DENVER, Nov. 13 /PRNewswire-FirstCall/ -- Basic Earth Science Systems, Inc. (Basic) (BULLETIN BOARD: BSIC) reported net income of $555,000, slightly less than three and one-half cents ($0.033) per share, on oil and gas sales revenue of $1,789,000 for the quarter ended September 30, 2007 (2007). This compares to net income of $780,000, slightly more than four and one-half cents ($0.046) per share, on oil and gas sales revenue of $2,048,000 for the quarter ended September 30, 2006 (2006). The $259,000 (13%) decrease in oil and gas sales revenue and $225,000 (29%) decrease in net income was primarily due to continuing declines in production on Basic's horizontal Bakken wells in Richland County, Montana relative to 2006.
"We are pleased to report another profitable quarter with a 35% increase in net income over the preceding quarter," commented Ray Singleton, President of Basic. "In the field, our Antenna Federal drilling program is progressing as expected with ten wells now having reached total depth. At South Flat Lake in Sheridan County, Montana, we have received our drilling permit and may commence drilling by the end of the year. On a different front, things are heating up in the horizontal Bakken play near our Banks Prospect. We are delaying our previously announced Rival formation efforts, while we intently watch the results of nearby horizontal Bakken tests. Finally, we continue to search for and investigate strategic opportunities which have the potential to create significant returns to our shareholders."
Founded in 1969, Basic is an oil and gas exploration and production company with primary operations in select areas of the Williston basin, the Denver-Julesburg basin in Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast. Basic is traded on the "over-the-counter - bulletin board" under the symbol BSIC. Basic's web site is at http://www.basicearth.net/ where additional information about the Company can be accessed.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "should," "may," "will," "anticipate," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Basic intends, expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Basic, particularly the Company's Quarterly Report on Form 10-QSB for the quarters ended June 30, 2007, in addition to the Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2007, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.
Financial Highlights Six Months Ended Quarter Ended September 30 September 30 2007 2006 2007 2006 Total Revenue $3,408,000 $4,046,000 $1,794,000 $2,062,000 Net income 967,000 1,497,000 555,000 780,000 Basic net income per share .057 .089 .033 .046 Diluted net income per share .056 .087 .032 .045 Weighted average number of shares outstanding - basic 16,964,503 16,789,913 16,973,665 16,799,237 - diluted 17,132,679 17,129,038 17,132,144 17,128,125
