Consolidated Results of Operations for the Nine Months Ended July 31, 2012 Compared to the Nine Months Ended July 31, 2011
Revenues for the nine months ended July 31, 2012 totaled $1,321,934 as compared to $1,408,718 during the nine months ended July 31, 2011. The decrease, totaling $86,784, was primarily the result of the decrease in the price of oil during the quarter ended July 31, 2012.
Selling general and administrative expenses decreased $359,964 from $1,862,065 during the nine months ended July 31, 2011 to $1,502,101 during the nine months ended July 31, 2012. This decrease is primarily the result of a decrease of approximately $370,000 in stock based compensation as the result of the vesting of stock option grants.
Depreciation, depletion and accretion increased by $204,484 to $677,603 during the nine months July 31, 2012 as compared to $473,119 during the nine months ended July 31, 2011. The increase was the result of the production from the BVR Well No. 6-1 and Everett No. 3 wells we drilled in the past 12 months.
Lease operating expenses increased $70,149 from $582,229 during the nine months ended July 31, 2011 to $652,378 during the nine months ended July 31, 2012. The increase was the result of the higher cost of operations from the Copano Bay, BVR Well No. 6-1 and Everett 3 wells.
During the period ended July 31, 2011, we incurred exploration expenses of $106,394. These costs related primarily to the 2-D seismic work done on the Pedregosa property. There were no exploration costs in the period ended July 31, 2012.
We incurred interest expense totaling $1,901,588 during the nine months ended July 31, 2011. The interest was incurred on promissory notes totaling $1,560,000 and bridge notes totaling $1,745,300 as well as on the discount and beneficial conversion features on the bridge notes. Interest expense totaling $213,599 in the period ended July 31, 2012 was primarily the result of borrowings on the notes due to Silver Bullet and amortization of the discount on the Contribution Agreement.
We incurred a net loss for the period ended July 31, 2012 of $1,723,747, compared to a net loss of $3,647,105 for the period ended July 31, 2011.
