing towards closing and we look forward with considerable confidence to participating in this full-scale, multi-well, continuous development program.
"Even though we had to make some challenging decisions this year, I believe Ignis has the right people and the right projects, and remains on course to achieve continued increases in production, reserves and revenues. We have a lot of work to do to realize the Company's full value and remain fully committed to that end."
Summary financial statements follow. In addition to this press release, please refer to the Company's Annual Report on Form 10-KSB for the year ended June 30, 2006 that was filed with the Securities & Exchange Commission on October 13, 2006.
About Ignis Petroleum
Ignis Petroleum Group, Inc. is a Dallas-based oil and gas production company focused on exploration, acquisition and development of crude oil and natural gas reserves in the United States. The Company's management has closely aligned itself with strategic industry partnerships and is building a diversified energy portfolio. It focuses on prospects that result from new lease opportunities, new technology and new information. For further information, visit http://www.ignispetro.com.
Morgan Creek Energy Corp Appoints Chris Cadenhead to Company's Advisory Board Wednesday October 11, 9:15 am ET
DALLAS, Oct. 11 /PRNewswire-FirstCall/ -- Morgan Creek Energy Corp. (OTC Bulletin Board: MCRE; Frankfurt, Berlin: M6C) (the "Company"), announces the appointment of Chris Cadenhead of Crestview, Florida to the Company's Oil and Gas Advisory Board. Mr. Cadenhead is a highly respected attorney in the State of Florida with extensive contacts in business and government sectors. He has experience and networks in the Florida State legislature, and energy sectors including oil, gas, and coal. Mr. Cadenhead has been a practicing member of the Florida Bar since 1983, graduating from Florida State University College of Law. He operates his own law firm from offices in Destin and Crestview, Florida. ADVERTISEMENT
Mr. Cadenhead will greatly help the Company with its overall development drawing on extensive experience in transaction formation and development, as well as provide instrumental contacts and introductions in the State of Florida in wide ranging disciplines. He has acted as legal counsel for the State of Florida and notably, participated in the procurement of bonds for the Florida Community Services Corporation and the Choctawhatchee Mid-Bay Bridge Authority in excess of $100 million. Mr. Cadenhead is also a licensed real estate broker who has also been active in land development and sales. He has made numerous appearances at State cabinet meetings regarding land transactions involving the Department of Environmental Regulations and the Department of Natural Resources. In conjunction with his legal practice, he also established a title insurance company.
The Company's Oil and Gas Advisory Board has been created in order to bring a wide range of senior experience and global networks to Morgan Creek and complement the Company's Board of Directors. This multidisciplinary approach is designed to aid in guiding growth and fortifying the Company's business model.
About Morgan Creek Energy Corp.:
Morgan Creek Energy Corp. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties worldwide. For further information see: http://www.morgancreekenergy.com
Morgan Creek Energy Announces Closing of Interest in Bayou Choctaw Oil and Gas Prospect in Louisiana Thursday October 12, 9:15 am ET
DALLAS, Oct. 12 /PRNewswire-FirstCall/ -- Morgan Creek Energy Corp. (OTC Bulletin Board: MCRE; Frankfurt, Berlin: M6C) (the "Company"), further to its original announcement in July 2006, announced it has completed due diligence and the further completion of its acquisition of a 25% working interest in the "Bayou Choctaw" oil and gas project located in Iberville Parish, State of Louisiana. The Company acquired extensions to the earlier announced July 31, 2006 closing date and has issued 200,000 restricted common shares in the capital of the Company with piggyback registration rights. The Company paid $250,000 to acquire the interest. ADVERTISEMENT
The prospect includes both development and exploration aspects related to the project. Proven undeveloped reserves on the property have been identified in the "Bolmex" and "Nonion struma" geological zones at a depth of approximately 11,500 feet. Other potential targets have been identified through 2-D and 3-D seismic information. The aggregate net revenue interest in the project is 73% to working interest stakeholders providing the Company with an 18.25% net revenue interest.
In addition Morgan Creek Energy will pay its 25% share of already incurred project costs and pay its proportionate 25% share on a ground floor basis to acquire additional 3-D seismic data. The Company has the option to participate in the first two wells and carry the promoting parties through the drilling of those wells to "casing point" on the basis of paying for one third of the cost to earn its 25% working interest. Subsequent to the drilling of the first two wells, costs will be shared in direct proportion to working interest participation without any further carried working interest.
About Morgan Creek Energy Corp.: Morgan Creek Energy Corp. is a natural resource exploration company engaged in the acquisition and development of oil and natural gas properties worldwide. For further information see: http://www.morgancreekenergy.com
FUEL: Streicher Mobile Fueling Announces Financial Results for the Fourth Quarter and Year Ended June 30, 2006 and Conference Call for Tuesday, October 17, 2006 Friday October 13, 3:29 pm ET
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--STREICHER MOBILE FUELING, INC. (NASDAQ:FUEL - News; the "Company"), a leading provider of petroleum product distribution services, transportation logistics and emergency response services to the trucking, construction, shipping, utility, energy, chemical, manufacturing, telecom and government service industries today announced results for the fourth quarter and year ended June 30, 2006. Selected comparative financial information for the three months and year ended June 30, 2006 and 2005: (All amounts in thousands of dollars, except share data)
Total revenues (6) 249,541 133,563 115,978 87 % Gross profit (1) 12,409 6,588 5,821 88 % Selling, general and administrative expense 13,262 6,145 7,117 116 % Operating (loss) income (853) 443 (1,296) (293) % Interest expense, net (4,025) (1,903) (2,122) (112) % Net loss (4,87 (1,460) (3,41 234 %
EBITDA (2) 1,781 2,278 (497) (22) %
Net Margin (3) 14,076 8,055 6,021 75 %
Basic and diluted net loss per share (0.50) (0.19) (0.31) 163 % Weighted avg shares outstanding 9,819 7,857 1,962 25 %
Depreciation and amortization (4) 2,123 1,835 288 16 %
Total assets 48,114 30,125 17,989 60 %
Shareholders' equity 5,540 6,838 (1,29 (19) %
Gallons sold 94,738 66,427 28,311 43 %
Net margin per gallon (in cents)(5) 14.9 12.1 2.8 23 %
(1) Gross profit is defined as total revenues less total cost of sales. (2) EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and stock-based compensation expense. EBITDA is a non-GAAP measure. (3) Net margin is defined as gross profit plus cost of sales depreciation. Net margin is a non-GAAP measure. (4) Depreciation and amortization included in cost of sales was $540,000, $323,000, $1,667,000 and $1,467,000 for the periods noted. (5) Net margin per gallon equals net margin divided by number of gallons sold. (6) In the quarter and year ended June 30, 2005, total revenue and cost of sales were reduced by $849,000 and $1.6 million, respectively, in order to record excise tax on a net basis, instead of gross based on risk of loss.
Non-GAAP Measure Reconciliation - EBITDA and Net Margin Reconciliation Table: (All amounts in thousands of dollars)
Three Months Ended (unaudited) ------------------------------------------- Increase Increase 6/30/2006 6/30/2005 (Decrease) (Decrease) ---------- ---------- ---------- ---------- EBITDA: Net loss (3,135) (225) (2,910) 1,293 % Add: Interest, net 1,481 609 872 143 % Stock-based compensation expense 231 -- 231 100 % Depreciation and amortization: Cost of sales 540 323 217 67 % Sales, general, and administrative expense 112 59 53 90 % ---------- ---------- ---------- EBITDA (771) 766 (1,537) (201)%
Net Margin: Gross Profit 2,509 2,302 207 9 % Add back: Cost of sales depreciation and amortization 540 323 217 67 % ---------- ---------- ---------- Net Margin 3,049 2,625 424 16 %
Year Ended ------------------------------------------- Increase Increase 6/30/2006 6/30/2005 (Decrease) (Decrease) ---------- ---------- ---------- ---------- EBITDA: Net loss (4,87 (1,460) (3,41 234 % Add: Interest, net 4,025 1,903 2,122 112 % Stock-based compensation expense 511 -- 511 100 % Depreciation and amortization: Cost of sales 1,667 1,467 200 14 % Sales, general, and administrative expense 456 368 88 24 % ---------- ---------- ---------- EBITDA 1,781 2,278 (497) (22)%
Net Margin: Gross Profit 12,409 6,588 5,821 88 % Add back: Cost of sales depreciation and amortization 1,667 1,467 200 14 % ---------- ---------- ---------- Net Margin 14,076 8,055 6,021 75 %
Condensed Consolidated Balance Sheet:
(All amounts in thousands of dollars) June 30, June 30, 2006 2005 -------- --------
ASSETS Current assets $ 32,182 $ 19,392 Property, plant and equipment, net 11,739 9,555 Other assets, net 4,193 1,178 -------- -------- $ 48,114 $ 30,125
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities $ 30,884 $ 13,531 Long-term debt, net and other long-term liabilities 11,690 9,756 Stockholders' equity 5,540 6,838 -------- -------- $ 48,114 $ 30,125
At June 30, 2006 and June 30, 2005, we had a total of cash and cash availability of $8.3 million and $9.3 million. As of October 12, 2006, our cash and cash availability was $6.9 million.
For the quarter ended June 30, 2006, we incurred a net loss of $3.1 million, or $0.30 per basic and diluted share, compared to a net loss of $225,000, or $0.03 per basic and diluted share, for the prior year quarter. The higher net loss was primarily due to the increases in selling, general and administrative expenses of $2.2 million; interest expense of $872,000; stock-based compensation expense of $231,000, and increased depreciation and amortization of $270,000 over the prior year quarter. For the year ended June 30, 2006, we incurred a net loss of $4.9 million, or $0.50 per basic and diluted share, which was $3.4 million higher than the $1.5 million net loss, or $.19 per basic and diluted share, for the prior year,. The increased loss for the year was primarily attributable to increases of $2.1 million in interest expense of and $7.1 million in selling and general and administrative expense, including $2.3 million of corporate infrastructure and ongoing integration costs, offset by an increase in gross profit of $5.8 million.
The net losses of $4.9 million and $3.1 million incurred for the year and quarter ended June 30, 2006 included non-cash expenses of $4.8 million and $2.0 million, respectively, which were increases of $2.5 million and $507,000 over the prior periods.
During the quarter and year ended June 30, 2006, our total revenues and gross profit increased primarily as a result of the acquisitions of Shank Services and H & W; our marketing and sales programs; and the emergency response services contribution in the aftermath of the 2005 summer and fall hurricanes. These activities resulted in increases of 4.5 million and 28.3 million gallons sold for the three and twelve month periods and related average net margin increases of $424,000 and $6.0 million. While our volume and net margin increases for the twelve month period reflect modest gains, the results of our operations were adversely affected by a significant surge in the prices of fuel and other petroleum products, which depressed demand for our products and services and led to lower than anticipated delivered volumes during the last half of the year as well as for the entire year. The sharp increase in petroleum prices also contributed to other related incremental costs, ranging from higher running fuel and other delivery costs to increased credit card fees and additional bad debt expense from customers' bankruptcies.
The results of our operations for the quarter and the twelve months were negatively impacted by a significant increase in selling, general and administrative ("SG&A") expense. The increases were largely attributable to carrying the burden of the SG&A expenses of Shank Services and H & W, amounting to $866,000 and $3.6 million for the current quarter and year, while incurring ongoing expenditures of $1.0 million for the quarter and $2.3 million for the year in corporate infrastructure and integration costs. Increases in total SG&A expense were $2.2 million for the current quarter and $7.1 million for the year, including increases in bad debt expense of $472,000 for the year, stock based compensation of $231,000 for the quarter and $511,000 for the year, and credit card fees of $43,000 for the current quarter and $242,000 for the year.
Major components of the increase in SG&A:
Increase in Increase in Quarter Ended Year Ended June 30, 2006 June 30, 2006 Compared to Compared to DESCRIPTION June 30, 2005 June 30, 2005 --------------------------------------- --------------- --------------
Acquired SG&A from purchase of Shank Services and H & W $ 866,000 $ 3,594,000 Corporate infrastructure and ongoing integration costs 1,044,000 2,298,000 FAS 123R stock based compensation expense 231,000 511,000 Bad debt expense 50,000 472,000 Credit card fees 43,000 242,000 -------------- ------------- Total $ 2,234,000 $ 7,117,000 ============== =============
Interest expense increased $872,000 and $2.1 million for the quarter and year, respectively, including a non-cash write-off of deferred debt costs, debt discount and accrued pre-payment penalty totaling $537,000 related to a June 30, 2006 warrant issuance, interest of $1.5 million on the January and September 2005 Notes issued in connection with the Shank Services and H & W acquisitions; and additional interest on the higher balance of our line of credit resulting from the H & W acquisition.
The SG&A expenses of $1.0 million and $2.3 million in the current quarter and year reflect our commitment to build a new corporate infrastructure to support our current operations and facilitate the integration of future acquisitions. We believe that the additional expenses we are incurring now will enable us in the future to reduce operating expenses and historical SG&A expenses, increase operating efficiencies and improve the operating margins of acquired companies as well as our present operations. We accelerated these expenditures in the last two quarters to (i) strengthen our mid-management team; (ii) add accounting, information technology and other support personnel; (iii) relocate our Fort Lauderdale corporate office in January 2006 to a larger, better equipped facility; (iv) integrate and consolidate our Shank Services and H & W acquisitions into a new Mid-Continent operations unit which included moving Shank Services' operations to H & W's Houston location; and (v) implement our new ERP (Enterprise Resource Planning) operating and accounting systems which will replace our three legacy systems.
When our corporate infrastructure and integration project is fully completed and operational, we expect to realize enhanced profitability from resulting economies of scale; eliminating duplicate operating and administrative costs, together with an overall reduction in these expenses; increased operational efficiencies; and improved management of our present commercial and bulk fueling operations and those of acquired companies.
The implementation of our new ERP system did, however, experience a series of delays during the last two quarters of fiscal 2006. In August 2006, we terminated the vendor implementing the ERP system and engaged a new vendor. The new vendor is currently reviewing the status of the project and identifying the outstanding tasks, costs and related timeline to complete the implementation. We presently expect the system to be fully operational during the third quarter of fiscal 2007. At June 30, 2006, we had capitalized $1.7 million in property and equipment related to ERP system design and installation. On October 10, 2006, we filed a civil complaint in Broward County, Florida Circuit Court against the former vendor and others on account of misrepresentations by the defendants as to the vendor's experience and capabilities as well as breach of contract and deceptive billing practices by the vendor.
As of June 30, 2006, our management identified a number of significant deficiencies in our policies and procedures for ensuring accurate and reliable interim and annual consolidated financial statements and concluded that these deficiencies, considered together, constituted a material weakness in our internal controls. We believe that the primary cause of this material weakness finding related to the integration of our Shank Services and H & W acquisitions, together with the delays in completing the implementation of our ERP system. We have already engaged in substantial efforts in order to address the material weakness in our internal controls over financial reporting and to improve the integrity of our reporting processes, although there is no assurance that our efforts will be successful. Those remediation efforts are detailed in our Form 10-K for the year filed today with the Securities and Exchange Commission.
COMMENTS OF RICHARD E. GATHRIGHT, CHAIRMAN, CEO AND PRESIDENT:
"During fiscal 2006 we expended substantial amounts to upgrade all of our information systems, operating procedures and processes in order to lay a solid foundation for future organic growth and expansion through acquisitions. We believe that it is important for our shareholders, creditors and the investment community to be aware of the commitment that these expenditures represent to the future of the Company and our determination to enhance long term shareholder equity value.
The following reconciliation table (i) indicates the material impact of non-cash items and corporate infrastructure and ongoing integration costs on our net losses for the years ended June 30, 2006, 2005 and 2004 and (ii) reflects net (loss) income before non-cash items; net income before non-cash items and corporate infrastructure and ongoing integration costs; and proforma EBITDA, all of which are non-GAAP measures. The reconciliation table below is intended to demonstrate the significant effect that our financing, acquisition and corporate development programs have had on the performance of our business; and that the $4.9 million loss reported in fiscal 2006 should be viewed in conjunction with the $7.1 million of non-cash and corporate infrastructure and ongoing integration costs incurred for the period.
(All amounts in thousands of dollars) Year Ended June 30, ------------------------ 2006 2005 2004 ------- ------- ------
Net loss $(4,87 $(1,460) $ (69
Non-Cash Items: Depreciation - cost of sales 1,667 1,467 1,130 Depreciation & amortization - SG&A 456 368 190 Amortization of deferred debt cost 521 270 195 Amortization of debt discount 1,009 425 241 Stock-base compensation expense 511 -- -- Gain on extinguishment of debt -- -- (757) Other non-cash expenses 79 -- -- Inventory reserve 172 -- -- Provision for allowance of doubtful accounts 404 (59) (54) ------- ------- ------ Total non-cash items 4,819 2,471 945
Net (loss) income before non-cash items (59) 1,011 247
While delays in completing our corporate infrastructure and integration did adversely affect our financial performance in fiscal 2006, the timing of potential acquisitions, as well as our debt restructuring and capital formation plans, we believe that these expenses are critical to our long term success, that the delay in the execution of our business plan is only temporary, and that we will achieve the desired performance, growth and enhancement of our shareholders' investment in the near future."
CONFERENCE CALL
Management will host a conference call on Tuesday, October 17, 2006 at 2:00 P.M. ET, to further discuss the results of the Company's fourth quarter and fiscal year ended June 30, 2006. The conference call will be available via teleconference by dialing 866.203.2528 (domestic) or 617.213.8847 (international), using Pass Code 95775904. There will also be a web-cast over the Internet at http://www.mobilefueling.com. An audio digital replay of the call will be available from October 17, 2006, at 4:00 P.M. ET until Midnight ET on October 24, 2006, by dialing 888.286.8010 (domestic) or 617.801.6888 (international), using Pass Code 61787967. A web archive will be available for 30 days at http://www.mobilefueling.com.
ABOUT STREICHER MOBILE FUELING, INC. (NASDAQ:FUEL - News)
The Company provides commercial mobile and bulk fueling; the packaging, distribution and sale of lubricants and chemicals; integrated out-sourced fuel management; transportation logistics and emergency response services. The Company's fleet of custom specialized tank wagons, tractor-trailer transports, box trucks and customized flatbed vehicles delivers diesel fuel and gasoline to customers' locations on a regularly scheduled or as needed basis, refueling vehicles and equipment, re-supplying fixed-site and temporary bulk storage tanks, and emergency power generation systems; and distributes a wide variety of specialized petroleum products, lubricants and chemicals to refineries, manufacturers and other industrial customers. In addition, the Company's fleet of special duty tractor-trailer units provides heavy and ultra-heavy haul transportation services over short and long distances to customers requiring the movement of over-sized or over-weight equipment and manufactured products. The Company conducts operations from 28 locations serving metropolitan markets in Alabama, California, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Texas. More information on the Company is available at http://www.mobilefueling.com.
FORWARD LOOKING STATEMENTS
This press release includes "forward-looking statements" within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. For example, predictions or statements of belief or expectation concerning the future performance of the Company, its newly acquired operations or new operating locations, the future expansion plans of the Company and the potential for further growth of the Company are all "forward looking statements" which should not be relied upon. Such forward-looking statements are based on the current beliefs of the Company and its management based on information known to them at this time. Because these statements depend on various assumptions as to future events, including but not limited to those assumptions noted in the "Management's Discussion and Analysis of Financial Condition and Results of Operation" section in the Company's Form 10-K for the year ended June 30, 2006, they should not be relied on by shareholders or other persons in evaluating the Company. Although management believes that the assumptions reflected in such forward-looking statements are reasonable, actual results could differ materially from those projected. There are numerous risks and uncertainties which could cause actual results to differ from those anticipated by the Company, including but not limited to those cited in the "Risk Factors" section of the Company's Form 10-K for the year ended June 30, 2006.
Contact: Streicher Mobile Fueling, Inc., Fort Lauderdale Robert W. Beard, Vice President, Corporate Administration & Development and Investor Relations Officer, 954-308-4200
Eldorado Exploration Well Delay Friday October 13, 11:01 am ET
IRVINE, Calif., Oct. 13 /PRNewswire-FirstCall/ -- Eldorado Exploration, Inc. (Pink Sheets: EDEX - News) announced today that the drill date for the Mesa Natural Gas Prospect in Roosevelt County, New Mexico has been delayed until early November. The drilling contractor was originally expected to commence operations in June after drilling a 3 well storage field for a major natural gas pipeline company, but is now over 100 days past the original schedule. ADVERTISEMENT
The drilling time for the Mesa Prospect well is expected to take 18-20 days. The Mesa Prospect has over 11,000 acres and should produce natural gas if successful. Two additional prospects of similar size will be drilled in New Mexico in 2007. Each of Eldorado Exploration's prospects in New Mexico has the potential of 1 TCF of recoverable gas. The company has 33% working interest in the Mesa and 65% working interest in the two additional prospects.
Eldorado Exploration, Inc. is an independent oil and gas company that utilizes a process called Passive Induced Polarization 'PIP' to detect electromagnetic signals given off of some geological anomalies. In most cases a positive response indicates a hydrocarbon accumulation and a negative reading is almost always a dry hole. When used with the standard geological tools and methods, the PIP process enhances the odds of success for discovering oil and gas.
Please be advised that statements made herein, other than historical data, constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The potential risks and uncertainties include, among others, potential volatility in the company's stock price, increased competition, customer acceptance of new products and services offered by the company, and uncertainty of future revenue and profitability and fluctuations in its quarterly operating results. Please also be advised that Eldorado Exploration is a non-reporting Pink Sheets company and is not required to be registered with the Securities and Exchange Commission.
Logged
%