Mesa Energy Holdings, Inc. (MSEH), an oil and gas exploration and production company, announced that the Company has reported its 2nd quarter production and financial results for the three months ended June 30, 2012.
Revenues from sales of oil and natural gas for the three months were $3,847,090 compared to $18,679 for the corresponding period in 2011. The increase in revenues reflects additional sales volumes from producing wells acquired in the Company’s acquisition of Tchefuncte Natural Resources, LLC (“TNR”) on July 22, 2011 and subsequent recompletion efforts in the fields acquired. Revenues are predominantly generated from oil sales of $3,328,104, which is 87% of revenue, compared to natural gas sales of $518,986, which is 13% of revenue.
Non-GAAP income (adjusted EBIDTA) for the three months ended June 30, 2012 was $1,646,539 compared to a non-GAAP loss of $149,130 for the corresponding period in 2011. These numbers reflect significant increases in revenue as a result of the acquisition of TNR as well as the adjustment made due to the change in derivative value from both commodity contracts and convertible debt.
The Company recognized GAAP operating income of $853,022 in the second quarter of 2012, compared to a GAAP operating loss of $194,713 in the second quarter of 2011. Net income for the three months ended June 30, 2012 was $1,187,324 ($0.01 per basic and diluted share) compared to a net loss of $173,029 ($0.00 per basic and diluted share) for the corresponding period in 2011.
The Company ended the 2nd quarter of fiscal 2012 with $4,070,480 in working capital.
Average net production for the 2nd quarter of 2012 was approximately 328 barrels of oil per day and 2,436 MCF of gas per day (734 BOED). Gas production was up nearly 8% due to increases in daily production at the Valentine Field. Overall oil production for the 2nd quarter of 2012, however, compared to the 1st quarter of 2012 was down by approximately 10%, due to wells being shut-in at Lake Hermitage for gas lift enhancement and to facilitate recompletion work. The Company anticipates significant increases in production for fiscal 2012 as it continues its recompletion and enhancement program and commences drilling of its Proved Undeveloped (“PUD”) locations.
“Although our revenue decreased slightly this quarter compared to the first quarter, due to a reduction in oil prices as well as various wells being shut-in to accommodate our recompletion efforts, our production of oil and natural gas remains strong and we believe our efforts in our South Louisiana properties as well as other prospects that we are currently evaluating will enable us to continue increasing production. Also in this quarter, we successfully eliminated the majority of our convertible debt which had affected our bottom line for the last several quarters,” said Randy M. Griffin, CEO of Mesa Energy Holdings, Inc.
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