Index Oil and Gas Inc. has announced its unaudited financial results for the first Fiscal Quarter ended June 30, 2008. The Company filed with the SEC its Quarterly Report on Form 10-Q ("Quarterly Report") for the quarter on August 14, 2008. The Company's fiscal year ("FY") 2009 ends March 31, 2009.
In the quarter the Company achieved its highest level of quarterly oil and gas sales revenues since inception of $1,429,077.
Lyndon West, CEO of the Company, stated, "The most recent quarter saw further evidence of progress for our business, achieving revenues that were 84% of the total revenues for the whole of the previous fiscal year. We are also pleased to report the generation of approximately $0.4 million of positive cash flows from operating activities, before changes in operating assets and liabilities, commonly known as working capital movements."
Oil and gas sales revenues were $1,429,077 for the first quarter of the Company's fiscal year 2009, compared to $151,373 for the equivalent period in the previous fiscal year. Gas production for the quarter provided 83% of total production, on an energy equivalent basis.
The increase in oil and gas sales over the comparative quarter reflected an increase in production volumes of 89.8 MMcfe (million cubic feet of gas equivalent), from 16.9 MMcfe in Q1 FY 2008 to 106.7 MMcfe in Q1 FY 2009. The increase was primarily due to new production from the Outlar, Ducroz and Shadyside wells. Additionally, revenues reflected higher average commodity prices as our average price per Mcfe (thousand cubic feet of gas equivalent) increased by $4.45 in the quarter to $13.39 per Mcfe from $8.94 per Mcfe in Q1 FY 2008. The average gas sales price in the quarter was $12.09 per Mcf (thousand cubic feet of gas).
Net loss for Q1 FY 2009 was $(0.413 million) as compared to $(0.437 million) for Q1 FY 2008. The net loss for the quarter includes $0.080 million of non-cash stock compensation expense and $0.766 million of depletion, depreciation and amortization expenses. Commensurate with increased production volumes lease operating and production tax expenses were higher, and also general and administrative costs were higher and interest income on cash balances lower compared to the previous year.
The Company used $0.120 million in total of net cash in operating activities, inclusive of a net use of $0.553 million in changes to operating assets and liabilities, and used $0.336 million in investing activities in the quarter, principally capital expenditures on its oil and gas properties.
The Company continues to progress its previously announced acquisition strategy to pursue opportunities to acquire assets that will enhance the Company's growth potential and add shareholder value.
Lyndon West continued, "We have ongoing discussions on potential opportunities to acquire producing and exploration assets that are consistent with the Company's current properties and which would provide additional opportunities to participate in new drilling activity. We have to balance any of these opportunities against the fact that we are in a challenging capital raising environment."
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