HOUSTON, April 10, 2012 /PRNewswire/ -- Aztec Oil &
Gas, Inc. (Pink Sheets: AZGS) ("Aztec") announced that it has filed
its Annual audited financials for the fiscal year ending
August 31, 2011. The results were
delayed by a significant increase in business activity and an
extensive and detailed oil/gas reserve study previously reported in
a press release on November 29,
2011.
The following attempts to highlight some areas and numbers of
interest from the audit report compared to the same period from
2010;
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PROVED
RESERVES
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Oil
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Oil
reserves increased from 125,875 barrels in 2010 to 1,002,810
barrels for 2011, or approximately 697%.
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Natural
Gas
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Gas
reserves increased from 454,145 Mcf in 2010 to 1,094,540 Mcf for
2011, or approximately 141%. (Most gas reserves are ancillary to
oil production.)
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OIL/GAS SALES AND NEW WELLS
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Sales
revenue from oil and gas more than tripled for 2011 over 2010
levels. (See financial report.)
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The number
of wells in which Aztec has an interest for 2011 increased to 385.
(See financial report.)
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TOTAL
ASSETS
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Total
assets increased from $11,433,893 for 2010 to $19,994,249 for 2011,
or approximately 75%.
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Liabilities
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Long term
liabilities were decreased by 10.9% to $850,675; and total
liabilities increased by slightly over 15%, to $3,586,240 in spite
of significantly increased activities.
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Total
Equity
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Total
equity increased from $8,318,708 in 2010, to $16,408,019 in 2011,
or approximately 97%.
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General
and Administrative
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For fiscal
2011, general and administrative expenses were reduced to
$2,468,746 or by a reduction of approximately 10.6%.
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RESERVE REPORT
The detailed reserve report previously reported in the Aztec
press release of November 29, 2011,
showed Escalated, 10% Discounted Value of well interests of
$74,857,020, and Escalated,
Non-Discounted Value of wells interests of $240,104,740.
Waylan Johnson, President of
Aztec Oil & Gas, Inc. stated, "We are extremely proud of our
firm and its people for the forward strides we have made, and we
look forward to more of such in fiscal year 2012. For fiscal year
2011, Aztec's net losses increased; however, due to considerably
increased business activities, such losses are directly affected by
substantial non-cash expense items such as depreciation, depletion,
amortization, accretion, etc. While net losses increased, we
achieved substantial asset building and activity increases, but
were also able to reduce general and administrative costs by
approximately $300,000 or 10.6%."
"Aztec is pleased to announce the information contained in this
press release, which is, by necessity, abbreviated for brevity
purposes. We, respectfully, suggest that everyone should
additionally review the actual, entire financial statements, which
are posted through links on our website with the OTC Market and
SEC. We are very pleased with the progress Aztec is making, and we
estimate that 2012 will be another very nice year for the firm,"
further stated Waylan Johnson.
(Note – Most numbers contained in this press release are rounded
and approximates.)
About Aztec Oil & Gas, Inc.
Aztec is an experienced oil and gas exploration, development and
production company focusing on Texas, plus other areas of the U.S. Its
interests are highly diversified between development drilling and
exploration drilling; however, when it offers drilling/production
partnerships, Aztec focuses primarily on Texas shallow, lower risk, development and
step out oil wells. When offered, those programs/partnerships are
placed, with accredited investor partners, only through FINRA
registered Broker Dealers and Registered Investment Advisors; and,
are focused primarily on oil, with natural gas normally being the
secondary target of production.
Aztec has been in the oil/gas business since 2004, and entered
the sponsored drilling program industry in 2006. Over the
next two and one half years, beginning in late 2006, Aztec
intentionally restricted itself to only three small, very limited
Appalachian, natural gas drilling partnerships. Such was done in
order to study and become fully familiar with the nuances of the
sponsored drilling program industry before expanding to the
Company's full capabilities. In the summer of 2008, Aztec
publicly announced it was discontinuing any natural gas drilling in
Appalachia, and was ready to substantially expand its sponsored
drilling program activities, along with its other activities,
primarily for oil in Texas.
As to only its sponsored drilling partnerships, when offered;
since 2008, Aztec has, indeed, focused almost all of those
partnerships on oil wells in Texas. In addition to its early,
initial three small Appalachian natural gas drilling partnerships
mentioned above, Aztec has, intermittently, sponsored and closed a
significant number of other drilling/production partnerships (all
of the latter, as stated, focused primarily on drilling for oil in
Texas). Aztec Energy LLC, a
wholly-owned subsidiary of Aztec Oil & Gas Inc., is the
Managing General Partner of all Aztec drilling partnerships; and
another wholly-owned Aztec Oil & Gas Inc. subsidiary, Aztec
Drilling & Operating, LLC, is the drilling contractor and well
operator for such partnerships. Through its own
participation, contributions and coverage, Aztec owns a 30%
interest in all of its drilling/production partnerships. In
general clarification of its activities, in addition to its own
direct corporate participations in industry partner wells, Aztec
sometimes sponsors lower risk, development drilling/production
programs which include significant tax benefits; all of which are
offered only through FINRA Registered Broker Dealers and Registered
Investment Advisors to Accredited Investors. Aztec's
sponsored drilling/production programs, when offered, focus
primarily on shallow oil/gas drilling, are considered unique, and
also incorporate a sophisticated exit strategy for investors.
Please feel free to visit Aztec on the web at www.AztecOG.com.
An option is provided on the website to join the Aztec
(corporate) mailing list and receive up to date information on
general Aztec activities, including all Aztec press releases.
This release/announcement/document is neither an advertisement,
an offer to sell, nor a solicitation of an offer to buy securities,
Units or participations of Aztec Oil & Gas Inc., its
subsidiaries or affiliates (collectively "Aztec"). This
release/document contains certain statements, estimates, and
forecasts with respect to future performance and events. All
statements other than statements of historical fact included in
this release/announcement/document, a Memorandum, or the Aztec
website, including, but not limited to, statements regarding future
performance of events, are forward-looking statements. All such
forward-looking statements are based on various underlying
assumptions and expectations and are subject to risks and
uncertainties which could cause actual events to differ materially
from those expressed in such statements. As a result, there can be
no assurance that the forward-looking statements included in this
release/announcement/document, a Memorandum, or the Aztec Website
will prove to be accurate or correct. In light of these risks,
uncertainties and assumptions, the future performance or events
described in the forward-looking statements in this
release/announcement/document, a Memorandum, or the Aztec Website
might not occur. Accordingly, investors should not rely upon
forward-looking statements or historical performance as a
prediction or indicator of actual or future results. Also, Aztec
Oil & Gas, Inc., its officers, principals, employees, agents,
subsidiaries, affiliates and consultants, and the other parties,
investors, shareholders, partnerships and partners, involved in any
properties, programs, partnerships, and Aztec activities have
various, material conflicts of interests. The price(s) received for
the oil and natural gas produced from any investments, activities,
properties may be less, or more, than quoted NYMEX prices at any
given times. Specific results, yields, benefits, etc. are not
guaranteed by Aztec and are subject to risks and limitations
inherent in the energy industry and/or described in any Memorandum
and elsewhere. Aztec does not undertake any obligation to update
any forward-looking statements, facts or other information, whether
as a result of new information, future events, subsequent
circumstances or otherwise.
Contact:
Phoenix IR Associates
Investor Relations
Tony Drake
(281) 579-1602
Shareholders@AztecOG.com
SOURCE Aztec Oil & Gas, Inc.