TEXOIL, INC.

NEWS RELEASE

FOR IMMEDIATE

RELEASE

 

 

 

COMPANY CONTACT

 

 110 Cypress Station Drive

Frank A. Lodzinski

 Suite No. 220

President

 Houston, Texas

 

 (281) 537-9920

 

 (281) 537-8324 - Fax

 

 www.texoil.com

 

TEXOIL REPORTS SECOND QUARTER ACQUISITION, DRILLING 

AND DEVELOPMENT RESULTS

-  INCREASES PRODUCTION ESTIMATES FOR 2000 -

HOUSTON, TEXAS, August 9, 2000 - Texoil, Inc., (NASDAQ, Small Cap: "TXLI", Boston Stock Exchange "TXL") today announced financial and operating results for the second quarter and six month period ended June 30, 2000.  Oil and gas and related revenues increased 148% for the six months ended June 30, 2000, over the comparable period in 1999, to $22.7 million.  The Company reported net income available for common shareholders (after preferred stock dividends) of $5,236,000 for the year-to-date period, or $.79 per share, as compared to $870,000, or $.13 per share in 1999.  Earnings before interest, taxes, DD&A and preferred stock dividends (“EBITDA”) increased 204% for the six months ended June 30, 2000, to $13.9 million, or $2.10 per share, as compared to $4.6 million, or $.70 per share for the same period in 1999.

Second Quarter 2000

In the second quarter of 2000, Texoil achieved record revenues of $11,707,000, up 130% over the second quarter of 1999.  Texoil realized net income available for common shareholders of $2,826,000 compared to  $697,000, an increase of 305%.  During the second quarter of 2000, the Company produced 517,000 barrels of oil equivalent (BOE), up 48% from the second quarter of 1999.  Gas production increased to 1,325 MMcf, up 26% from the second quarter of 1999.  Oil production totaled 296,000 Bbls, up 69% from the second quarter of 1999.  The Company’s average oil price was 46% higher, averaging $23.06, compared to $15.80 in the same period of 1999, while the average gas price was up 48% over the prior year to $3.40.  EBITDA in the second quarter of 2000 from operating activities increased to $7.3 million from $2.7 million in the second quarter of 1999.

Six Months Ended June 30, 2000

Texoil’s net income available for common shareholders for the six months ended June 30, 2000, was $5,236,000 on revenues of $22,724,000.  For the comparable period of 1999, Texoil reported a net income of $870,000 on revenues of $9.2 million.  EBITDA for the six month period increased to $13,911,000 million in 2000 from $4,575,000 million 1999.  The Company’s production increased 55% to 1,041,000 BOE, compared to 670,000 BOE for the first six months of 1999.  Gas production increased to 2,665 MMcf, up 36% from 1999.  Oil production increased to 597,000 Bbls, up 74% from 1999.  The Company’s average oil price for the six months ended June 2000 increased 74% to $23.43 per Bbl, compared to $13.43 per Bbl in 1999.  Average gas prices increased 44% in 2000 to $2.99 per Mcf compared to $2.07 per Mcf in 1999.

Management Comments

Mr. Frank A. Lodzinski, Texoil’s President, stated “Texoil continues to achieve significant increases in substantially all performance measures, including production, revenues, cash flows and profitability.  Strong product prices continue to be a favorable factor, but production increases over the prior year are also a major contributor.  During the second quarter, Texoil closed the acquisition of the Ben Bolt field, conducted certain development activities, and also reduced debt by $3.0 million.  See news release dated August 8, 2000, for operational highlights.  The company has out-performed many of its peers, both in terms of financial performance and reserve and production growth.”

 

Texoil, Inc. (www.texoil.com), an independent energy company, acquires and develops oil and gas reserves through an active and diversified program that includes purchases of reserves, re-engineering, development and exploration activities, which are currently focused in Texas, South Louisiana and the Texas Gulf Coast.   

 

Forward-Looking Information

This release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 23E of the Securities Exchange Act of 1934, as amended.  All statements included in this release regarding the impact of recent acquisition of production properties on the Company are forward-looking statements and are based on management’s best projections.  Although the Company believes the expectations and beliefs reflected in forward-looking statements included in this release are reasonable, it can give no assurance that such expectations will prove to have been correct.  Forward-looking statements are not guarantees of future performance and actual results, developments and business decisions may differ from those envisioned by such forward-looking statements.

 

SEE FINANCIAL SUMMARY ATTACHED

mw\nr2000\060300

 

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2000

1999

2000

1999

Revenues

 

 

 

 

 

Oil and gas           

$       11,334

$        4,845

$         21,948

$         8,672

 

Other     

              373

              245

                 776

              491

 

Total      

         11,707

           5,090

            22,724

           9,163

Expenses

 

 

 

 

 

Lease operating/workover

           2,779

           1,578

              5,490

           3,080

 

Production taxes 

           1,094

              338

              2,193

              612

 

General and administrative

              583

              449

              1,130

              896

 

Total      

           4,456

           2,365

              8,813

           4,588

EBITDA

           7,251

           2,725

            13,911

           4,575

 

Depreciation, depletion & amortization           

           1,646

           1,069

              3,441

           2,094

 

Interest and debt expense 

             327

              535

                 709

           1,082

Income before income taxes              

           5,278

          1,121

              9,761

           1,399

Provision for income taxes

        (1,768)

          (424)

           (3,270)

           (529)

Net Income

          3,510

              697

              6,491

              870

Preferred stock dividends  

           (684)

              -    

           (1,255)

                -

Net income available for common    

           2,826

              697

              5,236

              870

Per Common Share

 

 

 

 

 

Net income per share-basic               

$             .42

$             .11

$                .79

$             .13

 

Net income per share-diluted            

$             .27

$             .10

$                .49

$             .13

 

Weighted average shares outstanding-basic

           6,656

           6,555

              6,639

           6,555

 

Weighted average shares outstanding-diluted             

         13,191

           6,722

            13,289

           6,790

EBITDA

           7,251

           2,725

            13,911

           4,575

 

EBITDA per share – basic 

$           1.09

$             .42

$              2.10

$             .70

 

EBITDA per share – diluted              

$             .55

$             .41

$              1.05

$             .67

Cash Flow (EBITDA Less Interest)

           6,924

           2,190

            13,202

           3,493

 

Cash flow per share – basic              

$           1.04

$             .33

$              1.99

$             .53

 

Cash flow per share – diluted           

$             .52

$             .33

$                .99

$             .51

Production and Prices

 

 

 

 

 

Natural gas, MMcf             

           1,325

           1,051

              2,665

           1,961

 

Price per Mcf       

$           3.40

$           2.30

$              2.99

$           2.07

 

Crude oil and condensate, MBbls    

              296

              175

                 597

              343

 

Price per barrel     

$         23.06

$         15.80

$            23.43

$         13.43

 

Barrel of oil equivalent (MBOE)       

              517

              350

              1,041

              670

Current Assets    

 

 

            10,015

           4,618

Property, plant and equipment-net  

 

 

            61,985

         44,923

Deferred tax asset               

 

 

                  -

              260

Other assets         

 

 

                 175

              715

 

Total assets         

 

 

            72,175

         50,516

Current liabilities 

 

 

              8,224

           3,842

Long-term debt    

 

 

            19,000

         24,500

Subordinated convertible debt         

 

 

                 -

         10,000

Deferred income taxes        

 

 

              3,696

               -

Shareholders’ equity          

 

 

            41,255

         12,174

Total liabilities and shareholders’ equity        

 

 

            72,175

         50,516