Striker Oil & Gas Announces a 266% Increase in Revenue for Its First Quarter Ended March 31, 2008 Compared to the Same Period in 2007
Striker Oil & Gas, Inc., (OTCBB:SOIS) announced today its first quarter results for fiscal 2008 reflect revenues up over 266% compared to the same period in 2007. The company also increased its gross profit from oil and gas operations in excess of 300% for the same period to $700,867.
The following table represents the company’s results from operations for the three months ended March 31, 2008 and 2007, excluding non-cash charges. This presentation is not in accordance with GAAP, however, it reflects the operating results had the non-cash charges to expense been excluded.
Three Months Ended March 31, —————————- 2008 2007 —————————- Oil and gas revenue $ 1,179,135 $ 322,348 Oil and gas production costs 478,268 147,880 —————————- Gross profit 700,867 174,468 Operating expenses 555,463 979,196 —————————- Income (loss) from operations before non- cash charges 145,404 (804,728) —————————- Reconciliation to GAAP financials: Add back: Depletion and depreciation expense (325,703) (184,933) Stock and stock option expense (18,010) (493,329) Impairment of oil and gas properties (12,990) — Depreciation (12,704) (11,093) Amortization of debt discounts — (5,625) —————————- Total non-cash charges (369,407) (694,980) —————————- Loss from operations $ (224,003) $ (1,499,708) ============================
During the quarter ended March 31, 23008, Striker Oil & Gas realized an increase in revenue of $856,787, or 266%, over the 2007 period. The company experienced an increase in crude oil and condensate sales of 2,455 barrels in 2008, or a 39% increase over 2007 levels, and an increase in the price it received for its production from $50.60 per barrel to $97.71 per barrel, or 93%. The increased crude oil sales were attributable to increased production at North Edna Field, North Sand Hill Field, its discoveries at South Creole Field and Catfish Creek Field and its acquisition of Welsh Field. Revenue the company received from natural gas sales at its South Creole Field increased to $316,856 which represented sales of 38,037 Mcf’s at an average price of $8.33 per Mcf. The company reported no gas sales in the 2007 period.
Gross profit before depletion expense increased from $174,468 for the 2007 period to $700,867, an increase of 302%, for the 2008 period. As previously discussed, the company experienced a significant increase in revenue from its recent discoveries and acquisition which contributed to the increase in gross profit.
Striker Oil & Gas reported a net income applicable to common shares of $394,762, or $.02 per share (basic and diluted) for the quarter ended March 31, 2008, compared to a net loss of $1,503,884, or $0.08 per share (basic and diluted) for the quarter ended March 31, 2007.
“We are pleased that our revenue growth continued in the first quarter of the 2008 fiscal year, generated by internal growth. We are confident that our existing projects, primarily our Catfish Creek prospect, will continue to add to our revenue growth during fiscal 2008,” stated Kevan Casey, CEO of Striker Oil & Gas.
For the complete report of the company’s audited consolidated financial statements for the quarter ended March 31, 2008, please review the company’s Form 10-Q filed with the Securities and Exchange Commission on May 20, 2008, at www.sec.gov.
About Striker Oil & Gas
Striker Oil & Gas, Inc. is primarily engaged in the acquisition, development, exploration and production of crude oil and natural gas. The company acquires working interests in producing properties with developmental potential and properties that offer relatively low risk exploration potential for both crude oil and natural gas. Striker Oil & Gas operates onshore along the Gulf Coast of Texas and Louisiana as well as East Texas and Mississippi. The Company strives to enhance asset value through application of current production technology while keeping costs low. The company’s goal is to achieve a high return on its investment and grow shareholder value.
Safe Harbor Statement
This press release contains statements that may constitute forward-looking statements, including the company’s ability to successfully acquire oil and gas properties and drill commercial wells. These statements are based on current expectations and assumptions and involve a number of uncertainties and risks that could cause actual results to differ materially from those currently expected. For additional information about Unicorp’s future business and financial results, refer to Striker Oil & Gas’ Annual Report on Form 10-KSB for the year ended December 31, 2007. Striker Oil & Gas undertakes no obligation to update any forward-looking statement that may be made from time to time by or on behalf of the company, whether as a result of new information, future events or otherwise.