Aztec Oil & Gas, Inc. (Pink Sheets:AZGS) today announced the filing of its financial results for the quarter and nine months ending May 31, 2011. Aztec has continued to achieve significant improvement over the reporting period ending August 31, 2010, which 2010 reporting period in turn was significantly higher than Aztec's corresponding 2009 results.
A limited summary of the current filing shows that Aztec's Total Assets increased from $11,433,893 on August 31, 2010 to $24,590,266 for the nine month period ending May 31, 2011, or by approximately 115%. Total Current Assets, including cash of $5,253,905, increased from $5,271,927 on August 31, 2010 to $5,822,822 for the current period. For the same period, Total Liabilities decreased by $296,601, or approximately 10%, Total Equity increased from $8,318,708 to $21,771,682, or by approximately 162%. (All of the foregoing amounts are compared to the period for the fiscal year ending August 31, 2010 and are rounded.)
Oil and natural gas sales increased from $164,110 for the nine months ending May 31, 2010 to $621,649 for the nine months ending May 31, 2011, or approximately 280%. Net Loss for the three months ending May 31, 2010 was ($739,579) and for the current three month period ending May 31, 2011 was ($516,333), a reduction of loss by approximately 30%.
"Aztec is having a very good year and is looking forward to much more of the same, regardless of oil pricing levels. Many years of hard work by some very talented people are definitely resulting in substantial gains for Aztec, which just happens to coincide with some currently high levels of oil pricing. As oil is, and has been since 2008, our focused commodity, that all works out quite well for Aztec," stated Waylan R. Johnson, President of Aztec Oil & Gas, Inc. Mr. Johnson went on to say, "Separately our sponsored drilling programs are doing well and continue to gain more acceptance with the national broker dealer community; plus Aztec's separate, corporate investment projects are also doing quite well. Aztec has interests in over 200 wells, and is active in approximately 14 counties in Texas, plus the states of Missouri and West Virginia."
About Aztec Oil & Gas, Inc.
Aztec is an experienced oil and gas exploration, development and production company focusing on Texas plus other areas of the U.S. Its interests are highly diversified between exploration drilling and development drilling; however, when it offers drilling/production partnerships, Aztec focuses primarily on shallow, Texas, low risk, development wells. When offered, those programs/partnerships are placed, with accredited investor partners, only through FINRA registered Broker Dealers and Registered Investment Advisors, and are focused primarily on oil, with natural gas normally a secondary target.
Aztec entered the sponsored drilling program industry in 2006. Over the next two and one half years, it intentionally restricted itself to only three small, very limited Appalachian drilling partnerships in order to study and become fully familiar with the nuances of the sponsored drilling program industry before expanding to the Company's full capabilities. In the summer of 2008, Aztec publicly announced it was discontinuing any natural gas drilling in Appalachia, and was ready to substantially expand its sponsored drilling program activities, primarily for oil in Texas.
Since 2008, Aztec has, indeed, focused almost all of its drilling partnerships on oil wells in Texas. In addition to its early, initial three small Appalachian natural gas drilling partnerships mentioned above, Aztec has, intermittently, sponsored and closed nine other drilling/production partnerships (all of the latter focused on drilling for oil in Texas). Aztec Energy LLC, a wholly-owned subsidiary of Aztec, is the Managing General Partner of all Aztec drilling partnerships and another wholly-owned Aztec subsidiary, Aztec Drilling & Operating, LLC, is the drilling contractor and operator for such partnerships. Through its own participation and contributions, Aztec owns a 30% interest in all of its drilling/production partnerships. In general clarification of its activities, in addition to its own direct corporate participations in industry partner wells, Aztec sometimes sponsors lower risk, development drilling/production programs which include significant tax benefits, all of which are offered only through FINRA Registered Broker Dealers and Registered Investment Advisors to Accredited Investors. Aztec's sponsored drilling/production programs, when offered, focus primarily on shallow oil/gas drilling, are considered unique, and also incorporate a sophisticated exit strategy for investors.
