For the three-month period, Aspen reported revenues of $2,226,484 million compared to $2,469,941 million recorded in the same period last year. For the three-month period in 2004, Aspen recorded net loss of $231,159 or $0.00 per share, versus net income of $6,140 or $0.00 per share in the same period last year. Cash flow from operations for the period was $936,470 compared to $929,167 for the same period in 2003.
Results from operations were impacted in the first quarter by a year over year decline in production due to the sale of non-core properties, which were monetized to reduce debt. Conversely, depreciation and depletion expense increased from $773,929 in the first quarter of 2003 to $1,167,629 in 2004. The increase in depreciation and depletion expense is directly attributable to a reduction in Aspen's Canadian reserve base as at January 1, 2004. While depreciation and depletion expense had a negative effect on earnings, it does not affect the Company's cash flow. Also negatively effecting first quarter results were increased corporate and legal expenses associated with litigation involving the Company.
Partially offsetting these factors were higher sustained commodity prices. Additionally, Aspen continued to reduce debt in the first quarter as long-term debt decreased by $1,633,781.
During the quarter, Aspen initiated a private placement equity financing consisting of 12 million special warrants at a price of Cdn.$0.25 for total proceeds of Cdn. $3,000,000. Each special warrant is convertible for no additional consideration into units, with each unit consisting of one share and one half-share purchase warrant. Each whole warrant is exercisable for 12 months at Cdn. $0.35 to acquire one share. The transaction closed on April 4, 2004 and is not reflected in the first quarter results. The shares and warrants carry a four-month hold period from the closing date. Net proceeds will be used for drilling, general corporate purposes, and to reduce debt.
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