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REMINDER Never forget dilution level! THILOUD-- NKING
globenewswire
NGAS Resources Announces Resizing Common Stock and Warrant Offering
* Press Release
* Source: NGAS Resources, Inc.
* On Monday August 10, 2009, 7:00 pm EDT
LEXINGTON, Ky., Aug. 10, 2009 (GLOBE NEWSWIRE) -- NGAS Resources, Inc. (Nasdaq:NGAS - News) announced today that it has replaced its previously reported offering of 5.4 million units with a new registered direct public offering of 3.48 million units at the same offering price of $1.90 per unit. The resized offering was conducted by the company and its underwriter to ensure compliance with NASDAQ listing standards. The other terms of the transaction are unchanged from the previously reported offering. The company's proceeds will be approximately $6.6 million before underwriting discounts and offering expenses. Each unit consists of one share of the company's common stock and a warrant to buy 0.5 share of common stock, for a total of 1.74 million warrants. The warrants will be exercisable for four years, beginning six months after issuance, at an exercise price of $2.35 per common share. The transaction is expected to close on or about August 13, 2009, subject to customary closing conditions.
Shorties again.. would buy mo @2.00 and below.. Bring it down MFs!
crossed $2.00 to 2.14 then pulled back below 2.00 on friday.. Added..
YEP Med! unfortunate dilution many cos resorting nowadays..OCNF, FREE, GNBT, NVD etc you just name it..Short pricks took it further down! scum bags!
unfortunately the offering at 1.90 really sucks....price got hit hard...
Improved outlook for natural gas (and oil):
http://www.rigzone.com/news/article.asp?a_id=79002
by Rigzone Staff
|
Wednesday, August 05, 2009
Crude oil climbed more than 50 cents today on the New York Mercantile Exchange, closing near $72 a barrel. While optimism about an economic turnaround has helped to spur investment in the commodity, increased demand in China has strengthened the fundamentals for oil.
In trading Wednesday, crude oil rose another 55 cents to settle at $71.97 a barrel on the NYMEX. This is the third day in a row that the commodity has been able to stay above $71, and experts expect the price of oil to continue to rally.
"I don't see any reason why oil can't hit $75," said Brian Uhlmer, a research analyst with Pritchard Capital in Houston.
Improved Demand for Oil
Improved demand coming out of China has strengthened the underlying fundamentals for oil, and thus signaled the potential for the commodity to continue rising.
"From an oil perspective, the Chinese auto numbers on auto sales were up and in-line with what the US is buying," explained Uhlmer. "There's real demand for gasoline in China."
While auto sales in the United States are higher, those numbers are bloated by the current stimulus program "Cash for Clunkers." In an effort to stimulate growth as well, China has not increased the price of gasoline as drastically as in the US and other areas of the world. In fact, in the last year, the price of gasoline in China has only increased 25% while RBOB in the US has doubled.
"They've artificially kept a ceiling on the price of gasoline, which has increased the demand for it," said Uhlmer. "Since demand is relatively inelastic, demand could continue upward in China because of this."
This increase in demand for gasoline in China is definitely boosting oil demand and helping to fortify the price of oil on the market.
Natural Gas Fundamentals Finally Turn Bullish
Natural gas fundamentals have strengthened, buoying the price of the commodity above $4 for three days in a row. The price of natural gas increased more than 4 cents from Tuesday's close to settle on the NYMEX Wednesday at $4.042.
While the "Cash for Clunkers" program currently ongoing in the US has not done much to help the price of oil, demand for natural gas has increased because of it.
"With the auto numbers, we're talking about increased auto sales in the US, 'Cash for Clunkers' and other real demand; that increases manufacturing in the United States," Uhlmer stated. "That helps push up natural gas."
Additionally, the analyst points to reports foretelling an increased fertilizer demand in the US in the second half of 2009, further sparking demand for natural gas.
"There is demand; we have more and more evidence that production is plateauing and possibly beginning to decline," Uhlmer continued.
"Storage injection numbers were below consensus last week again, and there are sources of demand that are beginning to increase. So fundamentally in the $4 to $5 range, it's a good buy for the end users."
Details of share sale:Dilution in the short run but ok for the long run.. Better property acquired while another being disposed..
"NGAS Resources Announces Pricing of Common Stock and Warrant Offering
8:31a ET August 6, 2009 (GlobeNewswire)
NGAS Resources, Inc. (Nasdaq:NGAS) announced today that it has priced a registered direct public offering of 5.4 million units, at a price of $1.90 per unit, for proceeds of approximately $10.3 million before underwriting discounts and offering expenses. Each unit consists of one share of the company's common stock and a warrant to buy 0.5 share of common stock. The warrants will be exercisable for four years, beginning six months after issuance, at $2.35 per common share. The transaction is expected to close on or about August 11, 2009, subject to customary closing conditions.
BMO Capital Markets Corp. is acting as sole underwriter for this offering.
The company intends to use the net proceeds from the offering to reduce its outstanding borrowings under its revolving credit facility. Completion of the offering will also enable the company to require the exercise of an option issued to Seminole Energy Services, LLC in July 2009 for the purchase of the company's remaining 50% interest in its Appalachian gas gathering system for $22 million. The purchase price under the option will be payable by Seminole Energy $7.5 million upon closing and the balance over 30 months, with interest at 8% per annum.
William S. Daugherty, CEO of NGAS, commented "The capital raise and proceeds from the sale of our remaining Appalachian gas gathering assets will significantly improve the financial flexibility of the company." Mr. Daugherty added, "This will enable us to continue growing the company."
Shares sale @1.90 to pay off debt for property acquisition..Warrants exercisable in 6 months @2.35
Reporting;
NGAS Reports Second Quarter and First Half 2009 Results
4:06p ET August 4, 2009 (GlobeNewswire)
NGAS Resources, Inc. (Nasdaq:NGAS) today reported second quarter 2009 total revenue of $14.7 million compared to $21.3 million in the second quarter of 2008. Higher production volumes were offset by significantly lower commodity prices. This contributed to a net loss of $975,000 or $0.04 per share in the second quarter 2009 compared with net income of $1.5 million or $0.06 a year ago. Discretionary cash flow was $2.9 million or $0.11 per share in the second quarter of 2009. (A reconciliation of this non-GAAP measure is provided at the end of this release.)
William S. Daugherty, President and CEO of NGAS Resources, commented, "The operating environment remains challenging; demand is down, inventories are rising and natural gas prices remain depressed. We have addressed these challenges head on by monetizing our gathering system and reducing our drilling activities. Our year-over-year production growth reflects the success of our horizontal drilling program, while the sequential quarterly decline reflects our reduced drilling." Mr. Daugherty added, "Our increased liquidity from the recent sale of our gas gathering assets, coupled with our multi-faceted business model and existing hedge position, provide us with the flexibility to operate successfully in this environment."
med; thx will check it.. anything with combined oil and gas?
starting the uptrend. almost any natural gas play will be a good one over the next 6 to possibly 24 months. IMO price of natural gas will only rise...
I want her to hold the 2.00 level. My favorite Natural Gas play is ENP.
Good luck.. will get in too..
Got filled on starter position at 2.10. Natural gas will eventual go up in price....I original sold this stock for over 10.00 per share in June of 2008 for a 44% gain....looking for a double over the next 6 to 9 months...
shareholder meeting: official version!
NGAS Announces the Results of Its Annual Meeting
8:45a ET June 26, 2009 (GlobeNewswire)
NGAS Resources, Inc. (Nasdaq:NGAS), an exploration and production company focused on unconventional natural gas plays, principally in the southern portion of the Appalachian basin, today announced the results of its 2009 annual meeting of shareholders held on June 25, 2009. By a margin of over 85%, management's three proposals were adopted at the meeting by NGAS shareholders:
* Increase in the size of the board of directors from four to five members; * Election of four incumbent directors and a fifth director, Paul R. Ferretti, to fill the vacancy created by the expansion in the size of the board; and * Ratification of Hall, Kistler & Company, LLP as principal independent public accountants for the 2009 audit cycle.
NGAS is pleased to add Paul R. Ferretti as the newest member to the board of directors. Mr. Ferretti brings over 30 years of experience in the exploration and production (E&P) industry, initially as a highly regarded energy analyst and more recently as an investment banker with a focus on small to mid-cap E&P companies. Mr. Ferretti currently serves as a Managing Director and Head of Energy Investment Banking at Wunderlich Securities, Inc., a regional broker-dealer with 19 offices throughout the United States. Prior to joining Wunderlich in 2008, Mr. Ferretti spent four years with Ferris Baker Watts, Inc., where he was Senior Vice President-Energy Investment Banking.
William S. Daugherty, President and CEO of NGAS Resources, commented, "The addition of Paul to our board will enable NGAS shareholders to benefit from his extensive oil and gas as well as capital markets expertise." Mr. Daugherty added, "We look forward to Paul's contributions as we continue to grow the company."
About NGAS Resources
NGAS Resources is an independent exploration and production company focused on unconventional natural gas basins in the United States that provide repeatable drilling opportunities, principally in the southern portion of the Appalachian basin. Additional information, including the company's most recent periodic reports and proxy statement, can be accessed on its website at www.ngas.com.
NGAS up 30 % today
hey make,do you have a list of NG stocks...otc and big board.
TIA
NGAS daily chart...shaping up nicely...
...if the market pulls back, we'll see if NGAS pulls back in sympathy, but it is certainly on my watch list (no position right now):
make some is this one ready for take offffffffffffffffff
Management Comments. William S. Daugherty, President and CEO of NGAS Resources commented, “While the economic environment remains challenging for our industry, NGAS is taking actions to build a stronger company for the future. We are very pleased with results from our transition to horizontal drilling and are well positioned to capitalize on these opportunities through our proven drilling partnership structure and sales network, which raised over $34 million for our non-operated initiatives in 2008.” Mr. Daugherty added, “Our horizontal drilling advances have the potential to significantly increase production and reserves for the company over the long term, both from Leatherwood and our other core areas in the Appalachian and Illinois Basins. When market conditions permit, we will resume our strategy for retaining more of our available working interest in these plays.”
NGAS Resources Provides 2008 Operational Review
Proved Developed Reserves Increase 20%
20 Appalachian Horizontal Wells Drilled in 2008
2008 Production Increased 13% to 3.7 Bcfe
Tuesday February 17, 2009, 8:00 am EST
Buzz up! Print Related:NGAS Resources Inc.
LEXINGTON, Ky.--(BUSINESS WIRE)--NGAS Resources, Inc. (Nasdaq: NGAS - News) today announced that its estimated proved developed reserves at year-end 2008 were 57 billion cubic feet equivalents (Bcfe), an increase of 20% over 2007. Total proved reserves at year-end 2008, including proved undeveloped locations (PUDs), were 78 Bcfe, compared to 105 Bcfe at year-end 2007. This reflects a significant decrease in PUD reserves, resulting from higher 2008 drilling costs and lower year-end commodity prices used under SEC reserve reporting rules. These prices averaged $5.51 per thousand cubic feet (Mcf) of natural gas, compared to $7.39 per Mcf at year-end 2007.
Related Quotes
Symbol Price Change
NGAS 1.25 +0.02
The company’s production volumes in 2008 increased 13% to 3.7 Bcfe, compared to 3.3 Bcfe in 2007. Production in the fourth quarter of 2008 was 1.0 Bcfe, an increase of 5% on a period-over-period basis. The company’s realized sales prices for natural gas averaged $7.62 per Mcf for the fourth quarter of 2008 and $8.89 per Mcf for the year as a whole.
During 2008, the company transitioned from vertical to horizontal drilling in its Leatherwood field. The company drilled 20 horizontals in Leatherwood last year, each with a single lateral leg averaging 3,500 feet through the Devonian shale formation, which is present throughout the company’s Appalachian properties. Initial 30-day production rates for these wells averaged 309 Mcf per day. The company retained an average working interest of 56% in these wells, with the balance maintained by the mineral interest owners, who have participation rights for up to 50% of the working interest in Leatherwood wells.
William S. Daugherty, President and CEO of NGAS Resources, commented “Our transition to horizontal drilling through the Devonian shale has been very successful. This contributed to record production in 2008 despite a challenging environment in the second half of the year.” Mr. Daugherty added, “We are expanding our horizontal drilling this year throughout our core operated fields in the Appalachian and Illinois Basins. To date, we have successfully drilled one Devonian shale horizontal in each of our Straight Creek, Fonde and Stone Mountain fields. With over 73% of our 273,000 acres in southern Appalachia undeveloped, our acreage and infrastructure position provides us with a multi-year inventory of horizontal drilling locations for future growth. While the upside of our transition to horizontal drilling is not fully reflected in our year-end reserves, we expect many of the former vertical PUDs to be drilled horizontally, with substantially higher recovery volumes and rates than vertical wells at significantly lower finding costs.”
NGAS Reports Fourth Quarter and Full Year 2008 Results
Date : 03/12/2009 @ 4:05PM
Source : Business Wire
Stock : NGAS Resources, Inc. (NGAS)
Quote : 1.25 0.0 (0.00%) @ 5:00PM
NGAS Reports Fourth Quarter and Full Year 2008 Results
NGAS Resources, Inc. (Nasdaq: NGAS) today reported a 4 percent increase in fourth quarter 2008 total revenue to $21.8 million compared to $21.0 million for the comparable quarter in 2007. For the full year, total revenue increased 20 percent to $84.4 million, compared to $70.2 million for 2007. The results for the full year reflect increases of 37 percent in oil and gas production revenue and 34 percent in gas transmission, compression and processing revenue.
In fourth quarter 2008, the company reported net income of $306,639, compared to $256,655 in fourth quarter 2007. Earnings per share in the fourth quarter were $0.01, unchanged from the prior year on a 10 percent increase in fully diluted shares. For the full year, NGAS reported earnings per share of $0.11, compared to a loss per share of $0.04 in 2007. Discretionary cash flow per share was $0.15 in the fourth quarter and $0.77 in 2008, compared to $0.18 and $0.59 in the comparable prior periods. (A reconciliation of this non-GAAP measure is provided at the end of this release.)
William S. Daugherty, President and CEO of NGAS Resources, commented, “We delivered a strong fourth quarter in the face of unprecedented volatility in the commodity and financial markets. During 2008 we transitioned to horizontal drilling and successfully completed 22 wells by year end. This contributed to our sixth consecutive year of double-digit production growth.” Mr. Daugherty added, “A return to our business model for partnership drilling on our operated properties gives us the flexibility to continue growing the company in the current economic environment.”
Operational and Financial Highlights for 4Q 2008 versus 4Q 2007:
Average daily production was 10.5 Mmcfe versus 10.0 Mmcfe
Total production volumes were up 5 percent to 1.0 Bcfe
10 gross (5 net) Appalachia horizontal wells drilled
Average realized natural gas price was $7.62/Mcf versus $8.06
Average price for Appalachian production was $8.94/Mcf
Discretionary cash flow was $4.0 million versus $4.3 million
Capital expenditures totaled $18.5 million
Fourth Quarter 2008 Expense Review
Depreciation, depletion and amortization expenses were $3.0 million in the fourth quarter 2008 compared to $3.2 million in the fourth quarter of 2007.
Selling, general and administrative expenses in the fourth quarter of 2008 were $3.7 million compared to $3.3 million in the prior year. This was partially driven by increased levels of staffing to support the growing business as well as the timing and extent of marketing costs for sponsored drilling partnerships. As a percentage of revenue, SG&A costs were 17.1 percent compared to 15.7 percent in fourth quarter 2007.
Interest expense in the quarter was $1.4 million compared to $1.7 million in the same period last year reflecting lower average interest rates.
Operational and Financial Highlights for Full Year 2008 versus Full Year 2007:
Average daily production was 10.2 Mmcfe versus 9.1 Mmcfe
Total production volumes were up 13 percent to 3.7 Bcfe
Average realized natural gas price was $8.89/Mcf versus $8.19
Average price for Appalachian production was $9.59/Mcf
Oil and gas revenue increased 37 percent to $38.5 million from $28.1 million
Discretionary cash flow was $20.8 million versus $13.1 million
Capital expenditures totaled $56.9 million
65 miles of pipeline added to gathering system
Insider transactions: http://finance.yahoo.com/q/it?s=NGAS
I never thought I would see oil fall below $39 again! It seems like NGAS might test its lows again.
OPEC cutting record production today, lets see where oil prices go.
I'm pissed sold yesterday for a small profit, didn't think it would continue to rise. will have to wait for a pullback now. Might not get it.
Looks interesting!
ngas has a low float too! I think today is going to be another big day!
MM's starting to walk it down now. this stock is manipulated so easily them with the low volume it has.
short covering??/ no other reason why it would be up 30% in one day.
I think the OPEC meeting will be huge for the whole energy complex, I am banking on it.
Easy double from here.
Between our winter bounce and the upcoming OPEC cuts we should definitely be back in the $2.00-$3.00 range again.
I think we will be seeing a bounce back into the mid $2's here pretty soon.
Maybe we found a bottom here. I have avg down last few weeks. Here for the long term.
Happy Holidays!
NGAS Resources, Inc. to Conduct a Webcast of Its Third Quarter 2008 Financial Results
NGAS Resources, Inc. (Nasdaq: NGAS), today announced that it will be releasing its third quarter 2008 financial results after the market close on Wednesday, November 5, 2008. The full text of the release will also be available on the Company’s website at www.ngas.com.
Management will host a conference call on the same day at 4:30 p.m. (Eastern). The conference call will be webcast and can be accessed from the Company’s website at www.ngas.com or by cutting and pasting the following link into your browser: http://viavid.net/dce.aspx?sid=000056BD.
To listen to a replay of the conference call, dial toll-free 1-888-203-1112 or 1-719-457-0820 for international callers and enter replay pin number 6498200. The replay will be available beginning at 7:30 p.m. (Eastern) on Wednesday, November 5, 2008 and will last through 11:59 p.m., Wednesday, November 12, 2008. An indexed recording of the call will also be posted on the Company’s website following the call’s completion.
About NGAS Resources NGAS Resources is an independent exploration and production company focused on conventional natural gas basins in the United States that support repeatable drilling opportunities, principally in the southern portion of the Appalachian Basin. Additional information, including the Company’s annual report on Form 10-K for 2007 which can be accessed on its website at www.ngas.com.
the whole energy sector is in the crapper.
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Company Information:
NGAS Resources, Inc.
120 Prosperous Place
Suite 201
Lexington, KY 40509-1844
Phone: (859) 263-3948
Fax: 859-263-4228
Toll Free: 800.977.2363
Email: ngas@ngas.com
CIK
0000746834
NGAS Resources, Inc., is an independent exploration and production company focused on unconventional natural gas plays in the eastern United States, principally in the southern portion of the Appalachian Basin and the Illinois Basin. We specialize in generating our own geological prospects in this region, where we have established expertise and a long track record of success. Core assets include 77.9 billion cubic feet equivalents (Bcfe) of proved reserves, 400,000 acres and interests in 1,400 oil and gas wells. We operate the gas gathering facilities for our core Appalachian properties. This enables us to move approximately 90 percent of our gas production directly from the wellhead to interstate pipelines serving major east coast natural gas markets. We believe our extensive experience in this region, relationships with partners, suppliers and mineral interest owners, gives us competitive advantages in developing these resources to achieve annual volumetric growth and strong financial returns on a long-term basis.
Our business is structured to achieve capital appreciation through growth in our natural gas production and reserves. During 2008, we achieved record production of 3.7 Bcfe, up 13% from the prior year. We also increased our estimated proved developed reserves at the end of 2008 by 18.7% to 57 Bcfe, with an additional 21 Bcfe of proved undeveloped reserves. Our undeveloped acreage position of nearly 250,000 acres in the Appalachian Basin provides us with an extensive inventory of low-risk, repeatable drilling locations for future growth.
In 2008, we transitioned our drilling program from vertical to horizontal drilling which is enhancing the value proposition for our operated properties by substantially increasing our recovery volumes and rates at lower finding costs. We focused our horizontal drilling program in our core Leatherwood field, where we successfully completed 20 horizontal wells in 2008. Each well has a single lateral leg up to 3,500 feet through the lower Huron section of the Devonian shale formation, which is present throughout our Appalachian operating areas. Given our success in Leatherwood, we have expanded our horizontal drilling initiative to our other properties. In the first two months of 2009, we successfully completed three wells in our Fonde, Stone Mountain, and Straight Creek fields in southern Appalachia.
In August 2009, we sold a significant portion of our Appalachian gas gathering assets to Seminole Gas Company, our 50-50 joint venture partner in the Rogersville gas stripping facility. The gathering assets that we sold span approximately 485 miles through parts of southeastern Kentucky, eastern Tennessee and western Virginia. We will remain the operator of the pipeline long term. We also retained firm capacity rights of 30,000 Mcf/d ensuring that we are able to move our Appalachian gas production to market. By retaining firm capacity rights, we are also able to maintain our competitive advantages from control of regional gas flow and the ability to acquire undeveloped acreage near our core fields.
We follow a disciplined capital allocation process in selecting opportunities to expand our substantial inventory of drilling prospects that meet our criteria for predictable, long-lived reserves. Our goal is to consolidate our position in the Appalachian Basin, while diversifying our asset base with similar unconventional plays outside the basin. As part of this strategy, we are aggressively developing our New Albany shale play within the south central portion of the Illinois Basin in western Kentucky where we have successfully drilled 37 wells in our new field discovery, Haley’s Mill. We currently hold 46,000 acres there for development. To move the gas to market, our gas gathering system and processing facilities came on line in September 2008.
Management:
http://www.ngas.com/Management/tabid/56/Default.aspx
Press Releases:
http://www.ngas.com/PressReleases/tabid/55/Default.aspx
Filings:
Transfer Agent:
Computershare Trust Company of Canada Inc.
510 Burrard St.
Vancouver V6C 3B9
Canada
Share Structure:
coming
Investor Relations:
Email: ngas@ngas.com
Last update 2.13.2010
The moderator TechKim presently does not own any NGAS shares.
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