NGAS 1.02.. Despite better reporting
Contract Drilling Revenue Increased 46%
Sequential Production Increased 7%
LEXINGTON, Ky., Aug. 5, 2010 (GLOBE NEWSWIRE) -- NGAS Resources (Nasdaq:NGAS - News) today reported second quarter 2010 total revenue of $13.9 million, compared to $14.7 million for the comparable quarter in 2009. Results for the quarter reflect a 46% increase in contract drilling revenue offset by lower production, lower commodity prices and third-party ownership of the Appalachian gas gathering system. Production of 0.9 million cubic feet equivalents (Mmcfe) in the quarter was up 7% from first quarter 2010.
For the quarter, the company reported a net loss of $1.1 million, compared to a net loss of $1.9 million in second quarter 2009. Loss per share in the quarter was $0.03, compared with a $0.07 loss per share in second quarter 2009. Discretionary cash flow per share was $0.01 in second quarter 2010 compared to $0.11 in the same period of the prior year. (A reconciliation of this non-GAAP measure is provided at the end of this release.)
William S. Daugherty, President and CEO, commented, "We are encouraged by the response to our 2010 drilling partnership, which was launched in April and is significantly ahead of last year's partnership sales. Sponsoring drilling partnerships has been a successful initiative for our business as it enables us to increase the pace of drilling, diversify our well portfolio, share development costs and expand reserves." Added Mr. Daugherty, "The partnership will participate with us in drilling up to 57 horizontal wells on our Appalachian properties through the end of March 2011."
