HOUSTON, Nov. 9, 2011 /PRNewswire/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that third quarter 2011 revenues were $11,177,000, compared to $9,928,000 in the third quarter of 2010, an increase of approximately 12.6%. The largest components of revenue in the third quarter of 2010 were oil and gas sales, which increased by approximately 12.4% when compared to same period of 2010, due to higher natural gas, oil and condensate and natural gas liquids ("NGLs") commodity prices which were partially offset by decrease in sales volumes of natural gas, oil and NGLs.

The Company reported net income of $14,694,000 or $5.41 per share for the third quarter of 2011 compared to net loss of $2,510,000 or ($0.92) per share for the same period in 2010. This increase in net income was primarily due to sale of marketable securities, increase of oil and NGLs sales revenues, gains on derivative contracts which were partially offset by increased tax expenses.

The Company reported net income of $11,689,000, or $4.30 per share, for the nine months ended September 30, 2011, as compared to a net loss of $187,000, or ($0.07) per share, for the comparable nine month period in 2010. The increase in net income was primarily due to the impact of the sale of marketable securities, derivatives, higher oil and NGLs sales revenues due to higher prices and lower depreciation, depletion and amortization expenses. This was partially offset by a decrease in sales volumes of natural gas, oil and NGLs caused by natural decline in production, higher taxes paid due to increase in revenues and higher lease operating expenses.

There are currently 2,717,691 shares of Common Stock issued and outstanding.

Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):



                                 For the Three        For the Nine Months
                                    Months                   Ended
                                Ended September
                                      30,             September 30,
                             ----------------         -------------
                                 2011      2010        2011         2010
                                 ----      ----        ----         ----
    STATEMENT OF OPERATIONS
     DATA

    Revenues                  $11,177    $9,928     $34,074      $29,620

    Total operating expenses    9,294    10,124      29,552       29,787

    Operating income (loss)     1,883      (196)      4,522         (167)

    Net income (loss)          14,694    (2,510)     11,689         (187)

    Earnings (loss) per
     share - basic and
     diluted                     5.41     (0.92)       4.30        (0.07)


    CASH FLOW DATA

    Net cash provided by
     operating activities                             4,632        9,644

    Net cash provided by
     (used in) investing
     activities                                       4,564       (3,138)

    Net cash used in
     financing activities                           (10,065)      (4,162)


                                                 September     December
                                                    30,           31,
                                                       2011         2010
                                                       ----         ----
    BALANCE SHEET DATA

    Current assets                                  $24,527      $18,895

    Total assets                                    164,771      171,878

    Total liabilities                               142,525      153,341

    Total shareholders'
     equity                                          22,246       18,537

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2010, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.

Contact: Edy Francis
Chief Financial Officer
713-621-3882
edyf@isramco-jay.com

SOURCE ISRAMCO, INC.