Energas Resources Reports 175% Revenue Increase
Energas Resources, Inc. (OTCBB: EGSR) announces the results of the Company's fiscal third quarter ended October 31, 2005. Highlights include:
- Total Revenue increased 175% to a record $387,381 from $137,070, year over year.
- Cash Loss (Net Loss plus Depreciation, Depletion and Amortization and Stock Based Compensation) decreased 88% to $(32,666) from $(275,566), year over year.
- Net Loss decreased 27% to $(249,582) from $(345,197), year over year, despite the current quarter including $135,750 of employee stock awards and approximately $65,000 related to the Double G litigation.
"We're extremely excited to report these results for our fiscal third quarter. In this period, we incurred approximately $65,000 in expenses related to litigation with Double G Energy, Inc. Without those costs, our Company would have generated positive cash flow for the first time in history. Our recently announced settlement with Double G restores our 100% working interest in our largest currently producing property, eliminates the ongoing legal and accounting costs associated with such litigation and allows us to focus on our marquis project, the Parkway, at this very important phase in its development," commented Scott Shaw, Vice President. "In the third quarter we also gave all of our employees stock awards, to thank them for their loyalty and give them a stake in our success. Without the expenses related to litigation with Double G and the stock awards, our net loss would have been approximately $49,000."
"We've seen solid increases in revenue from our portfolio of properties that are currently producing and eagerly await the completion of our pipeline in the Parkway Project, which we fully expect to catapult us to the next level of revenue, cash flow and earnings," stated George Shaw, President. "We previously announced that we expect the Parkway pipeline to be completed by the end of the first quarter of 2006. Based on our progress thus far, we expect to beat that date by a very comfortable margin."
"History will show 2005 to be a pivotal year for Energas Resources," continued George Shaw. "We have spent several years building our portfolio of properties and related infrastructure. In the foreseeable future, however, we see the Company generating revenue of a magnitude several times that of our historical measures, as well as commensurate levels of cash flow and earnings."
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