DALLAS, Nov. 17, 2008 (GLOBE NEWSWIRE) -- Glen Rose Petroleum Corporation (Nasdaq:GLRP), Dallas, Texas, reported its results for the second quarter ended which showed an increase in oil and gas revenue from $4,315 in the comparative quarter in 2007 to $72,871.
Production and Operating expenses continued to be high at $218,059, because of the fixed cost of developing an operating base.
General Administrative expenses were $697,230, and the non-cash cost of incentive stock options was $683,006, resulting in a net loss for the quarter of $1,532,131, or $0.16 per share.
Chip Langston, President and Chief Financial Officer, stated, "During the quarter we continued to simplify and clarify our financial position, which showed an increase in Shareholders' Equity from $3,116,495 to $3,396,858, a 9% increase as compared to March 31, 2008."
Glen Rose Petroleum Corporation has restated results for the six-month period ending September 30, 2007 to reclassify the gain on forgiveness of debt from a related party to equity. This resulted in a change for that six-month period ending September 30, 2007 from reported net income of $1,259,233 to a net loss of $521,477. The restatement also changed our reported earnings-per-share for the six-month period ending September 30, 2007 from earnings of $0.20 per share to a loss of $0.08 per share.
The periodic income statement follows. The income statement is modified by and subject to the remainder of the financial statements and the notes to the financial statements which were included in the Form 10-Q filed November 13, 2008 and are available through the SEC's website, www.sec.gov.
GLEN ROSE PETROLEUM CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
September 30, September 30,
------------------------ ------------------------
2008 2007 2008 2007
----------- ----------- ----------- -----------
(Restated)
OPERATING REVENUES
Oil and
gas sales $ 57,662 $ 455 $ 72,871 $ 4,315
----------- ----------- ----------- -----------
TOTAL OPERATING
REVENUES 57,662 455 72,871 4,315
----------- ----------- ----------- -----------
OPERATING COSTS
AND EXPENSES
Production
and operating 79,819 30,477 218,059 63,039
Depreciation
and depletion 2,604 338 3,471 676
Accretion of
asset retirement
obligation 1,244 1,244 2,488 2,488
General and
administrative 263,806 164,159 697,230 361,335
Bad debt expense -- 59,812 -- 202,408
Stock Compensation
Expense 583,529 -- 683,006 --
Put option expense -- 69,728 -- 139,456
----------- ----------- ----------- -----------
TOTAL OPERATING
COSTS AND EXPENSES 931,002 325,758 1,604,254 769,402
----------- ----------- ----------- -----------
LOSS FROM
OPERATIONS (873,340) (325,303) (1,531,382) (765,087)
OTHER INCOME
(EXPENSE)
Gain on
forgiveness
of debt -- -- -- --
Gain on sale
of investments -- -- -- 303,155
Gain on sale of
property
and equipment -- 8,351 (749) 8,351
Interest expense -- (9,519) -- (67,896)
----------- ----------- ----------- -----------
Gain (Loss)
before income
tax (873,340) (326,471) (1,532,131) (521,477)
INCOME TAX BENEFIT -- -- -- --
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ (873,340) $ (326,471) $(1,532,131) $ (521,477)
=========== =========== =========== ===========
Income (Loss)
per share
(basic) $ (0.09) $ (0.05) $ (0.16) $ (0.08)
=========== =========== =========== ===========
Weighted average
number of shares
(basic) 9,834,666 6,446,850 9,834,666 6,446,850
=========== =========== =========== ===========
Private Securities Litigation Reform Act Safe Harbor Statement: All statements in this press release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as codified in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including any projections of earnings, revenue, cash or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include our limited capital resources and limited access to financing and the risks and uncertainties inherent in oil and gas exploration, production, and development, and market conditions, particularly energy prices and demand for oilfield equipment and services. Glen Rose Petroleum Corporation assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so.
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