SOURCE: USA Superior Energy Holdings

May 20, 2008 07:30 ET

USA Superior Reports 2007 Results

HOUSTON, TX--(Marketwire - May 20, 2008) - USA Superior Energy Holdings, Inc. (OTCBB: USSUE) (the "Company"), a Houston-based energy company focused on acquiring, owning, operating and applying enhanced oil recovery ("EOR") techniques to existing shallow fields of oil and gas that have been idle or marginally producing, today reported its operating results for the year ended December 31, 2007. On May 16, 2008, the Company filed its Annual Report on Form 10-K for the twelve months ended December 31, 2007. It is recommended that interested parties consult the Form 10-K report for additional information on the Company's 2007 operating results and financial condition.

Mr. Rowland Carey, Chairman and CEO, stated: "2007 was a seminal year for our company. Essentially it was a start up year with minor revenues and losses associated with our reverse merger and issuances of stock to key employees as we prepared the company for additional growth. Accomplishments during the year were (1) becoming a public company to provide access to the capital markets, (2) the acquisition of our most substantial asset, the Bateman Project, and (3) the preparation of that project for EOR operations to begin in 2008.

"As we operate in 2008, we are focused on (1) strengthening our management team to bring expanded talent and discipline to manage our growth, (2) increasing our capital base to fund our growth, (3) continuing our business strategy of acquiring and joint venturing shallow fields of oil and gas that have been idle or marginally producing, (4) accelerating oil production from the Bateman Project and (5) communicating more effectively with the capital markets. We continue to believe that efficient low-cost enhanced recovery of oil and gas in existing proven fields can bring outstanding returns to our investors."

A summary of our financial results for the year ended December 31, 2007 is provided below. For more information, please visit us at www.usa-superior.com.

ABOUT USA SUPERIOR ENERGY HOLDINGS, INC.

USA Superior Energy Holdings, Inc. (OTCBB: USSUE) ("USA Superior" or the "Company") focuses on acquiring, owning, operating and applying enhanced oil recovery ("EOR") techniques to existing shallow fields of oil and gas. The Company performs complete workover and stimulation services in these existing fields to restart or substantially increase production. It utilizes state-of-the-art workover and shallow-well drilling techniques in these fields including new and innovative technologies under development by the Company. These new technologies include specialized shallow-well cased hole horizontal drilling ("CHHD") and nitrogen ("N2") injection which may be utilized to increase production volumes and reserve recoverability from the Company's projects. USA Superior has a technical team of seasoned experts in the areas of finding, drilling, completing stimulating, producing and reworking shallow-well oil and gas fields. Currently, the Company is involved in developing, owning and operating energy projects and prospects in East, Central and South Texas. The Company's most significant project, acquired in January 2007, is the Bateman Project in Bastrop and Caldwell Counties (comprised of the Bateman Field and part of the adjacent Dale McBride Field).

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and the company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our recent current reports on Form 8-K, our annual report on Form 10-KSB, our quarterly reports on Form 10-QSB and other periodic and current reports filed from time-to-time with the Securities and Exchange Commission.

                    USA SUPERIOR ENERGY HOLDINGS, INC.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              For the Years Ended December 31, 2007 and 2006


                                                       2007        2006
                                                    ----------  ----------

Revenue                                             $  257,560  $        -

Operating expenses
   Lease operating expenses                            170,529           -
   General and administrative, includes stock-based
    compensation of $5,680,301 in 2007               6,699,343     258,627
   Depreciation, depletion and amortization             53,315       1,303
                                                    ----------  ----------
      Total operating expenses                       6,923,187     259,930
                                                    ----------  ----------
Operating loss                                      (6,665,627)   (259,930)
                                                    ----------  ----------

Other income (expense)
   Loss on extinguishment of debt                     (403,759)          -
   Interest expense                                    (92,035)       (335)
   Interest income                                      15,063           -
                                                    ----------  ----------
      Total other expense                             (480,731)       (335)

Net loss                                            (7,146,358)   (260,265)
                                                    ==========  ==========


Net loss per share:
   Basic and diluted                                $    (0.13) $    (0.01)

Weighted average shares outstanding:
   Basic and diluted                                54,147,945  30,980,000

The financial information provided herein does not include the full
discussion and analysis, as well as the notes to the financial statements,
that are  provided in the Company's 2007 Annual Report on Form 10-K. Please
see the Company's 2007 Annual Report on Form 10-K for additional
information.




                    USA SUPERIOR ENERGY HOLDINGS, INC.
                        CONSOLIDATED BALANCE SHEETS
                     As of December 31, 2007 and 2006


                                                      2007         2006
                                                  -----------  -----------
                        ASSETS
Current assets
   Cash and cash equivalents                      $   256,943  $       297
   Restricted cash                                     50,000            -
   Accounts receivable                                      -        2,897
   Prepaid expenses                                    24,699            -
                                                  -----------  -----------
      Total current assets                            331,642        3,194

Oil and gas properties, including $348,086 of
 unproved properties, net of accumulated
 depletion, depreciation and amortization of
 $36,991 in 2007 - using full cost method of
 accounting                                         1,568,289      367,117
Office equipment, net of depreciation of $9,391
 and $932, respectively                                34,372        1,304
Other assets                                              750          750
                                                  -----------  -----------

Total assets                                      $ 1,935,053  $   372,365
                                                  ===========  ===========

       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
   Accounts payable and accrued liabilities       $   326,730  $   157,440
   Convertible demand note, net of unamortized
    discount of $244,154 in 2007                       27,000            -
   Current portion of notes payable                   347,762            -
   Advances payable - related party                   114,259       35,100
                                                  -----------  -----------
      Total current liabilities                       815,751      192,540

Convertible debenture, net of unamortized
 discount of $257,316 in 2007                         215,947            -
Notes payable                                         363,957            -
Asset retirement obligations                          115,520       19,589
                                                  -----------  -----------
      Total liabilities                             1,511,175      212,129
                                                  -----------  -----------

STOCKHOLDERS' EQUITY
   Common shares, $0.001 par value, 150,000,000
    shares authorized, 55,760,000 and 30,980,000
    shares issued and outstanding, respectively        55,760       30,980
   Additional paid-in capital                       7,924,850      539,630
   Accumulated deficit                             (7,556,732)    (410,374)
                                                  -----------  -----------
      Total stockholders' equity                      423,878      160,236
                                                  -----------  -----------

Total liabilities and stockholders' equity        $ 1,935,053  $   372,365
                                                  ===========  ===========


The financial information provided herein does not include the full
discussion and analysis, as well as the notes to the financial statements,
that are  provided in the Company's 2007 Annual Report on Form 10-K. Please
see the Company's 2007 Annual Report on Form 10-K for additional
information.

Contact Information

  • Tonya Chadwick
    VP Administration
    USA Superior Energy Holdings, Inc.
    (832) 251-3000
    Email Contact