HOUSTON, March 31 /PRNewswire-FirstCall/ -- Isramco, Inc. (Nasdaq: ISRL) reported today revenues for the fourth quarter ended December 31, 2007 of $7,064,000 compared to revenues of $1,197,000 the fourth quarter a year ago. The company reported net loss of $5,196,000 or ($1.91) per share for the fourth quarter of 2007 compared to a net income of $ 1,800,000 or $0.67 per share for the same quarter a year earlier.

Revenues for the year ended December 31, 2007 were $22,756,000 compared to revenues of $5,562,000 for 2006. The net loss for 2007 was 6,411,000 or ($2.36) per share compared to a net income of $3,842,000 or 1.41 per share for 2006.

The decrease in the net income in 2007 compared to 2006 is primarily attributable to: (i) an increase in net loss on derivative contracts of $8,638,000 compare to a net gain of $2,604,000 in 2006 (ii) an impairment of $928,000 as results of the sale of land in Israel (iii) an increase of $2,535,000 of impairment of oil and gas assets due to low production of gas wells drilled to the Barnett Shale (iv) an increase in interest expenses of $6,344,000 compare to interest income of $154,000 in 2006 (v) compensation for a legal settlement of $2,536,000 that was recorded in 2006 , all of which was partially offset by increased oil and gas operating income, realized gain on the sale of investment in high -tech company ($1,700,000) and an income tax benefit ($5,192,000).

The Company recorded a net derivative loss of $8,638,000 for the year ended December 31, 2007 due to the increase in oil prices.

In 2007, revenues from oil and gas sales were $20,827,000 compared to $2,167,000 in 2006. The increase is primarily attributable to an increase in oil prices and the purchase of oil and gas wells through the acquisition of the assets located mainly in north and west Texas, partially offset by a decline in production from the Company's older wells. Lease operation expenses and severance taxes were $7,500,000 in 2007 compared to $1,119,000 in 2006. The increase is primarily attributable to the purchase of additional oil and gas wells.

The number of outstanding shares was 2,717,691 at December 31, 2007 and 2006.



    The Company's financial statement information is summarized below:

                 (In thousands, except for per share income)

                                    Three months ended         Year Ended
                                       December 31             December 31
                                    2007        2006        2007         2006
    STATEMENT OF OPERATIONS

    Revenues                      $7,064      $1,197     $22,756       $5,562

    Total expenses                (9,142)     (1,699)    (21,183)      (4,777)

    Net loss from discontinued
     operation                      ----        (916)       ----       (2,727)

    Net income (loss)             (5,196)      1,800      (6,411)       3,842

    Earnings (loss) per common
     share - basic and diluted    $(1.91)      $0.67      $(2.36)       $1.41

    Weighted average shares
     issued and outstanding:
      Basic                    2,717,691   2,717,691    2,717,691   2,717,691
      Diluted                  2,717,691   2,717,691    2,717,691   2,717,691



                                                               Year Ended
                                                               December 31,
                                                             2007        2006
    CASH FLOW DATA

    Net cash provided by (used in)
     operating activities                                   $(662)      7,233

    Net cash used in investing activities                 (63,656)    (24,041)
    Net cash provided by financing activities              64,957      16,181


                                                                  As of
    December 31,
                                                             2007        2006
    BALANCE SHEET DATA

    Current assets                                        $11,103     $28,313

    Total Assets                                          110,708      62,073

    Total Liabilities                                      85,237      27,329

    Total Shareholders' Equity                             25,471      34,744


                          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 2007, 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.