Last updated on April 21, 2014 at 12:45 EDT

Aztec Announces Improved 2011 Fiscal Year Results

April 10, 2012

HOUSTON, April 10, 2012 /PRNewswire/ — Aztec Oil & Gas, Inc. (Pink Sheets: AZGS) (“Aztec”) announced that it has filed its Annual audited financials for the fiscal year ending August 31, 2011. The results were delayed by a significant increase in business activity and an extensive and detailed oil/gas reserve study previously reported in a press release on November 29, 2011.

The following attempts to highlight some areas and numbers of interest from the audit report compared to the same period from 2010;

              Oil reserves increased from 125,875
              barrels in 2010 to 1,002,810 barrels
              for 2011, or approximately 697%.

             Natural Gas
              Gas reserves increased from 454,145 Mcf
              in 2010 to 1,094,540 Mcf for 2011, or
              approximately 141%. (Most gas reserves
              are ancillary to oil production.)

              Sales revenue from oil and gas more than
              tripled for 2011 over 2010 levels. (See
              financial report.)

              The number of wells in which Aztec has
              an interest for 2011 increased to 385.
              (See financial report.)

              Total assets increased from $11,433,893
              for 2010 to $19,994,249 for 2011, or
              approximately 75%.

              Long term liabilities were decreased by
              10.9% to $850,675; and total
              liabilities increased by slightly over
              15%, to $3,586,240 in spite of
              significantly increased activities.

             Total Equity
              Total equity increased from $8,318,708
              in 2010, to $16,408,019 in 2011, or
              approximately 97%.

             General and Administrative
              For fiscal 2011, general and
              administrative expenses were reduced to
              $2,468,746 or by a reduction of
              approximately 10.6%.


The detailed reserve report previously reported in the Aztec press release of November 29, 2011, showed Escalated, 10% Discounted Value of well interests of $74,857,020, and Escalated, Non-Discounted Value of wells interests of $240,104,740.

Waylan Johnson, President of Aztec Oil & Gas, Inc. stated, “We are extremely proud of our firm and its people for the forward strides we have made, and we look forward to more of such in fiscal year 2012. For fiscal year 2011, Aztec’s net losses increased; however, due to considerably increased business activities, such losses are directly affected by substantial non-cash expense items such as depreciation, depletion, amortization, accretion, etc. While net losses increased, we achieved substantial asset building and activity increases, but were also able to reduce general and administrative costs by approximately $300,000 or 10.6%.”

“Aztec is pleased to announce the information contained in this press release, which is, by necessity, abbreviated for brevity purposes. We, respectfully, suggest that everyone should additionally review the actual, entire financial statements, which are posted through links on our website with the OTC Market and SEC. We are very pleased with the progress Aztec is making, and we estimate that 2012 will be another very nice year for the firm,” further stated Waylan Johnson.

(Note – Most numbers contained in this press release are rounded and approximates.)

About Aztec Oil & Gas, Inc.

Aztec is an experienced oil and gas exploration, development and production company focusing on Texas, plus other areas of the U.S. Its interests are highly diversified between development drilling and exploration drilling; however, when it offers drilling/production partnerships, Aztec focuses primarily on Texas shallow, lower risk, development and step out oil wells. When offered, those programs/partnerships are placed, with accredited investor partners, only through FINRA registered Broker Dealers and Registered Investment Advisors; and, are focused primarily on oil, with natural gas normally being the secondary target of production.

Aztec has been in the oil/gas business since 2004, and entered the sponsored drilling program industry in 2006. Over the next two and one half years, beginning in late 2006, Aztec intentionally restricted itself to only three small, very limited Appalachian, natural gas drilling partnerships. Such was done in order to study and become fully familiar with the nuances of the sponsored drilling program industry before expanding to the Company’s full capabilities. In the summer of 2008, Aztec publicly announced it was discontinuing any natural gas drilling in Appalachia, and was ready to substantially expand its sponsored drilling program activities, along with its other activities, primarily for oil in Texas.

As to only its sponsored drilling partnerships, when offered; since 2008, Aztec has, indeed, focused almost all of those partnerships on oil wells in Texas. In addition to its early, initial three small Appalachian natural gas drilling partnerships mentioned above, Aztec has, intermittently, sponsored and closed a significant number of other drilling/production partnerships (all of the latter, as stated, focused primarily on drilling for oil in Texas). Aztec Energy LLC, a wholly-owned subsidiary of Aztec Oil & Gas Inc., is the Managing General Partner of all Aztec drilling partnerships; and another wholly-owned Aztec Oil & Gas Inc. subsidiary, Aztec Drilling & Operating, LLC, is the drilling contractor and well operator for such partnerships. Through its own participation, contributions and coverage, Aztec owns a 30% interest in all of its drilling/production partnerships. In general clarification of its activities, in addition to its own direct corporate participations in industry partner wells, Aztec sometimes sponsors lower risk, development drilling/production programs which include significant tax benefits; all of which are offered only through FINRA Registered Broker Dealers and Registered Investment Advisors to Accredited Investors. Aztec’s sponsored drilling/production programs, when offered, focus primarily on shallow oil/gas drilling, are considered unique, and also incorporate a sophisticated exit strategy for investors.

Please feel free to visit Aztec on the web at www.AztecOG.com. An option is provided on the website to join the Aztec (corporate) mailing list and receive up to date information on general Aztec activities, including all Aztec press releases.

This release/announcement/document is neither an advertisement, an offer to sell, nor a solicitation of an offer to buy securities, Units or participations of Aztec Oil & Gas Inc., its subsidiaries or affiliates (collectively “Aztec”). This release/document contains certain statements, estimates, and forecasts with respect to future performance and events. All statements other than statements of historical fact included in this release/announcement/document, a Memorandum, or the Aztec website, including, but not limited to, statements regarding future performance of events, are forward-looking statements. All such forward-looking statements are based on various underlying assumptions and expectations and are subject to risks and uncertainties which could cause actual events to differ materially from those expressed in such statements. As a result, there can be no assurance that the forward-looking statements included in this release/announcement/document, a Memorandum, or the Aztec Website will prove to be accurate or correct. In light of these risks, uncertainties and assumptions, the future performance or events described in the forward-looking statements in this release/announcement/document, a Memorandum, or the Aztec Website might not occur. Accordingly, investors should not rely upon forward-looking statements or historical performance as a prediction or indicator of actual or future results. Also, Aztec Oil & Gas, Inc., its officers, principals, employees, agents, subsidiaries, affiliates and consultants, and the other parties, investors, shareholders, partnerships and partners, involved in any properties, programs, partnerships, and Aztec activities have various, material conflicts of interests. The price(s) received for the oil and natural gas produced from any investments, activities, properties may be less, or more, than quoted NYMEX prices at any given times. Specific results, yields, benefits, etc. are not guaranteed by Aztec and are subject to risks and limitations inherent in the energy industry and/or described in any Memorandum and elsewhere. Aztec does not undertake any obligation to update any forward-looking statements, facts or other information, whether as a result of new information, future events, subsequent circumstances or otherwise.

Phoenix IR Associates
Investor Relations
Tony Drake
(281) 579-1602

SOURCE Aztec Oil & Gas, Inc.

Source: PR Newswire