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[DLB LETTERHEAD]
NEWS RELEASE
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FOR IMMEDIATE RELEASE
CONTACT: FRED STANDEFER
VICE-PRESIDENT -- CORPORATE DEVELOPMENT
(405) 848-8808
DLB OIL AND GAS, INC. ANNOUNCES FIRST QUARTER RESULTS
OKLAHOMA CITY, OKLAHOMA - May 7, 1996 - DLB Oil and Gas, Inc. (NASDAQ - DLBI)
today reported net income of $.51 million or $.04 per share for the three months
ended March 31, 1996, as compared to $1.14 million, or $.11 per share for the
same period in 1995. Earnings before interest, taxes, depreciation, depletion,
and amortization ("EBITDA") were $2.82 million as compared to $3.70 million for
the same period in 1995.
Revenues and net income for the quarter were affected by the sale of gas
gathering and processing assets, which generated a non-recurring loss of $0.2
million on the asset sale and eliminated revenues associated with the assets of
$0.6 million. The asset sale was part of a joint venture dissolution in which
the Company received its ratable interest in 140 wells and cash payments of $3.4
million. The Company has reinvested the cash payments into other income
producing assets.
Oil and natural gas sales revenues were $4.48 million, up 6%, as compared to
$4.24 million in the first quarter of 1995. The Company's average sales price
per barrel of oil equivalent rose 17% to $15.43 as compared to $13.20 for the
same period in 1995. As of March 31, 1996 DLB had no long term debt,
shareholders equity of $59.9 million, and working capital of $8.8 million.
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OTHER ACTIVITY
- - Due diligence efforts related to the Company's acquisition of 44 fields
from Amerada Hess Corporation are proceeding according to plan. DLB
currently anticipates closing June 1, 1996.
- - The Rosalie 25-5 located in Woodward County (Northwest Oklahoma), has
been completed at an initial rate of approximately 1500 mcf per day from
the Chester and Tonkawa formations. DLB owns a 64% working interest in
this well and serves as operator. The Company also controls 50% or more of
three offset locations.
- - The Company is currently obtaining permits for its initial 3-D seismic
shoot on the Osage Mineral Estate (Northeast Oklahoma). The initial shoot
design covers approximately 9 square miles and will determine parameters for
subsequent shoots on an area covering approximately 750 square miles under
exclusive contract to DLB for exploratory operations.
- - DLB obtained a 12.5% interest in an area of mutual interest covering
approximately 80,000 acres in Garza County, Texas (West Texas). The
transaction included purchase of three 3-D seismic shoots totaling
approximately 31 square miles, and approximately 23,000 net leasehold
acres.
DLB Oil & Gas, Inc. is an Oklahoma City based company engaged in
the exploration for and the development of crude oil and natural gas
fields with a special emphasis on the application of state-of-the-art
technologies to underanalyzed and underexplored areas. DLB also
engages in the gathering, processing, transportation and marketing of
hydrocarbons. The Company's common stock trades under the symbol DLBI.
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DLB OIL & GAS, INC.
RESULTS OF OPERATIONS
(in thousands, except per share data)
THREE MONTHS ENDED MARCH 31,
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1996 1995 CHANGE
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PRODUCTION DATA
Oil 143 179 (20.1)%
Natural Gas 884 756 16.9 %
Barrel Oil Equivalent (BOE) 290 305 (4.8)%
Oil ($/Bbl) $ 18 65 $ 16 30 14.4 %
Gas ($/Mcf) $ 2 05 $ 1 75 17.1 %
BOE/$ $ 15 43 $ 13 20 16.9 %
DRILLING DATA
Gross Wells
Exploratory** 0 0 2 0
Developmental** 4 0 2 0
Dry Hole 8 0 1 0
Success Rate 33% 80% (58.3)%
Net Wells
Exploratory** 0 0 1 6
Developmental** 1 0 1 0
Dry Hole 7 0 1 0
Success Rate 13% 72% (82.6)%
** Producing Properties
INCOME STATEMENT DATA
REVENUES
Oil $ 2,671 $ 2,917 (8.4)%
Natural Gas 1,810 1,323 36.8 %
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4,481 4,240 5.7 %
Natural Gas Gathering, Processing & Trans. 77 664 (88.4)%
Interest & Other Income 196 365 (46.3)%
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4,754 5,269 (9.8)%
EXPENSES
Lease Operating (includes production taxes) 1,211 1,238 (2.2)%
General & Administrative 727 329 121.0 %
1,938 1,567 23.7 %
EBITDA 2,816 3,702 (23.9)%
Depreciation, Depletion & Amortization 1,794 1,631 10.0 %
EBIT 1,022 2,071 (50.7)%
Interest Expense 0 179 n/a
EBT 1,022 1,892 (46.0)%
Income Taxes
Proforma 0 757 n/a
Deferred 388 0 n/a
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388 757 n/a
RECURRING NET INCOME 634 1,135 (44.2)%
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Non-Recurring items
Loss on sale of assets* (129) 0 n/a
REPORTED NET INCOME (LOSS) $ 505 $ 1,135 (55.5)%
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Per Share Data
RECURRING NET INCOME $ 0 05 $ 0 11
Reported Net Income (Loss) $ 0 04 $ 0 11
Average Shares Outstanding 12,988 10,000
* Net of Income Taxes @ 38.0%
MARCH 31, DECEMBER 31,
1996 1995
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BALANCE SHEET DATA
Cash and Cash Equivalents 9,344 14,313 (34.7)%
Working Capital 8,754 13,724 (36.2)%
Total Assets 77,078 78,207 (1.4)%
Long Term Debt 0 0 n/a
Stockholders' Equity 59,868 59,544 0.5 %