Frontera has announced results for the quarterly period ended June 30, 2009.
2009 Q2 Financial Report: Quarter Ending June 30, 2009
For the three months ending June 30, 2009, the company incurred a net loss of $5.3 million, or $0.07 per share on a fully-diluted basis. This loss compares to a net loss of $5.5 million, or $0.08 per share for the corresponding three months of 2008. The decrease in net loss is due primarily to lower general and administrative, operating, and other expenses.
There were no crude oil sales during the three months ended June 30, 2009. Sale of oil inventories of approximately 45,000 barrels is expected to occur during August 2009. There were $ 2.9 million of crude oil sales during the corresponding quarter in 2008.
Operating expenses were $4.2 million during the three months ending June 30, 2009, a decrease of $2.3 million from $6.5 million in the 2008 period. Field operating and project costs decreased $1.1 million to $1.1 million during the second quarter of 2009 due to lower personnel costs and lower cost of oil sold due to no oil sales in the second quarter of 2009. General and administrative expenses were $2.8 million for the three months ended June 30, 2009 a decrease of $1.3 million from the corresponding quarter in 2008 as a series of cost cutting and staff reduction measures were implemented during 2009. Implementation of cost reduction initiatives are ongoing in order to continue to bring down costs in line with focus on the Shallow Fields Production Unit.
Total other expenses decreased to $1.2 million in the three month period ended June 30, 2009, from other expenses of $1.9 million in the three month period ended June 30, 2008. The $0.7 million decrease is primarily attributable to an increase of interest expense of $0.8 million and $0.2 million decrease in interest income, which was more than offset by collection of a $2.0 million arbitration award.
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