ISRAMCO, INC. Reports Third Quarter Results

HOUSTON, Nov. 8, 2013 /PRNewswire/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported third quarter 2013 revenues were $19,585,000, compared to $12,755,000 in the third quarter of 2012, an increase of approximately 53.6%. The increase was primarily due to net revenues of $5,437,000 from Isramco's overriding royalty interest in the Tamar Field located offshore Israel, and increased revenues from well service operations of $4,833,000, compared to $2,617,000 for the same quarter in 2012.  This increase was partially offset by a decline in oil and gas revenues from the Company's US based operations which decreased by 9.3% compared to the same period of 2012.  The decrease in revenues from US based operations was due to lower prices for natural gas and natural gas liquids ("NGLs") and a decrease in production volumes of crude oil, natural gas and NGLs.

Isramco, Inc. reported net income of $3,823,000 or $1.41 per share for the third quarter of 2013 compared to a net loss of $1,159,000 or $0.43 per share for the same period in 2012. This increase in net income was primarily due to royalty revenues from the Tamar Field, increased revenues from well service activities and a 2012 net loss on derivative contracts (with no corresponding loss in 2013). These increases were partially offset by decreased revenues from crude oil, natural gas and NGLs sales in the US and higher income taxes.

The Company reported net income of $6,422,000, or $2.36 per share, for the nine months ended September 30, 2013, as compared to a net income of $2,873,000 or $1.06 per share, for the comparable nine month period in 2012. This increase in net income was primarily due to royalty revenues from Tamar Field and increased revenues from well service activities. This increase was partially offset by Company net gain of $3,650,000 on sale of its investment in shares of Jerusalem Oil Exploration Ltd, a related party and a net gain of $219,000 on derivative contracts in 2012 (with no corresponding gains in 2013), lower crude oil, natural gas and NGLs sales revenues in 2013 as a result of decrease in crude oil, natural gas and NGLs sales volumes, a decrease in NGLs prices, and higher lease operating expenses.

There are currently 2,717,691 outstanding shares of Common Stock.

Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2012, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.

SOURCE Isramco, Inc.