HOUSTON, May 15 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that first quarter 2008 revenues were $7,730,000, compared to $3,122,000 in the first quarter of 2007, an increase of approximately 148%. Most components of revenues in the first quarter of 2008 were oil and gas sales which increased by approximately 247% compared to 2007. This increase is primarily attributable to the oil and gas properties that the Company purchased from Five States Energy Company, L.L.C. ("Five States Acquisition") on March 2, 2007, partially offset by a decline in production from our older oil and gas properties
The Company reported a net loss of $7,646,000 or ($2.81) per share for the first quarter 2008 compared to net loss of $1,766,000 or ($0.65) per share for the same period in 2007. The increase in the loss recorded during the three months ended March 31, 2008 as compared to the net loss recorded for the same period in 2007 is primarily attributable to an aggregate $10,749,000 increase in loss on swap transactions and interest expense. This was partially offset by a $5,307,000 increase in operating income and an income tax benefit.
Due to the increase in oil prices, the Company recorded a net derivative loss of $13,300,000 for the period ended March 31, 2008 which should be offset in the future years by increasing revenues.
There are currently 2,717,691 shares of common stock issued and outstanding.
Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):
For the Three Months Ended March 31,
2008 2007
STATEMENT OF OPERATIONS DATA
Revenues $7,730 $3,122
Total operating expenses 4,569 2,369
Operating income 3,161 753
Net loss (7,646) (1,766)
Loss per common share (2.81) (0.65)
CASH FLOW DATA
Net cash provided by operating activities 2,069 3,019
Net cash used in investing activities (102,464) (70,796)
Net cash provided by financing activities 102,574 69,996
March 31, December 31,
2008 2007
BALANCE SHEET DATA
Current assets $22,305 $11,103
Total assets 219,675 110,708
Current liabilities 34,755 11,273
Total liabilities 202,981 73,964
Total shareholders' equity 16,694 25,471
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.
SOURCE ISRAMCO, INC.
