MercoPress. South Atlantic News Agency

After-tax charges affect Evergreen Resources 3Q earnings

Evergreen Resources Inc. reported a third-quarter loss of $15 million, or a loss of 79 cents per diluted share, compared with net income of $7.1 million or 37 cents per diluted share in the third quarter of 2001.

The Denver-based natural gas company attributed the loss to an after-tax charge to earnings of $22 million for impairment of the company's international assets in the United Kingdom, Ireland, the Falkland Islands and Chile.

Because its two wells in the U.K. are producing below expectations, company officials say they're looking to sell the assets or merge them with another entity.

The company also has five wells in Northern Ireland that also are producing below expectations. However, the company says additional drilling could improve production.

While Evergreen continues to maintain interests and licenses in the Falkland Islands and Chile, it has yet to determine whether the projects can be drilled or monetized as of Sept. 30.

Excluding the after-tax impairment charge to earnings of $22 million, the company said net earnings would have been $7 million or 36 cents per diluted share. The company's natural gas revenues for the third quarter totalled $29.5 million.