ISRAMCO, INC. Reports First Quarter Results

HOUSTON, May 10 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that first quarter 2010 revenues were $10,165,000, compared to $7,007,000 in the first quarter of 2009, an increase of approximately 45%.  The largest components of revenue in the first quarter of 2010 were oil and gas sales, which increased by approximately 51% when compared to same period of 2009 due to higher natural gas, oil and natural gas liquids commodity prices.  This increase in revenue was partially offset by a decrease in sales volumes caused by adverse weather conditions in Texas that restricted the Company's ability to access, repair and maintain its wells, along with the natural decline in production.

The Company reported net income of $1,357,000, or $0.50 per share, for the first quarter 2010 compared to net income of $1,790,000, or $0.66 per share, for the same period in 2009.  This decrease was primarily due to the impact of derivatives, a decrease in sales volumes of natural gas, oil and natural gas liquids ("NGLs") caused by adverse weather conditions in Texas that restricted the Company's ability to access, repair and maintain its wells, along with the natural decline in production and higher lease operating expenses, all of which were partially offset by higher natural gas, oil and NGLs sales revenues due to higher prices, lower depreciation, depletion and amortization expenses and lower interest expense.

There are currently 2,717,691 shares of common stock issued and outstanding.

ISRAMCO's unaudited quarterly results are summarized below:

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE "FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE-HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2009, ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.

SOURCE ISRAMCO, INC.