Radiant Oil & Gas Reports Second Quarter 2014 Results

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Aug 14, 2014, 05:42 ET

HOUSTON, Aug. 14, 2014 /PRNewswire/ -- Radiant Oil & Gas, Inc. ("Radiant" or the "Company") (OTC: ROGI), an independent oil and gas exploration and production company focused on the onshore and shallow state waters of the U.S. Gulf Coast area, announced today results for the second quarter ending June 30, 2014.

Highlights

Revenues increased 28% year-over-year to $682,672
Production increased 30% year-over-year to 6,644 Bbls
Received $4,000,000 investment from third party to further develop Coral and Taylor Point Shallow projects
Added 780,000 Bbls in proved reserves at Natchez project year-to-date

"We are incredibly pleased with our results this quarter, which reflect the substantial progress we are making in our drilling and development program," said Radiant CEO John Jurasin. "In particular, we continued to see strong performance at our Natchez project. Daily production there has increased 30% year-over-year and we anticipate it will continue to grow now that we have transferred operations in-house and begun to aggressively develop the project's Proved Behind Pipe and Proved Undeveloped reserves. As we ramp up production at Natchez, we continue to move closer to getting the Coral, Ensminger and Taylor Point projects on line. Overall, we are excited about Radiant's future and committed to unlocking shareholder value by exploiting long-lived assets on the Gulf Coast."

Second Quarter 2014 Financial Results

Oil and gas revenues increased 28.1% to $682,672 in the second quarter 2014 compared to $532,871 in the second quarter 2013. Average oil sales price was $102.75 per barrel ("Bbl") in the second quarter 2014 compared to $104.51 per Bbl in the second quarter 2013. Oil sales volume increased 30.3% to 6,644 Bbls in the second quarter 2014 compared to 5,099 Bbls in the second quarter 2013.

Lease operating expenses were $1,059,703 million for the second quarter 2014 compared to $706,619 for the second quarter 2013. Depreciation, depletion, amortization and accretion ("DD&A") expense was $48,362 for the second quarter 2014 versus $12,272 for the second quarter 2013. General and administrative ("G&A") expense for the second quarter 2014 was $1,189,167.

Net loss per diluted share for the second quarter 2014 was ($3,023,040), or ($0.21) per diluted share, as compared to ($186,020), or ($0.15) per diluted share, for the second quarter 2013.

As of June 30, 2014, Radiant's cash and cash equivalents balance totaled $1,413,925 and restricted cash balance was $1,150,427.

Operational Update

Natchez

Of the 23 fields purchased in the Natchez acquisition, 18 are operated by Radiant. In-house geological and geophysical and engineering staff has evaluated nine of the 18 operated fields for additional development. Management estimates the Natchez reviews have added over 780,000 Bbls of oil to the Company's proved reserve base as of June 30, 2014, which is an 85% increase over proved reserves for the Natchez properties as of December 31, 2013. Based on the results from the first nine field reviews, management believes additional proven opportunities will be identified when work on the remaining nine fields is completed.
Radiant has increased daily production in its Natchez property holdings from the point of take over and management's goal is to perform the remedial work necessary to get all wells capable of production.
During the quarter, Radiant transferred operational oversight of the project from contractors to in-house staff. The Company expects this will result in increased production, efficiencies and cost savings going forward.
A review in connection with the transition has identified additional owned acreage that Radiant can develop at no cost. The increased acreage position allows for further upside potential.

Coral

In June 2014, Radiant sold 35% of its 100% working interest in the Coral project to a third party and received $2,000,000, which included an advance for the third party's share of projected costs on the first well. During the third quarter of 2014, the Company plans to log and test the first well in the project.

Ensminger

Radiant has been successful in acquiring all lands for the project. The Company located the re-entry well, commenced operations and successfully moved downhole into the well to a depth of approximately 9000'. The well is scheduled to a depth of 14,800' at which time the Company will test the proven reserves at the target depth. Operations have been temporarily suspended pending selection of the appropriate rig for the next phase of operations. Management intends to recommence operations on this project prior to the end of 2014.

Taylor Point Shallow

In July 2014, the Company received a payment of $2,000,000 from a third party for a working interest participation in the Taylor Point Shallow Project. Radiant is the operator of the project and has retained a carried 10% working interest. The Company has added approximately 440,000 Bbls of oil to its proved reserves as of June 30, 2014 related to this project.

About Radiant Oil & Gas, Inc.

Radiant Oil & Gas is an independent exploration and production company focused on identifying and re-developing existing fields on the U.S. Gulf Coast. The Company's growth strategy is to identify historically-producing projects that still hold significant proved reserves and extract them utilizing the most advanced technology.

Radiant currently owns and operates approximately 5,000 net acres across five projects: Natchez, Taylor Point, Ensminger, Coral and Onyx. The Company is actively seeking additional opportunities to acquire onshore and shallow, state water fields or acreage in mature hydrocarbon-rich areas.

Forward-Looking Statements

This press release includes certain estimates and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements regarding timing of drilling operations, reserves associated with prospects, oil content of prospects, future production rates and drilling results, ultimate recoveries from wells, ability to fund drilling operations, and the ultimate outcome of such efforts. Words such as "expects", "anticipates", "intends", "plans", "believes", "assumes", "seeks", "estimates", "should", and variations of these words and similar expressions, are intended to identify these forward-looking statements. While we believe these statements are accurate, forward-looking statements are inherently uncertain and we cannot assure you that these expectations will occur and our actual results may be significantly different. These statements by the Company and its management are based on estimates, projections, beliefs and assumptions of management and are not guarantees of future performance. Important factors that could cause actual results to differ from those in the forward-looking statements include the factors described in the "Risk Factors" section of the Company's filings with the Securities and Exchange Commission. The Company disclaims any obligation to update or revise any forward-looking statement based on the occurrence of future events, the receipt of new information, or otherwise.

Company Contact:

Radiant Oil & Gas, Inc.
John M. Jurasin, CEO
C. Scott Wilson. CFO
832-242-6000

Investor Contacts:

KCSA Strategic Communications
Todd Fromer / Brad Nelson
212-896-1215 / 212-896-1217
[email protected] / [email protected]

RADIANT OIL AND GAS, INC. Consolidated Balance Sheets (Unaudited)


	June 30,		December 31,
	2014		2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,413,925	$	694,582
Restricted cash		1,150,427		2,067,225
Certificates of deposit		325,000		325,000
Accounts receivable – oil and gas		382,885		271,550
Commodity derivative asset		-		33,330
Other current assets		79,803		81,154
Due from related parties		358,226		358,226
TOTAL CURRENT ASSETS		3,710,266		3,831,067

PROPERTY AND EQUIPMENT
Properties subject to amortization, accounted for using the full cost method of accounting, net of accumulated depletion of $131,832 and $44,714, respectively		24,947,061		19,758,681
Property and equipment, net of accumulated depreciation of $4,627 and $1,159, respectively		33,668		25,769
TOTAL PROPERTY AND EQUIPMENT		24,980,729		19,784,450

Commodity derivative asset		-		113,090
Deferred financing costs, net of accumulated amortization of $656,572 and $231,859, respectively		6,416,927		6,841,640

TOTAL ASSETS	$	35,107,922	$	30,570,247

LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	4,834,785	$	1,681,423
Cash advances		905,991		35,580
Notes payable, current portion		8,658,935		5,004,834
Convertible notes payable		70,500		142,500
Accrued interest		3,116,054		1,389,047
Commodity derivative liability, current portion		323,250		-
Due to related parties		916,320		917,295
Stock and warrant derivative liabilities, current portion		115,003		474,895
TOTAL CURRENT LIABILITIES		18,940,838		9,645,574

Deferred gain		655,628		900,628
Asset retirement obligations		438,287		455,296
Stock and warrant derivative liabilities		843,875		4,000,817
Commodity derivative liability		708,590		-
Long-term debt, net of unamortized discount of $566,731 and $522,993, respectively		25,710,146		25,475,264
TOTAL LIABILITIES		47,297,364		40,477,579

Commitments and contingencies (Note 14)		50,000		50,000

STOCKHOLDERS' DEFICIT
Common stock, $0.01 par value, 100,000,000 shares authorized, 14,769,039 and 13,784,408 shares issued and outstanding, respectively		147,691		137,845
Additional paid-in capital		7,008,190		6,114,133
Accumulated deficit		(19,395,323)		(16,209,310)
TOTAL STOCKHOLDERS' DEFICIT		(12,239,442)		(9,957,332)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	35,107,922	$	30,570,247

RADIANT OIL & GAS, INC. Consolidated Statements of Operations (Unaudited)

	Successor		Predecessor		Successor		Predecessor
	For the Three		For the Three		For the Six		For the Six
	Months Ended		Months Ended		Months Ended		Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
OIL AND GAS REVENUES	$	682,672	$	532,871	$	1,449,131	$	1,287,326

OPERATING EXPENSES:
Lease operating expenses		1,059,703		706,619		1,749,873		1,557,431
Depreciation, depletion, amortization and accretion		48,632		12,272		107,739		21,225
General and administrative expense		1,189,167		-		2,363,557		-
TOTAL OPERATING EXPENSES		2,297,502		718,891		4,221,169		1,578,656

OPERATING LOSS		(1,614,830)		(186,020)		(2,772,038)		(291,330)

OTHER INCOME (EXPENSE):
Unrealized gain on stock and warrant derivative liabilities		817,587		-		2,966,271		-
Net loss on commodity derivatives		(946,180)		-		(1,178,260)		-
Interest expense		(1,279,622)		-		(2,439,664)		-
Other income, net		5		-		237,678		-
Total other expense		(1,408,210)		-		(413,975)		-

NET LOSS	$	(3,023,040)	$	(186,020)	$	(3,186,013)	$	(291,330)

NET LOSS PER COMMON SHARE - Basic and diluted	$	(0.21)	$	(0.15)	$	(0.22)	$	(0.23)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - Basic and diluted		14,735,482		1,240,102		14,339,734		1,240,102

Please Note: Effective October 9, 2013, the Company acquired the Natchez properties located in Louisiana and Mississippi. Predecessor references relate to the operations of the Natchez Properties.

SOURCE Radiant Oil & Gas, Inc.