ISRAMCO, INC. Reports First Quarter Results

HOUSTON, May 10, 2013

The Company reported net loss of $509,000, or $(0.19) per share, for the first quarter 2013 compared to net income of $1,542,000, or $0.57 per share, for the same period in 2012. This decrease was primarily due to net gain of $3,650,000 on sale of our investment in shares of Jerusalem Oil Exploration Ltd, ("JOEL") a related party in 2012, lower crude oil and NGLs sales revenues as a result of the decrease in crude oil and NGLs prices and oil production volumes which were partially offset by increase in revenues from well service activities, and net loss on derivative contracts recorded in 2012.

On March 31, 2013 the Tamar Field began its first sales of natural gas and the impact to the Company will occur during the second quarter.  The Company owns a 1.5375% (2.7375% after payout) overriding royalty interest in the Tamar Field, which is a significant gas field located in the Eastern Mediterranean and operated by Noble Energy, Inc.

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 per share income)
	For the Three Months Ended March 31, ARIVA.DE Börsen-Geflüster Kurse Isramco -   0,00%
	2013	2012
STATEMENT OF OPERATIONS DATA
Revenues	$11,452	$11,464
Total operating expenses	10,673	9,538
Operating income	779	1,926
Net income (loss)	(509)	1,542
Earnings (loss) per share – basic and diluted	(0.19)	0.57
CASH FLOW DATA
Net cash provided by operating activities	1,913	5,460
Net cash provided by (used in) investing activities	(4,937)	1,020
Net cash provided by (used in) financing activities	3,083	(7,465)
	March 31, 2013	December 31, 2012
BALANCE SHEET DATA
Current assets	$  18,895	$  17,386
Total assets	156,310	153,958
Total liabilities	138,004	135,143
Total shareholders' equity	18,306	18,815

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 2012, 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.