The Company had net income applicable to common shareholders of $.9 million, or $.07 per share, compared to a net loss applicable to common shareholders of $.1 million, or $.01 per share, for the comparable quarter in 2003. Revenues for the quarter ended March 31, 2004, were $4.1 million compared with $3.1 million for the comparable 2003 quarter. The increase in net income and revenues for the quarter resulted from a sustained strong oil and natural gas price environment complemented by higher production volumes. Cash flow from operations for the quarter ended March 31, 2004, was $1.9 million compared with $.4 million for the comparable 2003 quarter.
Production volumes for the quarter were 683,200 Mcf equivalent (Mcfe) compared to 630,000 Mcfe for the comparable 2003 quarter, an 8% increase. The increases in production from 2003 were attributable to the Company's successful drilling and recompletion activities during the last half of 2003 and first quarter 2004 in the West Edmond Hunton Lime Unit located in Oklahoma as well as the new production associated with the drilling successes at the Broussard Field in Louisiana, South Central Kansas and Brookshire Dome, Texas. Capital expenditures in the first quarter of 2004 were $1.7 million, compared to $.3 million of capital expenditures for the comparable quarter in 2003.
The average price realized by the Company for natural gas for the quarter was $5.74 per Mcf, a 22% increase from the average of $4.71 per Mcf realized in the first quarter last year. The Company's average price realized for crude oil increased 29% to $33.16 per barrel compared to $25.72 per barrel in last year's first quarter. The average prices we realized in 2003 were reduced by $1.86 per Mcf for gas and $6.21 per barrel of oil as a result of the hedges we had in place during that period. We had no hedges during the first quarter of 2004.
The Company had a working capital surplus at March 31, 2004, of $2.4 million compared to a $1.9 million surplus at December 31, 2003, and a $1.4 million surplus at March 31, 2003.
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