Norris Industries Reports Q3 Net Loss of $156,461, Revenue Decline

Norris Industries, Inc. reported its financial results for the three and nine months ended November 30, 2024, revealing a net loss of $156,461 for the third quarter, compared to a loss of $143,007 in the same period last year. For the nine-month period, the company recorded a net loss of $443,354, slightly improved from a loss of $448,355 in the prior year. Total revenues for the third quarter were $81,744, down from $87,112 in the previous year, while revenues for the nine months increased to $259,018 from $251,070. The decrease in quarterly revenue was attributed primarily to a reduction in production levels.

Operating expenses for the third quarter of 2024 were $188,536, a decrease from $198,207 in the same quarter of 2023. Lease operating expenses slightly decreased to $147,192, while general and administrative expenses fell to $26,851 from $31,958. For the nine-month period, operating expenses totaled $584,317, down from $605,082, with a notable reduction in lease operating expenses attributed to lower production. The company also reported an increase in interest expenses, which rose to $49,669 for the third quarter and $118,055 for the nine-month period, reflecting additional draws from related party loans.

In terms of strategic developments, Norris Industries has focused on enhancing its operational capabilities and exploring acquisition opportunities. The company has been actively seeking to identify and acquire oilfield services and other non-oilfield companies to diversify its revenue streams. As of November 30, 2024, the company had cash on hand of $78,963 and a negative working capital of approximately $9,400. The company has also extended its line of credit with JBB to $4,300,000, with availability of $500,000 as of the reporting date.

Operationally, Norris Industries has been managing its oil and gas properties primarily located in Texas. The company reported a total of 29 Mbbl in oil net reserves and 150 MMcf in natural gas net reserves, a decrease from the previous year due to production challenges. The company plans to focus on existing fields and consider larger-reserve properties for acquisition, aiming to implement Enhanced Oil Recovery (EOR) methods to improve revenues. The management anticipates that ongoing geopolitical tensions and economic conditions may continue to impact operations and financial performance, necessitating cost-cutting measures and potential financing to support operations.

Looking ahead, Norris Industries aims to increase shareholder value by growing reserves, production, and cash flow. The company is exploring various strategies, including selective acquisitions and partnerships, to enhance its operational footprint. However, management has acknowledged the uncertainty surrounding future financing and operational capabilities, emphasizing the need for additional capital to sustain operations and pursue growth initiatives. The company’s ability to navigate these challenges will be critical to its future performance and stability in the volatile oil and gas market.