Trek Resources

 

 ______________________________________________________________________________________________

DALLAS, TX, May 10, 2005 – Trek Resources, Inc. (the “Company”) (OTCBB: TREK) today announced that it has completed a “going private” transaction.  Following a 1-for-100 reverse stock split of the Company’s common stock, the Company terminated the registration of its common stock under the Securities Exchange Act of 1934, thereby terminating the Company’s reporting obligations with the Securities and Exchange Commission.

As a result of the going private transaction, the Company’s common stock will no longer be listed on the OTC Bulletin Board. 

 In the reverse stock split, the Company’s common stockholders are entitled to receive cash in the amount of $2.50 per pre-split share in lieu of any fractional shares of post-split common stock.  As a result, holders of fewer than 100 shares of pre-split common stock at the time of the reverse stock split will not remain Trek stockholders.  Holders of more than 100 shares of pre-split common stock received one share of new post-split common stock for each 100 shares of pre-split common stock, plus cash in lieu of any fractional share.

 

Stockholders will receive instructions regarding the method of exchanging old stock certificates for cash and/or stock certificates representing shares of post-split common stock.   Stockholders need not do anything with their stock certificates until they receive instructions.  Copies of certain documents filed by the Company with the SEC relating to the reverse stock split are available without charge at the SEC’s website at http://www.sec.gov or from the Company.

 

Michael E. Montgomery, the Company’s chairman, president and chief executive officer, commented “the resources required to maintain our compliance with the increasingly complex regulations imposed on publicly held companies by the SEC have grown rapidly over the last few years.  These efforts now consume a far greater percentage of our management and financial resources than can be justified by the benefits derived.  Our stockholders will be far better served by the Company directing the resources freed by this change into activities that will contribute directly to the Company’s bottom line.”

 

Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  More information about the Company may be found at the Company’s web site, http://www.trekresources.com/ or by contacting Mr. Montgomery at Trek’s headquarters, 4925 Greenville Avenue, Suite 955, Dallas, Texas 75206, telephone number (214) 373-0318.

 

The Company notes that statements contained in this news release that are not based on historical facts are forward-looking statements and, as such, are subject to uncertainties and risks that could cause actual results to differ materially from those projected or implied by such statements.  These risks, contingencies and uncertainties, many of which are beyond the Company’s control, include those risk factors that are set forth in the Company’s Annual Report on Form 10-KSB for the year ended September 30, 2004, the Company’s Quarterly Report on Form 10-QSB for the quarterly period ending December 31, 2004, and the Company's Reports on Form 8-K, all on file with the U.S. Securities and Exchange Commission.  The Company is not obligated to publicly update or revise these risks, contingencies, uncertainties or forward-looking statements.

Tuesday, May 18, 2004

 

Press Release

 

Trek Announces Second Quarter Earnings

 

DALLAS, May 18, 2004/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TREK) (“Trek” or the “Company”) announced today as stated in the Company’s Quarterly Report on Form 10-QSB that was filed with the Securities and Exchange Commission on May 14, 2004, the Company’s net income for the three months ending March 31, 2004 was $504,320, compared to a net income of $419,749 for the same period in the prior year.  The Company’s results of operations for the second quarter of fiscal 2004 were favorably impacted by lower lease operating costs and the absence of losses on derivative contracts. Offsetting those effects were lower natural gas sales, higher general and administrative costs and higher depletion expense.

 

In the quarter ended March 31, 2004, the Company purchased two producing natural gas wells in Cottle County, Texas.  Trek took over operations of these two wells in April 2004.

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com, and in the Company’s filings with the Securities and Exchange Commission.

 

FORWARD-LOOKING STATEMENTS: This press release may contain certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

 

CONTACT:

 

Michael E. Montgomery

 

214-373-0318 or snelson@trekresources.com

 

______________________________________________________________________________________________

Wednesday, February 18, 2004

Press Release

 

Trek Announces First Quarter Earnings

 

DALLAS, February 18, 2004/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TREK) (“Trek” or the “Company”) announces today as stated in the Company’s Quarterly Report on Form 10-QSB that was filed with the Securities and Exchange Commission on February 17, 2004, the Company’s net income for the three months ending December 31, 2003 was $369,363, compared to a net income of $183,750 for the same period in the prior year.  The Company’s results of operations for the first quarter of fiscal 2004 were favorably impacted by higher oil and gas prices, as well as higher oil and natural gas volumes, coupled with lower general and administrative expenses and lower interest expense. Offsetting those effects were higher lease operating expenses and higher depletion expense.

 

Trek is in the process of drilling and completing four new wells.  Two of these wells are in Cottle County, Texas, one is located in Eastland County, Texas, and one is located in Claiborne Parish, Louisiana.  These drilling activities, including the estimated amount of total expenses and the Company’s respective working interests in each well, are described in Trek’s Form 10-QSB referenced above. There can be no assurance that any of these wells will be successful.

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com, and in the Company’s filings with the Securities and Exchange Commission.

 

FORWARD-LOOKING STATEMENTS: This press release may contain certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

 

CONTACT:

 

Michael E. Montgomery

 

214-373-0318 or snelson@trekresources.com

_____________________________________________________________________________________________

Friday, August 15, 2003

Press Release

 

Trek Announces Third Quarter Earnings

 

DALLAS, August 15, 2003/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TREK) (“Trek” or the “Company”) announces today as stated in the Company’s Quarterly Report on Form 10-QSB that was filed with the Securities and Exchange Commission on August 14, 2003, the Company’s net income for the three months ending June 30, 2003 was $290,897, compared to a net income of $97,121 for the same period in the prior year.  The Company’s results of operations for the third quarter of fiscal 2003 were favorably impacted by higher oil and gas prices and higher gas volumes, coupled with lower general and administrative expenses and the absence of losses on derivative contracts. Offsetting those effects were lower oil volumes and higher lease operating expenses.

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

 

CONTACT:

 

Michael E. Montgomery

 

214-373-0318 or snelson@trekresources.com

 

____________________________________________________________________________________________

Wednesday, May 28, 2003

Press Release

 

Trek Announces $25 Million Credit Facility with Wells Fargo

 

DALLAS, May 28, 2003/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TREK) (“Trek” or the “Company”) announces today that the Company has entered into a new secured credit facility with Wells Fargo Bank Texas, National Association.  This credit facility will allow Trek to borrow up to $25 million from Wells Fargo on a revolving basis, subject to borrowing base limitations.  Trek will use this credit facility to repay its borrowings under its existing loan facility with Compass Bank, which matures on June 1, 2003.

 

The Company’s borrowing base under the new credit facility will be initially set at $11 million.  The borrowing base will be evaluated and reset by Wells Fargo on March 1 and September 1 of each year. 

 

Trek will pay interest on its borrowings under the new credit facility equal to the lesser of LIBOR plus 3.25% or Wells Fargo’s prime rate of interest plus 0.5%.  The new credit facility is secured by a lien on approximately 80% of Trek’s oil and natural gas properties and matures on April 30, 2006.

 

“This credit facility represents a step in the right direction for the Company,” said Michael E. Montgomery, Chairman of the Board and Chief Executive Officer of Trek.  Mr. Montgomery continued,  “In addition to permitting Trek to timely repay its obligations to Compass Bank, this facility will provide additional liquidity for our working capital needs.”

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

 

CONTACT:

 

Michael E. Montgomery

 

214-373-0318 or snelson@trekresources.com

 

___________________________________________________________________________________________

Monday, March 31, 2003

Press Release

 

Trek to Explore Strategic Alternatives

 

DALLAS, March 31, 2003/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TREK) (“Trek” or the “Company”) announces today that the Company is exploring strategic alternatives, including, among other things, a merger, consolidation or other acquisition of the outstanding equity interests in the Company or a sale of all or substantially all of Trek’s assets.

 

Trek has retained Energy Spectrum Advisors Inc. as its financial advisor to assist the Board of Directors in evaluating the Company’s strategic alternatives.  Energy Spectrum Advisors is a Dallas-based investment bank that specializes in advising oil and natural gas companies in various financial matters.

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

 

CONTACT:

 

Michael E. Montgomery

 

214-373-0318 or snelson@trekresources.com

__________________________________________________________________________

Friday, February 21, 2003

Press Release

Trek Announces Reverse Stock Split and First Quarter Earnings

DALLAS, February 21, 2003/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) ("Trek" or the "Company") announces today that at the Company’s Annual Meeting of Stockholders held on February 20, 2003, the stockholders of the Company approved an amendment to Trek’s Certificate of Incorporation to effect a ten-for-one (10:1) reverse stock split of the Company’s shares of common stock, par value $0.01 per share. The effective date for the reverse split will be Monday, February 24, 2003. Each ten shares of the Company’s common stock outstanding on that date will be automatically converted into one share of common stock with a par value of $0.10.

The total number of authorized shares of common stock of the Company will remain unchanged at 50,000,000 shares. The Company will settle any fractional interests of common stock that result from the reverse stock split by paying a proportional amount in cash in lieu of the issuance of fractional shares. Beginning on Monday, February 24, 2003 the company’s common stock will be quoted on the over-the-counter bulletin board under the ticker symbol "TREK."

"I am pleased to see that this reverse stock split is taking place," said Michael E. Montgomery, Trek’s Chief Executive Officer and Chairman. "We hope that the reverse stock split will help increase the trading activity in our common stock and enable our stockholders to realize greater liquidity in their investment."

As stated in the Company’s Quarterly Report on Form 10-QSB that was filed with the Securities and Exchange Commission on February 14, 2003, the Company’s net income for the three months ending December 31, 2002 was $183,750, compared to a net loss of $268,668 for the same period in the prior year. The Company’s results of operations for the first quarter of fiscal 2003 were favorably impacted by higher oil and gas prices, coupled with lower lease operating expenses and general and administrative expenses. Offsetting those effects were lower oil and gas volumes and higher depletion expense. In addition, the Company’s adoption of Financial Accounting Standards Board Statement No. 143 resulted in a $60,000 cumulative loss effect with the related change in accounting principle.

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma. Trek operates approximately 240 producing wells. More information about Trek may be found at the Company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements. These forward-looking statements include information about possible or assumed future results of the Company’s operations. When statements in this press release contain any of the words "believes," "expects," "intends," "anticipates," or similar expressions, the Company is making forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT:

Michael E. Montgomery

214-373-0318 or snelson@trekresources.com

 

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

Trek Announces Financial Results for Fiscal 2002

 

DALLAS, December 17, 2002 / PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) reports today that its results for fiscal 2002 reflect net losses of $898,000, or $.025 per diluted share, compared to a net income of $743,000, or $.02 per diluted share for the prior year.

The Company’s results of operations during fiscal 2002 were unfavorably impacted by lower oil and natural gas prices as well as slightly lower oil volumes, higher depletion expenses and unrealized losses on derivatives. Offsetting those effects were higher gas volumes, lower general and administrative expenses, lower lease operating expenses, and lower interest expense.

Oil and natural gas sales were $5.5 million during fiscal 2002, compared to $7.0 million in fiscal 2001. This decrease was the effect of $1.8 million related to lower prices on oil and natural gas net of $400,000 of increased natural gas sales volumes. Weighted average annual prices were $22.73 per Bbl and $2.85 per Mcf of natural gas during fiscal 2002, compared to $25.83 per Bbl and $4.65 per Mcf in 2001. We sold 147 MBbls of oil during fiscal 2002, versus 149 MBbls in the prior year. Corresponding natural gas sales were 760 MMcf in fiscal 2002 and 676 MMcf in fiscal 2001. The increased natural gas sales volumes resulted primarily from acquisitions of Texas gas producing properties in the third quarter of fiscal 2001.

After the fiscal year end, on December 2, 2002, the company increased it’s equity by $ 1million with a preferred stock issuance.

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets in Texas and Oklahoma. Trek operates approximately 345 producing wells. More information about Trek may be found at the Company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements. These forward-looking statements include information about possible or assumed future results of the company’s operations. When statements in this press release contain any of the words "believes," "expects," "intends," "anticipates," or similar expressions, the company is making forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.

 

CONTACT:

Michael E. Montgomery

(214) 373-0318 or sarahmont@trekresources.com

 

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

Trek Announces Financial Results for Fiscal 2002

 

DALLAS, December 18, 2002 / PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) ("Trek" or "The Company") reports today that its results of operations for the fiscal year ended September 30, 2002 reflect net losses of $898,000, or $.025 per diluted share, compared to net income of $743,000, or $.02 per diluted share for the prior year.

The Company’s results of operations during fiscal 2002 were unfavorably impacted by lower oil and natural gas prices as well as slightly lower oil volumes, higher depletion expenses and unrealized losses on derivative contracts. Offsetting those effects were higher natural gas volumes, lower general and administrative expenses, lower lease operating expenses, and lower interest expense.

Oil and natural gas sales were $5.5 million during fiscal 2002, compared to $7.0 million in fiscal 2001. This decrease was the result of lower prices on oil and natural gas, net of $400,000 of increased natural gas sales volumes. Weighted average annual prices were $22.73 per Bbl and $2.85 per Mcf of natural gas during fiscal 2002, compared to $25.83 per Bbl and $4.65 per Mcf in 2001. Trek sold 147 MBbls of oil during fiscal 2002, versus 149 MBbls in the prior year. Corresponding natural gas sales were 760 MMcf in fiscal 2002 and 676 MMcf in fiscal 2001. The increased natural gas sales volumes resulted primarily from acquisitions of Texas natural gas producing properties in the third quarter of fiscal 2001.

As previously disclosed in the Company's press release and SEC Form 8-K dated December 3, 2002, on December 2, 2002, the Company issued 100,000 shares of its Series A convertible preferred stock to two investors in exchange for $1,000,000.  As a result, the Company's stockholders' equity increased by $1,000,000 on that date.  The Company used the proceeds from this sale of Series A convertible preferred stock to reduce the outstanding balance under its credit facility.

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with assets in Texas and Oklahoma. Trek currently operates approximately 345 oil and gas wells. More information about Trek may be found at the Company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements. These forward-looking statements include information about possible or assumed future results of the company’s operations. When statements in this press release contain any of the words "believes," "expects," "intends," "anticipates," or similar expressions, the company is making forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.

 

CONTACT:

Michael E. Montgomery

(214) 373-0318 or sarahmont@trekresources.com

 

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

Wednesday, October 16, 2002

Press Release

Trek Announces Termination of Merger Discussions

DALLAS, October 16, 2002/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) ("Trek" or the "Company") announces that the merger discussions disclosed in the Company’s press release and filing with the Securities and Exchange Commission that were made on September 26, 2002 have been terminated. The Company conducted significant negotiations with an independent third party concerning a potential merger of Trek with or into a wholly-owned subsidiary of the third party, but negotiations were terminated due to the parties’ disagreement on certain key issues.

"While these merger discussions have terminated, we will continue to monitor opportunities for the Company to engage in other strategic transactions," said Michael E. Montgomery, Trek’s President and Chief Executive Officer.

There can be no assurance that the Company will identify or consummate one or more suitable strategic transactions in the future.

 

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma. Trek operates approximately 240 producing wells. More information about Trek may be found at the Company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements. These forward-looking statements include information about possible or assumed future results of the Company’s operations. When statements in this press release contain any of the words "believes," "expects," "intends," "anticipates," or similar expressions, the Company is making forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT:

Michael E. Montgomery

214-373-0318 or @trekresources.com

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

Thursday, September 26, 2002

Press Release 

Trek Announces Potential Merger

 

DALLAS, September 26, 2002/ PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) (“Trek” or the “Company”) announces that the Company has begun discussions with a third party regarding a potential merger of Trek with or into a wholly-owned subsidiary of the third party.  If approved by the Company’s board of directors and stockholders, as currently proposed, the Company’s stockholders would receive consideration of approximately $0.13 per share if the potential merger is consummated.

Neither the Company nor the third party have entered into any type of binding agreement or arrangement with respect to the potential merger.  There can be no assurance that the potential merger will be consummated with the third party, that it will be consummated in the form currently proposed, that the stockholders will receive the consideration as currently proposed or that the Company will engage in a similar type of merger or related transaction with any other party.

This press release shall not constitute an offer or a solicitation of an offer to buy or sell any securities of the Company or a solicitation regarding the potential merger.

About Trek: Trek is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com.

 

IMPORTANT INFORMATION: In the event that the potential merger proceeds, the Company intends to file a proxy statement regarding the potential merger with the SEC.  Investors and security holders are advised to read any proxy statement regarding the potential merger, when and if the potential merger proceeds and such proxy statement is filed, because it will contain important information about the Company and the merger.  Investors and security holders may obtain free copies of any such proxy statement (when and if it becomes available) and other documents filed by the Company with the SEC at the SEC’s web-site at www.sec.gov.  Investors and security holders are urged to read the proxy statement (when and if it becomes available) and other documents filed by the Company with the SEC before making any voting or investment decision with respect to the merger.

 

Trek and directors Michael E. Montgomery, Dewain V. Hill, Harold H. Ginsburg and Kenneth R. Smith, and certain other Trek executive officers may be deemed to be participants in the solicitation of proxies from stockholders in favor of the potential merger, when and if the potential merger proceeds. The other officers of Trek that may be participants in the solicitation of proxies from stockholders in connection with the potential merger have not been determined as of the date of this filing.  Stockholders may obtain additional information about the interests of the participants by reading any proxy statement (when and if it becomes available) that may be filed in connection with the potential merger.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  All statements other than statements of historical fact are statements that could be deemed forward-looking statements.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the SEC.

 CONTACT:

 Michael E. Montgomery

 214-373-0318 or sarahmont@trekresources.com

 

 

Trek Announces Financial Results for Fiscal 2001

  

DALLAS, January 7, 2002 / PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) reports today that its results for fiscal 2001 reflect net earnings of $743,000, or $.02 per diluted share, compared to a net income of $491,000, or $.01 per diluted share for the prior year.  Ernst & Young, LLP, completed the Company’s financial audit for fiscal 2001.

The Company’s results of operations during fiscal 2001 were favorably impacted by acquisitions and the resulting increase in oil and natural gas volumes.  Offsetting those effects were lower oil prices, higher general and administrative expenses, lease operating expenses, interest expense, and realized losses on derivatives.

Oil and natural gas sales were $7 million during fiscal 2001, compared to $2.9 million in fiscal 2000.  Approximately $3.7 million of this increase was due to additional sales volume in fiscal 2001, primarily resulting from current and prior year acquisitions.  The remaining $400,000 of this increase was due to higher gas prices ($900,000) offset by lower oil prices ($500,000).  Weighted average annual prices were $25.83 per Bbl and $4.65 per Mcf of natural gas during fiscal 2001, compared to $28.92 per Bbl and $3.39 per Mcf in 2000.  We sold 149 MBbls of oil during fiscal 2001, versus 46 MBbls in the prior year.  Corresponding natural gas sales were 676 MMcf in fiscal 2001 and 454 MMcf in fiscal 2000.  The increase in oil sales volume was substantially due to acquisitions during the third and fourth quarters of fiscal 2000.  The increase in gas volumes resulted from acquisitions of producing properties during the third and fourth quarters of fiscal 2000 and 2001.

 

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 340 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.  

CONTACT:

Michael E. Montgomery 

(214) 373-0318 or sarahmont@trekresources.com

 

 

Friday, November 16, 2001

Press Release

Trek Announces Streamlining of Management Responsibilities

DALLAS, November 16, 2001 / PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) announces that Frank M. Cheatham, Trek’s current Vice President and Chief Financial Officer, has resigned from his positions with the company effective immediately in order to pursue other opportunities.  In an effort to consolidate and streamline management functions, Mr. Cheatham’s responsibilities will be assumed by Mr. Michael E. Montgomery, Trek’s President and Chief Executive Officer. 

“We appreciate the significant contributions that Frank has made to company,” said Mr. Montgomery.  “We wish him well in his future endeavors.”

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.

CONTACT:

Michael E. Montgomery

214-373-0318 or sarahmont@trekresources.com

 

Thursday, October 4, 2001

Press Release

Trek Announces OTC Bulletin Board Listing and Completion of SEC Registration Process

DALLAS, October-4 / PRNewswire / -- Trek Resources, Inc. (OTCBB: TKRD) announces that the National Association of Securities Dealers has approved its application for quotation on the OTC Bulletin Board effective October 2, 2001. 

Furthermore, Trek has learned that the Securities and Exchange Commission (the “SEC”) has completed its review of the company’s registration statement and related amendments on Form 10-SB and has no further comments.  As a result of the registration process, Trek now files periodic reports with the SEC as required by the Securities Exchange Act of 1934, as amended. 

“These are important steps for Trek in pursuit of its goal to achieve a listing with the Nasdaq Stock Market or another national securities market, such as the New York or American Stock Exchange, as we work to improve the marketability and liquidity of our common stock and the net asset value of the company,” said Mr. Michael E. Montgomery, Trek’s President and Chief Executive Officer.

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the company’s web site, www.trekresources.com.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.

CONTACT:

Michael E. Montgomery

214-373-0318 or sarahmont@trekresources.com

 

Friday, August 10, 2001

  Press Release

Trek Announces Third-Quarter Results and Operations Update

DALLAS, August-10 / PRNewswire / -- Trek Resources, Inc. (Pink Sheets: TKRD) reports preliminary income of $146,000, or $.004 per diluted share, for its fiscal 2001 third quarter ended June 30, 2001, compared to a net loss of $30,000, or $.002 per share, for the comparative quarter last year. 

 

Third-Quarter to Comparative Prior Year Quarter

 

The company’s results of operations for the third quarter of fiscal 2001 benefited from current and prior year acquisitions, as well as higher average current quarter prices for oil and natural gas.  These effects were offset by the cost of initial repairs and workovers on acquired properties, general and administrative expenses and interest expense, as Trek continued to develop all aspects of its business. 

 

Approximately $1.2 million of the increase in oil and gas revenues during the current quarter resulted from additional sales volume, primarily as a result of current and prior year acquisitions.  The remainder of the increase was due to oil and natural gas prices being higher than they were during the same period a year ago.  Additional lease operating expenses, including approximately $150,000 of expenditures for initial repairs and workovers, also resulted from the acquisitions.

 

General and administrative expenses during the current quarter increased significantly because of fees associated with the preparation of a registration statement on Form 10-SB.  The document, which is currently under review, was filed with the Securities and Exchange Commission (the “SEC”) in March 2001 and was subsequently amended and re-filed in May and July 2001.  Also affecting the current quarter were the cost of staff additions, interest from additional borrowings and depreciation, depletion and amortization associated with acquisitions. 

 

Nine-Month Results

For the first nine months of fiscal 2001, Trek reported net income of $941,000 or $.027 per diluted share, compared with net income of $5,000 for the first nine months of the prior year.  Consistent with its results of operations on a quarterly basis, the company’s year-to-date results in fiscal 2001 also benefited from the acquisitions that took place during fiscal 2000 and from higher average prices in the current period for oil and natural gas.

 Please see related table for further details.

Operations Update

Subject to rig availability in the east Texas area, Trek intends to drill the Watts Johnson No. 2 well in Rusk County during its fourth quarter.  This is a step out to an existing producing well.  Also in the fourth quarter, Trek expects to plug and abandon the unsuccessful TXL No. 4.  This well was drilled in June 2001 in an attempt to define an extension to the Maryneal Cisco Sand Field in Nolan County, Texas.

In May and June 2001, Trek completed additional acquisitions of oil and gas properties in King and Cottle Counties, Texas for cash totaling $260,000.  The properties are located near existing wells acquired in a recent $1.5 million purchase from Gus Edwards Co.  According to the company’s President and Chief Executive Officer, Mr. Michael E. Montgomery, “We will continue to undertake selective acquisitions that will help us consolidate our holdings in key areas.  This will allow us to operate more efficiently and keep our operating costs down.”

 

About Trek:

 

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 240 producing wells.  More information about Trek may be found at the company’s web site, www.trekresources.com.

 

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the company's filings with the SEC.

CONTACT:

Michael E. Montgomery or Frank M. Cheatham

214-373-0318 or sarahmont@trekresources.com

 

Friday, May 25, 2001

Press Release

Trek Announces Second-Quarter Results and New Acquisition

DALLAS, May-25 / PRNewswire / -- Trek Resources, Inc. (Pink Sheets: TKRD) reports preliminary earnings of $170,000, or $.005 per diluted share, for its fiscal 2001 second quarter ended March 31, 2001, compared to $63,000, or $.002 per share, for the comparative quarter last year. 

The company’s results of operations for the second quarter of fiscal 2001 benefited from acquisitions in late 2000 and increased prices for oil and natural gas.  Offsetting these effects were the cost of initial repairs and workovers on acquired properties, general and administrative expenses and interest expense, as Trek continued to invest in all aspects of its business.  Contributing to the current quarter result was an unrealized loss on derivatives of $86,000, along with related amortization of $62,000 from the cumulative effect of adopting SFAS 133.

Approximately one-half of the increase in oil and gas revenues during the current quarter resulted from additional sales volumes, primarily from acquisitions during fiscal 2000.  The remainder of the increase was due to higher oil and gas prices.  Additional lease operating expenses, including approximately $267,000 of expenditures for initial repairs and workovers, also resulted from the fiscal 2000 acquisitions.

Our general and administrative expenses during the current quarter increased significantly because of fees associated with the preparation of a registration statement on Form 10-SB that was filed in March 2001.  The document is currently under review by the SEC and an amendment is expected to be filed on or before May 25, 2001. 

Also affecting the current quarter were the cost of staff additions, interest from additional borrowings and depreciation, depletion and amortization associated with acquisitions.  “We have been very busy for the past few months,” said Michael E. Montgomery, Trek’s President and Chief Executive Officer.  “I am very pleased with our progress.”

Six-Month Results

For the first six months of fiscal 2001, Trek reported net income of $794,000 or $.022 per diluted share, compared with net income of $35,000 or $.001 per diluted share in the first six months of the prior year.

Acquisition Update

On May 11, 2001, Trek completed an acquisition of oil and gas properties in Cottle and King Counties, Texas from Gus Edwards Co. for $1.5 million cash, subject to adjustment.  According to Mr. Thomas A. Rubis, Trek’s Vice-President of Operations, “This purchase represents the addition of 2.2 Bcf of natural gas reserves, improving our oil and gas value ratio to approximately 47% natural gas and 53% oil.”  The acquisition is for 100% working interests in 13 wells and was effective April 1, 2001.

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates over 200 producing wells.  More information about Trek may be found at the company’s web site, www.trekresources.com.

FORWARD-LOOKING STATEMENTS: This press release contains certain forward-looking statements.  These forward-looking statements include information about possible or assumed future results of the Company’s operations.  When statements in this press release contain any of the words “believes,” “expects,” “intends,”  “anticipates,” or similar expressions, the Company is making forward-looking statements.  Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.  Factors that might cause such a difference include those detailed from time to time in the Company's filings with the Securities and Exchange Commission.

CONTACT:

Michael E. Montgomery or Frank M. Cheatham

214-373-0318 or sarahmont@trekresources.com

 

Tuesday, March 27, 2001

Press Release

Trek Files Registration Statement on Form 10-SB

DALLAS, Mar-27 / PRNewswire / -- Trek Resources, Inc. (Pink Sheets: TKRD), today announces that on March 26, 2001 it filed a Registration Statement on Form 10-SB with the SEC.  By this filing, the company seeks to register its common stock under the Securities Exchange Act of 1934 and become a public reporting company with the SEC.  This filing will also help Trek to pursue a listing on the Nasdaq SmallCap Market.

Incorporated in the Form 10-SB are the company’s financial statements for the three months ended December 31, 2000.  Effective October 1, 2000, the company adopted SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”.  The cumulative effect of adoption on this date, less related amortization during the quarter, and other changes, resulted in an increase in net income from the preliminary results that were reported earlier by Trek.  Because of these changes, the results of operations reported in the Form 10-SB for the three months ended December 31, 2000 now reflect net income of $624,000, or $.018 per diluted share.  The company’s Form 10-SB may be viewed in its entirety within 24-hours of filing by accessing the SEC’s EDGAR Database.

“This filing will certainly increase the marketability of our stock and give us the credibility we deserve,” said Mr. Michael E. Montgomery, Trek’s President and Chief Executive Officer.  “However, our ultimate goal is to achieve a listing with the Nasdaq National Market System or another recognized national exchange, such as the New York or American Stock Exchange.”  

Please see related table for further details.

About Trek:

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates over 200 producing wells.  More information about Trek may be found at the company’s web site, www.trekresources.com.

CONTACT:

Michael E. Montgomery or Frank M. Cheatham

214-373-0318 or sarahmont@trekresources.com

 

 

Monday, February 19, 2001

Press Release

Trek Announces First Quarter Results

DALLAS, Feb-19 / PRNewswire / -- Trek Resources, Inc. (Pink Sheets: TKRD) today reports preliminary earnings of $467,000, or $.013 per diluted share, for its fiscal 2001 first quarter ended December 31, 2000, compared to a net loss of $27,000, or $.002 per share, for the comparative quarter last year. 

The company’s results of operations for the first quarter of fiscal 2001 benefited from acquisitions in late 2000 and increased prices for oil and natural gas.  Offsetting these effects were the cost of repairs and workovers for producing properties, G&A and interest expense as Trek continued to invest in all aspects of its business.  Lower prices and production rates during fiscal 2000 led to the prior period loss.

Approximately one-half of the increase in oil and gas revenues during the current period resulted from additional sales volume, primarily from acquisitions during fiscal 2000.  The remainder of that increase was due to higher oil and gas prices.  These increases were offset in part by a current quarter hedging loss. 

The $720,000 increase in lease operating expenses was almost entirely related to acquisitions.  This increase included approximately $400,000 of expenditures for repairs and workovers in connection with both newly acquired and existing wells.  “Because of the activities that are now under way to enhance production, especially during this period of high prices,” said Michael E. Montgomery, Trek’s President and Chief Executive Officer, “we believe that current and future revenues will continue to benefit.”

“We have invested a lot of capital in the form of G&A this quarter to improve the accounting system, complete audits, and prepare new reserve studies; all of these things being required for both 1999 and 2000,” said Montgomery.  “We have also spent a great deal of time and money working on a Form 10-SB filing with the SEC that will allow us to register our common stock under the Securities Exchange Act of 1934.  This will enable us to reinstate Trek’s public reporting status and permit us to apply for a listing with Nasdaq.”  

Please see related table for further details.

About Trek

Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma. Trek operates approximately 340 producing wells.  More information about Trek may be found at the Company's web site, www.trekresources.com.

CONTACT:

Michael E. Montgomery or Frank M. Cheatham

 214-373-0318

 mikemont@winstarmail.com

 

 

Monday, January 29, 2001

 Press Release

 Trek Announces Special Shareholder Meeting

 Trek Resources, Inc. (Pink Sheets: TKRS), formerly McGowen Resources Company, Inc., today reports that at a special meeting of its shareholders held on January 25, 2001 at 10:00 a.m. CST at the Dallas Petroleum Club, the shareholders of the Company voted to confirm the following actions taken by its Board of Directors:

 Approval of an Agreement and Plan of Merger whereby the Company will change its state of incorporation from Utah to Delaware by means of a merger into a newly created wholly-owned subsidiary.

 Approval of the Board’s proposal to adopt the Company’s 2000 Stock Option Plan.

 “I wanted to have this meeting, not simply to vote on our two agenda items, but to exercise this very important channel we have” said Michael E. Montgomery, the Company’s President and Chief Executive Officer.  “I am the new guy here. I wanted to show what the Company has done in only six short months and to introduce my new Board of Directors and staff.  We are all very excited about moving this company forward.”

 About Trek:

 Trek Resources, Inc. is a Dallas-based domestic oil and gas acquisition and production company with oil and gas assets principally in Texas and Oklahoma.  Trek operates approximately 340 producing wells.  More information about Trek may be found at the Company’s web site, www.trekresources.com.

CONTACT:

Michael E. Montgomery or Frank M. Cheatham

214-373-0318

cheatham@winstarmail.com

 
 
 
TREK RESOURCES, INC.

Wednesday, January 24, 2001

Press Release

Trek Announces Unaudited Financial Results and Reserve Estimates for Fiscal 2000

Trek Resources, Inc., formerly McGowen Resources Company, Inc. (Pink Sheets: TKRS) today reports that its preliminary results for fiscal 2000 and 1999 reflect net earnings of $500,000, or $.01 per diluted share, during 2000 and a net loss of $2.5 million, or $.20 per share, in 1999.  Financial audits of both years by Ernst & Young LLP are nearing completi