EXHIBIT 99.1
Gasco
- -----
Energy
For Release at 4:30 PM EST on Tuesday, March 4, 2008
GASCO ENERGY ANNOUNCES FOURTH QUARTER AND
YEAR-END 2007 FINANCIAL RESULTS
DENVER - March 4, 2008 /PRNewswire-FirstCall/ -- Gasco Energy (Amex: GSX) today
announced financial and operating results for the fourth quarter and full-year
ended December 31, 2007.
Full-year 2007 Financial Results
For the year-ended December 31, 2007, Gasco reported a net loss attributable to
common shareholders of $104.4 million, or $1.12 per share, as compared to a net
loss in 2006 of $55.8 million, or $0.65 per share. All per-share figures are
basic and diluted. Included in the full-year 2007 and 2006 operating expenses
are non-cash charges of $97 million and $51 million, respectively. The
respective charges are related to impairments to the carrying value of oil and
gas properties that were incurred during 2007 and 2006. Net loss in 2007 before
the impairment charge, a non-GAAP measure, was $7.4 million or $0.08 per share,
as compared to a net loss before the impairment charge of $4.8 million, or $0.06
per share during the same period in 2006.
Total revenues declined by 14% to $22.2 million, as compared to $25.7 million in
2006. Oil and gas sales for 2007 were $19.1 million as compared to $21 million
for the same period in 2006. The decrease in total revenues and in oil and gas
sales during 2006 is attributed mainly to lower prices received for sales of the
Company's natural gas volumes, despite higher volumes produced in 2007.
Gathering revenues from Gasco's midstream assets were unchanged year-over-year
at $1.9 million. For the full year, average prices received for Gasco's natural
gas and liquids were $4.19 per thousand cubic feet of natural gas (Mcf) and
$56.38 per barrel of liquid hydrocarbons. This compares to $5.38 per Mcf and
$54.86 per barrel for 2006.
Gasco's total assets at year-end were $122.5 million, down from $165.5 million
at year-end 2006. The decline in total assets is attributed to the previously
referenced impairment charge. Net cash provided by operating activities for 2007
was a Company-record $11.6 million as compared to $9.4 million in 2006 and an
increase of 23%. Cash and investments were $1.8 million at December 31, 2007.
Also at December 31, 2007, the Company had $9 million drawn on its $250 million
reserve-based revolving line of credit with JPMorgan, of which $40 million was
currently available for borrowing capacity. The bank is currently conducting its
semi-annual borrowing base re-determination. Given the year-over-year growth in
the Company's reserves, management expects that the re-determination should
result in an increase in borrowing capacity.
Unit Cost Comparisons - LOE / DD&A / G&A
Lease operating expense (LOE) for the year increased to $3.9 million from $3.5
million in the same period in 2006. On a per-unit basis, LOE was unchanged at
$0.92 per thousand cubic feet of natural gas equivalent (Mcfe) for both periods.
Depletion, depreciation and amortization (DD&A) was $9.8 million for the
full-year 2007, as compared to $10.9 million for the same period in 2006. On a
per-unit basis, DD&A declined to $2.29 per Mcfe from $2.85 in the 2006 period.
The Company reported general and administrative expense (G&A) of $9 million in
2007 versus $9.4 million in the same period in 2006. On a per-unit basis, total
G&A for 2007 was $2.12 per Mcfe as compared to $2.47 per Mcfe for the same
period in 2006. G&A expense for 2007 includes $3.1 million of non-cash,
stock-based compensation expense, or, on a per-unit basis, $0.72 per Mcfe, as
1
compared to the 2006 total of $4.2 million, or $1.08 per Mcfe. Gathering
operations expense declined to $2.5 million from $ 2.7 million in 2006.
Fourth Quarter 2007 Financial Results
For the quarter-ended December 31, 2007, Gasco reported a net loss of $2.8
million, or $0.03 per share, as compared to a net loss in 2006 of $1.8 million,
or $0.02 per share. Total revenues were $5.6 million, as compared to $6.6
million in 2006. The decrease in total revenue is attributed to lower prices
received for sales of the Company's natural gas, offset by increased natural gas
production. Oil and gas sales for the fourth quarter 2007 were $5 million as
compared to $5.6 million for the same period in 2006. For the fourth quarter of
2007, the average price received for sales of Gasco's natural gas and liquid
hydrocarbons was $4.00 per Mcf and $71.49 per barrel of liquids. This compares
to $4.96 per Mcf and $46.55 per barrel for the same period in 2006.
Brek Acquisition
Gasco closed the acquisition of Brek Energy in December 2007. In the
transaction, Gasco acquired approximately 17,000 net acres in Utah's Uinta Basin
and approximately 7,200 net acres in the Greater Green River Basin in Wyoming,
with associated proved reserves of approximately 10 billion cubic feet of
natural gas equivalent. For consideration, Gasco issued 10,999,868 shares of its
common stock to the shareholders of Brek. For accounting purposes the
acquisition was valued $30,749,300 based on a price of Gasco common stock of
$2.76 per share, which was the price at the time the merger agreement was signed
in 2006. All of the acreage acquired in the transaction was acreage in which
Gasco maintained a working interest. Management expects the acquisition to
simplify the overall acreage portfolio for Gasco. The Company expects to incur
no additional overhead expenses as a result of the acquisition. Gasco currently
owns or controls 296,874 gross and 188,817 net acres in Utah, Wyoming, Nevada
and California. Utah constitutes 124,547 gross and 92,463 net acres of the
leasehold portfolio.
Record Quarterly and Annual Production
Estimated cumulative net production for the quarter-ended December 31, 2007 was
1,111 million cubic feet equivalent (MMcfe), as compared to 1,106 MMcfe in the
year-ago period. Estimated cumulative net production for the year-ended December
31, 2007 was 4,261 MMcfe, an increase of 12% over full-year 2006 net production
of 3,817 MMcfe. Included in the full-year 2007 equivalent calculation is 41,454
barrels of liquid hydrocarbons, a 91% increase over 2006 liquids volumes of
21,646 barrels. Net production increases are attributed to the completion of new
wells and completion of back-logged wells which are partially offset by normal
production declines in existing wells. The Riverbend Project constitutes
approximately 100% of Gasco's gross and net production. Gasco now has an
interest in 117 gross and 75 net wells in the Riverbend Project, of which it
operates 107 producing wells and five new wells awaiting initial completion.
Risk Management Program
As part of its risk management program, Gasco has entered into derivative
instruments for certain volumes in order to mitigate commodity price risk and
volatility. These hedged volumes ensure predictable cash flow at prices above
the economic threshold for the Riverbend Project. Less than 60% of Gasco's
current net production volumes are hedged.
Gasco's swap agreements for 2008 and 2009 are summarized in the table below:
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
Fixed Price Floating Price (a)
Agreement Type Term Quantity Counterparty payer Gasco payer
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
Swap 1/08 - 12/08 3,000 Mmbtu/day $6.11/Mmbtu NW Rockies
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
Swap 2/08 - 12/08 2,000 Mmbtu/day $6.91/Mmbtu NW Rockies
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
Swap 1/09 - 12/09 3,000 Mmbtu/day $7.025/Mmbtu NW Rockies
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
Swap 1/09 - 12/09 3,000 Mmbtu/day $7.015/Mmbtu NW Rockies
- ----------------------- ------------------ ------------------------ -------------------------- -----------------------
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Gasco's costless collar agreements for 2008 and 2009 are summarized in the
table below:
- -------------------- ---------------------- --------------------- ---------------- ----------------------- ----------------
Call Price
Agreement Type Index Counterparty buyer Put Price
Term Quantity Price (b) Gasco buyer
- -------------------- ---------------------- --------------------- ---------------- ----------------------- ----------------
Costless collar 2/08 - 12/08 3,000 Mmbtu/day NW Rockies $6.90/Mmbtu $6.00/Mmbtu
- -------------------- ---------------------- --------------------- ---------------- ----------------------- ----------------
Costless collar 1/09 - 12/09 3,000 Mmbtu/day NW Rockies $7.50/Mmbtu $6.50/Mmbtu
- -------------------- ---------------------- --------------------- ---------------- ----------------------- ----------------
(a) Contract was initiated in December 2007 and is included in the
accompanying financial statements as derivative instruments at
fair market value as a liability of $343,759.
(b) Northwest Pipeline Rocky Mountains - Inside FERC first of month index price.
Subsequent Events
o Mancos Dakota Test: Gasco is mobilizing a rig to begin drilling a well
to test the productive potential of the Mancos and deeper Dakota
formations to a proposed total depth of 16,500 feet. The well, located
in Gasco's Gate Canyon unit, is approximately three miles to the east
of a recent deep-gas test drilled with apparent success by
Petro-Canada. Gasco will operate the Gate Canyon 23-16 with a 25%
working interest. The remaining 75% working interest is held by a
large, unaffiliated exploration and production company with
significant leasehold in the Uinta Basin. The well is scheduled to
spud in early March 2008.
o Operations Update: In the first two months of 2008, Gasco reached
total depth on two Upper Mancos wells and spud four Upper Mancos
wells. It is important to note that all of the Upper Mancos wells
drilled so far have experienced correlated silty intervals featuring
very similar net pay counts in the shale and a large number of open
fractures. Initial completion activities have commenced on three
Blackhawk wells. Five recompletions were finished to complete
behind-pipe pay zones. Gasco has a backlog of six wells awaiting
initial completions including one Spring Canyon Blackhawk well and
five Upper Mancos wells. The initial completions of the Upper Mancos
wells are scheduled for March and into the second quarter of 2008. At
present there are two Mancos wells on production and their performance
is consistent with our previously disclosed expectations.
o Production: Currently no curtailments are affecting natural gas
volumes in the Uinta Basin. From time-to-time seasonal issues such as
freeze offs and hydrocarbon dew point issues may impair production
rates.
o California Farmout: Gasco is evaluating with its partners a San
Joaquin Basin heavy oil prospect that has an estimated 200 million
barrels of unrisked oil potential. Gasco is receiving a prospect fee
and has a carried interest for 33% on two wells, each testing a
separate fault block. If both wells are not drilled, the entire
prospect is returned to Gasco. The prospect is seismically defined and
is categorized as high-risk / high-reward exploration. Terms of the
farmout specify that the first well must be spud by August 1, 2008.
o Nevada: The Company continues to selectively add to its Nevada
leasehold. Gasco currently owns 87,803 gross acres (41,893 net)
prospective for both structural and regional shale resource plays.
Management Comment
Commenting on the financial and operating results, Gasco's President and CEO
Mark Erickson said: "After what could only be called a tumultuous 2007 for many
Rockies producers, we emerge relatively unscathed and in an opportune position
in Gasco's lifecycle to capitalize on a revitalized Uinta Basin. Through
financial discipline during 2007, we are positioned to fund our 2008 capital
program out of cash flow and our revolving line of credit. We expect our 2008
cash flow from operations to be greater and more predictable than in 2007 due
mainly to the hedged quantities of gas now in place. Larger operators are
helping validate what we have contended for years is a large, multi-pay
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hydrocarbon system. The contribution to production and reserves from the
emerging Mancos shale and Dakota formations, combined with improvements to
drilling and completion efficiencies, are reducing the play's breakeven
commodity price when compared to 2007. We contend that the project should be
viewed as being much less economically sensitive to commodity prices than just
one year ago. Our 2008 drilling program is designed to help further evaluate the
productive potential of the Mancos and Dakota, in addition to expanding the
current exploitation areas. We are also busy trying to validate reservoir
characteristics that can lead to 20-acre spacing potential. It will take us
years to evaluate and decades to fully develop our well positioned
90,000-net-acres in what we believe will be the fairway for future Uinta Basin
development."
Teleconference Call
A conference call with investors, analysts and other interested parties is
scheduled for 11:00 a.m. EST on Wednesday, March 5, 2008 to discuss fourth
quarter and full-year 2007 financial and operating results.
Date: Wednesday, March 5, 2008
Time: 11:00 a.m. EST
10:00 a.m. CST
9:00 a.m. MST
8:00 a.m. PST
Call: (866) 392-4171 (US/Canada) and (706) 634-6345 (International),
Passcode: 36520987
Internet: Live and rebroadcast over the Internet: log on to
http://www.gascoenergy.com or to
http://www.videonewswire.com/event.asp?id=46352
Replay: Available through Sunday, March 9, 2008 at (800) 642-1687
(US/Canada) and (706) 645-9291 (International) using passcode
36520987 and for 30 days at http://www.gascoenergy.com
About Gasco Energy
Gasco Energy, Inc. is a Denver-based natural gas and oil exploitation and
development company that focuses on natural-gas-rich prospects in the Rocky
Mountain area of the United States. The Company currently is active in the Uinta
Basin in Utah and controls acreage in the Greater Green River Basin of Wyoming.
To learn more, visit http://www.gascoenergy.com.
Forward-looking Statements
Certain statements set forth in this press release relate to management's future
plans, objectives and expectations. Such statements are forward-looking within
the meanings of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All statements
other than statements of historical facts included in this press release,
including, without limitation, statements regarding Gasco's future financial
position, potential resources, business strategy, budgets, projected costs and
plans and objectives of management for future operations, are forward-looking
statements. In addition, forward-looking statements generally can be identified
by the use of forward-looking terminology such as "may," "will," "expect,"
"intend," "project," "estimate," "anticipate," "believe," or "continue" or the
negative thereof or similar terminology. Although any forward-looking statements
contained in this press release are to the knowledge or in the judgment of the
officers and directors of Gasco, believed to be reasonable, there can be no
assurances that any of these expectations will prove correct or that any of the
actions that are planned will be taken. Forward-looking statements involve known
and unknown risks and uncertainties that may cause Gasco's actual performance
and financial results in future periods to differ materially from any
projection, estimate or forecasted result. Some of the key factors that may
cause actual results to vary from those Gasco expects include inherent
uncertainties in interpreting engineering and reserve or production data;
operating hazards; delays or cancellations of drilling operations because of
weather and other natural and economic forces; fluctuations in oil and natural
gas prices in response to changes in supply; competition from other companies
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with greater resources; environmental and other government regulations; defects
in title to properties; increases in the Company's cost of borrowing or
inability or unavailability of capital resources to fund capital expenditures;
and other risks described under "Risk Factors" in Item 1. of the Company's 2007
filing on Form 10-K filed with the Securities and Exchange Commission on March
4, 2008.
Contact for Gasco Energy, Inc.: Investor Relations: 303-483-0044
[Financial and Operational Tables Accompany this News Release]
The notes accompanying the financial statements are an integral part of
the consolidated financial statements and can be found in Gasco's
filing on Form 10-K dated March 4, 2008.
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GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
-------------------------------------
2007 2006
ASSETS
CURRENT ASSETS
Cash and cash equivalents $1,843,425 $12,876,879
Restricted investment - 3,575,000
Short-term investments - 6,000,000
Accounts receivable
Joint interest billings 5,639,174 5,955,186
Revenue 3,872,959 3,081,850
Inventory 1,160,325 1,297,498
Prepaid expenses 327,030 644,490
----------- ----------
Total 12,842,913 33,430,903
----------- ----------
PROPERTY, PLANT AND EQUIPMENT, at cost
Oil and gas properties (full cost method)
Proved properties 215,273,593 159,407,481
Unproved properties 41,644,348 12,538,067
Wells in progress 1,058,727 5,215,252
Gathering assets 15,708,353 12,703,346
Facilities and equipment 9,680,010 8,492,632
Furniture, fixtures and other 284,791 241,009
----------- -----------
Total 283,649,822 198,597,787
Less accumulated depletion, depreciation, amortization
and impairment (175,973,720) (68,945,779)
------------- ------------
Total 107,676,102 129,652,008
------------ -----------
NON-CURRENT ASSETS
Deposit 139,500 -
Deferred financing costs 1,853,274 2,371,507
----------- ------------
1,992,774 2,371,507
----------- ------------
TOTAL ASSETS $ 122,511,789 $ 165,454,418
============= =============
The notes accompanying the financial statements are an
integral part of the consolidated financial
statements and can be found in Gasco's filing on
Form 10-K dated March 4, 2008.
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GASCO ENERGY, INC.
CONSOLIDATED BALANCE SHEETS (continued)
December 31,
--------------------------------------
2007 2006
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 13,206,767 $ 16,228,056
Revenue payable 1,477,268 1,678,427
Advances from joint interest owners 5,718,234 2,955,376
Derivative instruments 343,759 -
Accrued interest 844,094 844,102
Accrued expenses 583,000 595,000
----------- -----------
Total 22,173,122 22,300,961
----------- ----------
NONCURRENT LIABILITIES
5.5% Convertible Senior Notes 65,000,000 65,000,000
Long-term debt 9,000,000 -
Asset retirement obligation 1,030,283 908,543
Deferred rent expense 60,593 72,993
---------- ----------
Total 75,090,876 65,981,536
---------- ----------
COMMITMENTS AND CONTINGENCIES (NOTE 13)
STOCKHOLDERS' EQUITY
Series B Convertible Preferred stock - $.001 par value;
20,000 shares authorized; zero shares outstanding - -
Common stock - $.0001 par value; 300,000,000 shares authorized;
107,290,471 shares issued and 107,216,771 shares outstanding as of
December 31, 2007; 86,173,715 shares issued and 86,100,015
shares outstanding as of December 31, 2006 10,729 8,617
Additional paid-in-capital 215,094,271 162,646,592
Accumulated deficit (189,726,914) (85,352,993)
Less cost of treasury stock of 73,700 common shares (130,295) (130,295)
------------ ------------
Total 25,247,791 77,171,921
------------ -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 122,511,789 $ 165,454,418
=============- =============
The notes accompanying the financial statements are an
integral part of the consolidated financial
statements and can be found in Gasco's filing on
Form 10-K dated March 4, 2008.
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GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Year Ended December 31,
---------------------------------------------------
2007 2006 2005
REVENUES
Gas $ 16,818,623 $ 19,851,663 $ 13,462,977
Oil 2,337,129 1,187,509 605,330
Unrealized derivative loss (343,759) - -
Gathering 1,937,785 1,941,059 1,411,259
Rental income 1,029,094 - -
Interest income 419,334 2,694,719 1,383,859
---------- ---------- ----------
Total 22,198,206 25,674,950 16,863,425
---------- ---------- ----------
OPERATING EXPENSES
Lease operating 3,932,924 3,513,568 870,593
Gathering operations 2,471,645 2,718,357 1,166,841
Depletion, depreciation and amortization 9,780,767 10,885,697 4,843,439
Impairment 97,090,000 51,000,000 -
General and administrative 9,021,977 9,415,787 5,987,019
Interest expense 4,274,814 3,959,308 4,033,168
----------- ---------- ----------
Total 126,572,127 81,492,717 16,901,060
----------- ---------- ----------
NET LOSS (104,373,921) (55,817,767) (37,635)
Preferred stock dividends - (1,393) (33,347)
------------- ------------ ---------
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS $ (104,373,921) $ (55,819,160) $(70,982)
=============== ============== =========
NET LOSS PER COMMON SHARE - BASIC AND DILUTED $ (1.12) $ (0.65) $ (0.00)
========== ========== =========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 93,504,982 85,383,306 72,152,977
========== ========== ==========
The notes accompanying the financial statements are an
integral part of the consolidated financial statements
and can be found in Gasco's filing on Form 10-K dated
March 4, 2008.
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GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31,
-----------------------------------------------------
2007 2006 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (104,373,921) $ (55,817,767) $ (37,635)
Adjustment to reconcile net loss to net cash provided by
operating activities
Depletion, depreciation, amortization and impairment expense 106,782,341 61,816,513 4,829,403
Accretion of asset retirement obligation 88,426 69,184 14,036
Stock-based compensation 3,085,121 4,151,509 744,235
Unrealized derivative loss 343,759 - -
Amortization of deferred rent expense (12,400) (5,734) 48,727
Landlord incentive payment - - 30,000
Amortization of deferred financing costs 518,233 503,216 458,167
Changes in operating assets and liabilities:
Accounts receivable (475,097) (4,129,844) (3,862,148)
Inventory 137,173 (114,516) (173,068)
Prepaid expenses 177,960 1,064 (186,999)
Accounts payable 2,825,300 2,376,327 (3,109,102)
Revenue payable (201,159) 20,286 1,323,376
Advances from joint interest owners 2,762,858 479,296 1,584,081
Accrued interest (8) 4 148,959
Accrued expenses (12,000) 12,713 323,000
---------- --------- -----------
Net cash provided by operating activities 11,646,586 9,362,251 2,135,032
---------- --------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for acquisitions, development and exploration (63,508,879) (79,557,785) (55,181,914)
Brek acquisition transaction costs net of cash received (356,803) - -
Cash paid for furniture, fixtures and other (43,782) (67,994) (106,790)
Proceeds from property sales 3,475,153 - 828,102
Proceeds from the sale of short-term investments 6,000,000 9,000,000 12,000,000
Cash designated as restricted - (9,980) (6,816,967)
Cash undesignated as restricted 3,575,000 10,139,000 3,426,042
------------ ------------ ------------
Net cash used in investing activities (50,859,311) (60,496,759) (45,851,527)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of common stock 19,300,000 - 79,693,764
Borrowings under line of credit 18,000,000 - -
Repayment of borrowings (9,000,000) - -
Cash paid for debt issuance costs (120,729) (240,262) (275,378)
Exercise of options to purchase common stock - 1,591,674 1,275,743
Preferred dividends - (1,393) (33,347)
---------- --------- ----------
Net cash provided by financing activities 28,179,271 1,350,019 80,660,782
---------- --------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (11,033,454) (49,784,489) 36,944,287
CASH AND CASH EQUIVALENTS:
BEGINNING OF PERIOD 12,876,879 62,661,368 25,717,081
---------- ---------- ----------
END OF PERIOD $1,843,425 $12,876,879 $62,661,368
========== =========== ===========
The notes accompanying the financial statements are an
integral part of the consolidated financial
statements and can be found in Gasco's filing on
Form 10-K dated March 4, 2008.
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GASCO ENERGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended December 31,
2007 2006
PRODUCTION INFORMATION
Gas production 1,043,232 mcf 1,064,567 mcf
Gas price $4.00 per mcf $4.96 per mcf
Oil production 11,370 bbl 6,892 bbl
Oil price $71.49 per bbl $46.55 per bbl
Equivalent production (mcfe) 1,111,452 1,105,919
REVENUES
Gas $4,168,259 $5,278,067
Oil 812,891 320,817
Unrealized derivative loss (343,759) -
Gathering 604,611 577,304
Rental income 330,657 -
Interest income 37,297 396,179
--------- -------
Total 5,609,956 6,572,367
--------- ---------
OPERATING EXPENSES
Lease operating 1,509,887 1,367,590
Gathering operations 1,106,453 893,323
Depletion, depreciation and amortization 1,994,844 2,909,296
General and administrative 2,616,756 2,373,956
Interest expense 1,138,396 845,970
--------- ---------
Total 8,366,336 8,390,135
--------- ---------
NET LOSS (2,756,380) (1,817,768)
NET LOSS ATTRIBUTABLE TO
COMMON SHAREHOLDERS $(2,756,380) $(1,817,768)
============ ============
NET LOSS PER COMMON SHARE $ (0.03) $ (0.02)
=========== ===========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 97,956,247 85,669,255
========== ==========
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Reconciliation of Net Loss Before Impairment Charge(1) from Net Income (Unaudited)
For the Year Ended December 31,
2007 2006 2005
Net loss $(104,373,921) $(55,819,160) $(70,982)
Adjustments to reconcile net loss
before impairment charge
Impairment 97,090,000 51,000,000 -
---------- ---------- ---------
Net loss before impairment charge (1) $(7,283,921) $(4,819,160) (70,982)
Net loss before impairment charge per
share - basic and diluted $(0.08) $(0.06) $(0.00)
======= ======= =======
Weighted average common shares
outstanding - basic and diluted 93,504,982 85,383,306 72,152,977
========== ========== ==========
(1) Net loss before impairment charge is calculated as net loss plus impairment.
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