HOUSTON, Aug. 9 /PRNewswire-FirstCall/ -- ISRAMCO, INC. (Nasdaq: ISRL) reported today that second quarter 2010 revenues were $9,527,000, compared to $7,399,000 in the second quarter of 2009, an increase of approximately 28.8%. The largest components of revenue in the second quarter of 2010 were oil and gas sales, which increased by approximately 31.4% when compared to same period of 2009, due to higher natural gas, oil and condensate and NGLs commodity prices.

The Company reported net income of $966,000 or $0.36 per share for the second quarter of 2010 compared to net loss of $8,014,000 or ($2.95) per share for the same period in 2009. The increase in net income was primarily attributable to a $12,421,000 increase in gain on swap transactions and a $2,128,000 increase in revenues. This was partially offset by a $1,456,000 increase in lease operating expenses, transportation and taxes and a $4,707,000 increase in income tax benefit (expense).

The Company reported net income of $2,323,000, or $0.85 per share, for the six months ended June 30, 2010, as compared to a net loss of $6,224,000, or ($2.29) per share, for the comparable six month period in 2009. The increase recorded during the six months ended June 30, 2010 is primarily attributable to a $8,380,000 increase in gain on swap transactions, a $5,286,000 increase in revenues and a $2,039,000 decrease in depreciation, depletion and amortization expense. This was partially offset by a $2,691,000 increase in lease operating expenses, transportation and taxes and a $4,484,000 increase in income tax benefit (expense).

There are currently 2,717,691 shares of Common Stock issued and outstanding.

ISRAMCO's unaudited quarterly results are summarized below (in thousands except for shares outstanding and per share amounts):



                                 For the Three
                                     Months           For the Six Months
                                Ended June 30,          Ended June 30,
                                --------------          --------------
                                  2010      2009       2010         2009
                                  ----      ----       ----         ----
    STATEMENT OF OPERATIONS
     DATA

    Revenues                    $9,527    $7,399    $19,692      $14,406

    Total operating expenses    10,144     8,881     19,663       18,142

    Operating income (loss)       (617)   (1,482)        29       (3,736)

    Net income (loss)              966    (8,014)     2,323       (6,224)

    Earnings (loss) per share -
     basic and diluted            0.36     (2.95)      0.85        (2.29)

    CASH FLOW DATA

    Net cash provided by
     operating activities                             5,460       10,685

    Net cash provided by (used
     in) investing activities                        (1,914)         559

    Net cash used in financing
     activities                                      (2,529)     (11,461)


                                                               December
                                                  June 30,        31,
                                                       2010         2009
                                                       ----         ----
    BALANCE SHEET DATA

    Current assets                                  $18,576      $18,879

    Total assets                                    171,616      176,318

    Total liabilities                               155,499      162,585

    Total shareholders' equity                       16,117       13,733

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.