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
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
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