Petrol
Oil and Gas Reports First Revenue
LAS VEGAS,
Nov. 16, 2004 - Petrol Oil and Gas (OTCBB: POIG) announced today
financial results for its nine months ended September 30, 2004. The
Company generated its first oil and gas revenues totaling $44,185, and
expects to accelerate revenues during the fourth quarter and 2005.
For the three months ended September 30, 2004, the Company generated
revenue of $44,185, and reported a net loss of $(413,314), or $(0.02) per
share, versus a loss of $(652,260), or $(0.05) per share for the year
earlier period. For the nine months ended September 30, 2004, Petrol
reported revenue of $44,185 and had a net loss of $(2,450,227) or $(0.14)
per share, versus $(950,110) or $(0.07) per share. Excluding non-cash
charges, the Company would have reported a loss of ($644,917) for the
nine-month period.
"While
we are excited that we were able to generate the first revenues from our
oil and gas operations, we feel that we have strategically positioned the
Company in the prolific Coal Bed Methane (CBM), gas fields in SE Kansas
and W Missouri. Our recent acquisition of a fully equipped CBM gas field
producing approximately 3 million cubic feet per day in the Thayer Gas
Field in Southeast Kansas, will grow gross revenues rapidly in the coming
quarter," said Paul Branagan, Petrol's President and CEO. "The
combination of the proven production from our project in the Thayer Gas
Field and solid opportunities form our Coal Creek CBM drilling program
gives the Company the ideal mix of producing wells and low-risk
prospects. We look forward to accelerating our Revenues during the fourth
quarter of 2004.
The
producing property, Petrol-Neodesa, is located in the Thayer Gas Field
and is in a mature and highly prolific CBM gas producing area located in
Wilson and Neosho counties, Kansas. Based upon current gas prices and
production levels on the property, Petrol expects this property to
generate 9.6 million for 2005 that would equate to $0.15 operating cash
flow per share based on today's shares issued and outstanding. This
estimate does not include revenue from the Company's other projects.
Recently,
the Company began a 25-well drilling program. The initial target for the
program will be the Coal Creek Project in Coffey County, Kansas. The
program will target the multiple Cherokee coal seams that blanket
southeastern Kansas and southwestern Missouri and could support up to
1,700 producing gas wells. The shallow depths associated with the
multiple coal seams results in low drilling and production costs, and a
higher probability of production and net revenues. The flat terrain of
Eastern Kansas, which allows for ease of access for drilling rigs and
associated production equipment, should enable the Company to progress
quickly with the drilling program.
Forward-Looking
Statement: The statements in this press release regarding any implied or
perceived benefits from the Coal Creek Project, plans to drill additional
CBM gas wells, anticipated revenues, the actual number of supportable
wells, the acquisition of additional oil or gas leases, maintaining
mineral lease rights, and any other effects resulting from any of the
above are forward-looking statements. Such statements involve risks and
uncertainties, including, but not limited to, the continued production of
gas at historical rates, costs of operations, delays, and any other
difficulties related to producing minerals such as oil or gas, continued
maintenance of the oil field and properties, price of oil or gas,
marketing and sales of produced minerals, risks and effects of legal and
administrative proceedings and governmental regulation, future financial
and operational results, competition, general economic conditions, and
the ability to manage and continue growth.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual outcomes may vary
materially from those indicated. Important factors that could cause
actual results to differ materially from the forward-looking statements
we make in this news release include market conditions and those set
forth in reports or documents we file from time to time with the SEC. We
undertake no obligation to revise or update such statements to reflect
current events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
Source:
Petrol Oil and Gas Inc.
Petrol Oil
and Gas, Inc. is a featured company on
www.NaturalGasStocks.com
Contact:
Investor Information:
Petrol Oil and Gas Inc.
702-454-7318
www.petroloilandgas.com
or
CEOcast,
Inc. for Petrol Oil and Gas
Ed
Lewis, 212-732-4300 x 225