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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): May 7, 1996
DLB OIL & GAS, INC.
(Exact name of registrant as specified in its charter)
OKLAHOMA
(State or other jurisdiction of incorporation or organization)
0-26484 73-1358299
(Commission File Number) (I.R.S. Employer Identification No.)
1601 N.W. EXPRESSWAY, SUITE 700
OKLAHOMA CITY, OKLAHOMA 73118-1401
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 405-848-8808
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ITEM 5. OTHER EVENTS
Registrant is filing as an exhibit to this report a press release
dated May 7, 1996, announcing its First Quarter Results. Such exhibit is
incorporated herein by this reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
The following exhibit is filed with this report:
99.3 Press release dated May 7, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto authorized.
DLB Oil & Gas, Inc.
/s/ Fred W. Standefer
Fred W. Standefer
Vice President Corporate Development
Date: May 7, 1996
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INDEX TO EXHIBITS
Exhibit
Number Description
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99.3 Press release dated May 7, 1996.
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[DLB LETTERHEAD]
NEWS RELEASE
- ------------
FOR IMMEDIATE RELEASE
CONTACT: FRED STANDEFER
VICE-PRESIDENT -- CORPORATE DEVELOPMENT
(405) 848-8808
DLB OIL AND GAS, INC. ANNOUNCES FIRST QUARTER RESULTS
OKLAHOMA CITY, OKLAHOMA - May 7, 1996 - DLB Oil and Gas, Inc. (NASDAQ - DLBI)
today reported net income of $.51 million or $.04 per share for the three months
ended March 31, 1996, as compared to $1.14 million, or $.11 per share for the
same period in 1995. Earnings before interest, taxes, depreciation, depletion,
and amortization ("EBITDA") were $2.82 million as compared to $3.70 million for
the same period in 1995.
Revenues and net income for the quarter were affected by the sale of gas
gathering and processing assets, which generated a non-recurring loss of $0.2
million on the asset sale and eliminated revenues associated with the assets of
$0.6 million. The asset sale was part of a joint venture dissolution in which
the Company received its ratable interest in 140 wells and cash payments of $3.4
million. The Company has reinvested the cash payments into other income
producing assets.
Oil and natural gas sales revenues were $4.48 million, up 6%, as compared to
$4.24 million in the first quarter of 1995. The Company's average sales price
per barrel of oil equivalent rose 17% to $15.43 as compared to $13.20 for the
same period in 1995. As of March 31, 1996 DLB had no long term debt,
shareholders equity of $59.9 million, and working capital of $8.8 million.
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OTHER ACTIVITY
- - Due diligence efforts related to the Company's acquisition of 44 fields
from Amerada Hess Corporation are proceeding according to plan. DLB
currently anticipates closing June 1, 1996.
- - The Rosalie 25-5 located in Woodward County (Northwest Oklahoma), has
been completed at an initial rate of approximately 1500 mcf per day from
the Chester and Tonkawa formations. DLB owns a 64% working interest in
this well and serves as operator. The Company also controls 50% or more of
three offset locations.
- - The Company is currently obtaining permits for its initial 3-D seismic
shoot on the Osage Mineral Estate (Northeast Oklahoma). The initial shoot
design covers approximately 9 square miles and will determine parameters for
subsequent shoots on an area covering approximately 750 square miles under
exclusive contract to DLB for exploratory operations.
- - DLB obtained a 12.5% interest in an area of mutual interest covering
approximately 80,000 acres in Garza County, Texas (West Texas). The
transaction included purchase of three 3-D seismic shoots totaling
approximately 31 square miles, and approximately 23,000 net leasehold
acres.
DLB Oil & Gas, Inc. is an Oklahoma City based company engaged in
the exploration for and the development of crude oil and natural gas
fields with a special emphasis on the application of state-of-the-art
technologies to underanalyzed and underexplored areas. DLB also
engages in the gathering, processing, transportation and marketing of
hydrocarbons. The Company's common stock trades under the symbol DLBI.
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DLB OIL & GAS, INC.
RESULTS OF OPERATIONS
(in thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-------------------------------------
1996 1995 CHANGE
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<S> <C> <C> <C>
PRODUCTION DATA
Oil 143 179 (20.1)%
Natural Gas 884 756 16.9 %
Barrel Oil Equivalent (BOE) 290 305 (4.8)%
Oil ($/Bbl) $ 18 65 $ 16 30 14.4 %
Gas ($/Mcf) $ 2 05 $ 1 75 17.1 %
BOE/$ $ 15 43 $ 13 20 16.9 %
DRILLING DATA
Gross Wells
Exploratory** 0 0 2 0
Developmental** 4 0 2 0
Dry Hole 8 0 1 0
Success Rate 33% 80% (58.3)%
Net Wells
Exploratory** 0 0 1 6
Developmental** 1 0 1 0
Dry Hole 7 0 1 0
Success Rate 13% 72% (82.6)%
** Producing Properties
INCOME STATEMENT DATA
REVENUES
Oil $ 2,671 $ 2,917 (8.4)%
Natural Gas 1,810 1,323 36.8 %
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4,481 4,240 5.7 %
Natural Gas Gathering, Processing & Trans. 77 664 (88.4)%
Interest & Other Income 196 365 (46.3)%
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4,754 5,269 (9.8)%
EXPENSES
Lease Operating (includes production taxes) 1,211 1,238 (2.2)%
General & Administrative 727 329 121.0 %
1,938 1,567 23.7 %
EBITDA 2,816 3,702 (23.9)%
Depreciation, Depletion & Amortization 1,794 1,631 10.0 %
EBIT 1,022 2,071 (50.7)%
Interest Expense 0 179 n/a
EBT 1,022 1,892 (46.0)%
Income Taxes
Proforma 0 757 n/a
Deferred 388 0 n/a
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388 757 n/a
RECURRING NET INCOME 634 1,135 (44.2)%
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Non-Recurring items
Loss on sale of assets* (129) 0 n/a
REPORTED NET INCOME (LOSS) $ 505 $ 1,135 (55.5)%
========= ============
Per Share Data
RECURRING NET INCOME $ 0 05 $ 0 11
Reported Net Income (Loss) $ 0 04 $ 0 11
Average Shares Outstanding 12,988 10,000
* Net of Income Taxes @ 38.0%
</TABLE>
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
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<S> <C> <C> <C>
BALANCE SHEET DATA
Cash and Cash Equivalents 9,344 14,313 (34.7)%
Working Capital 8,754 13,724 (36.2)%
Total Assets 77,078 78,207 (1.4)%
Long Term Debt 0 0 n/a
Stockholders' Equity 59,868 59,544 0.5 %
</TABLE>
