NEW YORK, NY and KIEV, UKRAINE / ACCESSWIRE / August 21, 2014 / GASE Energy, Inc. (OTCQB: GASE) ("GASE" or the "Company") which controls over 160 square miles of producing, clean energy holdings through two local operating companies in the Ukraine, today announced its second quarter and first half financial results for the period ended June 30, 2014.
Second Quarter and First Half Year 2014 Results
A restricted operating environment and currency devaluation had a negative effect on revenues and earnings for the second quarter and first half of the year. Though the Company sees these effects as temporary and due to tensions between the Ukraine and Russia, revenues decreased by $23,356 and $41,669 to $47,854 and $101,504 for the three and six months ended June 30, 2014, respectively, compared to the same periods in 2013. The decrease in natural gas revenues was due to the devaluation of the Hryvnia which saw a 30 percent decrease throughout the first half of the year. Natural gas prices also had an adverse effect on revenues, as the average sales price decreased nearly 5 percent from $8.23 per thousand cubic feet (Mcf) to $7.82/Mcf. Natural gas sales volumes decreased by 1.19 MMcf and 2.54 MMcf to 6.12 MMcf and 12.33 MMcf for the three and six months ended June 30, 2014.
GASE’s other sales and income mainly included revenues from Company-owned, transportable machinery and equipment, such as a cementing unit, compressor unit and pump set to render services to third parties. Other sales decreased by $12,246 and $8,501 to $3,828 and $17,206 for the three and six months ended June 30, 2014, respectively, compared to the same periods ended June 30, 2013. The decrease in sales was directly attributed to a restriction on transportation in the area.
Operating and maintenance expenses of $42,141 mainly included wages and salaries of the gas production personnel, cost of materials, taxes and duties. Operating and maintenance expenses decreased by $11,491 and $20,006 for the three and six months ended June 30, 2014. The decreases were directly associated to a decrease in Company operations and sales.
General and administrative ("G&A") expenses decreased by $37,480 and $24,436 to $26,266 and $70,636 for the three and six months. The significant year over year decrease was directly related to G&A costs incurred in 2013 for the preparation of documentation for the extension of a special permit for production of gas. These one-time costs for this permit was not required in 2014.
Operating loss was $147,737 and $376,350 for the three and six months ended June 30, 2014, compared to operating loss of $60,243 and $100,856 for the same periods ended June 30, 2013.
GASE’s net loss was $146,988 and $375,601 for the three and six months ended June 30, 2014, compared to a net loss of $62,874 and $93,955 for the same periods in 2013.
About GASE Energy, Inc.:
GASE Energy, Inc. is a producing, development stage company targeting the growing independent natural gas production industry of Ukraine, as Europe's second-largest country by land mass makes energy self-sufficiency from Russia a priority. With Ukraine natural gas priced over three times U.S. levels, the energy industry holds compelling economics as well. Through its local operating subsidiaries NPK-KONTAKT and LISPROMGAZ, the completion of GASE's well development activities are planned to result in a multi-million dollar inward investment into Ukraine.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of the Company’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing resources; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Ukraine, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in Ukraine, general economic conditions; geopolitical events and regulatory changes, availability of capital, the Company's ability to maintain its competitive position and dependence on key management. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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SOURCE: GASE Energy, Inc.:
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