OKLAHOMA CITY, Dec. 31, 2010 /PRNewswire-FirstCall/ -- The Beard Company (Pink Sheets: BRCO) reported that, effective as of the close of business yesterday, its common stock will no longer be traded on the OTC Bulletin Board but will, for the near term, be trading in the Pink Sheets.
Herb Mee, Jr., President of the Company, stated, "The Company's Board of Directors made the decision earlier this month to make some radical changes and cost reductions that it believes will be in the best interest of shareholders and enhance shareholder value. The directors have designed a major Restructuring Plan (the "Plan") which is now in the early stages of implementation. First stage of the Plan was to investigate the pros and cons of "de-listing" the Company's common stock. Our analysis of the costs associated with continuing as an SEC reporting entity indicated an annual cost in excess of $300,000. We concluded that it would be more appropriate to have the stock trade temporarily in the Pink Sheets and to reduce our reporting requirements. Accordingly, we filed yesterday with the Securities and Exchange Commission ("SEC") Form 15 to suspend our duty to file reports."
The directors appointed one of our independent directors, Scott Brown, to serve as a Restructuring Consultant, and gave him authority to reduce costs and make restructuring decisions. We anticipate this project will require two to four months. Under the Plan we expect to reduce other general and administrative costs through a combination of cost-cutting measures, including a reduction in personnel, changes in benefit plans, elimination of some perks, and similar measures.
The Company's primary asset is its share of the Dilworth Field oil and gas project in northern Oklahoma. As operator, Beard Oil Company (BOC) is responsible for many of the contracts involved and oversight of the day-to-day expenses. Several contracts are in the process of being renegotiated and other cost-cutting measures have been identified. If such efforts are successful, the Company will benefit as its joint interest billing will be reduced proportionately for its 17.5% share of the costs.
Further information regarding the Company, financial data and other updates will be posted periodically on the Company website (www.beardco.com). The Board of Directors and management can give no assurance that the measures described above will be sufficient to return the Company to profitability, but they are optimistic that such measures give the Company an excellent chance to restore profitable operations and enhance shareholder value.
Dilworth Field. September 2010 marked the first full month of operations since the Dilworth Field enhanced oil recovery project in Kay County, Oklahoma commenced the Field ramp-up in mid-August. Since that time we have maintained an average production rate of 180,000+ barrels of fluid per day (BFPD). The average barrels of oil produced daily (BOPD) from the Field increased from 133 BOPD during the February thru mid–August, 2010 time frame, to an average of 297 BOPD produced from mid-August through December 2010. As we continue to encounter, diagnose and resolve operational issues we expect to maintain more consistent runtimes in the Field which should slowly drop bottom hole pressures, first locally around the immediate well bores, then over time throughout the entire Field. If, as we anticipate, this is accomplished we will begin to approach matrix production and significantly increase oil and gas production.
We began selling gas from the Field on September 3, 2010. The total gas sold during the September through November period, based on its heating value, was 34,475 MMBtu.
Future expansion for 2011 includes an additional salt water disposal well (SWDW) which is targeted to increase our combined disposal capacity to approximately 275,000+ BFPD. This should enable us to bring three additional production wells online, further increasing total fluid production and oil and gas production and allowing us to reach our goal of matrix production and increased oil cuts much more quickly.
Analysis of the Dilworth Field production gas indicated the presence of 8.65 gallons per Mcf of natural gas liquids (NGLs), which is extremely rich. We have evaluated recovery of the NGLs and determined it will provide a significant additional revenue stream to the total hydrocarbon production in the Field. BOC has plans to install a system to recover substantially all of the NGLs present in the gas stream which are expected to significantly increase total production revenues. In addition, BOC is currently evaluating options and/or opportunities to reduce monthly lease operating expenses to enhance operating profits.
Geohedral LLC. The Company's minerals exploration activities in Alaska are conducted via its investment in Geohedral LLC. As previously reported, the most recent independent assays conducted on Geohedral's mining claims failed to validate the previously documented results. Geohedral is continuing to seek a partner that will provide the capital required to pursue further exploratory work, but the project must be considered speculative at this point.
About The Beard Company
The Beard Company creates, acquires, and/or invests in businesses, primarily related to natural resources, that management believes have high growth and/or above-average profit potential and can enhance shareholder value. The Company is involved in oil and gas activities and in minerals exploration and development through its Geohedral investment.
The Company is headquartered in Oklahoma City and its common stock trades in the Pink Sheets under the symbol "BRCO".
This document may include statements that constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect", "anticipate", or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to future trends in commodities prices; financial, geological or mechanical difficulties affecting the Company's or Geohedral's planned geological work programs; uncertainties surrounding estimates of mineralized material; and other risks associated with our business. By making these forward-looking statements, we undertake no obligation to update these statements for revisions or changes in the future.
For Additional Information, Please Contact:
Herb Mee, Jr., President, at (405) 842-2333 or via email at firstname.lastname@example.org
SOURCE The Beard Company