EXHIBIT 99.1
On July 18, 2000, the Registrant issued the following press release:
"PYR ENERGY REPORTS THIRD QUARTER FINANCIAL RESULTS
DENVER -- PYR Energy Corporation (AMEX:PYR) today announced that for the
third fiscal quarter ended May 31, 2000, the Company had a net loss of
($186,331) or 1.2 cents ($.012) per common share, compared with a net loss of
($237,891) or 2.3 cents ($.023) per common share for the corresponding third
fiscal quarter ended May 31, 1999. During the nine months ended May 31, 2000,
the Company reported a net loss of ($593,257) or 3.8 cents ($.038) per common
share compared with a net loss of ($659,192) or 6.8 cents ($.068) for the
corresponding nine month period ended May 31, 1999. The Company has had no
revenues from the sale of oil or natural gas production.
Interest income was $21,226 and $105,516 for the quarter and nine months
ended May 31, 2000, respectively. This compares to $31,211 and $46,813 for the
quarter and nine months ended May 31, 1999, respectively. The increase in the
recently completed nine month period results from additional cash and marketable
securities on hand primarily during the fall of 1999, from the private placement
completed in May of 1999.
General and administrative expenses primarily associated with the Company's
efforts to pursue its California and Rocky Mountain exploration projects totaled
$202,917 and $684,755 for the quarter and nine months ended May 31, 2000,
respectively. This compares to $216,359 and $528,433 for the quarter and nine
months ended May 31, 1999, respectively. The increase reflected in the nine
months ended May 31, 2000, is predominately from increases in personnel and
salaries to enable the Company to continue to pursue its exploration activities,
and from increases in shareholder relations and business promotion expenditures
resulting from the Company's expanding shareholder base.
Nominal interest expense was recorded during the quarter and nine months
ended May 31, 2000. For the nine month period ended May 31, 2000, dividends paid
on the Company's outstanding Series A Convertible Preferred Stock ("Preferred
Shares") was approximately $107,000. During the quarter and nine months ended
May 31, 1999, the Company recorded $46,115 and $158,151 in interest expense,
respectively. There were no dividends paid during those periods. The decrease in
interest expense and increase in dividends paid results from the conversion of
convertible debentures, outstanding through April 16, 1999, into Preferred
Shares. The Company is obligated to pay a 10% annual dividend on outstanding
Preferred Shares semi-annually on January 1 and July 1 of each year. As of
January 1, 2000, the Company paid the approximate $107,000 of dividends by
issuing 24,914 shares of common stock.
At May 31, 2000, the Company had cash of $1,526,596 working capital of
$1,821,138, total assets of $11,194,806, current liabilities of $117,983 and
total stockholders' equity of $11,076,823. There were 16,310,889 common shares
outstanding at May 31, 2000.
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OPERATIONS:
The Company recently announced a deep natural gas discovery at its San
Joaquin Basin, California-East Lost Hills exploration project. The initial
natural gas production rate from the Berkley ELH#1 well is anticipated to be 15
million cubic feet per day plus associated liquid hydrocarbons. The Company
estimates that at the time the well is connected, its net share of revenues from
this well could be in excess of $200,000 per month based on current gas prices
of approximately $4.95 per mcf of gas and $29.00 per barrel of hydrocarbon
liquids. The operator, Berkley Petroleum, Corp. (TSE:BKP), has started the
process of designing and building wellsite facilities and a transportation
pipeline. Actual production from this well is anticipated to commence by
December 1, 2000. PYR owns a 10.575% working interest in this well and in
approximately 30,000 acres at East Lost Hills.
The participants commenced drilling the Berkley ELH #2 step-out well on
July 11, 2000, located approximately 1.5 miles northwest of the Berkley ELH #1
well. The total depth of this well is anticipated to be 17,300 feet and the well
is expected to reach total depth within 100 days from the drilling commencement
date.
On June 19, 2000, the participants at East Lost Hills commenced drilling
the Berkley ELH #3 well. This well is designed to test a geologically separate
structure than the structure encountered by Company's drilling activities thus
far at East Lost Hills. The well is currently drilling at 8,300 feet toward its
total projected depth of approximately 18,000 feet.
In addition to East Lost Hills, the Company controls approximately 28,000
net acres in two additional San Joaquin basin exploration opportunities and is
continuing the process of presenting these opportunities to potential industry
participants. These prospects target the Temblor formation similar to the East
Lost Hills exploration program. The Company's intent is to bring in a
participant with operational expertise to drill the initial exploration wells
and to provide PYR with an up front cash consideration. The Company expects to
retain a working interest in these prospects.
In the Rocky Mountains, the Company continues the process of presenting one
of its exploration projects to potential industry participants. The Company
intends to replicate the approach of bringing in operational expertise to drill
exploration wells and to provide PYR with an up front cash consideration. The
Company also expects to retain a working interest in this project. PYR currently
controls, through lease, option or farmout, approximately 140,000 net acres in
this particular project.
Denver based PYR Energy is a natural gas and oil exploration company with
activities focused in the San Joaquin Basin of California and in select areas of
the Rocky Mountains region. Additional information about PYR Energy Corporation
can be accessed via the Company's web site at www.pyrenergy.com.
# # #
This release contains forward-looking statements regarding PYR Energy
Corporation's future plans and expected performance based on assumptions the
Company believes to be reasonable. A number of risks and uncertainties could
cause actual results to differ materially from these statements, including,
without limitation, the success rate of exploration efforts and the timeliness
of development activities, fluctuations in oil and gas prices, and other risk
factors described from time to time in the Company's reports filed with the SEC.
In addition, the Company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other factors beyond
the Company's control."
