Message #11 From:
Jason Date: April 18, 2008 07:06:07 AM
American Oil & Gas Reports 2007 Financial Results and Estimated 2008 Capital Expenditures
American Oil & Gas Reports 2007 Financial Results and Estimated 2008 Capital Expenditures
DENVER, March 17 /PRNewswire-FirstCall/ -- American Oil & Gas, Inc.
(Amex: AEZ) announces for its fiscal year ended December 31, 2007 ('2007') a
net loss to common stockholders of $3,795,912 (loss of $0.09 per share, basic
and diluted), as compared to net income to common stockholders of $131,223
($0.00 cents per share, basic and diluted), for the fiscal year ended
December 31, 2006 ('2006'). Included in net income for 2006 are (i) a
$4.3 million gain ($2.6 million net of tax) from the sale of the Big Sky
project, (ii) $2.9 million ($1.8 million net of tax) in gains from the sale of
the Bear Creek prospect and a portion of the Goliath project and (iii)
$1.5 million ($0.9 million net of tax) in service fee income.
During 2007, American recorded $2.0 million in revenues from the sale of
oil and natural gas. In 2006, American recorded $2.3 million in revenues from
the sale of oil and natural gas and $1.5 million in service fee and other
revenues. During 2007, American sold 17,267 barrels of oil at an average
price of $64.11, resulting in oil revenues of $1,107,054, and sold 139,590 Mcf
of natural gas at an average price of $6.09 per Mcf, resulting in gas revenues
of $849,454. During 2006, American sold 34,578 barrels of oil at an average
price of $54.79, resulting in oil revenues of $1,894,386 and sold 48,149 Mcf
of natural gas at an average price of $7.53 per Mcf, resulting in gas revenues
of $362,453. Lease operating expenses and production taxes were $646,000
($15.94 per BOE) for 2007 and $290,803 ($6.83 per BOE) for 2006. The
reduction in oil volumes sold relates to the sale in the first quarter of 2006
of American's ownership interest in its Big Sky Project.
American's initial ceiling test calculation as of December 31, 2007, using
oil and gas prices on that date indicated an impairment of oil and natural gas
properties of approximately $1.4 million, net of income tax. However, SEC
guidance in applying the ceiling test requires consideration of subsequent
price increases prior to the filing of the Form 10-K. With consideration of
oil and gas prices at the end of February 2008, the ceiling exceeded total
capitalized costs, eliminating the calculated impairment. As a result,
American did not recognize an impairment of oil and natural gas properties in
2007. For 2006 American's ceiling test calculation resulted in costs
exceeding the ceiling by $4.4 million ($2.7 million, net of tax).
American's general and administrative expenses were $4.3 million and $4.0
million for 2007 and 2006, respectively. The nominal increase results from
increasing the number of employees from thirteen to fifteen and from increases
in the costs of financial auditing and attestation of internal control over
financial reporting.
American's cash used in investing activities in 2007 was $31.8 million and
consisted of a net investment in short-term investments of $16.4 million and
cash used relating to its oil and natural gas operations of $16.2 million,
which was offset by approximately $777,000 in cash received from sales of oil
and gas assets. During 2006, American's cash used in investing activities
consisted of $15.9 million relating to its oil and natural gas operations and
approximately $240,000 primarily for the acquisition of furniture and
equipment relating to its 2006 office move. These amounts were offset by
sales of oil and gas assets for approximately $16.1 million.
American's cash flows provided by financing activities totaled
approximately $27.9 million and $183,000 for 2007 and 2006, respectively.
During 2007, $26.6 million was received from the sale of common stock and an
additional $1.3 million was received from the exercise of common stock
warrants and options. In 2006, American received $184,000 from the exercise
of common stock warrants and options.
At December 31, 2007, American had current assets of $21.8 million, total
assets of $88.1 million, current liabilities of $1.8 million, a long-term
asset retirement obligation of $323,000, a long term deferred income tax
obligation of $1.1 million, and stockholders' equity of $84.9 million. There
are currently 46,488,077 common shares and 138,000 series AA convertible
preferred shares outstanding.
2008 Capital Expenditures
During 2008, American anticipates its base case capital expenditures to be
approximately $19 million. Approximately $15 million is allocated to expected
drilling and production activities relating to its Fetter, Krejci and Goliath
projects and approximately $4 million is allocated to land, geological and
geophysical activities for those and other projects. American may expand or
reduce capital expenditures depending on, among other things, the results of
future wells and available capital. At December 31, 2007, American had
working capital of $20.0 million.
American Oil & Gas, Inc. is an independent oil and natural gas company
engaged in exploration, development and production of hydrocarbon reserves
primarily in the Rocky Mountain region. Additional information about American
Oil & Gas, Inc. can be found at the Company's website:
http://www.americanog.com.
Selected Financial and Operating Data Fiscal Year Ended 12/31/07 12/31/06 CASH FLOW RECAP: Net cash (used) provided by operating activities $(1,171,106) $1,368,644 Net cash (used) in investing activities $(31,826,456) $(85,690) Net cash provided by financing activities $27,897,307 $182,698 FINANCIAL RECAP: Revenues $1,968,508 $3,786,839 Net income (loss) attributable to common stockholders $(3,795,912) $131,223 Net income (loss) per common share-basic $(0.09) $0.00 Net income (loss) per common share-diluted $(0.09) $0.00 OPERATING DATA: Net oil production (Bbl) 17,267 34,578 Oil revenues $1,107,054 $1,894,386 Average oil price per Bbl $64.11 $54.79
Net gas production (Mcf) 139,590 48,149 Natural gas revenues $849,454 $362,453 Average gas price per Mcf $6.09 $7.53 Barrels of oil equivalent ('BOE') sold 40,532 42,603
Lease operating and production taxes $646,000 $290,803 LOE and production taxes per BOE $15.94 $6.83
Depreciation, depletion and amortization-oil and gas properties $1,021,817 $937,821 DD&A per BOE $25.21 $22.01
Impairment expense $- $4,360,000 General and administrative expenses $4,307,997 $4,009,119 Gains on sales of oil and gas properties $- $7,159,470 Investment income $1,020,712 $392,930
This release and the Company's website referenced in this release contain
forward-looking statements regarding American Oil & Gas, Inc.'s future plans
and expected performance that are based on assumptions the Company believes to
be reasonable. A number of risks and uncertainties could cause actual results
to differ materially from these statements, including, without limitation, the
success rate of drilling efforts and the timeliness of development activities,
fluctuations in oil and gas prices, and other risk factors described from time
to time in the Company's reports filed with the SEC. In addition, the Company
operates in an industry sector where securities values are highly volatile and
may be influenced by economic and other factors beyond the Company's control.
This press release may include the opinions of American Oil & Gas, Inc., and
does not necessarily include the views of any other person or entity.
Contact: Andrew Calerich, President 303.991.0173 Fax: 303.595.0709 1050 17th Street, Suite 2400 - Denver, CO 80265
Neal Feagans, Investor Relations Feagans Consulting, Inc. 303.449.1184
