There has been many rumors surrounding whether potential investors would purchase BP (NYSE:BP). It seems to be more of a fairytale hope then anything else according to analysts.
There are several variables that must be looked at. For one, are BP's assets worth the hassle? With the thousands upon thousands of legal claims as well as the public relations issue, for any oil company to take on BP would be an extreme risk.
Paul Malchanov, an analyst for Raymond James in Houston, TX., said, " It's very debatable that any company would be comfortable wading into this legal nightmare, which would last many years. The biggest problem is getting your hands around the liabilities."
While the CEO of Petroleum and Resources Corporation, Doug Ober, said he's even heard traders talk about Conoco Phillips purchasing BP. " The likelihood of BP getting taken over is next to nil. Why would a U.S. company want to buy BP given the black eye that it has," said Ober.
Malchonov said he does not recommend BP for investors. Other companies like Chevron and Hess are trading at cheaper valuations. There is still to much risk and uncertainties with BP.
Showing posts with label Oil Company. Show all posts
Showing posts with label Oil Company. Show all posts
Monday, July 12, 2010
Monday, July 5, 2010
BP (NYSE:BP): We're Not Issuing Any New Shares
Despite the pressure BP (NYSE:BP) is feeling financially, they are saying there will be no more newly issued shares. Although they have been making overtures to several oil investors in different countries where there is good relations. In an attempt to entice them to purchase shares.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Shokri Ghanem, chairman of Libya's national oil company told Dow Jones, "BP is interesting now with the price lower by half and I still have trust in BP, I will recommend it to the Libyan Investment Authority." On Monday, a top Libya oil official said his country should take advantage of the oil company's falling share prices.
BP insists they are not trying to bring in specific investors with new equity. BP shares have lost over half their market value since the Gulf oil spill began in April. Today they saw an increase of 3.5 percent to 333.3p in London.
The Gulf of Mexico holds some of the world's largest sovereign wealth funds. They've previously put capital into into Western banks including Barclays and Citigroup. BP has an extensive history
with the UAE, home to numerous government controlled funds that invest specifically in energy assets.
Friday, July 2, 2010
Exxon (NYSE:XOM) and ConocoPhillips (NYSE:COP) Stock Trading, Yearly Lows and Maintained Uptrends
The largest and best managed oil company, Exxon Mobile (NYSE:XOM) is currently trading at a yearly low and has seen a 20 percent decline compared to this time last year. Other big oil giants like Chevron, PetroChina, and Statoil have discovered billions of barrels of oil over the last 2-3 years.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Even though they're shares are going mostly sideways, they've also seen a decline of 16 percent over the last year. Gene McGillian, broker and analyst at Trading Energy in Stanford said, "The fundamentals of the market remain negative. If we don't get some positive economic news we will soon test $70."
There is one oil company ConocoPhillips (NYSE:COP) that has maintained an uptrend which is quite impressive despite the broad market being down since May. Billionaire investor Warren Buffet is a big shareholder of ConocoPhillips and recommends them.
Friday, June 11, 2010
The BP (NYSE:BP) Whistle Blower
It is being proven by a whistle blower that BP's (NYSE:BP) corruption goes deep and for many years. A former BP executive, Rick Lacey said that he's watched the oil company for years put profits everything ahead of everything else.
Lacey started his tell all novel in 2002 while still employed at BP as a financial analyst and accountant for almost eight years. His novel is titled "Involuntary Separation: Corporate Downsizing Gone Fatally Wrong." He isn't surprised at all at the massive oil spill and details the numerous missteps and shortcuts that BP took.
After helping BP lay off thousands of employees, he quit in 1988. One of BP's strategies was to contract to other smaller companies to decrease their liability in case of oil rig explosions and other potential accidents. "Prior to downsizing, BP drilled for its own oil," said Lacey. "So they would've been running the entire operation themselves and they would be responsible for the safety and liability for the spill."
That way BP could shift the blame to these other companies, even if they were to small to be able to pay for the oil cleanup and would have to file bankruptcy, he said. "If it was a smaller spill, they'd let the drillers go bankrupt." He said the only reason they're paying for this spill is because of the huge amount of public outrage BP would get if they did not.
We saw the scenario at the congressional hearings where each company was pointing their finger at the other, even President Obama was outraged at the companies lack of responsibilities.
Lacey started his tell all novel in 2002 while still employed at BP as a financial analyst and accountant for almost eight years. His novel is titled "Involuntary Separation: Corporate Downsizing Gone Fatally Wrong." He isn't surprised at all at the massive oil spill and details the numerous missteps and shortcuts that BP took.
After helping BP lay off thousands of employees, he quit in 1988. One of BP's strategies was to contract to other smaller companies to decrease their liability in case of oil rig explosions and other potential accidents. "Prior to downsizing, BP drilled for its own oil," said Lacey. "So they would've been running the entire operation themselves and they would be responsible for the safety and liability for the spill."
That way BP could shift the blame to these other companies, even if they were to small to be able to pay for the oil cleanup and would have to file bankruptcy, he said. "If it was a smaller spill, they'd let the drillers go bankrupt." He said the only reason they're paying for this spill is because of the huge amount of public outrage BP would get if they did not.
We saw the scenario at the congressional hearings where each company was pointing their finger at the other, even President Obama was outraged at the companies lack of responsibilities.
Tuesday, June 8, 2010
BP (NYSE:BP) Buys Google Ad Words, "Oil Spill"
BP (NYSE:BP) bought the Google ad words "oil spill" with the tag line "how BP is helping." This will link search results from Google and Yahoo directly to BP's website. A spokesman for BP, said the reasoning behind this purchase was to help people by making it a little easier to find out and follow the on going fuel spill containment efforts. There also will be links on the website that will help direct people to the correct places to file a legal claim, sign up to volunteer, and to report oil found on the beach.
BP has spent several millions of dollars, $50 million to be exact, on television advertising. President Obama has criticized BP for doing this, especially when they have given fisherman who have lost their livelihood only $5,000. Not to mention how it seems they are attempting to limit the amounts they'll pay to those people that have been directly effected by the devastating results of the hazardous spill disaster.
Televised apology ads or not, its not changing the views of most people, 20 percent say they will no longer purchase BP gas while 31 percent will buy less gas from the oil company. While 47 percent of people feel BP's public relation efforts are too little to late, there are 41 percent who believe that BP is doing absolutely everything they can, leaving 42 percent who feel they are only doing what is necessary for public relations sake. The bottom line, 71 percent of people feel BP is responsible for the oil spill.
BP has spent several millions of dollars, $50 million to be exact, on television advertising. President Obama has criticized BP for doing this, especially when they have given fisherman who have lost their livelihood only $5,000. Not to mention how it seems they are attempting to limit the amounts they'll pay to those people that have been directly effected by the devastating results of the hazardous spill disaster.
Televised apology ads or not, its not changing the views of most people, 20 percent say they will no longer purchase BP gas while 31 percent will buy less gas from the oil company. While 47 percent of people feel BP's public relation efforts are too little to late, there are 41 percent who believe that BP is doing absolutely everything they can, leaving 42 percent who feel they are only doing what is necessary for public relations sake. The bottom line, 71 percent of people feel BP is responsible for the oil spill.
Monday, May 17, 2010
Oil Prices Plunge 20 Percent in Two-Week Period
While oil companies may not like it, consumers definitely will, at least when the price of gas starts to move down in unison with the price of oil, as oil has dropped 20 percent just a short two-week period.
Like most other raw materials and products, concerns over the European debt crisis and the inflation China is battling has companies and investors concerned over the demand problem and how it'll effect companies and their exports.
Not just that though, as it's not just the existing European crisis everyone is worried about, but whether or not it's about to become a contagion which brings the global economy down with it.
This will especially have a dramatic impact on commodities and countries and companies producing raw materials, as that will probably take a significant hit in the short- to mid-term if things get worse at all, and probably even if they stay where they're at now, as the fallout from Europe has yet to be revealed outside of Greece, and that information is probably going to be released in stages in an attempt to manage the potential panic that could come with it, which could cause a run on an unknown number of banks, as it did with banks in Greece.
Just a couple of weeks ago oil seemed to be assured of a long and profitable run-up in prices, now it's debatable as to how low prices will go throughout the usually busy summer season, and even further beyond, as more than likely consumers will cut back on travel because of the fears of what could possibly happen to the economy with more negative factors out there that are not small by any means, including the China inflation factor, which has been largely over-shadowed by the EU debt crisis; but it is every bit as real, and could cause numbers projected and expectations to be far too optimistic in light of the new circumstances.
In early May, oil prices had hit 18-month highs of $87.15 a barrel, and on Monday they had plunged to $70.08.
If oil prices stay at around $70 a barrel, it is expected to would drop from between $2.60 to $2.65 a gallon on average, with some places in the U.S. enjoying $2.50 a gallon.
Like most other raw materials and products, concerns over the European debt crisis and the inflation China is battling has companies and investors concerned over the demand problem and how it'll effect companies and their exports.
Not just that though, as it's not just the existing European crisis everyone is worried about, but whether or not it's about to become a contagion which brings the global economy down with it.
This will especially have a dramatic impact on commodities and countries and companies producing raw materials, as that will probably take a significant hit in the short- to mid-term if things get worse at all, and probably even if they stay where they're at now, as the fallout from Europe has yet to be revealed outside of Greece, and that information is probably going to be released in stages in an attempt to manage the potential panic that could come with it, which could cause a run on an unknown number of banks, as it did with banks in Greece.
Just a couple of weeks ago oil seemed to be assured of a long and profitable run-up in prices, now it's debatable as to how low prices will go throughout the usually busy summer season, and even further beyond, as more than likely consumers will cut back on travel because of the fears of what could possibly happen to the economy with more negative factors out there that are not small by any means, including the China inflation factor, which has been largely over-shadowed by the EU debt crisis; but it is every bit as real, and could cause numbers projected and expectations to be far too optimistic in light of the new circumstances.
In early May, oil prices had hit 18-month highs of $87.15 a barrel, and on Monday they had plunged to $70.08.
If oil prices stay at around $70 a barrel, it is expected to would drop from between $2.60 to $2.65 a gallon on average, with some places in the U.S. enjoying $2.50 a gallon.
Saturday, August 8, 2009
Chevron Angola Oil Discovery
In what is at this time only being identified as a major oil discovery, Chevron announced that the find off Angola's shores still needs to be confirmed by further drilling, but the prospects of a significant oil field are pretty much ensured; it's only a matter of how much oil the field holds, which in cases like this are usually considered over 500 million barrels.
The oil and natural gas field is located off the Cabinda coast of Angola, enlarging the already significant portfolio Chevron has in the African nation.
Its affiliate Cabinda Gulf Oil Co made the find, of which Chevron has a 39.2 percent stake in. The state oil company of Angola - Sonangol owns 41 percent of Cabinda, while Total SA of France owns 10 percent and ENI SpA of Italy has a 9.8 percent stake in Cabinda.
This find continues to underscore the West African nation's growing importance to Chevron and the country's rising stature as an energy producer as its neighbor Nigeria continues to deal with militant attacks on its oil pipelines, which has cut oil production by 20 percent over the last three years.
This is one of many oil and gas discoveries off of Angola, which produced 1.85 million barrels of oil a day in July 2009.
Chevron, which now pumps over 500,000 barrels of oil a day from Angola, said the discovery, in Block 0, was drilled in March in 397 feet of water to a total vertical depth of 13,000 feet. It encountered over 225 feet of net hydrocarbon pay in the Upper Pinda formation, according to the company. Overall, Angola's output stands at about 2.1 million barrels of oil a day, which is a huge 53 percent increase from 2006.
Chevron also said the 79-3XST1 discovery well had a flow rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons a day.
The oil and natural gas field is located off the Cabinda coast of Angola, enlarging the already significant portfolio Chevron has in the African nation.
Its affiliate Cabinda Gulf Oil Co made the find, of which Chevron has a 39.2 percent stake in. The state oil company of Angola - Sonangol owns 41 percent of Cabinda, while Total SA of France owns 10 percent and ENI SpA of Italy has a 9.8 percent stake in Cabinda.
This find continues to underscore the West African nation's growing importance to Chevron and the country's rising stature as an energy producer as its neighbor Nigeria continues to deal with militant attacks on its oil pipelines, which has cut oil production by 20 percent over the last three years.
This is one of many oil and gas discoveries off of Angola, which produced 1.85 million barrels of oil a day in July 2009.
Chevron, which now pumps over 500,000 barrels of oil a day from Angola, said the discovery, in Block 0, was drilled in March in 397 feet of water to a total vertical depth of 13,000 feet. It encountered over 225 feet of net hydrocarbon pay in the Upper Pinda formation, according to the company. Overall, Angola's output stands at about 2.1 million barrels of oil a day, which is a huge 53 percent increase from 2006.
Chevron also said the 79-3XST1 discovery well had a flow rate of 11.6 million cubic feet of natural gas and 2,550 barrels of liquid hydrocarbons a day.
Tuesday, January 13, 2009
Appellate Court Slaps Down Federal Government on "Anadarko Petroleum" Oil Royalties
With the U.S. government increasingly gravitating toward socialism, it was a welcome sign to see them slowed down by the decision of a federal appellate court, which affirmed the government had no right to dig their greedy hands into the revenues generated by oil company Anadarko Petroleum.
In a case that has been closely watched by the industry and big-government advocates, the Fifth Circuit Court of Appeals in New Orleans confirmed a lower-court ruling which said the government had no authority to collect the fossil-fuel royalties, which could end up totaling up to $10 billion.
Government sychophant Shane Wolfe, a spokesman for the Interior Department, said in his talking points, "If the court's interpretation of Congress's action in 1995 is correct, certain leaseholders will be allowed to produce massive amounts of oil and gas without paying royalties to the United States without regard to the price of oil and gas -- perhaps amounting to one of the biggest giveaways of federal resources by Congress in modern history."
This is nothing more than another socialist statement. When the oil companies are doing lousy, no one cares, as soon as they start making some money, the money wants to come in and steal it and redistribute it to worthless projects or unproductive people. That is a path of destruction that whenever is interrupted, we need to be thankful for.
Look at the manipulative language given to Wolfe to repeat: "... certain leaseholders will be allowed to produce massive amounts of oil and gas without paying royalties to the United States without regard to the price of oil and gas."
All of it is an effort to make an articial barrier between people and business, in order to make people believe the government is looking out for them. An old tactic for sure, but one that works when people are afraid and looking for someone to blame, along with a savior, which the government is glad to step in as.
Look at the phrase "without regard to the price of oil and gas." It's socialist to the core.
The U.S. government, which has caused the current economic crisis through faulty attempts to run the economy, now think they're able to make any type of healthy decision on energy prices in regard to the diminishing free market?
Why this is so important is when oil companies are doing good, they can than take the revenue and do more explorations, improve operations, invest in better technology, etc. They can also set aside money for the inevitable slow times like the current economic climate, where they can survive until things pick up again.
What the government is attempting to do is syphon off the productive periods of the company in the name of "fairness," so they can use it for their endless projects and activities that do nothing to add to the national or individual wealth.
As far as the specific issue in the court case, it surrounded the terms of the lease, which were connected to oil and gas production levels, rather than price thresholds, which the government has asserted.
The court saw the obvious duplicity of the government, which agreed to the terms of the law directly connected to production outputs, and not the price threshold the government wants to arbitrarily impose on the companies drilling in the Gulf of Mexico.
To show you how far the government will go to manipulate things, in 2004, according to the inept federal Minerals Management Service, the government stood to lose royalty payments as high as $60 billion.
Later on those figures were adjusted to between $6 billion to $10 billion. How does one miss estimates by 6 to 10 times over the upper reality of the numbers? Only a governmental agency could do that. Everyone else would be thrown in jail for fudging the numbers.
The so-called Government Accountability Office confirmed the lower estimate was the more accurate of the two projections.
Why throw out obvious bogus numbers? It's the old strategy of putting false information out to the public which will create an outrage based on false assertions. Even, as in this case, when the government has to backtrack, the damage is already done.
This should never have been a court case, as the terms of the lease, as the courts have confirmed, are completely being met. Idiotic lawmakers, who are looking for ways to steal more money from the public, instigated this by pressuring the court case to go forward, even wasting more of the taxpayers money.
Anothe reason government needs to stay out of the free market.
In a case that has been closely watched by the industry and big-government advocates, the Fifth Circuit Court of Appeals in New Orleans confirmed a lower-court ruling which said the government had no authority to collect the fossil-fuel royalties, which could end up totaling up to $10 billion.
Government sychophant Shane Wolfe, a spokesman for the Interior Department, said in his talking points, "If the court's interpretation of Congress's action in 1995 is correct, certain leaseholders will be allowed to produce massive amounts of oil and gas without paying royalties to the United States without regard to the price of oil and gas -- perhaps amounting to one of the biggest giveaways of federal resources by Congress in modern history."
This is nothing more than another socialist statement. When the oil companies are doing lousy, no one cares, as soon as they start making some money, the money wants to come in and steal it and redistribute it to worthless projects or unproductive people. That is a path of destruction that whenever is interrupted, we need to be thankful for.
Look at the manipulative language given to Wolfe to repeat: "... certain leaseholders will be allowed to produce massive amounts of oil and gas without paying royalties to the United States without regard to the price of oil and gas."
All of it is an effort to make an articial barrier between people and business, in order to make people believe the government is looking out for them. An old tactic for sure, but one that works when people are afraid and looking for someone to blame, along with a savior, which the government is glad to step in as.
Look at the phrase "without regard to the price of oil and gas." It's socialist to the core.
The U.S. government, which has caused the current economic crisis through faulty attempts to run the economy, now think they're able to make any type of healthy decision on energy prices in regard to the diminishing free market?
Why this is so important is when oil companies are doing good, they can than take the revenue and do more explorations, improve operations, invest in better technology, etc. They can also set aside money for the inevitable slow times like the current economic climate, where they can survive until things pick up again.
What the government is attempting to do is syphon off the productive periods of the company in the name of "fairness," so they can use it for their endless projects and activities that do nothing to add to the national or individual wealth.
As far as the specific issue in the court case, it surrounded the terms of the lease, which were connected to oil and gas production levels, rather than price thresholds, which the government has asserted.
The court saw the obvious duplicity of the government, which agreed to the terms of the law directly connected to production outputs, and not the price threshold the government wants to arbitrarily impose on the companies drilling in the Gulf of Mexico.
To show you how far the government will go to manipulate things, in 2004, according to the inept federal Minerals Management Service, the government stood to lose royalty payments as high as $60 billion.
Later on those figures were adjusted to between $6 billion to $10 billion. How does one miss estimates by 6 to 10 times over the upper reality of the numbers? Only a governmental agency could do that. Everyone else would be thrown in jail for fudging the numbers.
The so-called Government Accountability Office confirmed the lower estimate was the more accurate of the two projections.
Why throw out obvious bogus numbers? It's the old strategy of putting false information out to the public which will create an outrage based on false assertions. Even, as in this case, when the government has to backtrack, the damage is already done.
This should never have been a court case, as the terms of the lease, as the courts have confirmed, are completely being met. Idiotic lawmakers, who are looking for ways to steal more money from the public, instigated this by pressuring the court case to go forward, even wasting more of the taxpayers money.
Anothe reason government needs to stay out of the free market.
Friday, November 14, 2008
Basic Earth Releases 2nd Quarter Results
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
"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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