Arete Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2012; Announces Production Results for the Second Quarter Ended June 30, 2012
August 15, 2012 at 08:25 am EDT
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Arete Industries, Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2012. For the quarter, the company has posted total revenue of $481,360 against $15,983 a year ago. Operating loss was $280,148 against $817,836 a year ago. Loss before income tax was $294,639 against $840,394 a year ago. Net loss applicable to common stockholders was $490,577 or $0.06 basic and diluted per share against $840,394 or $0.12 basic and diluted per share a year ago.
For the six months, the company has posted total revenue of $1,568,443 against $45,639 a year ago. Operating profit was $12,441 against operating loss of $1,259,910 a year ago. Loss before income tax was $19,741 against $1,294,073 a year ago. Net loss applicable to common stockholders was $411,616 or $0.05 basic and diluted per share against $1,294,073 or $0.22 basic and diluted per share a year ago. Net cash provided by operating activities was $75,431 against net cash used in operating activities of $458,777 a year ago. Capital expenditures for oil and gas properties were $646,269 against $500,000 a year ago.
The company also announced production results for the second quarter ended June 30, 2012. The company sold 5,525 barrels of oil during the second quarter ended June 30, 2012 and 20,457 Mcf of natural gas during the second quarter ended June 30, 2012, representing 8,935 net barrels of oil equivalent (BOE). Oil production was 6,089 barrels for the quarter adding 564 barrels to increase its oil held in tanks awaiting sale to 5,917 barrels. The average oil price for the second quarter of 2012 of $74.33 per barrel decreased by 16.8% compared to $89.34 per barrel for the first quarter of 2012.
Arete Industries, Inc. is an independent oil and gas company. The Company is engaged in the acquisition and development of oil and natural gas reserves through a program, which includes purchases of reserves, re-engineering, development and exploration activities primarily focused on Wyoming, Kansas, Colorado and Montana. The Company holds interest in the producing oil and gas leases located in Sumner County, Kansas and Kimball County, Nebraska. It also owns a gas gathering system (pipeline and compressor station related assets) in Campbell County, Wyoming. The system consists of over 4.5 miles of eight-inch coated steel pipeline. The Company also acquires interests in traditional oil and gas ventures and seek properties that offer profit potential from overlooked and by-passed reserves of oil and natural gas, which may include shut-in wells, in-field development, stripper wells, re-completion and re-working projects.
Arete Industries, Inc. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2012; Announces Production Results for the Second Quarter Ended June 30, 2012