USA Superior Energy Reports Large Revenue Increase
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Prosper, TX -- (ReleaseWire) -- 06/02/2008 -- Today’s Hot Stock is USA Superior Energy (OTCBB: USSUE)
Detailed Quote: http://www.otcpicks.com/quotes/USSU.php
Company Profile: http://www.otcpicks.com/usa-superior-energy/usa-superior-energy-3.htm
USA Superior Energy Holdings, Inc. (OTC BB:USSUE.OB - News) ("USA Superior" or the "Company") focuses on acquiring, owning, operating and applying enhanced oil recovery ("EOR") techniques to existing shallow fields of oil and gas. The Company performs complete workover and stimulation services in these existing fields to restart or substantially increase production. It utilizes state-of-the-art workover and shallow-well drilling techniques including new and innovative technologies under development by the Company. These new technologies include specialized shallow-well cased hole horizontal drilling ("CHHD") and nitrogen ("N2") injection which may be utilized to increase production volumes and reserve recoverability from the Company's projects. USA Superior has a technical team of seasoned experts in the areas of finding, drilling, completing stimulating, producing and reworking shallow-well oil and gas fields. Currently, the Company is involved in developing, owning and operating energy projects and prospects in East, Central and South Texas. The Company's most significant project, acquired in January 2007, is the Bateman Project in Bastrop and Caldwell Counties (comprised of the Bateman Field and part of the adjacent Dale McBride Field).
June 2 - USA Superior Reports First Quarter 2008 Results
USA Superior Energy Holdings, Inc. (OTCBB: USSUE), a Houston-based energy company focused on acquiring, owning, operating and applying enhanced oil recovery ("EOR") techniques to existing shallow fields of oil and gas that have been idle or marginally producing, is reporting its operating results for the quarter ended March 31, 2008 and its filing of an amended Quarterly Report on Form 10-Q/A for the three months ended March 31, 2008.
For the quarter ended March 31, 2008, the Company's net loss decreased to $516,740, compared to the same quarter 2007 net loss of $3,379,474. The major components of the first quarter 2008 loss were general and administrative expenses of $463,751 including stock based compensation of $207,436. Stock based compensation in the first quarter of 2008 included warrants issued to the Company's financial consultant and shares issued to a key employee. This compares to general and administrative expenses of $3,375,085 including stock based compensation of $3,020,000 in the quarter ended March 31, 2007 related to the reverse merger and compensation of employees and consultants in the Quarter Ended March 31, 2007.
Revenues for the quarter ended March 31, 2008 increased to $115,563 from $15,443 in the same period of 2007. This increase reflects a full quarter of operations of the Bateman Project which was acquired at the comparable quarter's end in 2007. Sales volume for the first quarter 2008 was a net 1,322 barrels, which was a substantial increase over third quarter and fourth quarter volume of 727 barrels and 139 barrels, respectively. This increase represents the successful results of workover and treatment operations in the Bateman Field performed during the first quarter of 2008. The Company anticipates a further sales volume increase for the second quarter of 2008 as sales volume has exceeded a net 1,183 barrels in the month of May 2008. The Company realized an average price of $91.63 per barrel during the quarter ended March 31, 2008.
Mr. Rowland Carey, Chairman and CEO, stated: "For the remainder of 2008 we remain focused on the continuing workover and acceleration of revenue from our Bateman Project and preparations for EOR operations to begin in the second half of 2008. We are also seeking to strengthen our management team, increase our capital base to fund our EOR operations and growth to continue our business strategy of acquiring and joint venturing shallow fields of oil and gas that have been idle or marginally producing."
The Company's ability to maintain and increase sales from recent levels is dependent on its ability to raise funds to correct its working capital deficit and for the investment of additional funds into the extensive maintenance, workover and planned enhancement operations to accelerate the realization of production volumes.
On May 30, 2008, and substantially ahead of the OTCBB grace period deadline of June 20, 2008, the Company also filed an amended Quarterly Report on Form 10-Q for the three months ended March 31, 2008, which included the required management certifications and independent registered public accounting firm's review of its consolidated financial statements included in its Quarterly Report on Form 10-Q for the three months ended March 31, 2008. In addition, subsequent to the filing of our Form 10-Q, the Company concluded that it was required to restate previously issued financial statements for the quarters ended March 31, 2008 and 2007. Management determined that a restatement was necessary in respect of the following: revision of stock based compensation for 2007, revision of the valuation of stock and warrants to be issued under a financial services contract in 2008, correction of the timing of recording certain transactions in 2007. As a result of these revisions to our financial statements, our previously issued financial statements for the quarters ended March 31, 2008 and 2007 (which were included in our Quarterly Reports on Form 10-Q) should no longer be relied upon. Restated financials for the quarters ended March 31, 2008 and 2007 are included in the filing on Form 10-Q/A filed on May 30, 2008. These changes do not affect the financial statements contained in the Annual Report on Form 10-K for the year ended December 31, 2007, which may continue to be relied upon.
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Forward-Looking Statement: This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.
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