GLEN ROSE PETROLEUM CORPORATION ANNOUNCES
FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED MARCH 31, 2011
Houston, TX, October 21, 2011 – Glen Rose Petroleum Corporation (OTCBB – GLRP) (“Glen Rose” or the “Company”) reported its financial results yesterday after close of business, for the fiscal year ended March 31, 2011, and the filing with the Securities and Exchange Commission of its Annual Report on Form 10-K.
During the fiscal year ended March 31, 2011, the Company raised a total of $2.18 million in a Reg. S offering, continued development in the Wardlaw Field establishing increased steady state production from the existing wells, acquired options and leases on additional acreage and instituted significant management and operational improvements to the accounting and reporting capabilities with the appointment of a new CFO and financial reporting team on March 18, 2011.
Glen Rose raised an additional $1.92 million in July 2011 and has now established A Zone production in the south, central and most northern part of lease spanning 9 miles. The Company continues to improve production from existing wells and plans to raise further capital in the near future to finance a development program drilling out into the acreage and increasing production further.
Discussion of Results
The Company is an independent producer of crude oil based in Houston, Texas, which produces oil from the Wardlaw and Adamson leases in Edwards County, Texas. The Company currently has 85 permitted wellbores, 75 of which are capable of production. Glen Rose is currently producing a consistent 40-50 net barrels of oil per day for the month ended March 2011, and this same average net production rate has continued consistently through September 2011.
Oil sales during the 2011 fiscal year were $1,103,227. This is an increase of $978,412 or approximately 784%, as compared to sales of $124,815 during the 2010 fiscal year. The Company sold 19,966 gross barrels of oil during the FYE March 31, 2011 versus 3,398 gross barrels of oil during the FYE March 31, 2010. Recent volatility in crude oil prices has caused substantial variations in unit prices and the Company’s revenues may vary considerably base on crude oil unit prices.
During the audit process for the fiscal year ended 2011, it was determined that the accounting treatment for certain financing and equity-based transactions from the previous year (the 2010 Fiscal Year) and the resulting non-cash charges in the fair value of associated warrant and derivative liabilities needed to be restated. As a consequence, both the 2011 Fiscal Year and restated 2010 Fiscal Year have included these non-cash charges relating to the changes in the fair value of the warrant and derivative liabilities.
Total operating expenses for the 2011 Fiscal Year were $5,392,547. This is an increase of $3,052,559 or approximately 130%, as compared to restated operating expenses of $2,339,988 for the 2010 Fiscal Year. The increase in operating expenses for the 2011 Fiscal Year was directly related to the increased production in the 2011 Fiscal year. The Company increased its production from under an average of 5 gross barrels of oil per day during FYE March 31, 2010 to an average of approximately 100 gross barrels of oil per day in October 2010, which eventually settled back to approximately 40-50 net barrels of oil per day as of March 31, 2011.
The following information was filed by Glen Rose Petroleum Corp (GLRP) on Thursday, October 27, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.