A planned reduction in contract drilling activity was offset by a 20% increase in oil and gas production revenue. Oil and gas production revenue was $6.7 million in the third quarter of 2007, up from $5.6 million in the same period of 2006.
Gas gathering and compression revenue rose 15% in the period on increased fees for moving third-party gas through the open-access section of the company’s gathering system.
In third quarter of 2007, the company reported a net loss of $59,000 or breakeven earnings per share. This compares with net income of $136,000, or $0.01 per share, in third quarter of 2006. Discretionary cash flow per share was $0.14 compared to $0.13.
William Daugherty, president and CEO of NGAS Resources, said: Our investments in drilling and infrastructure have enabled us to continue increasing production. In the third quarter, average daily production was 9,000 million cubic feet per day, setting a new record for the company.
During the quarter, we substantially completed our drilling program activities in our core area. Future programs will be focused on our non-operated initiatives, as we implement our strategy for accelerating organic growth by retaining all available working interest in new wells on key operated properties.
