609 Castle Ridge Road, Suite 335, Austin TX 78746. (512) 579-3560
Thursday, March 31st, 2011 and is filed under Financial Updates
FieldPoint Petroleum Corporation (AMEX:FPP) today announced financial results for its fiscal year ended December 31, 2010.
2010 Financial Highlights Compared to 2009
Ray Reaves, President and CEO of FieldPoint stated, “2010 was a banner year for FieldPoint Petroleum. Although our net income and earnings per share goals were adversely affected by a non-cash property impairment charge of over $500,000, it was still a year of significant accomplishments. This charge was a direct result of the sale of certain oil and gas properties, and reduced pre-tax earnings by approximately six cents per share for the year. However, during the year we increased our production by approximately 20% while at the same time increasing our net income and cash flow. Our operating income, before the non-cash impairment charge, reached almost two million dollars. In addition to the almost one million dollars in cash and cash equivalents on our balance sheets at year end, we had another almost one million dollars in prepaid drilling expenses. During the year we further increased shareholder value with the buy-back, from earnings, of over $800,000 worth of FPP stock.”
Mr. Reaves continued by adding, “By maintaining our historically conservative management style and not being willing to pay the elevated property prices that occurred during the euphoric market rise of 2008, we positioned the company to survive the subsequent fall and take full advantage of the improved market
conditions when they occurred. FieldPoint Petroleum is in an industry that is expected to see continued growth for the foreseeable future, and we have positioned the company well to participate in and contribute to that growth. This is a very exciting time for our shareholders.”
The increase in revenue is attributed to higher oil and natural gas sales, which averaged approximately $78.40 per barrel and $5.21 per MCF in 2010, compared to $54.09 per barrel and $3.87 per MCF in the prior year. Overall production for the year increased 20% on a barrel of oil equivalent (BOE) basis.
Production expenses increased by $732,867 or 48% due to a combination of increased costs and increased sales volumes. Costs increased by $4.20 per barrel equivalent (BOE) or 24% due primarily to increased repair and maintenance workovers incurred in 2010 as compared to 2009. Many of FieldPoint’s properties are mature and bear high operating expense. Increased costs per equivalent unit contributed approximately $431,000 of the increase in lease operating expense while increased sales volumes contributed approximately $302,000 of the increase.
General and administrative expenses increased $5,870 or 1%. Significant components of general and administrative expenses include personnel-related costs and professional services fees. Management expects FieldPoint’s general and administrative expenses to remain relatively comparable between years.
About FieldPoint Petroleum Corporation
FieldPoint Petroleum Corporation is engaged in oil and natural gas exploration, production and acquisition, primarily in Louisiana, New Mexico, Oklahoma, Texas and Wyoming. For more information, please visit www.fppcorp.com.
This press release may contain projections and other forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Any such projections or statement reflect the company’s current views with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such projections will be achieved and that actual results could differ materially from those projected. A discussion of important factors that could cause actual results to differ from those projected, such as decreases in oil and gas prices and unexpected decreases in oil and gas production is included in the company’s periodic reports filed with the Securities and Exchange Commission (at www.sec.gov).