Crimson Exploration Inc. Announces First Quarter 2006 Monday May 15, 3:57 pm ET
HOUSTON--(BUSINESS WIRE)--May 15, 2006--Crimson Exploration Inc. (OTCBB:CXPI - News) today announced financial results for the first quarter of 2006. Highlights
Restoration of production at Cameron Parish, LA fields to pre-hurricane rates Acquisition of 22,000 acres in Culberson County, TX, an emerging area of interest for the Barnett Shale and Woodford Shale and Atoka formations Near completion of the regulatory approval process for our Madisonville-Rodessa project, to allow commencement of drilling in third quarter of 2006 Entered into agreement for stratigraphic testing of viability of a coal bed methane development on 125,000 acres in southeast Mississippi Summary Financial Results
Revenues for the first quarter of 2006 were $5.1 million compared to revenue of $3.7 million in the prior year quarter, a 38% increase due to a 25% increase in our average realized price on an equivalent basis partly offset by a 3% decrease in sales volumes, both of which are quantified below.
Production for the first quarter of 2006 was 592,682 mcfe of natural gas equivalents, or 6,585 mcfe per day, compared with production of 612,263 mcfe, or 6,803 per mcfe per day, in the 2005 quarter. Increases in production attributable to our 2006 development program were offset by continuing production shut-ins at our Cameron Parish, Louisiana fields due to Hurricane Rita at the end of September and losses related to collapsed casing in the largest well in our Nelsonville field. Production from the 400 mcfe per day well in Nelsonville was restored in March 2006; however, production from the Grand Lake and Laccasine fields was still about 20%, or 1,000 mcfe per day, below pre-hurricane levels in the first quarter of 2006 due to surface equipment limitations. The repairs were completed in early May 2006 and we are currently producing approximately 8,000 mcfe per day from all our properties.
Average prices received in the field for our production during the first quarter of 2006 were $61.04 per barrel of oil and $7.81 per mcf of natural gas, or $8.91 per mcfe of natural gas equivalents, compared to $47.82 per barrel of oil, $6.26 per mcf and $7.01 per mcfe for the 2005 quarter. Adjusting for the effects of realized losses on our commodity price hedges, our average realized prices in the 2006 quarter were $58.11, $7.71 and $8.63 for oil, natural gas and natural gas equivalents, respectively. For 2005, average realized prices for the quarter were $35.84, $5.91 and $6.89 per barrel, mcf and mcfe, respectively.
Cash flow from operations for the first quarter of 2006, exclusive of changes in working capital, increased to $2.5 million, an 180% increase over the $.9 million reported for the 2005 quarter due primarily to the price-related increase in revenue. We reported net income for the first quarter of 2006 of $1,373,000 compared to a net loss of $2,774,000 for the first quarter of 2005.
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