ReoStar Energy Corp. Announces Results for Fiscal Year 2009

Mark Zouvas, CEO of ReoStar, stated, "We are pleased to have achieved improvements in our oil and gas production over the previous year, despite the challenging energy environment we faced. The industry continues to undergo extraordinary changes as pricing volatility has created a large number of insolvencies during the last six months. Due to weak pricing, we have shifted our focus from development drilling to improving operational efficiencies and cost control by utilizing advanced technologies at down-market costs to improve current production. Additionally, we are reviewing distressed E&P opportunities for acquisition. Our Union Bank of California credit facility has allowed us to withstand the continued volatility in pricing and we expect to be in position to seize growth opportunities that have historically followed industry wide slowdowns."

Fiscal Year 2009 Results Summary

Oil and gas production for the year increased 35% to a total of 124,968 BOE compared with 92,193 BOE for the fiscal year ended March 31, 2008. Oil and gas revenue for the year increased 33% to a total of $6.5 million compared to $4.9 million for the fiscal year ended March 31, 2008.

The Company had a net loss of $2.0 million for the fiscal year compared to net income of $796,000 for the prior fiscal year. The fiscal year 2009 net loss included non-cash net expenses totaling $4.4 million.

During fiscal year ended March 31, 2009, the Company's cash provided from operations was $825,000 and REOS invested $10 million in capital expenditures. Financing activities provided net cash of $9.0 million. The Company entered into a $25 million senior secured credit facility with an initial borrowing base of $14 million. The Company borrowed $9.8 million against the borrowing base during the fiscal year ended March 31, 2009.

On March 31, 2009, REOS had $426,000 in cash and total assets of $23.0 million. Debt consisted of payables to non-related parties of $9.1 million, of which $9.0 million were long-term note payables. REOS also had accounts and notes payables to related parties of $3.6 million.

Complete report here

source: Marketwire

Constellation Energy Partners Provides Update on Management Services Agreement and Hedging

Constellation Energy Partners LLC today reported that it has received the requisite approval under the company’s credit agreements of a plan for managing its business after termination of the company’s Management Services Agreement (“MSA”) with Constellation Energy Partners Management, LLC, a wholly-owned affiliate of Constellation Energy Group, Inc. (“Constellation”).

Constellation notified CEP in June 2009 that it would terminate the MSA effective Dec. 15, 2009. Approval of the plan was required under the terms of the company’s credit agreements.

“As we noted in June, termination of the MSA by Constellation is an event that we have anticipated and are prepared to handle,” said Stephen R. Brunner, the company’s President and Chief Executive Officer. “We are happy to report today that the lenders’ agent has reviewed our plan to manage the company after termination of the MSA and is satisfied with the steps taken to stand up the company.”

The company also announced that it recently executed commodity hedges related to approximately 12.8 Bcfe of 2013 and 2014 natural gas production as follows:

* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2013 at an average price of $6.81 per mmbtu; and
* NYMEX natural gas fixed price swaps on 6,387,500 mmbtu of production in 2014 at an average price of $7.03 per mmbtu.

Brunner noted that securing approval of its management plan and hedging future production are part of the company’s continuing efforts to manage risks and uncertainties inherent in CEP’s business.

About the Company

Constellation Energy Partners LLC (www.constellationenergypartners.com) is a limited liability company focused on the acquisition, development and production of oil and natural gas properties, as well as related midstream assets.

source: business wire

Strategic American Oil Corporation Identifies 2 Pinnacle Reef Targets in Illinois

Strategic American Oil Corporation;( the "Company") is pleased to announce that it has identified 2 Devonian-Silurian aged Pinnacle Reef (oil) prospects in the Illinois Basin through the research of records from the Illinois State Geological Survey. The prospects are located in Fayette and Macon Counties at depths of between 2000' and 3500' The Company plans to lease approximately 600 acres over the identified prospects and proposes to drill and/or generate 3D seismic to evaluate the prospective subsurface geology. The Company's exploration team believes the targets identified could contain significant oil reserves (detailed geologic information will be released upon completion of leasing).

Company President and CEO, Randall Reneau, stated, "The identification of these prospects furthers our exploration plans for Illinois. Our team in Illinois, lead by Chief Geologist Jim Thomas who has over 35 years experience working in the Illinois Basin, is continuing to make progress in finding and leasing new attractive targets, furthering our business model of developing prospects in-house to build the Company's oil reserves and increase production. The Company will continue to review and evaluate data from the Illinois State Geological Survey to identify new drilling prospects with the goal of making new oil field discoveries."

Pinnacle Reefs are isolated biohermal structures. These reefs are relatively shallow in Illinois, averaging between 2,000 to 3,500 feet in depth, allowing for low cost drilling programs. The Company's geologists have made extensive use of Illinois State historical coal drilling records; these records show coal seams overlaying pinnacle reefs that are marked as thinning and/or are structurally higher than expected making historic coal drilling logs extremely valuable in the search for pinnacle reefs. Due to the shallow depths of these structures, the Company will rely heavily on subsurface structural mapping to delineate possible reef targets. Targets below 3000' may be cost effective to utilize 3D seismic surveys prior to drilling. Each reef prospect will be evaluated as to the most cost effective exploration program as targets below 3000' may be cost effective to utilize 3D seismic surveys prior to drilling. According to the Illinois Geological Survey, successfully drilled and producing pinnacle reefs in the Basin produced an average of 3,200,000 barrels of oil. With today's advances in subsurface mapping and advanced 3D techniques, Pinnacle Reefs have become a prospective target for new oil field discoveries in the Illinois Basin.

About Strategic American Oil Corporation

Strategic American Oil Corporation is an exploration and production company with operations in Texas, Louisiana, and Illinois. The Company is lead by an internationally recognized team of geologists, engineers, and executives with extensive oil and gas exploration and production experience. The Company's objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential.

source PR newswire

Vanguard Natural Resources to Acquire Additional Natural Gas and Oil Properties in South Texas

Vanguard Natural Resources, today announced it has entered into an agreement to acquire producing oil and natural gas properties in South Texas for $52.25 million from an affiliate of Lewis Energy Group, L.P. ("Lewis"). The properties to be acquired have total estimated proved reserves of 27 Bcfe as of July 1, 2009, of which 94% is natural gas and 74% is proved developed. Lewis will operate all of the wells acquired in this transaction. Based on the current net daily production of approximately 5,000 Mcfe, the properties have a reserve to production ratio of approximately 15 years.

Mr. Scott W. Smith, President and CEO of Vanguard commented: "We are very pleased to be able to announce this transaction with Lewis, our South Texas operating partner. When we closed our initial South Texas acquisition last summer, we indicated one of our goals was to add additional assets through subsequent acquisitions as Lewis looked to monetize mature assets to fund their exploration efforts. With an enviable leasehold position in the emerging Eagle Ford Shale play, this transaction provides Lewis the opportunity to monetize a small percentage of its assets to provide capital for an exciting exploration opportunity. For Vanguard, this acquisition will increase our production and reserves and will increase the value of the collateral backing our reserve-based credit facility."

The acquisition has a July 1, 2009 effective date, is subject to customary closing conditions and purchase price adjustments and is expected to close in the third quarter of 2009. Vanguard is evaluating options for financing this acquisition and is currently in the process of amending its existing credit facility. At closing, Vanguard will assume natural gas puts and swaps based on Nymex pricing for approximately 67% of the estimated gas production from existing producing wells for the period beginning August of 2009 through 2010. In addition, concurrent with the execution of the purchase and sale agreement, Vanguard entered into a costless collar for certain volumes in 2010 and a series of costless collars for a substantial portion of the expected gas production for 2011 at a total cost to the Company of $3.1 million which was financed through deferred premiums. Inclusive of the hedges added, we expect that approximately 90% of the estimated gas production from existing producing wells is hedged through 2011.

CONTACT: Vanguard Natural Resources, LLC
Investor Relations
Richard Robert, EVP and CFO, 832-327-2258
investorrelations@vnrllc.com

DRG&E
Jack Lascar/Carol Coale, 713-529-6600

source: AP newswire

Yasheng ECO-Trade Corporation Engages Investment Banking Firm to Obtain Banking Facility for Yasheng Russia Project

Yasheng ECO-Trade Corporation, has signed a Financial Advisor Engagement Letter with a foreign investment banking firm to obtain bank financing for the Yasheng Russia Breeding Complex. The Investment Banking firm has retained Dr. Sam Frankel to assist in obtaining funds from semi-governmental funding sources.

As announced on June 24, 2009, the Yasheng Russia Breeding Complex will be a Joint Venture between Yasheng ECO-Trade Corporation and Create Agrogroup Zao. The expected cost of the project is $186 million that is projected to be completed in three stages over five years.

About Dr. Sam Frankel, PhD

Sam Frankel has over 25 years experience in Banking and Finance including extensive experience working with Export Credit Agencies around the world, including but not limited to the World Bank, European Bank for Redevelopment and Development, European Investment Bank, International Finance Corporation, and similar institutions. In addition, Mr. Frankel has spent seven years as senior lecturer of Finance, International Finance and International Business at the MBA program at the Tel Aviv Academic College & the College of Management Rishon Letzion.

About Yasheng ECO-Trade Corporation

The Company's business has been the identification and acquisition of undervalued assets within emerging industries for the purpose of consolidation and development of these businesses and sale if favorable market conditions exist. The Company's objective is to find, acquire and develop resources at the lowest cost possible and recycle its cash flows into new projects yielding the highest returns with controlled risk. The Company's competencies include financial services, mergers and acquisitions, accounting, real estate development and natural resources exploration. The Company is currently in the process of developing a logistics center. As part of its strategy to develop a logistics center, the Company has entered a term sheet with Yasheng Group in which Yasheng Group, among other things, has agreed to contribute real property for the development of a logistics center. Further, the Company and Yasheng Group have jointly entered into a cooperation agreement with Legend Transportation based in Texas.

Source: Business wire

Nabors Industries falls to 2nd-qtr loss as energy prices slip; adjusted results beat Street

Oil and gas driller Nabors Industries Ltd. posted a second-quarter loss Tuesday due in part to a recession-linked drop in energy prices and demand, but adjusted results beat Wall Street's expectations.

For the period ended June 30, the company posted a loss of $193 million, or 68 cents per share, compared with profit of $176.4 million, or 60 cents per share, in the year-ago period. Excluding certain one-time items, Nabors posted second-quarter profit of $90.9 million, or 32 cents per share.

Total revenue fell 33 percent to $878 million from $1.3 billion.

The results topped expectations of analysts polled by Thomson Reuters, who expected, on average, earnings of 26 cents per share on revenue of $923.2 million. Analysts typically exclude one-time charges.

Nabors owns more than 1,000 rigs for drilling natural gas and crude oil. As prices for those fuels dropped in the past year, so did demand for rigs and related equipment. That sharply ate into Nabors' profit.

Total costs and deductions rose 2 percent during the period to $1.09 billion, mostly due to higher interest, general and administrative, and depreciation charges.

"I believe that the third quarter will likely represent a bottom in all of our operations, although it remains difficult to predict the timing and pace of the eventual upturn in natural gas driven activity," Gene Isenberg, chairman and CEO, said in statement.

Shares rose 23 cents to $17.39 in aftermarket trading, having closed earlier down 13 cents at $17.16. The stock has traded between $8.25 and $43.97 in the past 52 weeks.

Source: AP

Investors ditch BPZ shares after news of $88M offering, analyst expects mixed market reaction

Shares of BPZ Resources Inc. tumbled on Friday, a day after the company announced an $88 million common stock offering.

The Houston-based oil and gas exploration and production company's shares dropped 23 cents, or 4.3 percent, to $5.10 in afternoon trading.

On Thursday BPZ said it had agreed to sell 18.8 million common shares for $4.66 each in a registered direct offering worth about $88 million. The price per share is a 12.6 percent discount from its Thursday closing price of $5.33.

The company plans to use net proceeds to fund its ongoing oil development in the Corvina and Albacora oil fields in a coastal offshore region in northwest Peru, a second platform in the Corvina field, certain capital expenditures and general corporate purposes.

Morgan Keegan analyst Chris Pikul said BPZ is still a "show-me story" and he expects mixed reactions from investors. The good news is that proceeds from the offering mean funds are in place to develop the Corvina and Albacora oil fields. The bad news is the dilutive effect of the offering, he said.

"Another equity offering is likely to trouble investors who have already absorbed $50 million this year, only to see Corvina underperform," Pikul said.

Pikul rates the stock "Outperform," citing expected production upside at Albacora as a "reason to stay involved in the shares." If the stock tumbles in reaction to the offering Pikul said he would snap up the stock given the improved financial situation and asset upside.

Still, the dilutive impact of the stock offering prompted Pikul to lower his 2009 estimate for the company to a loss of 8 cents per share, down from his earlier estimate of a loss of 7 cents per share. Analysts polled by Thomson Reuters forecast a loss of 8 cents per share.

source: Yahoo