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Show Buttes Gas Reports Earnings For 9 Months Buttes Gas & Oil Co., which maintains a field office in Moab under the direction of Robert R. Norman, this week reported report-ed record net revenues for the nine month period ending end-ing Sept. 30, 1970, of $6.. 224,833. up 25 per cent from the $4,963,215 re. ported for the like period of 19G9. Cash flow for the period per-iod was Sl.637,983 versus the $1,641,904 for last year. Net income, reflecting reflect-ing sharply increased interest in-terest costs for the period was $333,004 for the first nine months, equal to 10 cents per share on an average av-erage 3,487.939 shares outstanding. out-standing. This compares to net income of 8892,223 or 27 cents per share on an average of 3,302,087 shares outstanding for the same period of 1969. Commenting on these results, John Boreta, President Pre-sident of Buttes, looked for improved results in the fourth quarter and fharply improved resulrs throughout 1971. He stated stat-ed that the recent reductions reduc-tions cf the Frime Rate of interest will prove helpful help-ful in bringing the Company's Com-pany's interest charges down in future quarters because a substantial portion por-tion of the Company's borrowings are based on the Prime Rate. He mentioned that exploration ex-ploration under the Company's Com-pany's 170 exploration program pro-gram was now well uni?er way with about 20 wells expected to be drilled before be-fore the end of the year. Mr. Boreta also noted a GO per cent increase in petroleum revenues for the reporting period which he stated, was directly attributable at-tributable to new production produc-tion increasing some of Buttes' secondary oil recovery re-covery projects. These water wa-ter floods, he said, are independent of the Company's Com-pany's Juniper properties which are subject to a production payment due to he retired early next year, and he forecasted an even greater increase in oil revenues over the coming year. He also noted not-ed that gas sales in the Company's principal gas fields are still suffering from purchase deficiencies deficien-cies under "take or pay" contracts. Referring to Buttes' ex-ploration ex-ploration concession in the Arabian Gulf, Mr. Boreta disclosed that mediation me-diation to assist in settling settl-ing the territorial dispute between the Trucial States Stat-es of Sharjah and Umm al-Qaiwain is still underway. |