HOUSTON, May 18 /PRNewswire-FirstCall/ -- ISRAMCO, INC. reported today that first quarter 2007 revenues were $3,998,000, compared to $5,245,000 in the first quarter of 2006, a decrease of approximately 24%. Most components of revenues in the first quarter of 2007 were oil and gas sales which increased by approximately 218% compared to 2006. The decrease of total revenues in the first quarter of 2007 compared to 2006 is mainly attributable to a non recurring one time receipt of $2.5 million in the first quarter of 2006 for the settlement of certain lawsuits that were initiated by the Company.
The increase in oil and gas sales is mainly attributable to new drillings of oil and gas wells during 2006 (Barnett Shale) in north Texas and the acquisition of 650 oil and gas wells from Five States Energy Company, L.L.C. on March 2, 2007.
The Company reported a net loss of $1,766,000 for the first quarter 2007 compared to net income of $393,000 for the same period in 2006.
The net loss is primarily attributable to losses from swap transactions which were made in connection with the Five States transaction in order to hedge future oil and gas sales. For accounting purposes, such transactions do not comply as hedge transactions, thus, changes in their fair value are recorded to the income statement as incurred.
There are currently 2,717,691 shares of common stock issued and outstanding.
ISRAMCO's unaudited quarterly results are summarized below:
For the Three Months Ended March 31,
2007 2006
STATEMENT OF OPERATIONS DATA
Revenues $3,998 $5,245
Total expenses 6,805 1,062
Net income (loss) (1,766) 393
Earnings (loss) per common share (0.65) 0.14
CASH FLOW DATA
Net cash provided by operating activities 5,169 2,304
Net cash provided (used) in investing activities (89,946) (226)
Net cash provided (used) by financing activities 69,996 (27)
March 31, December 31,
2007 2006
BALANCE SHEET DATA
Current assets $10,689 $28,313
Total assets 135,633 62,073
Current liabilities 11,420 22,561
Total liabilities 101,851 27,329
Total shareholders' equity 33,782 34,744
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE- HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2006, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. 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.
