Isramco, Inc. Reports Fourth Quarter Results

                 Isramco, Inc. Reports Fourth Quarter Results

PR Newswire

HOUSTON, March 15, 2013

HOUSTON, March 15, 2013 /PRNewswire/ --Isramco, Inc. (Nasdaq: ISRL) reported
today revenues for the fourth quarter ended December 31, 2012 of $13,383,000
compared to revenues of$11,574,000 for the fourth quarter a year ago. The
company reported a net loss of $652,000, or ($0.24) per share, for the fourth
quarter of 2012 compared to a net loss of $4,308,000, or ($1.59) per share for
the same quarter a year earlier.

Full year, revenues from oil and gas sales were $40,402,000 in 2012, compared
to $44,228,000 in 2011. The net income for 2012 was $2,221,000 or $0.82, per
share compared to a net income of $7,381,000 or $2.72 per share in 2011.

This decrease in net income was primarily due to a lower net gain on sales of
marketable securities, lower natural gas and natural gas liquids ("NGLs")
sales revenues as a result of a decrease in natural gas and NGLs prices, and a
decrease in production volumes of natural gas and NGLs. These decreases were
partially offset by an increase in revenues from its well servicing
activities, a net gain on derivative contracts, and lower taxes and interest
expenses.

On February 2012 the Company sold all of its investment in a company called
Jerusalem Oil Exploration Ltd ("JOEL"). The realized gain from this
transaction amounted to $3,650,000. In 2011, the company had a realized gain
of $15,910,000 from the sale of its investment in shares of MediaMind Ltd.

Upon closing its Israel branch, the company has retained certain rights to
royalty interests in several offshore properties. Those interests include an
overriding royalty interest of 1.5375% in the Tamar field that will increase
to 2.7375% after payout. The company has attained a third party reserve report
from independent petroleum engineers dated March 14, 2013. The report
estimates that by reason of its ownership in the Tamar Royalty, Isramco has
proven undeveloped reserves in these at an estimated amount of 165.9 billion
cubic feet of natural gas and 0.2 billion barrels of condensate. The reports
indicated that no commercial oil deposits were included as reserves.

During 2012, gas supply contracts for sales of natural gas have been executed
with large industrial customers located in Israel. It is anticipated that gas
deliveries under such contracts should begin by the second quarter of 2013.
Although the supply contracts are each subject to certain conditions; the
major conditions to one contract with one large company has already been
fulfilled. The amount of proceeds received from the production of the natural
gas will be determined by the timing of production and the price determined at
the time of sale. Isramco does not control many of the factors that affect
payments received (time of production, price received, time of sale, and costs
incurred) including if or when payment will occur. Isramco has also disclosed
other risk factors regarding to the Tamar Royalty and its other business on
its Form 10-K. These factors make it difficult to accurately predict the
future amounts of proceeds it will receive.

The number of outstanding shares was 2,717,691 on December 31, 2012 and 2011.

The Company's financial statement information is summarized below:
(In thousands, except for per share income)
                          For the Three Months Ended For the Year Ended
                          December 31,               December 31,
                          2012          2011         2012         2011
STATEMENT OF OPERATIONS
DATA
Revenues                  $13,383       $11,574      $50,430      $45,648
Total operating expenses  12,794        11,726       44,433       41,278
Operating income (loss)   589           (152)        5,997        4,370
Net income (loss)         (652)         (4,308)      2,221        7,381
attributable to Isramco
Earnings (loss) per share (0.24)        (1.59)       0.82         2.72
– basic and diluted
CASH FLOW DATA
Net cash provided by                                 17,000       6,946
operating activities
Net cash provided by
(used in) investing                                  (12,031)     7,643
activities
Net cash used in                                     (6,476)      (18,124)
financing activities
                                                     December 31, December 31,

                                                     2012         2011
BALANCE SHEET DATA
Current assets                                       $ 17,386    $ 13,077
Total assets                                         153,958      151,907
Total liabilities                                    135,143      133,359
Total shareholders'                                  18,815       18,548
equity

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
2012, 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.

Contact: Edy Francis, Chief Financial Officer, +1-713-621-3882,
edyf@isramco-jay.com
 
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