Isramco Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported operating loss of $2,064,000, net loss of $2,018,000 or $0.74 per basic and diluted share on revenue of $7,810,000, compared to operating income of $4,276,000, net income of $34,488,000 or $12.69 per basic and diluted share on revenue of $17,866,000 for the same period last year. The decrease in the net loss is primarily attributable to a $49,008,000 decrease in gain on swap transactions, a $10,056,000 decrease in revenues and a $1,033,000 increase in depreciation, depletion and amortization expense. This was partially offset by a $2,553,000 decrease in lease operating expenses, transportation and taxes, a $18,302,000 increase in income tax benefit and an impairment of oil and gas properties in amount of $3,088,000 that was recorded in 2008. For the nine months, the company reported operating loss of $5,800,000, net loss of $8,242,000 or $3.03 per basic and diluted share on revenue of $22,216,000, compared to operating income of $16,709,000, net loss of $5,346,000 or $1.97 per basic and diluted share on revenue of $44,469,000 for the same period last year. Net cash provided by operating activities was $16,394,000, compared to $12,516,000 for the same period last year. The increase in the loss is primarily attributable to a $22,253,000 decrease in revenues, a $5,764,000 increase in depreciation, depletion and amortization expense and a $1,396,000 increase in general and administrative expense.

Isramco Inc. reported unaudited earnings results for the second quarter and six months ended June 30, 2009. For the quarter, the company reported net loss of $8,014,000 or $2.95 basic and diluted per share compared to net loss of $32,186,000 or $11.84 basic and diluted per share for the same period in 2008. The decrease in the loss as compared to the net loss recorded for the same period in 2008, is primarily attributable to a $46,374,000 decrease in loss on swap transactions and a $2,465,000 decrease in lease operating expenses, transportation and taxes. This was partially offset by a $11,474,000 decrease in revenues, a $1,480,000 increase in depreciation, depletion and amortization expense and a $11,510,000 decrease in income tax benefit. The company reported revenues of $7,399,000 and operating loss of $1,482,000 against revenues of $18,873,000 and operating income of $9,272,000 for the same period a year ago. For the six months, the company reported net loss of $6,224,000, or $2.29 basic and diluted per share as compared to a net loss of $39,834,000, or $14.66 basic and diluted per share, for the comparable six month period in 2008. The decrease in the loss is primarily attributable to a $67,070,000 decrease in loss on swap transactions and a $1,533,000 decrease in lease operating expenses, transportation and taxes. The company reported revenues of $14,406,000 and operating loss of $3,736,000 against revenues of $26,603,000 and operating income of $12,433,000 for the same period a year ago.

Isramco Inc. will be added to the Russell 2000 Index.