Production volumes in the first quarter of 2009 were 198 Mbbls of oil and 1.18 Bcf of natural gas, or 2.4 Bcfe, compared to 229 Mbbls of oil and 1.6 Bcf of natural gas, or 3 Bcfe for the first quarter of 2008. In the first quarter of 2009, the average sales price per barrel of oil was $39.86, and $5.43 per Mcf for natural gas, compared to $100.82 per barrel and $8.58 per Mcf, respectively, for the first quarter of 2008. The primary reasons behind the reduction in revenue were lower production and lower average sales prices in the first quarter of 2009 against the first quarter of 2008. Average price obtained per Mcfe produced was $6.04 in the first quarter of 2009 against $12.40 in the first quarter of 2008, a 51% decline.
Costs and Expenses
Total lease operating expense for the first quarter of 2009 accounted $7 million against $12 million for the first quarter of 2008, down 42%. On a Mcfe produced basis, this was $2.96 for 2009 against $4.06 for 2008, up 27%. DD&A expense was $8.1 million for the first quarter of 2009 and $13.2 million for the first quarter of 2008. Cash G&A expense totaled $3.4 million for the first quarter of 2009 against $3.8 million for the first quarter of 2008. The $0.4 million decrease reflects a continued focus on cost controls. Interest and financing expense was $8.7 million for both the first quarter of 2009 and the first quarter of 2008, primarily linked with payment of 10.5% interest on the $300 million of Senior Secured notes. The company incurred a gain of $ 2.8 million on hedging during the first quarter of 2009 versus an $11.9 million loss in the first quarter of 2008.
Earnings
Preferred stock dividends were $8.9 million in the first quarter of 2009 against $5.7 million in the first quarter of 2008, mainly reflecting the difference in coupon rate of the preferred stock. Net loss per share, both basic and fully diluted, for the quarter was $0.21, based on 101.2 million weighted average shares outstanding as compared to $0.18 in the first quarter of 2008 with 79.6 million weighted average shares outstanding. The increased outstanding common shares are mainly linked with conversion of preferred shares into common shares.
James A. Watt, president and chief executive officer stated, In a press release of April 6, 2009, we outlined the operational plans for the remainder of the year. We are currently executing on that plan while reducing historical G&A and operating costs both on an absolute basis and on a unit basis. We fully understand the challenges facing us and are committed to executing our plan to build long term value for all stakeholders.
