NGAS - Sector: Energy --- Industry: Oil & Gas Operations

[setravis]

Is this a cup and handle,or is this handle just to small
Put your two cents in!!!!

[setravis]

MAKIN A MOVE +8.24% VOLUME BUILDING

[eliteG]

this one is outta here...with that volume...amazing pattern if you look at the 3 year!! 

I'm in, thx (applaud)

[setravis]

this one is outta here...with that volume...amazing pattern if you look at the 3 year!!

I'm in, thx (applaud)

That is an amazing chart.     It makes me Happy!

[eliteG]

seriously!  you see a chart like that, a powerful rectangle consolidation(1.5 years in the making) breakout to the upside with volume...its just instantaneous happy.  If I was an investor(i know crazy talk) I would park my money right here!  The name is even cool NGAS.  What stock do you own?  NGAS.  Thats cool man...cool.  LOL   

[Pete]

What's up with NGAS. Anybody??? 6% down for me another 4% and I will have to trade my plan and sell out  . Hope not...
P

[AustinPowers]

I think the natural gas report was negative today so the stock is pulling back.  It was off to the races before the report.

[cumulina]

I'm glad I kept NGAS:

Looks like there is some movement today.

[setravis]

I'm still holding mine. A nice move to the upside today.
Resistance @ $8.04, Support @ $7.73.


Coverage initiated on NGAS Resources by Harris Nesbitt
Briefing.com (Wed 6:51am) 
Upgrades & Downgrades History

UPGRADES & DOWNGRADES HISTORY   
Date Research Firm Action From To
27-Jul-05 Harris Nesbitt Initiated  Outperform
28-Jun-05 First Albany Initiated  Strong Buy
10-Jun-05 Morgan Joseph Initiated  Buy

[setravis]

 
A nice move.

Last Trade: 8.18
Trade Time: 2:05PM ET
Change:  0.43 (5.55%)
Prev Close: 7.75
Open: 7.87
Bid: 8.14 x 300
Ask: 8.18 x 400
1y Target Est: 10.00

  Day's Range: 7.71 - 8.48
52wk Range: 3.74 - 8.09
Volume: 916,008
Avg Vol (3m): 312,536
Market Cap: 130.83M
P/E (ttm): 84.33
EPS (ttm): 0.10
Div Yield (ttm): N/A (N/A)

[setravis]

end of the day chart.

[snowcat]

MFIC down again due to nano interest from investors. 

ENY interest here?  You bet!  Canadian oil driller up 10% today - in fact, oil consulting companies ENG +8% and TGE +5% had swell days.
ENY had a bo from a long base.  One to watch!
http://stockcharts.com/def/servlet/SC.web?c=eny,uu[r,a]daclyyay[dc][pb5!b9!c50!d20,2!h.02,.20!f][vc60][iut!Lb14!Ld18!Ll14!Lah12,26,9!Lm10!Lj[$spx]]&pref=G

!!

[setravis]

And the beat goes on.......

********************************************************

NGAS RESOURCES INC Earnings Conference Call (Q2 2005)
Scheduled to start Tue, Aug 16, 2005, 10:00 am Eastern

[setravis]

Form 10-Q/A for NGAS RESOURCES INC


--------------------------------------------------------------------------------

12-Aug-2005

Quarterly Report



ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

* * *
RESULTS OF OPERATIONS

Revenues. Total revenues for the quarter ended March 31, 2005 were $20,010,246, an increase of 29% from $15,565,882 in the same quarter last year. Our revenue mix for the first quarter of 2005 was 83% contract drilling, 15% oil and gas production and 2% natural gas transmission and compression. For the first quarter of 2004, our total revenues were derived 92% from contract drilling, 5% from oil and gas production and 3% from natural gas transmission and compression activities.

Contract drilling revenues were $16,677,000 for the first quarter of 2005, up 16% from $14,326,125 in the first quarter of 2004. This reflects both the size and the timing of Drilling Program financings, from which we derive substantially all our contract drilling revenues. Upon the closing of Drilling Program financings, DPI receives the net proceeds from these financings as customers' drilling deposits under turnkey drilling contracts with the programs. We recognize revenues from drilling operations on the completed contract method as the wells are drilled, rather than when funds are received. Drilling operations for our 2004 year-end Drilling Program were ongoing during the first quarter of 2005, when we drilled 57 gross (16.7549 net) natural gas wells.

Production revenues were $2,875,788 for the first quarter of 2005, an increase of 263% from $791,289 in the first quarter of 2004. This reflects an increase of 175% in our production volumes to 396.8 Mmcfe in the first quarter of 2005 from 144.1 Mmcfe in the same quarter last year. Our growth in production volumes resulted from new wells brought on line since March 31, 2004 and wells added from property acquisitions in the second half of 2004. The growth in production revenues also reflects a 32% increase in our average sales price of natural gas (before certain transportation charges) to $7.26 per Mcf in the first quarter of 2005 from $5.51 per Mcf in same quarter last year, reflecting continued strength in natural gas prices. Principal purchasers of our natural gas production are gas marketers and customers with transmission facilities near our producing properties. During the first quarter of 2005, approximately 45% of our natural gas production was sold under fixed-price contracts and the balance primarily at prices determined monthly under formulas based on prevailing market indices.

Gas transmission and compression revenues were $457,458 during the first quarter of 2005, up 2% from $448,468 in the first quarter of 2004. This reflects continued reliance on our own gathering systems for our new wells, generating transmission and compression revenues from the Drilling Programs, net of our working interests in those wells. During the first quarter of 2005, we extended our natural gas gathering systems for new wells by approximately 29 miles. Our gas transmission and compression revenues for the first quarter of 2005 also reflect a contribution of $149,141 from gas utility sales, up 29% from $115,752 in the same quarter last year.

Expenses. Total direct expenses increased by 25% to $13,521,410 for the first quarter of 2005 compared to $10,829,240 for the first quarter of 2004. Our direct expense mix for the current reported quarter was 91% contract drilling, 6% oil and gas production and 3% natural gas transmission and compression. For the first quarter of 2004, our total direct expenses were incurred 93% in contract drilling, 3% in oil and gas production and 4% in natural gas transmission and compression.

Contract drilling expenses were $12,369,805 during the first quarter of 2005, an increase of 22% from $10,135,062 in the same quarter last year. This primarily reflects the substantial level of drilling activities on behalf of our sponsored Drilling Programs and an increase in the average depth of our new wells. The greater well depth adds incrementally to variable costs for outside contractors, well completion complexities and expenditures and steel casing requirements, prices for which have increased substantially. In response to these developments, we increased the price established for drilling and completing new wells under turnkey drilling contracts for our most recent Drilling Programs.

Production expenses were $758,821 in the first quarter of 2005, compared to $285,312 in the same quarter last year, reflecting our substantial growth in production volumes. In addition to lifting costs, production expenses include field operating and maintenance costs, related overhead, third-party transportation fees and lease operating

expenses. As a percentage of oil and gas production revenues, production expenses decreased to 26% in the first quarter of 2005 from 36% in the same quarter last year.

Gas transmission and compression expenses in the first quarter of 2005 were $392,784, compared to $408,866 in the same quarter last year. As a percentage of gas transmission and compression revenues, these expenses decreased to 76% in the current reported quarter from 91% in the first quarter of 2004, reflecting economies of scale and field operating efficiencies. Gas transmission and compression expenses do not reflect capitalized costs of $1,506,427 in the first quarter of 2005 for extensions of our gas gathering systems and additions to dehydration and compression capacity required to bring new wells on line.

Selling, general and administrative ("SG&A") expenses were $3,506,825 in the first quarter of 2005, an increase of 10% from $3,185,518 in the same quarter last year, primarily reflecting the timing and extent of our selling and promotional costs for sponsored Drilling Programs. The higher SG&A expenses for the first quarter of 2005 also reflect costs for supporting expanded operations as a whole, including additions to our staff and technology infrastructure as well as increased salary and other employee related expenses. With the expansion of our operations, we also achieved various economies of scale, reflected by a decrease in SG&A expenses as a percentage of total revenues to 17% in the current reported quarter compared to 20% in the first quarter of 2004.

Beginning in 2004, we adopted the fair value method of accounting for employee stock options. Under the new method, employee stock options are valued at the grant date using the Black-Scholes valuation model, and the compensation cost is recognized ratably over the vesting period. In addition to an accrual of $109,038 for deferred compensation costs, we recognized $143,570 in the first quarter of 2005 from fair value accounting for employee stock options, compared to $30,074 in the same quarter last year.

Depreciation, depletion and amortization ("DD&A") was $1,046,555 in the first quarter of 2005, compared to $206,111 in the same quarter of 2004. The increase in DD&A reflects additions of $48.0 million to oil and gas properties and $6.3 million to gas gathering systems and well equipment since March 31, 2004.

Interest expense for the first quarter of 2005 was $508,753, compared to $89,168 in the first quarter of 2004. This reflects higher total debt to support our SME acquisition in October 2004, when we added $14.7 million of bank debt and $6.1 million of convertible debt, together with our most recent convertible note financing of $8.0 million to support ongoing drilling and gas gathering initiatives. See "Liquidity and Capital Resources" below.

We recognized income tax expense of $618,501 in the first quarter of 2005, all of which was recorded as a future tax liability. This primarily reflects a 15% allocation of intangible drilling costs from our Drilling Programs, which reduces our cash outlays that would otherwise be required for current income taxes.

Net Income. We realized net income of $737,066 for the first quarter of 2005, compared to $767,241 in the first quarter of 2004, reflecting the foregoing factors. Basic earnings per share were $0.05 based on 15,689,872 weighted average common shares outstanding in the first quarter of 2005, compared to $0.06 per share based on 12,052,183 weighted average common shares outstanding in the same quarter last year.

The results of operations for the quarter ended March 31, 2005 are not necessarily indicative of results to be expected for the full year.

* * *

[setravis]

Form 10KSB/A for NGAS RESOURCES INC


--------------------------------------------------------------------------------

9-Aug-2005

Annual Report



Item 6. Management's Discussion and Analysis of Financial Condition and Results
of Operations
* * * Liquidity and Capital Resources
Liquidity. Net cash provided by our operating activities in 2004 was $7,267,556. Our cash position during 2004 was decreased by the use of $52,691,249 in investing activities, reflecting net additions of $53,755,431 to our oil and gas properties. These investments were funded in part with proceeds from institutional private placements of our common stock and convertible notes and from bank borrowings. See "Capital Resources" below. As a result of these activities, net cash decreased from $22,594,993 at December 31, 2003 to $11,849,372 at December 31, 2004.
Net cash provided by our operating activities in 2003 was $11,718,804. Our cash position during 2003 was increased by $12,570,183 from financing activities, consisting primarily of proceeds from the issuance of our common shares and convertible notes. Our cash position was decreased by the use of $8,725,301 in investing activities, comprised primarily of $7,346,345 in net additions to our oil and gas properties and $1,341,701 in the purchase of property and equipment. As a result of these activities, cash and cash equivalents increased from $7,031,307 at December 31, 2002 to $22,594,993 as of December 31, 2003.
As of December 31, 2004, we had a working capital deficit of $3,266,571. This reflects wide fluctuations in our current assets and liabilities from the timing of customers' deposits and expenditures under turnkey drilling contracts with our Drilling Programs. Since these fluctuations are normalized over relatively short time periods, we generally do not consider working capital to be a reliable measure of liquidity. The working capital deficit at the end of 2004 is not expected to have an adverse effect on our financial condition or results of operations in future periods.


--------------------------------------------------------------------------------

Table of Contents
Capital Resources. Our business involves significant capital requirements. The rate of production from oil and gas properties generally declines as reserves are depleted. Without successful development activities, our proved reserves would decline as oil and gas is produced from our proved developed reserves. Our long term performance and profitability is dependent not only on developing existing oil and gas reserves, but also on our ability to find or acquire additional reserves on terms that are economically and operationally advantageous. To fund our ongoing reserve development and acquisition activities, we have relied on a combination of cash flows from operations, bank borrowings and private placements of our convertible notes and equity securities, as well as participation by outside investors in our sponsored Drilling Programs.
We completed two institutional private placements of common stock during both 2004 and 2003. The terms of these financings are summarized in the following table:


                                                   Per Share
                                Number of         Subscription
         Closing Date         Shares Issued          Price            Proceeds
         June 13, 2003               900,000     $         2.85     $  2,565,000
         December 31, 2003         1,303,335               4.50        5,865,000
         April 28, 2004              975,000               5.98        5,832,450
         November 2, 2004            279,330               5.37        1,500,000

         Total                     3,457,665                        $ 15,762,450




The proceeds from these equity financings and from convertible note financings described below have been allocated primarily to construction of gas gathering lines and our investments in sponsored Drilling Programs. See "Business - Gas Gathering Facilities" and " - Drilling Programs." A portion of the proceeds from the second equity financing in 2003 were received immediately after year end, resulting in the issuance of all the shares covered by the financing in January 2004 and their classification as common shares to be issued at December 31, 2003.


* * *
Item 7. Financial Statements
Index to Consolidated Financial Statements
Page Report of Independent Registered Public Accounting Firm F-1 Consolidated Balance Sheets - December 31, 2004 and 2003 F-2 Consolidated Statements of Operations - For the years ended F-3 December 31, 2004, 2003 and 2002
Consolidated Statements of Changes in Shareholders' Equity - For the years ended
December 31, 2004, 2003 and 2002 F-4 Consolidated Statements of Cash Flows - For the years ended F-5 December 31, 2004, 2003 and 2002
Notes to Consolidated Financial Statements F-6