SOURCE: Vanguard Energy Corporation

Vanguard Energy Corporation

February 16, 2012 12:58 ET

Vanguard Energy Corporation Announces First Quarter 2012 Results

HOUSTON, TX--(Marketwire - Feb 16, 2012) - Vanguard Energy Corporation (OTCBB: VNGE), an oil drilling and production company, today announced financial results for its fiscal 2012 first quarter ended December 31, 2011.

Revenue from oil and gas activities during the period was a record $745,171. The Company had no revenue in the prior year's first quarter. Income from operations was $187,773 for the 2012 first quarter compared with a loss in last year's first quarter of $(144,183). Total net income for the period was $17,380 versus a loss of $(172,399) in last year's first quarter. Earnings per share for the 2012 first quarter were less than one cent (based on 12,695,000 fully diluted weighted average shares outstanding during the quarter). By comparison, last year's first quarter showed a loss of $(0.03) per share. Net cash from operating activities totaled $208,418 for the fiscal 2012 period, also a record quarterly high.

Vanguard's President and CEO, Warren M. Dillard, commented: "We're very pleased with our net income during the 2012 fiscal first quarter, but we believe a more accurate measure of our potential is our positive operating cash flow since it is not affected by any non-cash charges. In addition, we believe that our revenues will continue to be enhanced by our ability to increase oil production from our continued new drilling efforts."

Vanguard Energy recently completed drilling its fifth well in the Batson Dome Oil Field, where it controls more than 500 strategically located acres in Southeast Texas. This represents the first of up to eight new wells that will be funded from the proceeds of the Company's IPO that was completed in November 2011. Two additional wells are now in the process of completion and are expected to be producing soon.

Mr. Dillard commented further that as of December 31, 2011, the four completed wells in the Batson Dome Field were collectively producing approximately 120 barrels of oil per day. "We expect the newest wells to perform on par with the average of our other wells, which will keep us on target to fulfill our objectives."

About Vanguard Energy Corporation

Vanguard Energy Corporation 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, Vanguard can apply its managerial expertise to maximize production while minimizing risk. Vanguard believes it can create significant 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 strategically located acres. For more information, visit:

Safe Harbor

This press release and other statements Vanguard Energy Corporation 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 Form S-1 and in its other 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.

Financial Tables Follow

Three Months Three Months
Ended Ended
December 31, 2011 December 31, 2010
(Unaudited) (Unaudited)
Oil and gas sales $ 745,171 $ -
Costs and expenses
Lease operating expense 99,096 -
Production taxes 34,343 -
Depreciation, depletion and amortization 121,945 -
Asset retirement obligation accretion 1,143 -
General and administrative 300,439 98,590
Other 432 45,593
Total costs and expenses 557,398 144,183
Income (loss) from operations 187,773 (144,183 )
Other income (expense)
Interest income 532 465
Interest expense (245,544 ) (31,204 )
Change in fair value of warrant and conversion feature liabilities 74,619 2,523
Total other income (expense) (170,393 ) (28,216 )
Income (loss) before income taxes 17,380 (172,399 )
Provision for income taxes - -
Net income (loss) $ 17,380 $ (172,399 )
Earnings (loss) per share - Basic and diluted $ 0.00 $ (0.03 )
December 31, September 30,
ASSETS 2011 2011
Current assets
Cash and cash equivalents $ 3,860,848 $ 453,243
Accounts receivable 359,936 257,147
Other assets 26,579 4,428
Total current assets 4,247,363 714,818
Property and equipment
Oil and gas, on the basis of full cost accounting
Proved properties 3,981,341 3,606,967
Unproved properties and properties under
development, not being amortized


Furniture and equipment 2,014 2,014
Less: accumulated depreciation, depletion and amortization (386,602 ) (264,657 )
Total property and equipment 5,022,143 3,964,003
Debt issuance costs 285,529 338,345
Other assets 7,395 527,886
Total assets $ 9,562,430 $ 5,545,052
Current liabilities
Accounts payable $ 582,700 $ 180,031
Other liabilities 113,499 75,056
Current portion of notes payable, net of discount of $820,904 and $0 2,579,096 -
Current portion of conversion feature liability 678,788 -
Total current liabilities 3,954,083 255,087
Notes payable, net of discount of $0 and $1,066,539 - 2,333,461
Participation liability 1,045,182 1,172,315
Conversion feature liability - 720,593
Warrant liabilities 367,505 400,319
Asset retirement obligations 25,772 24,629
Total liabilities 5,392,542 4,906,404
Commitments and contingencies - -
Stockholders' equity
Preferred stock, $0.00001 par value; 5,000,000 shares authorized, none issued or outstanding

Common stock, $0.00001 par value; 50,000,000 shares authorized, 12,695,822 and 7,865,822 shares issued and outstanding

Additional paid-in capital 5,379,922 1,866,110
Accumulated deficit (1,210,161 ) (1,227,541 )
Total stockholders' equity 4,169,888 638,648
Total liabilities and stockholders' equity $ 9,562,430 $ 5,545,052

Contact Information

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    Victor P. Thompson