HOUSTON, TX -- 05/20/08 --
USA Superior Energy Holdings, Inc. (OTCBB: USSUE) (the "Company"), a Houston-based energy company focused on
acquiring, owning, operating and applying enhanced oil recovery ("EOR")
techniques to existing shallow fields of oil and gas that have been idle or
marginally producing, today reported its operating results for the year
ended December 31, 2007. On May 16, 2008, the Company filed its Annual
Report on Form 10-K for the twelve months ended December 31, 2007. It is
recommended that interested parties consult the Form 10-K report for
additional information on the Company's 2007 operating results and
financial condition.
Mr. Rowland Carey, Chairman and CEO, stated: "2007 was a seminal year for
our company. Essentially it was a start up year with minor revenues and
losses associated with our reverse merger and issuances of stock to key
employees as we prepared the company for additional growth.
Accomplishments during the year were (1) becoming a public company to
provide access to the capital markets, (2) the acquisition of our most
substantial asset, the Bateman Project, and (3) the preparation of that
project for EOR operations to begin in 2008.
"As we operate in 2008, we are focused on (1) strengthening our management
team to bring expanded talent and discipline to manage our growth, (2)
increasing our capital base to fund our growth, (3) continuing our business
strategy of acquiring and joint venturing shallow fields of oil and gas
that have been idle or marginally producing, (4) accelerating oil
production from the Bateman Project and (5) communicating more effectively
with the capital markets. We continue to believe that efficient low-cost
enhanced recovery of oil and gas in existing proven fields can bring
outstanding returns to our investors."
A summary of our financial results for the year ended December 31, 2007 is
provided below. For more information, please visit us at
www.usa-superior.com.
ABOUT USA SUPERIOR ENERGY HOLDINGS, INC.
USA Superior Energy Holdings, Inc. (OTCBB: USSUE) ("USA Superior" or the
"Company") focuses on acquiring, owning, operating and applying enhanced
oil recovery ("EOR") techniques to existing shallow fields of oil and gas.
The Company performs complete workover and stimulation services in these
existing fields to restart or substantially increase production. It
utilizes state-of-the-art workover and shallow-well drilling techniques in
these fields including new and innovative technologies under development by
the Company. These new technologies include specialized shallow-well cased
hole horizontal drilling ("CHHD") and nitrogen ("N2") injection which may
be utilized to increase production volumes and reserve recoverability from
the Company's projects. USA Superior has a technical team of seasoned
experts in the areas of finding, drilling, completing stimulating,
producing and reworking shallow-well oil and gas fields. Currently, the
Company is involved in developing, owning and operating energy projects and
prospects in East, Central and South Texas. The Company's most significant
project, acquired in January 2007, is the Bateman Project in Bastrop and
Caldwell Counties (comprised of the Bateman Field and part of the adjacent
Dale McBride Field).
This news release contains "forward-looking statements," as that term is
defined in Section 27A of the United States Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Statements in this
press release which are not purely historical are forward-looking
statements and include any statements regarding beliefs, plans,
expectations or intentions regarding the future. Actual results could
differ from those projected in any forward-looking statements due to
numerous factors. These forward-looking statements are made as of the date
of this news release, and the company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results
could differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and intentions
contained in this press release are reasonable, there can be no assurance
that such beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consult all of the information set forth herein
and should also refer to the risk factors disclosure outlined in our recent
current reports on Form 8-K, our annual report on Form 10-KSB, our
quarterly reports on Form 10-QSB and other periodic and current reports
filed from time-to-time with the Securities and Exchange Commission.
USA SUPERIOR ENERGY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2007 and 2006
2007 2006
---------- ----------
Revenue $ 257,560 $ -
Operating expenses
Lease operating expenses 170,529 -
General and administrative, includes stock-based
compensation of $5,680,301 in 2007 6,699,343 258,627
Depreciation, depletion and amortization 53,315 1,303
---------- ----------
Total operating expenses 6,923,187 259,930
---------- ----------
Operating loss (6,665,627) (259,930)
---------- ----------
Other income (expense)
Loss on extinguishment of debt (403,759) -
Interest expense (92,035) (335)
Interest income 15,063 -
---------- ----------
Total other expense (480,731) (335)
Net loss (7,146,358) (260,265)
========== ==========
Net loss per share:
Basic and diluted $ (0.13) $ (0.01)
Weighted average shares outstanding:
Basic and diluted 54,147,945 30,980,000
The financial information provided herein does not include the full
discussion and analysis, as well as the notes to the financial statements,
that are provided in the Company's 2007 Annual Report on Form 10-K. Please
see the Company's 2007 Annual Report on Form 10-K for additional
information.
USA SUPERIOR ENERGY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2007 and 2006
2007 2006
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 256,943 $ 297
Restricted cash 50,000 -
Accounts receivable - 2,897
Prepaid expenses 24,699 -
----------- -----------
Total current assets 331,642 3,194
Oil and gas properties, including $348,086 of
unproved properties, net of accumulated
depletion, depreciation and amortization of
$36,991 in 2007 - using full cost method of
accounting 1,568,289 367,117
Office equipment, net of depreciation of $9,391
and $932, respectively 34,372 1,304
Other assets 750 750
----------- -----------
Total assets $ 1,935,053 $ 372,365
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued liabilities $ 326,730 $ 157,440
Convertible demand note, net of unamortized
discount of $244,154 in 2007 27,000 -
Current portion of notes payable 347,762 -
Advances payable - related party 114,259 35,100
----------- -----------
Total current liabilities 815,751 192,540
Convertible debenture, net of unamortized
discount of $257,316 in 2007 215,947 -
Notes payable 363,957 -
Asset retirement obligations 115,520 19,589
----------- -----------
Total liabilities 1,511,175 212,129
----------- -----------
STOCKHOLDERS' EQUITY
Common shares, $0.001 par value, 150,000,000
shares authorized, 55,760,000 and 30,980,000
shares issued and outstanding, respectively 55,760 30,980
Additional paid-in capital 7,924,850 539,630
Accumulated deficit (7,556,732) (410,374)
----------- -----------
Total stockholders' equity 423,878 160,236
----------- -----------
Total liabilities and stockholders' equity $ 1,935,053 $ 372,365
=========== ===========
The financial information provided herein does not include the full
discussion and analysis, as well as the notes to the financial statements,
that are provided in the Company's 2007 Annual Report on Form 10-K. Please
see the Company's 2007 Annual Report on Form 10-K for additional
information.
Tonya Chadwick
VP Administration
USA Superior Energy Holdings, Inc.
(832) 251-3000
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