Crimson Exploration Inc. Announces Fourth Quarter and Yearend Financial Results for 2005 Thursday April 6, 9:30 am ET
HOUSTON--(BUSINESS WIRE)--April 6, 2006--Crimson Exploration Inc. (OTCBB:CXPI - News) today announced financial results for the fourth quarter and full year of 2005. ADVERTISEMENT
Summary Financial Results
Revenues for the fourth quarter of 2005 were $4.9 million compared to revenue of $3.3 million in the prior year quarter, a 48% increase due to a 36% increase in our average realized price, on an equivalent basis, and a 1% increase in sales volumes, both of which are discussed more fully below. Revenues for the year 2005 were $17.7 million compared to $11.2 million for 2004, a 58% increase due to a 23% increase in sales volumes and a 25% increase in the average realized price.
Production for the fourth quarter of 2005 was 562,627 mcfe of natural gas equivalents, or 6,116 mcfe per day, compared with production of 554,829 mcfe, or 6,031 per mcfe per day, in the 2004 quarter. Increases in production during 2005 attributable to our development program were offset in the fourth quarter by production losses due to Hurricane Rita at the end of September and collapsed casing in the largest well in our Nelsonville field, also in September. Production from the 400 mcfe per day well in Nelsonville was restored in March 2006; however, production from the Grand Lake and Laccasine fields is still about 20%, or 1,000 mcfe per day, below pre-hurricane levels due to mechanical problems that should be resolved by the end of April 2006. Production for the year totaled approximately 2.5 bcfe of natural gas equivalents compared to 2004 production of approximately 2.1 bcfe, a 23% increase attributable to the success of our 2005 development program. We are currently producing approximately 7,600 mcfe per day.
Average prices received in the field during the fourth quarter of 2005 were $57.16 per barrel of oil and $11.00 per mcf of natural gas, or $10.38 per mcfe of equivalents, compared to $45.86 per barrel of oil, $6.69 per mcf and $7.17 per mcfe for the 2004 quarter. Adjusting for the effects of realized losses on our commodity price hedges, our average realized prices in the 2005 quarter were $47.97, $9.09 and $8.63 for oil, natural gas and natural gas equivalents, respectively. For 2004, average realized prices for the quarter were $35.32, $5.97 and $5.93 per barrel, mcf and mcfe, respectively. For the year, average field and realized prices were $8.43 and $6.89 per mcfe, respectively, in 2005, compared with $6.23 and $5.35 per mcfe, respectively, in 2004.
Cash flow from operations for the fourth quarter of 2005, exclusive of changes in working capital, increased to $1.9 million, compared with the $400,000 reported for the 2004 quarter. For the year 2005, cash flow from operations, exclusive of changes in working capital, increased to $6.6 million compared with approximately $500,000 reported for 2004. We reported a net loss for the fourth quarter and full year of 2005 of $400,000 and $3.5 million respectively, compared to net income of $3.7 million and $8.1 million for the fourth quarter and full year, respectively, of 2004. The 2005 fourth quarter loss, and the loss for the year, included a $3.2 million impairment of the Mustang Island 749 well initially drilled in the first quarter of 2005 that we now believe will prove to be uneconomical. Net income for the 2004 quarter included $3.2 million related to the revaluation of our deferred tax asset, as a result of the February 2005 recapitalization, and the full year 2004 also included $12.5 million in forgiveness of debt related to an April 2004 refinancing.
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