DALLAS, March 17 /PRNewswire-FirstCall/ -- Sonoran Energy, Inc. (OTC:SNRN.PK), the independent oil and gas exploration and production company, today filed its Form 10-QSB with the US Securities and Exchange Commission, which is accessible through the SEC's forms and filings website at www.sec.gov/edgar.shtml.
For the three months ended January 31, 2008, Sonoran reported a net loss of $2,373,907, or $0.01 per diluted share. Included in the net loss was $1,347,399 of operating loss, as well as, interest expense of $496,558 and a loss on debt extinguishment of $344,163. For the three months ended January 31, 2007, Sonoran recorded a net loss of $2,719,900 or $0.03 per diluted share. The lower operating loss in this period is primarily due to a reduction in oil and gas production costs (from $460,683 to $364,278) and lower General and Administrative expenses (from $1,201,292 to $1,009,540). The prior year period also included $394,585 for impairment of goodwill. These reductions were partially offset by higher depletion costs resulting from property additions during the current year.
Sonoran produced 6,710 Bbls of oil (including plant products) for the three month period ending January 31, 2008, an increase from 5,893 Bbls in the three month period ending October 31, 2007. Gas production increased quarter- on-quarter to 14,724 Mcf for the period ending January 31, 2008 from 9,828 in the prior quarter. The increase in gas production reflects increased production in Central Texas as we improved gas-well deliquification from several wells.
Production costs for the quarter decreased to $364,278, compared to $460,683 in the prior quarter. The prior quarter included non-recurring costs associated with a repair operation on the Strickland 17 well in Vernon Parish, Louisiana. General and administrative costs in the quarter were essentially flat.
Nine Months Results
For the nine months ended January 31, 2008, Sonoran reported a net loss of $5,059,597, or $0.03 per diluted share. Included in the net loss was $3,304,574 of operating loss, as well as an interest expense of $1,561,236 which was partially offset by a gain of $388,853 related to the company's investment in Jordan. For the nine months ended January 31, 2007, Sonoran recorded a net loss of $6,215,561 or $0.07 per diluted share. For the nine months ended January 31, 2008, Sonoran's sales included 22,012 Bbls of oil (including plant products) and 44,565 Mcf of natural gas, for a total of 29.44 MBOE, an 8.5% decrease compared to the nine months ended January 31, 2007. Declines in Louisiana oil production were only partially offset by increased gas and plant products from Central Texas.
Year-to-date production costs of $1,163,515 are 16% below the $1,383,177 incurred for the same period last year. The decrease reflects management's success at controlling costs by shifting work from contractors to company personnel. In addition, year-to-date General and Administrative costs have declined by 26% from $4,121,111 to $3,051,122.
Peter Rosenthal, Chairman & CEO commented: "Our third quarter results reflect continued progress towards profitable operation of our Texas properties. The continued trend towards lower operating expenses per BOE indicates our commitment to reducing the cost and improving the reliability of our producing properties. As we have recently reported, the challenges faced in our Louisiana work-over program will delay our ability to achieve positive cash flow. However, the operations have provided valuable data that will be used to seek a viable approach to realizing the underlying value of our Louisiana assets. Our transition to UHY LLP as our external accounting firm has been seamless and indicates the continued improvement in our financial accounting and reporting."
About Sonoran Energy, Inc.
Sonoran Energy is a US-based independent oil and gas company that explores, develops, and enhances the performance of high value oil and gas opportunities. With a focus on health, safety and the environment, we leverage the Company's innovative organizational alignment model with leading technical partners.
This news release may contain forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995
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Source: Sonoran Energy, Inc.