Vanguard Energy Corporation Announces Record 1st Quarter Results

HOUSTON, TX--(Marketwire - Feb 14, 2013) - Vanguard Energy Corporation ( OTCQX : VNGE ), an oil development and production company, provides financial results of operations for the first quarter of its fiscal year 2013 compared to the same quarter for fiscal year 2012.

Highlights

  • Revenue from oil and gas sales increased 77% from $745,171 for the three months ended December 31, 2011 to $1,315,661 for the three months ended December 31, 2012. 
  • Oil production for the for the three months ended December 31, 2012 was 19,020 barrels (gross) compared to 11,562 barrels (gross) for the three months ended December 31, 2011, an increase of 65%, and a 40% increase over the three months ended September 30, 2012.
  • Income from operations for the three months ended December 31, 2012 was $296,099, a 58% increase from the $187,773 reported for the three months ended December 31, 2011.
  • Net income for the three months ended December 31, 2012 was $210,768, more than a 1000% increase over the three months ended December 31, 2011.
  • Earnings per share for the three months ended December 31, 2012 were $0.02 compared with $0.00 for the three month ended December 31, 2011.

Management Comments

Mr. Warren Dillard, President of Vanguard Energy, said, "This was the best quarter in the company's short history. The substantial growth in oil and gas revenue is directly attributable to the growth in production and is enhanced by the new oil sales contract that gives us a premium of $11.75 per barrel over WTI posted prices, after transportation costs. This is possible because the Batson Dome field is so close to Gulf Coast refineries and the high quality of the oil we produce." Mr. Dillard went on to say, "We continue to work our business strategy and drill wells at Batson Dome, we recently drilled our 14th well at the field. Its prospects are excellent and we are presently developing a completion plan. Our current well economics deliver some of the best results in the industry. Our year-end reserve report shows we deliver to our shareholders a PV-10 of $3.40 per share, representing excellent value for our shareholders."

About Vanguard Energy Corporation

Vanguard Energy Corporation (VNGE) is an oil drilling and production company with a focus on established oil fields in southeast Texas. Concentrating on oil properties in established areas with proven production history, Vanguard applies its managerial expertise to maximize production while minimizing risk. Vanguard is focused on creating shareholder value by building cash flow and oil reserves through an aggressive, focused acquisition and development program in the prolific southeast Texas oil producing region. Vanguard's initial area of operation is in the famous Batson Dome Field where it controls 500 strategic acres with substantial oil reserves. It has expanded its reach with the acquisition of a leasehold position in the Hull-Daisetta Field, about 10 miles south of Batson, confirming its plans to expand to new fields as part of its growth strategy. For more information visit the Company's web site at www.vanguardenergycorp.com.

Safe Harbor

This press release and other statements Vanguard Energy may make in the future contain forward-looking statements that relate to Vanguard's plans, objectives and future estimates. Various risks, uncertainties and other factors could cause actual results to differ materially from those expressed in any forward-looking statements. For a more detailed list of such risks, uncertainties and other factors, please refer to the Risk Factor section of Vanguard's Registration Statement on Form S-1 and in its periodic filings with the Securities and Exchange Commission. Vanguard makes no commitment to update any forward-looking statement, or to disclose any facts, events, or circumstances after the date of this release that may affect the accuracy of any forward-looking statement, except as may be required by applicable law.

 
 
Vanguard Energy Corporation
 
First Quarter FY 2013 Financial Highlights
 
    Three Months Ended
December 31, 2012
  Fiscal Year Ended
September 30, 2012
  Fiscal Year Ended
September 30, 2011
                   
Oil and gas sales   $ 1,315,661   $ 3,369,407   $ 1,899,584
                   
Total costs and expenses     1,019,562     3,245,545     1,569,180
                   
Income from operations     296,099     123,862     330,404
                   
Plus:                  
                   
  Asset retirement obligation accretion     4,474     8,922     3,260
                   
  Depreciation, depletion, and amortization     369,336     844,299     264,657
                   
  Stock-based compensation expense     -     59,700     258,731
                   
Adjusted EBITDA (1)   $ 669,909   $ 1,036,783   $ 857,052
                   
                   
    Three Months Ended
December 31, 2012
    Fiscal Year Ended
September 30, 2012
  Fiscal Year Ended
September 30, 2011
                     
Net cash from operating activities   $ (472,904 )   $ 383,083   $ 477,266
                     
Changes in operating assets and liabilities     863,497       556,796     295,517
                     
Adjusted cash flow from operations (1)   $ 390,593     $ 939,879   $ 772,783
                     
                     

(1) We use "adjusted EBITDA" and "adjusted cash flow from operations," non-GAAP financial measure for internal managerial purposes, when evaluating period-to-period comparisons. These measures are not measures of financial performance under U.S. GAAP and should be considered in addition to the related GAAP amounts.

We define adjusted EBITDA as income from operations before the impact of depreciation, depletion and amortization for the period, stock based compensation, and asset retirement obligation accretion expense. We believe adjusted EBITDA is relevant because it is a measure of cash available to fund our capital expenditures and service our debt.

We define adjusted cash flow from operations as the cash flow from operating activities without regard to changes in assets and liabilities. We use this measure to provide additional transparency into our business and to better understand the sources and uses of cash.