Seven Seas Reports Second Quarter 2001 Results

Search Blogs that Mention this News Release
Click this link to view linked Bookmarking Services
Click this link to view linked Blogging Services
Seven Seas Reports Second Quarter 2001 Results
    HOUSTON, Aug. 14 /PRNewswire/ -- Seven Seas Petroleum Inc. (Amex: SEV)
announced today results for the three months and six months ended
June 30, 2001.  For the second quarter of 2001, the Company reported a net
loss of $2.1 million or $0.06 per share, as compared with a net loss of
$1.5 million or $0.04 per share in the second quarter of 2000.  For the first
six months of 2001, the Company reported a net loss of $2.1 million or
$0.06 per share, as compared with a net loss of $4.3 million or $0.11 per
share in the first six months of 2000.
    Revenue from oil sales decreased $2.2 million in second quarter 2001 to
$1.2 million from $3.4 million in first quarter 2001 principally a result of a
net 53,200 barrel (32%) production decline and a net 48,200 barrel inventory
build-up.  The production decline was principally attributable to remedial
well workovers, individual well testing required by the Colombian Ministry of
Mines and Energy for field unification, and the conversion from trucking
operations to pipeline operations at the end of the quarter.  The inventory
build-up was a result of filling the Guaduas-La Dorada pipeline in late
June 2001 and inventory in transit or storage which will be reported as
third quarter sales.
    During second quarter 2001, the Company completed construction of the
Guaduas-La Dorada pipeline and completed negotiations that resulted in the
consummation of a $45 million financing required for its 2001-2002 business
plan.  The Company also drilled and completed as a producer the first Guaduas
Oil Field development well and commenced operations for the second development
well.
    "Although revenues fell this quarter as we prepared for pipeline
production, we expect third quarter revenues to exceed our record set in the
first quarter of the year," stated Robert A. Hefner III, Chairman and Chief
Executive Officer of Seven Seas.  "The Guaduas Oil Field is currently
producing approximately 7,000 barrels per day and is expected to increase as
more development wells are drilled," concluded Mr. Hefner.
    Seven Seas Petroleum Inc. is an independent oil and gas exploration and
production company operating in Colombia, South America.  The Company's
primary emphasis is on further exploration, development and production of the
Guaduas Oil Field, located in Colombia's prolific Magdalena Basin.
    Statements regarding anticipated oil and gas production and other oil and
gas operating activities, including the costs and timing of those activities,
are "forward looking statements" within the meaning of the Securities
Litigation Reform Act.  The statements involve risks that could significantly
impact Seven Seas Petroleum Inc.  These risks include, but are not limited to,
adverse general economic conditions, operating hazards, drilling risks,
inherent uncertainties in interpreting engineering and geologic data,
competition, reduced availability of drilling and other well services,
fluctuations in oil and gas prices and prices for drilling and other well
services and government regulation and foreign political risks, as well as
other risks discussed in detail in the Seven Seas Petroleum Inc.'s filings
with the U.S. Securities and Exchange Commission.

                             - Table to Follow -


                  SEVEN SEAS PETROLEUM INC. AND SUBSIDIARIES
                       (A DEVELOPMENT STAGE ENTERPRISE)
        STATEMENTS OF CONSOLIDATED OPERATIONS AND ACCUMULATED DEFICIT
                 (Unaudited, In thousands, except share data)

                                  Six months ended       Three months ended
                                      June 30,                 June 30,
                                 2001         2000        2001         2000

    REVENUE
      Crude oil sales          $4,611          $16      $1,217         $---
      Interest income             400        1,006         158          454
                                5,011        1,022       1,375          454
    EXPENSES
      Oil and gas operating
       expenses                 2,106          954       1,074          352
      Depletion, depreciation
       and amortization         1,423          513         509          252
      Interest expense            385          ---         201          ---
      General and
       administrative           3,111        3,733       1,608        1,280
      Loss (Gain) on sale of
       exploration properties     ---          ---         ---          ---
      Other (income) expense      135          157          66          100
                                7,160        5,357       3,458        1,984
    NET LOSS BEFORE INCOME
     TAXES AND MINORITY
     INTEREST                  (2,149)      (4,335)     (2,083)      (1,530)
    INCOME TAX PROVISION
     (BENEFIT)                    ---          ---         ---          ---
    NET LOSS BEFORE MINORITY
     INTEREST                  (2,149)      (4,335)     (2,083)      (1,530)
    MINORITY INTEREST             ---          ---         ---          ---
    NET LOSS                   (2,149)      (4,335)     (2,083)      (1,530)
    DEFICIT ACCUMULATED
     DURING THE DEVELOPMENT
     STAGE, beginning of
     period                  (115,138)    (109,231)   (115,204)    (112,036)
    DEFICIT ACCUMULATED
     DURING THE DEVELOPMENT
     STAGE, end of period   $(117,287)   $(113,566)  $(117,287)   $(113,566)
    BASIC AND DILUTED
     NET LOSS PER COMMON
     SHARE                     $(0.06)      $(0.11)     $(0.06)      $(0.04)
    WEIGHTED AVERAGE COMMON
     SHARES OUTSTANDING    37,846,438   37,834,431  37,856,102   37,834,431
SOURCE Seven Seas Petroleum Inc.
http://www.sevenseaspetro.com
Company News On-Call:
http://www.prnewswire.com/comp/123145.html
CONTACT:
Bryan Sanchez, Investor Relations of Seven
Seas Petroleum Inc., +1-713-622-8218