DENVER, Nov 14, 2008 /PRNewswire-FirstCall via COMTEX/ -- Basic Earth Science Systems, Inc. (Basic) (BSIC) reported net income of $946,000, nearly five and one-half cents ($0.054) per share, on oil and gas sales revenue of $2,697,000 for the quarter ended September 30, 2008. This compares to net income of $430,000 (as restated), two and one-half cents ($0.025) per share, on oil and gas sales revenue of $1,789,000 for the quarter ended September 30, 2007. The $908,000 (51%) increase in oil and gas sales revenue and $516,000 (120%) increase in net income was due primarily to increases in oil and gas prices.
"We are indeed pleased to report another great quarter," commented Ray Singleton, President of Basic. "The combination of high commodity prices and the effect of our new Colorado wells coming on production have certainly supported the results of our second fiscal quarter. However, we, like many of you, are concerned about what our unfolding economy will bring. Oil prices, especially in the Williston basin, have certainly declined. Current economic conditions and lower commodity prices will affect all of us in this industry."
"Here is the good news," Singleton continued. "We, here at Basic, have been through this before. Ten years ago, as oil prices in the field went below $10 a barrel, we were caught with too much debt and little cash to make it from month-to-month. Things are different today. This Company has never been in better shape to handle a downturn. We have no debt and have cash reserves to weather this storm. We believe we are in good shape. For the last several years, there are those in this industry that pursued projects that were less than lucrative, even at high commodity prices. Deals were made, funded and drilled based on much higher commodity price expectations. Those companies' balance sheets are loaded with recent, historical costs that are ripe for impairment. As a result, we are very optimistic. We believe we will see a number of strategic opportunities within the next six months to purchase properties at discounts to levels experienced last year. We hope to make accretive purchases due to our relative corporate strength going into the upcoming economic conditions. We will be looking for situations where we can put our un-leveraged, un-margined, high cash flow, balance sheet to work expanding Basic Earth's asset base."
Founded in 1969, Basic is an oil and gas exploration and production company with primary operations in select areas of the Williston basin, the Denver-Julesburg basin in Colorado, the southern portions of Texas, and along the on-shore portions of the Gulf Coast. Basic is traded on the "over-the-counter - bulletin board" under the symbol BSIC. Basic's web site is at http://www.basicearth.net where additional information about the Company can be accessed.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "should," "may," "will," "anticipate," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Basic intends, expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of Basic, particularly the Company's Quarterly Report on Form 10-Q for the quarters ended June 30, 2008, in addition to the Company's Annual Report on Form 10-KSB for the fiscal year ended March 31, 2008, for meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.
Financial Highlights
Six Months Ended Quarter Ended
September 30 September 30
(As Restated) (As Restated)
2008 2007 2008 2007
Total Revenue $6,054,000 $3,408,000 $2,735,000 $1,794,000
Net income 2,326,000 717,000 946,000 430,000
Basic net income
per share .133 .042 .054 .025
Diluted net income
per share .133 .042 .054 .025
Weighted average
number of shares
outstanding
- basic 17,465,585 16,964,503 17,465,585 16,973,665
- diluted 17,468,898 17,132,679 17,468,898 17,132,144
SOURCE Basic Earth Science Systems, Inc.
http://www.basicearth.net
Copyright (C) 2008 PR Newswire. All rights reserved
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