SCOTTSDALE, Ariz., Aug. 16, 2011 /PRNewswire/ -- American Standard Energy Corp. (the "Company") (OTCBB: ASEN), announces the continued expansion of acreage positions, oil and gas production and revenue growth for the first six months of 2011. For the quarter, the Company reported oil and gas revenues of $3,182,364, representing sequential growth of 33.2% over the first quarter revenue figure of $2,388,493. Compared to the same period in 2010, the Company generated 106.5% revenue growth compared to $1,540,820 in second quarter revenues for the three months ended June 30, 2010.
Q2 2011 Highlights:
- Production from 43 gross (20.1 net) wells in the Permian in which it holds 100% working interests. Average daily production across all wells was 558 BOEPD.
- Increased Bakken producing net wells 100% in Q2, from 0.41 net wells to 0.81 net wells. Q2 BOEPD exit rate of approximately 125 BOEPD.
- Increased Bakken oil, gas and mineral leases by 97% totaling approximately 32,300 net mineral acres for an average of $1,095 per acre.
- Participated in 2 additional gross (0.2 net) wells in the Eagle Ford.
- Successfully raised a combined $11.5 million in net proceeds from an equity private placement completed in July 2011.
- Announced initial Permian Basin drilling program for 10 Wolfberry wells in Andrews County, TX. This is the first of multiple self-directed drilling programs on 100% WI acreage in the Permian Basin. Three wells spud in July and August, with one at total depth.
- Participated in 2 additional gross (0.2 net) wells in the Eagle Ford. ASEN has now participated in a total of 8 gross (0.8 net) wells in the Eagle Ford to date. All Eagle Ford well participations expected to begin full production in Q4 2011.
Scott Feldhacker, CEO commented on the first quarter's 2011 operational performance: "The second quarter of 2011 was a period of significant accomplishment for American Standard Energy. Most importantly, we have transitioned from an asset aggregation phase to a rapid development phase in our company's growth. Going forward, ASEN will look to accelerate drilling and production from our 100% working interest Permian acreage. We believe the growth in daily production and the resulting cash flows will act as a powerful catalyst for our continued growth in the remainder of 2011 and beyond."
Scott Mahoney, CFO emphasized the benefit of increased production focus on ASEN's ability to accelerate growth: "The rapid growth in ASEN's daily production and reserves should enable our company to not only expand cash flows for drilling, but our engineered reserve base is now a viable source of collateral for access to the senior debt markets. Our top priority in the third quarter of 2011 will be the completion of a senior debt facility of scale. With this in place, ASEN would then be able to further accelerate the acquisition of proven producing assets, fund additional drilling commitments and acquire acreage independent of the equity capital markets."
About American Standard Energy:
American Standard Energy Corp. is a non-operated exploration and production company based in Scottsdale, Arizona. ASEN's primary focus is balanced between the Permian and the Bakken and Eagle Ford oil shale resource prospects in the continental United States. ASEN currently controls approximately 40,000 net acres in the following three primary prospect areas:
- 30,800 core net acres targeting the Bakken/Three Forks in North Dakota;
- 6,500 net acres targeting the Permian formation in West Texas;
- 1,200 net acres targeting a specific Eagle Ford prospect in South Texas;
Forward Looking Statements
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding our financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond our Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, our ability to raise capital, general economic or industry conditions nationally and/or in the communities in which our Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting our Company's operations, products, services and prices.
We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond our control.
Andrew Wall, General Counsel
SOURCE American Standard Energy Corp.