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Universal Energy Corp. Announces Results for the Second Quarter of Fiscal Year 2008HOUSTON, Aug. 20 /PRNewswire-FirstCall/ -- Universal Energy Corp. (OTC Bulletin Board: UVSE), an emerging U.S. oil and gas exploration and production company, reported financial and operational results for its second quarter of the fiscal year ended June 30, 2008. Financial Summary The Company reported net income of Conference Call Information The earnings conference call to review the second quarter 2008 results will be today at 9:00 a.m. To participate in the conference call, callers in the United States andCanada can dial (800) 567-5900 (alternate dial-in number is (702) 835-5025. The conference i.d. for all callers is 801094. Universal Energy Corp. is a publicly traded (OTCBB: UVSE - News) energy company engaged in the acquisition and development of crude oil and natural gas leases inthe United States. We pursue oil and gas prospects in partnership with oil and gas companies with exploration, development and production expertise. Our prospect areas consist of lands inLouisiana and Texas. Visit www.universalenergycorp.info for more details. Forward Looking Statements - The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein.
UNIVERSAL ENERGY CORP.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Expressed in U.S. dollars)
Three Months Ended June 30, Six Months Ended June 30,
2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $328,476 $- $415,005 $-
Cost of revenue 154,074 - 167,819 -
Gross profit 174,402 - 247,186 -
Operating expenses
General and
administrative
expenses 736,572 720,822 1,450,718 1,361,740
Investor awareness
and public
relations 11,310 1,286,427 118,760 1,300,918
Impairment loss on
oil and gas
properties 32,792 - 59,698 -
Total operating
expenses 780,674 2,007,249 1,629,176 2,662,658
Loss from
continuing
operations (606,272) (2,007,249) (1,381,990) (2,662,658)
Other income (expense)
Accretion of discounts
on convertible
debentures (230,117) - (480,879) -
Change in fair
value of embedded
derivatives 15,168,285 - 17,907,174 -
Charges relating
to repricing the
2007 Debentures (9,404,508) - (9,404,508) -
Charges related
to the issuance
of the May 2008
Debentures and
Warrants (753,649) - (753,649) -
Excess embedded
derivative value (818,919) - (1,711,656) -
Loss on conversion
of derivatives (88,618) - (88,618) -
Interest expense,
net (327,865) (23,976) (552,696) (23,976)
Total other
income
(expense) 3,544,608 (23,976) 4,915,168 (23,976)
Net income
(loss) before
discontinued
operations 2,938,337 (2,031,225) 3,533,178 (2,686,634)
Discontinued operations
Income (loss) from
operations of
discontinued
operations - - - (34,186)
Loss from
discontinued
operations - - - (34,186)
Net income
(loss) $ 2,938,337 $(2,031,225) $ 3,553,178 $(2,720,820)
Net income per
share from
continuing
operations
- basic $0.09 $(0.07) $0.11 $(0.10)
- diluted $0.00 $(0.07) $0.01 $(0.10)
Net loss per share
from discontinued
operations
- basic $0.00 $0.00 $0.00 $0.00
- diluted $0.00 $0.00 $0.00 $0.00
Total Net income
(loss) per share
- basic $0.09 $(0.07) $0.11 $(0.10)
- diluted $0.00 $(0.07) $0.01 $(0.10)
Weighted average shares
used in computation
of loss per share
- basic 32,519,178 28,954,696 31,202,178 28,011,088
- diluted 681,398,048 28,954,696 680,081,048 28,011,088
UNIVERSAL ENERGY CORP.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Expressed in U.S. dollars)
June 30, December 31,
Assets 2008 2007
(unaudited)
Current assets:
Cash and cash equivalents $55,253 $234,987
Funds held in escrow 325,550 -
Accounts receivable 219,915 963
Prepaid expenses 6,928 64,228
Total current assets 607,646 300,178
Prepaid drilling and completion costs 725,447 414,377
Oil and gas properties, unproven 2,991,591 2,248,771
Debt issuance costs, net of accumulated
amortization of $280,021 and $70,926 492,218 578,368
Property and equipment, net of accumulated
depreciation of $4,159 and $2,409 9,377 7,731
Security deposit 1,545 1,545
Total assets $4,827,824 $3,550,970
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $930,421 $209,536
Accrued expenses 219,489 143,031
Accrued interest 132,355 -
Promissory notes - 250,000
Promissory notes to stockholders, net of
discounts of $0 and $80,162 924,587 1,019,838
September 2007 Convertible Debentures, net
of discounts of $2,267,822 and $4,146,443 2,340,608 963,851
November 2007 Convertible Debentures, net of
discounts of $1,035,570 and $1,643,775 626,377 98,872
May 2008 Convertible Debentures, net of
discounts of $1,253,656 and $0 2,962 -
Embedded derivative liabilities 3,985,456 10,915,752
Total current liabilities 9,162,255 13,600,880
Long term liabilities:
Promissory notes to stockholders, net of
discounts of $252,341 147,659 -
Total liabilities 9,309,914 13,600,880
Commitments and contingencies
Stockholders' deficit:
Common stock, $0.0001 par value,
250,000,000 shares authorized, 71,077,959
and 29,847,733 shares issued and outstanding 7,108 2,985
Additional paid-in capital 7,396,075 5,365,556
Accumulated deficit (11,885,273) (15,418,451)
Total stockholders' deficit (4,482,090) (10,049,910)
Total liabilities and stockholders'
deficit $4,827,824 $3,550,970
CONTACT:
Universal Energy Corp.
Billy Raley, CEO, (800) 975-2076
braley@universalenergycorp.info
SOURCE Universal Energy Corp. Tags: ,OIL,OTC,ERN,CCA,TX-Univrsl-Enrgy-erns _ _     Is your favorite bookmark site missing? Ask for it. |
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