Beard trims its net loss

Journal Record, The (Oklahoma City), Nov 17, 2000

OKLAHOMA CITY (JR) -- The Beard Co. posted a third quarter net loss of $491,000, or 27 cents per share.

That compared to a loss of $791,000, or 43 cents per share, for the same period a year ago.

Revenues rose 22.2 percent to $192,000 from $157,000 in 1999.

For the nine months ended Sept. 30, Oklahoma City-based Beard posted a net loss of $2.1 million, or $1.17 per share, down from a loss of $1.9 million, or $1.03 per share, in the same period of 1999. Revenues totaled $508,000, down from $1.2 million the prior year.

Earnings per share for the 1999 periods have been restated to reflect the 3-for-4 reverse split in the company's common stock effected on Sept. 20.

"Operating results continue to be severely impacted by the virtual shutdown of our coal reclamation activities," said President Herb Mee Jr. "Sample analyses of the cores taken at the pond in West Virginia indicate that the coal fines reserves were not as great as anticipated, and that project is now on hold. We are currently drilling 50 core holes at a large pond for a private company. If the economics from this pond are as good as anticipated, we will be negotiating with the owner to install a preparation plant at the pond site, or alternatively, to become the plant operator if the owner decides to install its own plant.

"The suspension of our well-servicing activities in northeastern Mexico has also hurt us badly. To date our efforts to obtain new contracts from Pemex in partnership with Schlumberger de Mexico have been unsuccessful. As a result, we plan to move half of our equipment back to the U.S. and may ultimately bring it all back. There is a strong market for the type of equipment we have in this country due to the recent resurgence of gas prices."

Beard operations consist principally of coal reclamation activities, carbon dioxide (CO2) gas production, natural gas well servicing in Mexico, the sale of coal equipment and pursuit of environmental opportunities in China, environmental remediation, and development of its starpay e-commerce payment system.