Benton Oil & Gas Co. Posts Net Loss, Seeks to Focus on International Projects
Benton Oil & Gas Co. has announced a net loss for the second consecutive year, resulting from a decline in production revenues in its domestic operations. However, the company's efforts to divest itself of nonstrategic properties have been partially offset by the success of two international projects in Venezuela and Russia. Despite the decline in domestic production, Benton's focus on the Gulf Coast region and its Venezuelan and Russian properties is expected to yield positive results in the long term.
Key Takeaways:
- Benton Oil & Gas Co. posted a net loss of $4.8 million (26 cents/share) on revenues of $7.8 million for 1993.
- The decline in domestic oil production resulted from a 22% decrease in production, from 384,000 bbl in 1992 to 299,000 bbl in 1993.
- Domestic gas production decreased by 72%, from 817 MMcf in 1992 to 245 MMcf in 1993.
- Benton's Venezuelan venture, Benton-Vinccler, contributed 160,000 bbl of net oil production for the company's 50% interest in 1993.
- Net production at the company's Russian venture, Geoilbent, was 28,000 bbl on the company's 34% interest in 1993.
- Benton received $8.31/bbl for Venezuelan production and $11.46/bbl for Russian production, after deducting marketing and transportation charges.
- The company expects revenues to decline in the short term as it unloads certain domestic properties.
Statistics:
- Net loss: $4.8 million (26 cents/share)
- Revenues: $7.8 million
- Domestic oil production decline: 84,000 bbl (22% decrease)
- Domestic gas production decline: 572 MMcf (72% decrease)
- Benton-Vinccler net oil production: 160,000 bbl (50% interest)
- Geoilbent net oil production: 28,000 bbl (34% interest)
- Venezuelan production price: $8.31/bbl
- Russian production price: $11.46/bbl
Sources:
- Source 1: Benton Oil & Gas Co. press release
- Source 2: Oil & Gas Investor publication
- Source 3: Announcement in Oil & Gas Journal