HOUSTON, May 15 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that first quarter 2009 revenues were $7,007,000, compared to $7,730,000 in the first quarter of 2008, a decrease of approximately 0.3%. Most components of revenues in the first quarter of 2009 were oil and gas sales which decreased by approximately 12% when compared to same period of 2008 due to lower natural gas, oil and natural gas liquids commodity prices. This decrease was partially offset by increases in sales volumes of natural gas, oil and natural gas liquids due to the oil and gas properties that the Company purchased on March 27, 2008.

The Company reported a net income of $1,790,000 or $0.66 per share for the first quarter 2009 compared to net loss of ($7,646,000) or ($2.81) per share for the same period in 2008. This increase was primarily due to the impact of derivatives, increases in sales volumes of natural gas, oil and natural gas liquids due to the acquisition in March 2008 of oil and gas interests which were partially offset by sustained lower natural gas, oil and natural gas liquids sales revenues due to lower prices, higher lease operating expenses, higher depreciation, depletion and amortization expenses and higher interest expense due to the above reference acquisition.

There are currently 2,717,691 shares of common stock issued and outstanding.

Isramco's unaudited quarterly results are summarized below:

                                                     For the Three Months
                                                        Ended March 31,
                                                        ---------------
                                                     2009             2008
                                                     ----             ----
    STATEMENT OF OPERATIONS DATA

    Revenues                                       $7,007           $7,730

    Total operating expenses                        9,261            4,569

    Operating income (loss)                         2,254            3,161

    Net income (loss)                               1,790           (7,646)

    Earnings (loss) per share - basic and diluted    0.66            (2.81)

    CASH FLOW DATA

    Net cash provided by operating activities       5,392            2,069

    Net cash provided by (used in) investing
     activities                                       355         (101,449)

    Net cash provided by financing activities      (5,716)         101,559


                                                   March 31,      December 31,
                                                     2009             2008
                                                     ----             ----
    BALANCE SHEET DATA

    Current assets                                $22,623          $21,988

    Total assets                                  200,252          203,371

    Current liabilities                            32,611           39,050

    Total liabilities                             173,157          178,337

     Total shareholders' equity                    27,095           25,034

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 2006, 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.

SOURCE Isramco, Inc.