ReoStar Revs Increase 56% for FY 2008 Q3

ReoStar Energy reported that oil and gas revenues for the quarter ended December 31, 2007 were approximately $1.6 million, compared with approximately $1.0 million during the previous quarter, an increase of 56%. Revenues attributable to the working interest repurchase totaled approximately $250,000. Revenues excluding the effect of the working interest repurchase totaled approximately $1,350,000, an increase of 32% over the previous quarter.

For the quarter, oil sales net to REOS, was 9,200 barrels, an 18% increase when compared with 7,775 barrels sold during the previous quarter. Of the oil sold, approximately 550 barrels were attributable to working interests repurchased in December. Excluding the oil attributable to the working interest repurchase, the company sold approximately 8,650 barrels of oil, an increase of approximately 11% over the previous quarter. Additionally, the company sold 363 barrels of oil produced in the prior quarter attributable to the working interest repurchased in December.

During the period the company sold approximately 89,250 mcf of gas for the quarter ended December 31, 2007 compared with 82,030 mcf of gas for the previous quarter, an increase of approximately 9%. Of the gas sold, approximately 15,000 mcf was attributable to working interests repurchased in December. Excluding the gas attributable to the working interest repurchase, the company sold approximately 84,500 mcf of gas, an increase of approximately 3% over the previous quarter. Additionally, the company sold 10,437 mcf of gas produced in the prior quarter attributable to the working interest repurchased in December.

The average price for natural gas sold during the quarter was $6.46 per MCF net of transportation, compression and CO2 charges compared with $6.71 per MCF for the previous quarter. The average price per barrel of oil was $94.48 compared with $71.50 per barrel during the previous quarter.

During quarter ended December 31, 2007, the Company spent $2.6 million on capital expenditures. For the nine months ended December 31, 2007 REOS spent approximately $10.5 million on capital expenditures,

Mark Zouvas, CEO of ReoStar, stated, "We are pleased with our operating and financial performance during the third quarter, we have continued to make improvement as the year has evolved. Our record production to date is a reflection both of our commitment toward increasing production and our working interest ownership, while initiating our expansion in primary project areas. These objectives, coupled with management's continual focus on operational efficiency, has resulted in steadily improved performance. We have realized excellent progress operationally in both our Barnett shale and Corsicana developmental projects and remain focused on continuing these results."

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Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
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