Vanguard Energy Corporation Announces Results of Operations for the Fiscal Year Ended September 30, 2013
03 1월 2014 - 9:00PM
Marketwired
Vanguard Energy Corporation Announces Results of Operations for the
Fiscal Year Ended September 30, 2013
HOUSTON, TX--(Marketwired - Jan 3, 2014) - Vanguard Energy
(OTCQX: VNGE), an oil development and production company today
announced the results of operations for its Fiscal Year ended
September 30, 2013.
Highlights for the year include:
- Revenue from oil and gas sales for the year were
$4,644,356 as compared to $3,369,407 for the prior year
- Net income (loss) for the year was ($3,399,031) compared
to ($1,027,157) for the same period of 2012 due to significant
non-cash deductions associated with DD&A and an Impairment
charge of $3,634,312
- Shareholders' Equity declined to ($131,398) from
$3,267,633 for the prior year
- General and Administrative costs were $1,373,123 for the
year compared to $1,564,475 in FY 2012.
- The Company produced and sold 45,758 net barrels of oil
during the year ending September 30, 2013 as compared with
35,597 net barrels sold in FY 2012.
Management Comments Mr. Warren Dillard, President and CEO of
Vanguard Energy said; "The past fiscal year was one of
consolidation during which only 2 more wells were drilled and
completed, and those proved to not be very commercially
satisfactory during the year. The company expended most of its
available drilling funds early in the year, thus the year was
primarily spent assessing the company's Batson Dome property to
determine what the company's best strategy might be going forward.
In January of 2013 the company announced that 'it is seeking ways
to accelerate shareholder value. In that regard, we are
investigating the possibility of selling its interest in oil and
gas properties in Southeast Texas. The company has not received any
binding offers for its properties nor has it established a price it
would consider for its properties.' Having completed our field
evaluation and with the filing of our FY2013 Form 10-K with the
SEC, assisted by a detailed geological evaluation and an updated
reserve report, the company is now prepared to resume a concerted
effort to either sell the property or engage in a corporate
transaction with another similar E&P company to be better
positioned for growth."
At the end of the year the company engaged a new reserve
engineering firm to evaluate its properties and prepare its annual
reserve report. They estimate the PV-10 of the proved reserves
at $6.466 million. The Proved Producing (PDP) reserve estimate of
$3.845 million, represented by 70,220 net barrels, is a material
reduction from the 208,677 barrels reported as of September 30,
2012. Net production during the year of 45,758 barrels
accounted for a portion of the reduction, but the balance was due
to calculations of reservoir potential that was influenced by
further detailed analysis of the producing formations' drive
systems and the declines in production from certain wells at a
greater rate than previously experienced. The interpretation of 3D
seismic this year provided additional input as we delineated the
field more precisely, resulting in limiting the estimates of
remaining recoverable oil. The decline in production from
certain wells was greater than anticipated and indicated shorter
production lives of those wells as compared to previous
estimates. This also contributed to the reserve estimate
reduction.
The Non-Producing (PDNP) reserves with an estimated PV-10 of
$2.621 million is represented by 54,148 net barrels, a material
reduction from the 73,578 net barrels reported as of September 30,
2012. This reduction resulted partially from certain
non-producing zones being put on production (a shift in category to
PDP) and the balance from the limitations cited above regarding the
proved producing reserves.
Although we reported Proved Undeveloped (PUD) reserves of
371,022 barrels in FY 2012, our engineers determined this year that
such classification was not appropriate due to the faults and
reservoir drive mechanisms identified in the field, and they were
thus removed from the report. Rather, the reserve engineers
have estimated 237,701 barrels of Probable reserves with a PV-10 of
$5.644 million, a change in category of certain potential future
production from our leases.
Management believes that our new methodology used to estimate
proved reserves did not constitute a correction of an
error. Rather, the company elected to change our methodology
in order to utilize a more conservative approach and we benefited
from better data analysis with the aid of subsequent production
information and seismic interpretation.
The company's proved properties are evaluated quarterly for the
possibility of impairment. The Company recorded an impairment
expense of $3,634,312 at the close of FY 2013 as a result of the
estimated future revenues and expenses due to the reductions in
proved reserves discussed above. The declines experienced in
production limited the life of certain wells, resulting in a
greater DD&A adjustment of $1,850,814 for the year, thus
lowering the remaining valuation of the wells. These
adjustments were offset somewhat by a reduction of Participation
Liability by $999,485 resulting from reduced estimated net cash
flows from certain wells in which an outside party has a 20% Net
Profits Interest.
Operations Update Mr. Dillard further commented; "In spite of
the lack of satisfactory new drilling during the year, with earlier
wells drilled during FY 2012 producing during the entire 2013 year,
sales of oil increased substantially. After a thorough study
during the 4th quarter of FY 2013 and subsequent to the end of the
year of the well logs, geology and previous completion techniques,
considerable effort has been made to examine every formation or
producible zone in every wellbore to determine what might be done
to improve production. This examination has resulted in
significant work over efforts that are now proving to be very
helpful and are increasing daily production from what was an
average low of 112 gross barrels per day (80 net barrels per day)
during this past November at its lowest. During November and
December we commenced work to recomplete two of our nonproductive
wells, one of which came online in late December at an initial rate
of approximately 28 BOPD gross (21 net). The second well is in
the process of flowing back work over fluids. We do not have
stabilized rates for either of these wells as we are in the process
of optimizing production."
Conference call The Company will host a conference call on
January 9, 2014 at 10:30 AM Eastern time (9:30 CT, 7:30 PT) to
discuss the results of operations and provide additional details on
drilling activity. The dial in number for those interested in
participating is 888-505-4375. The participant code is
3883201. The call will be web cast and can be viewed on the
Company web site at www.vanguardenergy.com.
About Vanguard Energy Vanguard Energy is an oil drilling and
production company that has had a focus on established oil fields
in southeast Texas. Concentrating on oil properties in established
areas with proven production, Vanguard applies its managerial
expertise to maximize production while minimizing risk. Vanguard
believes it can create significant shareholder value by building
cash flow and oil reserves through an aggressive, focused
acquisition and development program in the prolific southeast Texas
oil-producing region. Vanguard's initial area of operation is in
the famous Batson Dome Field where it controls 500 strategic acres
with substantial oil reserves. For more information visit the
Company's web site at www.vanguardenergycorp.com
Safe Harbor This press release and other statements Vanguard
Energy may make in the future contain forward-looking statements
that relate to Vanguard's plans, objectives and future estimates.
Various risks, uncertainties and other factors could cause actual
results to differ materially from those expressed in any
forward-looking statements. For a more detailed list of such risks,
uncertainties and other factors, please refer to the Risk Factor
section of Vanguard's Registration Statement on Form S-1 and in its
periodic filings with the Securities and Exchange Commission.
Vanguard makes no commitment to update any forward-looking
statement, or to disclose any facts, events, or circumstances after
the date of this release that may affect the accuracy of any
forward-looking statement, except as may be required by applicable
law.
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