For the year ended December 31, 2006, Powder River reported oil and gas sales of $554,192.00.
Due to a change in the Company's accounting policies, it will no longer be reporting the gross production revenues from each of the properties, but instead will report the percentage owned by Powder River only. The amounts reported are net of all the working interests held by other parties, including the Asian Marketing group. This amount is also net of royalties and well taxes.
Total revenues net to Powder River for the year ended 2006 were $13,174,394 as compared to $3,850,751 in 2005 and $2,184,880 in 2004.
Net income from all operations before taxes was $8,757,431 as compared to $769,259 for 2005.
The Company also showed a significant increase in lease operating costs, primarily due to the change in policy with regards to capitalization of development costs as related to cash flow operations.
"The Company has entered into a new stage of development and growth, and it was decided by management and advisory personnel that the change in accounting policy needed to be instituted for the year end in order to reflect the posture that Powder River will be following over the next several years. While it may have created some discern among the employees, investors, and shareholders over the short term, there are several advantages from a corporate strategy to report in this fashion," stated Powder River Basin Gas Corp. CEO, Brian Fox.
Mr. Fox continued on to say, "It was also brought to our attention that the Company was listed on the Berlin Exchange with no knowledge from Powder River. This listing was not authorized by the Company, or any of its authorized representatives or employees. The Company's legal council is aggressively investigating this matter with the regulatory authorities, and appropriate action will be taken. For Powder River, this has been a year through which we have been blessed with accomplishments. From having a 100% success rate in our drilling program, to enjoying the success with our marketing program, we are allowing Powder River to share the growth and wealth with our shareholders and investors over the next several years. I would also like to take this opportunity to personally thank all Powder River shareholders and investors for their continued support, and their faith in our program. May we be blessed with the same success in 2007."
Powder River Basin Gas Corp. is active in production, acquisition, and marketing of crude oil and natural gas properties.
Powder River Basin Gas Corp. trades on the OTCBB under the symbol PRVB.
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