Business

NGAS narrows loss compared to last year

Lexington-based NGAS Resources, which explores for and produces natural gas, reported Thursday a net loss of $1.1 million for its second quarter, narrowing a $1.9 million loss in the same period a year ago.

In a statement, the company said its results were weighed down by factors including lower production and lower commodity prices.

The loss in the second quarter was 3 cents a share, compared with a loss of 7 cents a share a year ago.

Revenue for the second quarter totaled $13.9 million, down 5.4 percent from $14.7 million in the second quarter of 2009.

A bright spot for the company was its drilling partnerships, president and CEO William S. Daugherty said in a statement.

The 2010 drilling partnership, launched in April, "is significantly ahead of last year's partnership sales," he said. "Sponsoring drilling partnerships has been a successful initiative for our business as it enables us to increase the pace of drilling, diversify our well portfolio, share development costs and expand reserves."

The company said average daily production fell 14 percent year-over-year. It also saw the average realized natural gas price fall a dollar, from $6.47 a year ago to $5.47.

  Comments