Glen Rose Petroleum Corp. (GLRP, Financial) filed Amended Annual Report for the period ended 2007-12-31.
GLEN ROSE PETROLEUM CORPORATION formerly United Heritage Corporation founded in 1981 and based in Dallas TX is focused on the development of on-shore oil and gas assets. The company has project covering 10500 acres in the Wardlaw Field Edwards County TX. The field is currently producing oil which is categorized as `medium crude` at 16-20 API gravity. Management believes its acreage has substantial reserves and is applying new technology to economically extract the reserves. Glen Rose Petroleum Corp. has a market cap of $3.35 million; its shares were traded at around $0.31 with and P/S ratio of 27.48.
Prior to the Asset Sale, we realized proceeds from the sale of oil and gas derived from our properties in New Mexico. During the 2007 fiscal year, the sale price of oil produced by our properties in New Mexico increased by $0.01 a barrel, to $44.73 a barrel, from $44.72 a barrel during the 2006 fiscal year. Production costs during the 2007 fiscal year increased from $8.53 a barrel during the 2006 fiscal year to $42.96 a barrel for our New Mexico properties. During the 2007 fiscal year, the sales price of gas produced by our properties in New Mexico decreased by $0.33 per Mcf, from $3.34 per Mcf during the 2006 fiscal year to $3.01 per Mcf during the 2007 fiscal year. Due to the Asset Sale, we will not earn these revenues or accrue these expenses in the future.
Total operating expenses of $11,993,185 reflects a decrease of $13,864,818, or approximately 54%, for the 2007 fiscal year as compared to operating expenses of $25,858,003 for the 2006 fiscal year. The significant operating expenses reported for the 2006 fiscal year resulted from the inclusion of $23,199,110 in impairment of our oil and gas properties, which was not taken in 2007. The impairment was taken in conjunction with the re-evaluation of our reserves. General and administrative expenses decreased slightly by $22,464, or approximately 2%, from $1,339,920 in the 2006 fiscal year to $1,317,456 in the 2007 fiscal year. We also incurred a put option expense of $2,727,186 during the fiscal year ended March 31, 2007. We had no similar expense during the fiscal year ended March 31, 2006. Interest expense was $456,683 in the 2007 fiscal year, as compared to $221,445 in the 2006 fiscal year. The increase during the 2007 fiscal year was due primarily to the increase in the amount of money loaned to us by Lothian for development of our properties. 2007 fiscal year operating expenses include a $6,125,233 loss on the sale of oil and gas assets.
Production and operating expenses were $1,320,401 during the 2007 fiscal year as compared to $259,290 in production and operating expenses during the 2006 fiscal year, an increase of $1,061,111 or approximately 401%. This significant increase in production and operating expenses was the result of higher salt water disposal charges and charges for field labor. Depreciation and depletion expense for the 2007 fiscal year was $490,507 as compared to depreciation and depletion expense of $1,027,155 for the 2006 fiscal year, a decrease of $536,648 or approximately 52%. The decreased depreciation and depletion expense resulted primarily from the reduction of proved properties due to the impairment of assets in the 2006 fiscal year.
Our current assets increased by $1,975,877 or approximately 849%, from $232,791 at March 31, 2006 to $2,208,668 at March 31, 2007. The increase in our current assets was due primarily to cash and receivables related to the Asset Sale. Current liabilities increased from $1,998,447 at March 31, 2006, to $3,427,471 at March 31, 2007, an increase of $1,429,024 or approximately 72%. The increase in current liabilities was due to increased accounts payable and accrued interest on the related party notes payable. Working capital was a deficit of $1,218,803 at March 31, 2007 as compared to the March 31, 2006 deficit of $1,765,656, a decrease of $546,853 or approximately 31%. The decreased deficit was due primarily to the Asset Sale.
Cash of $642,211 was provided by investing activities during the 2007 fiscal year and cash of $1,908,815 was used in investing activities for the 2006 fiscal year. Net cash provided from investing activities for the 2007 fiscal year consisted of the proceeds from the sale of our New Mexico properties, which totaled $6,613,947. Cash of $5,971,736 was used for capital expenditures for our oil and gas properties and for the purchase of equipment. During the 2006 fiscal year, cash flows used in investing activities related primarily to capital expenditures for our oil and gas properties.
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GLEN ROSE PETROLEUM CORPORATION formerly United Heritage Corporation founded in 1981 and based in Dallas TX is focused on the development of on-shore oil and gas assets. The company has project covering 10500 acres in the Wardlaw Field Edwards County TX. The field is currently producing oil which is categorized as `medium crude` at 16-20 API gravity. Management believes its acreage has substantial reserves and is applying new technology to economically extract the reserves. Glen Rose Petroleum Corp. has a market cap of $3.35 million; its shares were traded at around $0.31 with and P/S ratio of 27.48.
Highlight of Business Operations:
During the 2007 fiscal year, the sale price of oil produced by our properties in Texas increased by $1.53 a barrel, to $38.33 a barrel, from $36.80 a barrel during the 2006 fiscal year. Production costs during the 2007 fiscal year increased from $30.11 a barrel during the 2006 fiscal year to $144.79 a barrel for our Texas properties.Prior to the Asset Sale, we realized proceeds from the sale of oil and gas derived from our properties in New Mexico. During the 2007 fiscal year, the sale price of oil produced by our properties in New Mexico increased by $0.01 a barrel, to $44.73 a barrel, from $44.72 a barrel during the 2006 fiscal year. Production costs during the 2007 fiscal year increased from $8.53 a barrel during the 2006 fiscal year to $42.96 a barrel for our New Mexico properties. During the 2007 fiscal year, the sales price of gas produced by our properties in New Mexico decreased by $0.33 per Mcf, from $3.34 per Mcf during the 2006 fiscal year to $3.01 per Mcf during the 2007 fiscal year. Due to the Asset Sale, we will not earn these revenues or accrue these expenses in the future.
Total operating expenses of $11,993,185 reflects a decrease of $13,864,818, or approximately 54%, for the 2007 fiscal year as compared to operating expenses of $25,858,003 for the 2006 fiscal year. The significant operating expenses reported for the 2006 fiscal year resulted from the inclusion of $23,199,110 in impairment of our oil and gas properties, which was not taken in 2007. The impairment was taken in conjunction with the re-evaluation of our reserves. General and administrative expenses decreased slightly by $22,464, or approximately 2%, from $1,339,920 in the 2006 fiscal year to $1,317,456 in the 2007 fiscal year. We also incurred a put option expense of $2,727,186 during the fiscal year ended March 31, 2007. We had no similar expense during the fiscal year ended March 31, 2006. Interest expense was $456,683 in the 2007 fiscal year, as compared to $221,445 in the 2006 fiscal year. The increase during the 2007 fiscal year was due primarily to the increase in the amount of money loaned to us by Lothian for development of our properties. 2007 fiscal year operating expenses include a $6,125,233 loss on the sale of oil and gas assets.
Production and operating expenses were $1,320,401 during the 2007 fiscal year as compared to $259,290 in production and operating expenses during the 2006 fiscal year, an increase of $1,061,111 or approximately 401%. This significant increase in production and operating expenses was the result of higher salt water disposal charges and charges for field labor. Depreciation and depletion expense for the 2007 fiscal year was $490,507 as compared to depreciation and depletion expense of $1,027,155 for the 2006 fiscal year, a decrease of $536,648 or approximately 52%. The decreased depreciation and depletion expense resulted primarily from the reduction of proved properties due to the impairment of assets in the 2006 fiscal year.
Our current assets increased by $1,975,877 or approximately 849%, from $232,791 at March 31, 2006 to $2,208,668 at March 31, 2007. The increase in our current assets was due primarily to cash and receivables related to the Asset Sale. Current liabilities increased from $1,998,447 at March 31, 2006, to $3,427,471 at March 31, 2007, an increase of $1,429,024 or approximately 72%. The increase in current liabilities was due to increased accounts payable and accrued interest on the related party notes payable. Working capital was a deficit of $1,218,803 at March 31, 2007 as compared to the March 31, 2006 deficit of $1,765,656, a decrease of $546,853 or approximately 31%. The decreased deficit was due primarily to the Asset Sale.
Cash of $642,211 was provided by investing activities during the 2007 fiscal year and cash of $1,908,815 was used in investing activities for the 2006 fiscal year. Net cash provided from investing activities for the 2007 fiscal year consisted of the proceeds from the sale of our New Mexico properties, which totaled $6,613,947. Cash of $5,971,736 was used for capital expenditures for our oil and gas properties and for the purchase of equipment. During the 2006 fiscal year, cash flows used in investing activities related primarily to capital expenditures for our oil and gas properties.
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