Isramco, Inc. Reports Fourth Quarter Results

HOUSTON, March 31 /PRNewswire-FirstCall/ -- Isramco, Inc. (Nasdaq: ISRL)
reported today revenues for the fourth quarter ended December 31, 2007 of
$7,064,000 compared to revenues of $1,197,000 the fourth quarter a year ago.
The company reported net loss of $5,196,000 or ($1.91) per share for the
fourth quarter of 2007 compared to a net income of $ 1,800,000 or $0.67 per
share for the same quarter a year earlier.
Revenues for the year ended December 31, 2007 were $22,756,000 compared to
revenues of $5,562,000 for 2006. The net loss for 2007 was 6,411,000 or
($2.36) per share compared to a net income of $3,842,000 or 1.41 per share for
2006.
The decrease in the net income in 2007 compared to 2006 is primarily
attributable to: (i) an increase in net loss on derivative contracts of
$8,638,000 compare to a net gain of $2,604,000 in 2006 (ii) an impairment of
$928,000 as results of the sale of land in Israel (iii) an increase of
$2,535,000 of impairment of oil and gas assets due to low production of gas
wells drilled to the Barnett Shale (iv) an increase in interest expenses of
$6,344,000 compare to interest income of $154,000 in 2006 (v) compensation for
a legal settlement of $2,536,000 that was recorded in 2006 , all of which was
partially offset by increased oil and gas operating income, realized gain on
the sale of investment in high -tech company ($1,700,000) and an income tax
benefit ($5,192,000).
The Company recorded a net derivative loss of $8,638,000 for the year
ended December 31, 2007 due to the increase in oil prices.
In 2007, revenues from oil and gas sales were $20,827,000 compared to
$2,167,000 in 2006. The increase is primarily attributable to an increase in
oil prices and the purchase of oil and gas wells through the acquisition of
the assets located mainly in north and west Texas, partially offset by a
decline in production from the Company's older wells. Lease operation expenses
and severance taxes were $7,500,000 in 2007 compared to $1,119,000 in 2006.
The increase is primarily attributable to the purchase of additional oil and
gas wells.
The number of outstanding shares was 2,717,691 at December 31, 2007 and
2006.
The Company's financial statement information is summarized below:

(In thousands, except for per share income)

Three months ended Year Ended
December 31 December 31
2007 2006 2007 2006
STATEMENT OF OPERATIONS

Revenues $7,064 $1,197 $22,756 $5,562

Total expenses (9,142) (1,699) (21,183) (4,777)

Net loss from discontinued
operation ---- (916) ---- (2,727)

Net income (loss) (5,196) 1,800 (6,411) 3,842

Earnings (loss) per common
share - basic and diluted $(1.91) $0.67 $(2.36) $1.41

Weighted average shares
issued and outstanding:
Basic 2,717,691 2,717,691 2,717,691 2,717,691
Diluted 2,717,691 2,717,691 2,717,691 2,717,691

Year Ended
December 31,
2007 2006
CASH FLOW DATA

Net cash provided by (used in)
operating activities $(662) 7,233

Net cash used in investing activities (63,656) (24,041)
Net cash provided by financing activities 64,957 16,181

As of
December 31,
2007 2006
BALANCE SHEET DATA

Current assets $11,103 $28,313

Total Assets 110,708 62,073

Total Liabilities 85,237 27,329

Total Shareholders' Equity 25,471 34,744

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE
MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY
ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT,
CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-
HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES
AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE
MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND
UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR
2007, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE
COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN
ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS
RELEASE.
SOURCE Isramco, Inc.

Haim Tsuff, Chief Executive Officer of Isramco, Inc., +1-713-621-3882,
isramco@wordonline.nl; John Swanson of Swanson Communications, Inc.,
+1-516-671-8582