HOUSTON, Aug. 11 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that second quarter 2009 revenues were $7,399,000, compared to $18,873,000 in the second quarter of 2008, a decrease of approximately 60.8%. The largest components of revenue in the first quarter of 2009 were oil and gas sales, which decreased by approximately 62% when compared to same period of 2008, due to lower natural gas, oil and natural gas liquids commodity prices.

The Company reported net loss of $8,014,000 or ($2.95) per share for the second quarter of 2009 compared to net loss of $32,186,000 or ($11.84) per share for the same period in 2008. The decrease in the loss recorded during the three months ended June 30, 2009, as compared to the net loss recorded for the same period in 2008, is primarily attributable to a $46,374,000 decrease in loss on swap transactions and a $2,465,000 decrease in lease operating expenses, transportation and taxes. This was partially offset by a $11,474,000 decrease in revenues, a $1,480,000 increase in depreciation, depletion and amortization expense and a $11,510,000 decrease in income tax benefit.

The Company reported net loss of $6,224,000, or ($2.29) per share, for the six months ended June 30, 2009, as compared to a net loss of $39,834,000, or ($14.66) per share, for the comparable six month period in 2008. The decrease in the loss recorded during the six months ended June 30, 2009 is primarily attributable to a $67,070,000 decrease in loss on swap transactions and a $1,533,000 decrease in lease operating expenses, transportation and taxes. In addition, the results for the six months ended June 30, 2009 fully reflected operations related to the GFB Acquisition, while the comparable period in 2008 only reflected three months of such operations. These factors were in turn partially offset by a $12,197,000 decrease in revenues, a $4,682,000 increase in depreciation, depletion and amortization expense and a $16,373,000 decrease in income tax benefit.

There are currently 2,717,691 shares of Common Stock issued and outstanding.

Isramco's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):

                                  For the Three Months   For the Six Months
                                      Ended June 30,       Ended June 30,
                                      2009      2008       2009      2008
    STATEMENT OF OPERATIONS DATA

    Revenues                         $7,399   $18,873    $14,406   $26,603

    Total operating expenses          8,881     9,601     18,142    14,170

    Operating income (loss)          (1,482)    9,272     (3,736)   12,433

    Net loss                         (8,014)  (32,186)    (6,224)  (39,834)

    Earnings (loss) per share
     - basic and diluted              (2.95)   (11.84)     (2.29)   (14.66)

    CASH FLOW DATA

    Net cash provided
     by operating activities                               9,041     4,388

    Net cash provided by (used in)
     investing activities                                    559   (98,276)

    Net cash provided by (used in)
     financing activities                                 (9,817)   99,206


                                                        June 30, December 31,
                                                          2008      2008
    BALANCE SHEET DATA

    Current assets                                       $18,118   $21,988

    Total assets                                         187,635   203,371

    Current liabilities                                   28,719    39,050

    Total liabilities                                    167,786   178,337

    Total shareholders' equity                            19,849    25,034

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.