SOURCE: West Texas Resources, Inc.

August 25, 2014 09:30 ET

West Texas Resources, Inc. Announces Results for Its Third Fiscal Quarter

FRISCO, TX--(Marketwired - Aug 25, 2014) - West Texas Resources, Inc. (OTCQB: WTXR), a Texas-based independent oil and gas company, today announced its third fiscal quarter results. 

During the three month periods ended June 30, 2014 and 2013, the Company had $103,248 and $127,705 of revenue, respectively. The decrease in revenue was due to West Texas Resources' sale of a portion of its working interest in the Port Hudson field in April 2014, offset by its realization of $21,000 of revenue during the three month period ended June 30, 2014 from its working interest in the West Cam 225 field. During the nine month periods ended June 30, 2014 and 2013, the Company had $272,105 and $127,705 of revenue, respectively. All of the Company's revenue during the nine month period ended June 30, 2013 was oil and gas sales derived from its working interest in the Port Hudson field, whereas revenue for the nine months ended September 30, 2014 consisted of revenue in the amount of $242,105 from its working interest in the Port Hudson field and revenue in the amount of $30,000 from our working interest in the West Cam 225 field.

For the three month period ended June 30, 2014, West Texas Resources had general and administrative expenses of $67,782 compared to general and administrative expenses of $26,397 during the prior year period. The increase in expenses is attributable to the higher level of activity during the 2014 period. For the nine month period ended June 30, 2014, the Company had general and administrative expenses of $573,347 compared to general and administrative expenses of $132,833 during the prior year period. The increase in expenses is attributable to the higher level of activity during the 2014 period and the Company's incursion of $232,256 of stock-based compensation during the nine months ended June 30, 2014 compared to nil stock-based compensation during the prior year period.

For the three month periods ended June 30, 2014 and 2013, West Texas Resources incurred a net loss of $(2,134) and $(17,056), respectively. The Company had a net loss of $(570,038) and $(131,746) for the nine month periods ended June 30, 2014 and 2013, respectively. The increase in net loss was the result of an increase in expenses during the periods ended June 30, 2014 compared to the prior year periods.

As of June 30, 2014, West Texas Resources had total assets of $1,047,606 and negative working capital of $(83,578).

Subject to its receipt of additional capital, the Company's plan of operations over the next 12 months is to pursue the acquisition of additional equity interests in oil and gas properties to be thereafter exploited by the Company in conjunction with other oil and gas producers. In June and July 2014, the Company acquired non-operating leases covering approximately 1,070 gross mineral acres leases in the Palo Duro Basin. The leased properties are oil and gas prospects in the Atoka Shale and Wolfcamp Shale, for which West Texas Resource holds a 50% working interest and a 40% net revenue interest. West Texas Resources is currently evaluating its options for the exploitation of the leased properties, including the Company's sale of the leases or its farm-out of the leases to an oil and gas operator.

Forward-Looking Statements:
This press release contains forward-looking statements concerning West Texas Resources, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding our expectations for the Company's interest in the Palo Duro Basin field. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, the risk that the Palo Duro Basin field may not be as productive as currently believed, the risk that the Company's leased properties in the Wolfcamp field may not include oil and gas reserves that can be exploited on commercially reasonable terms, and those other risks set forth in West Texas Resources' annual report on Form 10-K for the fiscal year ended September 30, 2013 filed with the SEC on January 14, 2014 and subsequently filed quarterly reports on Form 10-Q. West Texas Resources, Inc. cautions readers not to place undue reliance on any forward-looking statements. West Texas Resources, Inc. does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Contact Information

  • Contacts:
    Stephen Jones
    CEO
    West Texas Resources Inc.
    214-868 -3939

    Or

    J.D. Kerr
    CFO
    West Texas Resources, Inc.
    972-832-1831