American Oil & Gas Reports 2005 Financial Results
Friday April 7, 8:51 am ET
DENVER, April 7 /PRNewswire-FirstCall/ -- American Oil and Gas, Inc. (Amex: AEZ - News) today announced oil and gas revenues of $4,691,381 and net income of $602,874 (income of two cents per share, basic and diluted), for the fiscal year ended December 31, 2005 ("2005"), as compared to oil and gas revenues of $746,242 and a net loss of $499,651 (loss of two cents per share, basic and diluted), for the fiscal year ended December 31, 2004 ("2004"). American's Big Sky project, which was sold on March 31, 2006 for $11.5 million in cash, accounted for approximately 95% of its oil and gas production and revenues for 2005.
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During 2005, American sold 78,954 barrels of oil at an average price of $53.89, resulting in oil revenues of $4,254,944 and sold 59,733 Mcf of natural gas at an average price of $7.31 per Mcf, resulting in gas revenues of $436,437. During 2004, American sold 12,849 barrels of oil at an average price of $41.58, resulting in oil revenues of $534,288, and sold 48,965 Mcf of natural gas at an average price of $4.33 per Mcf, resulting in gas revenues of $211,954.
American's general and administrative expenses were $2,032,256 and $945,114 for 2005 and 2004, respectively. The increase results from increased payroll costs ($461,000) associated with its merger with Tower Colombia Corporation, from a management fee ($90,000) paid to Tower for the period from January 1, 2005 through the date of the merger, increases in accounting ($90,000) related to implementation of internal controls over financial reporting pursuant to Sarbanes Oxley, listing fees paid to the American Stock Exchange ($72,000) and an increase in Directors fees ($113,000). The remaining increase is attributable to increases in investor relations expenses, rent, travel expenses and other costs to support our expanding oil and gas operations.
At December 31, 2005, American had working capital of $6,911,000, total assets of $29,549,000, a long term asset retirement obligation of $117,000, a deferred income tax obligation of $157,000, and stockholders' equity of $27,841,000. There are currently 36,653,264 common shares and 250,000 series AA convertible preferred shares outstanding.
